Earlier this year, I had “the Adrenalin Rush” from somewhere within, that made me super motivated. That was the time when I started listening to the Ted Talks , reading stuff that pumped in motivation and I began adding non-fiction books to my to-read list.That’s how I came across Tony Robbins Ted Talk since he is a motivational speaker. I was amazed to watch the way he speaks that made him look 20 years younger and started following him on facebook and watched every video he appeared. I realized one thing in life, if a person is not so successful and talks about his bad childhood and struggles , he will have very few friends or none at all.So the unsuccessful person has to act as if everything was cool so far and normal in his life to get more people around him. Whereas when successful people talk about their struggles and bad childhood, they get more advertisement than people who did not have a bad childhood and were really successful.Tony Robbins is the best example, in my opinion (in the category of successful people).I love watching GMA when authors are being interviewed whenever a book releases.And so I learnt about Tony’s book.
Tony is a very good motivational speaker and keeps us very much engaged. I loved his way of giving back to people and feeding the hungry through the book sale proceeds and truly hats-off to him.But, I feel he needs to stick on to talking rather than writing . The content of the book is too vague and the ratio of this is 1:4. I mean, the content could have been 75% lesser to get to the point of making us money masters.The book is a very good refresher and can be applied to any financial market, though Tony talks about US stock market here.If a reader is a novice, reading the entire book is recommended.He introduces the reader to the different money market instruments along with its pros and cons along with a mock portfolio.
Let me briefly summarize the points.
Save percentage of income and invest it for compound interest.Do not underestimate the power of compounding and invest as early as possible . Cut down spending that does not add any proposition to us.Decide what portion of the paycheck needs investing apart from 401k plan
Avoid the marketing myths:The fund managers of the mutual funds work for the companies and they do not invest in the funds managed by them. Hence, there are 100% chances of them misleading the clients like us that try to invest thereby reducing our return.Getting a deal with the fiduciary is better since they invest in the funds as a trusted member and bear the brunt when the price goes down.
Make the game winnable-Calculate the top 3 financial goals,plan with real numbers and ways to speed up the rewards.Fixed vs.market rate mortgage.Cutting out a separate check for the principal of the next month in a mortgage reduces the overall interest.
Diversify-Earning by developing money market skills and asset allocation techniques – a.cash/cash equivalents for contingencies b.bonds-fixed rate income and invest in low-cost bonds c.Money market deposit funds,short-term bonds d.Market-linked certificate deposits e.Real estate-Home, rent out homes,commercial property,senior homes f.Pension funds g.Annuities h.Structured notes-longer you hold, longer you get. i.treasury bonds protect against inflation j.Corporate bonds.k.Municipal bonds l.Equities m.Exchange Traded Funds (ETFs) n.Real estate investment linked funds o.Commodities-gold,silver,oil,cotton,coffee p.currency trading . Also, come up with all season portfolio- a. Inflation – Commodities,gold inflation-linked bonds(TIPS) b.Deflation-Treasury bonds, stock. c.The rise in the economic growth-stocks,corporate bonds,commodities,gold. d.Declining economic growth-TIPS
Lifetime Income Plan-Resort to dollar cost averaging-invest in a volatile market, rebalance portfolio at regular intervals without impacting the income tax.Invest in annuities that gives guaranteed principal,income increase without downside and no annual management fees.
Invest like 0.001%- Invest like the rich and the prototype could be: 30% on stocks, 40% on long-term US Bonds,15% on Intermediate US Bonds,7.5% on commodities,7.5% on gold(no immediate return since gold is not so liquidating).Richman’s Roth-Private placement life insurance with no tax on investment growth,no tax when accessed,no income liabilities and money left over for heirs not taxable.
Do it, enjoy it, share it
I had rated this book 4/5 just because of the too long content.