Money. It’s a touchy subject, but it’s something each of us needs to be educated on. Knowledge is potential power, and when put into action becomes abundance in many forms. If we fail to educate ourselves on the topic on money, then chances are slim that we will ever achieve the abundant financial life that we truly desire.
Some of us have some very disempowering beliefs about money. Some think it’s evil, or that only greedy people have lots of money, or that more money in the hands of one person means less money to go around for those who need it. We must ask ourselves where these beliefs came from, and realize that we can always justify our own beliefs, whether they are accurate or not.
“Money: Master the Game” by the great Tony Robbins begins by addressing these core beliefs about money and shows you how you can shift your perception in order to get what you want. Many of us have unconscious resistances when it comes to money, and those are exactly what prevent it from flowing into our lives.
The following quote by the late Sir John Templeton sums up the key to wealth creation quite nicely.
“The more you help others, the more prosperous you will be personally.” -Sir John Templeton
Let’s not always look at money as something we need to acquire, but rather as something that comes into our lives as a result of the value we provide for others.
Now, let’s get into the good stuff!
Time for money is a BAD trade! Become an INVESTOR and let money work for you. Commit to saving a specific % of your income every paycheck—no matter what!
The Power of Compounding
$40 weekly investment grown at 8% annually over 40 years becomes $582,000!
The longer you let your money grow, the more significant the power of compounding becomes. Start investing ASAP! If you’re young, it will be extremely easy for you to accumulate millions of dollarsfor your retirement.
Financial Myths: What You Don’t Know CAN Hurt You!
Here are just a few of the more important myths that Tony mentions in “Money: Master the Game”
Myth #1 – “Invest with us. We’ll beat the market.”
DONT invest in mutual funds. 96% of mutual funds failed to beat the market over any sustained period of time.
DO invest in index funds. Over the last 20 years, the S&P500 has had an average annual rate of return of 9.28% while the average mutual fund averages only 2.54%.
Myth #2 – “Our fees? They’re a small price to pay.”
The average cost of owning a mutual fund is 3.17% annually on average. The cost of owning an index fund can be as low as 0.14%
Even a 1% savings in annual fees can mean hundreds of thousands of dollars in your pocket!
- $100,000 @ 7% annual interest (minus 2% fee) X 30 years = $432,194
- $100,000 @ 7% annual interest (minus 1% fee) X 30 years = $574,349
That is the power of compounding at work. Tony recommends you go through a fiduciary to avoid paying high fees. They are legally required to disclose any potential conflicts of interest.
Myth #5 – “You’re retirement is just a 401(k) away.”
Most 401(k) plans have up to 17 different fees! Tony recommends using “America’s Best 401(k)” because their fees are only 0.75% annually.
To see all 9 financial myths, download my full book notes HERE
5 Strategies to Speed Up Wealth Creation
1. Save more and invest the difference.
- $5 per day @ 10% annual interest = $339,073 in 30 years!
- $15 per day @ 10% annual interest = $1,017,220 in 30 years!
2. Earn more and invest the difference.
“We get paid for bringing value to the marketplace.” -Jim Rohn
If you want to earn more, BECOME more and GIVE more.
3. Reduce fees and taxes and invest the difference.
Go for low-cost index funds to reduce fees.
4. Get better returns.
Choose low-risk investments with high upside potential.
- A 10% return doubles every 7.2 years.
- A 4% return doubles every 18 years.
5. Change your lifestyle for the better.
Consider moving to a different state to avoid paying high taxes. You might also want to consider moving to another country, which can save you over 50% on total expenses in places like Fiji, Costa Rica, Ecuador, Thailand, and many others. That extra money saved, when compounded over time, can mean BIG $$$.
Asset Allocation: The Most Important Aspect of Investing
Where do we invest our money and how do we divide it up?
Rule of thumb: Invest your age in bonds (secure investment). If you are 30 years old, put 30% in low-risk investments like bonds or inflation-linked treasuries.
Ray Dalio’s All Weather Portfolio
Tested and proven to maximize gains and minimize risk even during the worst economic times. This exact portfolio was tested over the last 40 years and produced an average annual return of 9.72%. In 2008, when most markets were down about 50% or more, this exact portfolio would have only lost 3.8%!
- 30% in stocks like the S&P500 (index fund)
- 15% in 7-10 year treasuries.
- 40% in 20-25 year treasuries.
- 7.5% in gold.
- 7.5% in commodities.
Simple, but it works. The results speak for themselves. Of course, always go through a fiduciary so that you avoid paying excessive fees on these investments.
How to Generate a Guaranteed Lifetime Income (say what?!)
Yes, believe it or not, you can use certain types of annuities to lock in a guaranteed income for yourself. Fixed-Indexed Annuities let you participate in stock market gains and keep those gains no matter what! Your investment is totally secure and you also have the option to turn on monthly payments—a guaranteed income until you die!
Example: If you start with $100,000 and make 5%, bringing your total to $105,000, you get to keep that $105,000 no matter what, even if the stock market crashes! AND they give you the option to turn on monthly payments at any time (the longer you wait, the more you will get).
You can go to LifetimeIncome.com to set this type of annuity up.
The Final Secret
GIVING IS THE KEY TO TRUE PROSPERITY.
Money is great, but how we spend it is what matters. I encourage you to go create massive wealth for yourself, and then use that wealth to improve the world in some way. Money is a great tool. We should not be afraid to acquire lots of it, especially when there are many suffering souls out there that could be assisted by our own generosity. And the more we have, the more we can give back.
Your chance to give back: Go to swipeout.com and every time you use your credit card, it will round your purchase up to the nearest dollar and donate your change to help feed children, provide clean drinking water, and free them from slavery (yes, this still happens today, and it’s quite common).
$0.10 = 1 meal.
Your pocket change could truly make a significant difference in someone’s life.
What I’ve given you here is just a brief glimpse of the vast amount of knowledge provided in Tony’s book “Money: Master the Game.” If you want my full notes on the book, about 22 pages worth, you can get them HERE as a member of our book club. I would also encourage you to go get the book for yourself or a loved one.
I honestly never thought I would enjoy a book about finances so much, but I was truly impressed and compelled to share this potentially life-changing information with you and everyone I know. This is a book that can truly change millions of people’s lives. Tony delivered, as usual.
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