In this video, get my MONEY Master the Game book summary and notes that detail 12 lessons that were learned.
Tony Robbins really outdid himself with this book on finance and investing.
Enjoy the video and let me know what you think in the comments below!
- Author: Tony Robbins
- Publishing date: November 18, 2014
1. Most asset managers can’t beat the system even if they say they can.
96% of mutual funds don’t beat the market for a consistent stretch.
2. Invest 10-15% of income each month no matter if the market is up or down.
It's almost impossible to predict what the market will do and when it will do it, so keep investing no matter if it's great or in a slump.
3. Automate investing or you probably won’t do it.
Take a percentage or flat amount of money from your account each month and invest it using an automated service.
4. An index fund like a low-cost S&P 500 is hard to beat long term.
The book constantly talks about index funds and how they are much better for long term investing than a mutual fund or just investing in one or two companies.
5. Mutual funds cost you about 3.17%.
They are 30% more expensive than other funds and usually perform worse than an index.
6. You can’t usually depend on a sum of cash for retirement.
You need to get to where you live off interest from investments.
7. Fund managers aren’t your friends.
Get a good fiduciary for expert advice instead.
8. If at all possible, go for a Roth IRA or 401(k) so you don’t pay more taxes in the future.
These allow you to pay your taxes upfront and avoid higher taxes on in the future.
9. Rule #1: Don’t lose money. Rule #2: Repeat rule #1.
This is something most of the top investors Tony Robbins interviewed seemed to believe in. It's more important not to lose money than to have a chance to make a lot.
10. Your money goes much farther is some areas than others
Whether you change states or change countries, you can make your money go a lot farther if you do a little research on where you could live. For instance, Tony Robbins moved from California to Florida and saved money.
11. Diversify with low-risk, low-cost assets
Not only do you want to diversify companies you are invested in with indexes, you want to diversify indexes, as well as asset classes.
12. Vanguard and TIAA-CREF are on a not-for-profit basis
You can actually count on these companies to offer quality investment services for little cost because there's no conflict of interest.
Other helpful resources:
- Get the MONEY Master the Game book here
- More info on Tony Robbins
- How the economic machine works (explained in 30 minutes)
Other books written by Tony Robbins
- Unshakeable: Your Financial Freedom Playbook
- Awaken the Giant Within: How to Take Immediate Control of Your Mental, Emotional, Physical and Financial
- Unlimited Power: The New Science Of Personal Achievement
- Notes from a Friend: A Quick and Simple Guide to Taking Charge of Your Life