Money Master the Game – Tony Robbins

Master the game of money, master the game of life: You’re not a manager of your life’s circumstances – instead, you are the creator of your life.

Climb the Mountain of Financial Freedom

  • Picture your financial journey as a mountain climb
  • 2 phases in acquiring wealth: Accumulation and decumulation
  • 5 levels of financial freedom:
    • Financial security: income supports essentials
    • Financial vitality
    • Financial independence: Passive income > current expenses
    • Financial freedom
    • Absolute financial freedom: Dream lifestyle supported by investment income
  • Clarity is power: need to determine what you need to reach these stages
  • Financial independence formula: monthly expenses x 12 x 20

Speeding it Up: Reaching the Peak Faster

  • Must be owner or an investor
  • Save more: pay yourself first. Best way to save is when you don’t see the money in the first place
  • Earn more
  • Reduce Fees and Taxes: Tax Deferred Accounts + Tax Loss Harvestings
  • Get Better Returns: Don’t lose, risk a little to make a lot, diversify, never stop learning
  • Change your life & lifestyle

The All-Seasons Portfolio

  • Structure a portfolio that will work regardless of how the economy is doing
  • 40% Long-term us bonds, 30% Stocks, 15% Intermediate US Bonds, 7.5% Gold, 7.5% Commodities

Income is the Outcome

  • Market fluctuation has significant impact when you switch from accumulation to decumulation
  • Try an annuity: agreement between insurance company and yourself that you pay them a lump sum and in return they pay you an income
  • Advantage of annuity: higher than fixed income, last until you die
  • Cons: Die early, bankrupting insurance company

3 Ways to Buy Happiness

  • Investing in experiences
  • Buying time for yourself
  • Investing in others