in 2014 Tony Robbins wrote money mastered the game which became an
mastered the game which became an
mastered the game which became an instant bestseller on the New York Times
instant bestseller on the New York Times
instant bestseller on the New York Times list the book contains information
list the book contains information
list the book contains information stemming from interviews with over 50
stemming from interviews with over 50
stemming from interviews with over 50 financial experts if you want to learn
financial experts if you want to learn
financial experts if you want to learn about mastering your money Tony Robbins
about mastering your money Tony Robbins
about mastering your money Tony Robbins has done the work mentor me Tony I want
has done the work mentor me Tony I want
has done the work mentor me Tony I want everybody’s watching to remember one
everybody’s watching to remember one
everybody’s watching to remember one thing
thing
thing the biggest myth you have not the one
the biggest myth you have not the one
the biggest myth you have not the one that’s been sold to you that hurts you
that’s been sold to you that hurts you
that’s been sold to you that hurts you is the average person thinks finance is
is the average person thinks finance is
is the average person thinks finance is so complex because frankly the industry
so complex because frankly the industry
so complex because frankly the industry tries to make it sound complex they use
tries to make it sound complex they use
tries to make it sound complex they use words that you don’t know so you don’t
words that you don’t know so you don’t
words that you don’t know so you don’t know what to do you know what does this
know what to do you know what does this
know what to do you know what does this mean and so what happens is we just give
mean and so what happens is we just give
mean and so what happens is we just give them our money and say deal with it and
them our money and say deal with it and
them our money and say deal with it and we don’t realize that system has been
we don’t realize that system has been
we don’t realize that system has been set up it’s not an evil system it’s set
set up it’s not an evil system it’s set
set up it’s not an evil system it’s set up by corporations they’re looking at
up by corporations they’re looking at
up by corporations they’re looking at maximize profit for those corporations
maximize profit for those corporations
maximize profit for those corporations they’re not looking out for the investor
they’re not looking out for the investor
they’re not looking out for the investor because this investor second and we
because this investor second and we
because this investor second and we think we’re first and we’re not so the
think we’re first and we’re not so the
think we’re first and we’re not so the first piece is you got to know that
first piece is you got to know that
first piece is you got to know that you’ve got to you can’t wait till you
you’ve got to you can’t wait till you
you’ve got to you can’t wait till you have a ton of money to start investing
have a ton of money to start investing
have a ton of money to start investing and think I’m not an investor what you
and think I’m not an investor what you
and think I’m not an investor what you got to do is say rather than my Apple
got to do is say rather than my Apple
got to do is say rather than my Apple phone let me own Apple stock let me own
phone let me own Apple stock let me own
phone let me own Apple stock let me own a piece of all the best companies not
a piece of all the best companies not
a piece of all the best companies not just Apple I’ve got to become an owner
just Apple I’ve got to become an owner
just Apple I’ve got to become an owner or I’ll always be in scarcity if you can
or I’ll always be in scarcity if you can
or I’ll always be in scarcity if you can invest in business even a small amount
invest in business even a small amount
invest in business even a small amount you can grow I don’t care how small it
you can grow I don’t care how small it
you can grow I don’t care how small it is but you got to automate it there’s a
is but you got to automate it there’s a
is but you got to automate it there’s a gentleman named Theodore Johnson who
gentleman named Theodore Johnson who
gentleman named Theodore Johnson who it’s worked for ups start as a driver
it’s worked for ups start as a driver
it’s worked for ups start as a driver never made more than 14,000 total in a
never made more than 14,000 total in a
never made more than 14,000 total in a year that was his highest salary in a
year that was his highest salary in a
year that was his highest salary in a year in his old ages were seventy
year in his old ages were seventy
year in his old ages were seventy million dollars and how did he do it all
million dollars and how did he do it all
million dollars and how did he do it all he did was when I teaches the first step
he did was when I teaches the first step
he did was when I teaches the first step is you got to take a percentage of what
is you got to take a percentage of what
is you got to take a percentage of what you earn and pretend it’s a tax you’re
you earn and pretend it’s a tax you’re
you earn and pretend it’s a tax you’re never gonna see that money again you
never gonna see that money again you
never gonna see that money again you automate it it goes straight to the
automate it it goes straight to the
automate it it goes straight to the investment account and you never see it
investment account and you never see it
investment account and you never see it as money you can spend
as money you can spend
as money you can spend he did that with 20% he said I can’t say
he did that with 20% he said I can’t say
he did that with 20% he said I can’t say five somebody in his family said if
five somebody in his family said if
five somebody in his family said if there was a tax you’d pay it and they
there was a tax you’d pay it and they
there was a tax you’d pay it and they made it 20 percent when you save 20
made it 20 percent when you save 20
made it 20 percent when you save 20 percent and you compound it it’s numbers
percent and you compound it it’s numbers
percent and you compound it it’s numbers are incredible before you get in the
are incredible before you get in the
are incredible before you get in the game know the rules be the insider
game know the rules be the insider
game know the rules be the insider because when a person with money meets a
because when a person with money meets a
because when a person with money meets a person with experience we all know what
person with experience we all know what
person with experience we all know what happens phrase man said person with
happens phrase man said person with
happens phrase man said person with experience ends up with your money so
experience ends up with your money so
experience ends up with your money so what I want to do is save you that I
what I want to do is save you that I
what I want to do is save you that I give you nine myths 9 lies that you’re
give you nine myths 9 lies that you’re
give you nine myths 9 lies that you’re going to make sure never happen to you
going to make sure never happen to you
going to make sure never happen to you again they’re all marketed and one of
again they’re all marketed and one of
again they’re all marketed and one of those myths that even ideas fees don’t
those myths that even ideas fees don’t
those myths that even ideas fees don’t matter or it’s only 1% that’s what he
matter or it’s only 1% that’s what he
matter or it’s only 1% that’s what he says and I go through and show you
says and I go through and show you
says and I go through and show you systematically what it means if you pay
systematically what it means if you pay
systematically what it means if you pay 1% a real 1% which almost nobody does
1% a real 1% which almost nobody does
1% a real 1% which almost nobody does versus 2 versus 3 you’re buying you can
versus 2 versus 3 you’re buying you can
versus 2 versus 3 you’re buying you can have three people they start at the same
have three people they start at the same
have three people they start at the same age to put on the same amount of money
age to put on the same amount of money
age to put on the same amount of money they invest in the same stocks same bond
they invest in the same stocks same bond
they invest in the same stocks same bond same mutual funds and 30 years later
same mutual funds and 30 years later
same mutual funds and 30 years later they show up and one’s got 77% more
they show up and one’s got 77% more
they show up and one’s got 77% more money you know they start out with a
money you know they start out with a
money you know they start out with a million bucks
million bucks
million bucks you know they got 7 billion the other
you know they got 7 billion the other
you know they got 7 billion the other guy’s got four if it’s $100,000 seven or
guy’s got four if it’s $100,000 seven or
guy’s got four if it’s $100,000 seven or thousand versus for the amount of money
thousand versus for the amount of money
thousand versus for the amount of money difference of those fees and if I said
difference of those fees and if I said
difference of those fees and if I said to you bring thyn here’s the deal I want
to you bring thyn here’s the deal I want
to you bring thyn here’s the deal I want all you make an investment thing here’s
all you make an investment thing here’s
all you make an investment thing here’s how it’s going to work I want you to
how it’s going to work I want you to
how it’s going to work I want you to give me your money you’re going to put
give me your money you’re going to put
give me your money you’re going to put up all the money you’re gonna take all
up all the money you’re gonna take all
up all the money you’re gonna take all the risks if it loses money to lose
the risks if it loses money to lose
the risks if it loses money to lose everything you lose everything there’s
everything you lose everything there’s
everything you lose everything there’s no consequence here ya know you put a
no consequence here ya know you put a
no consequence here ya know you put a balm I take a risk you take all the
balm I take a risk you take all the
balm I take a risk you take all the losses but if you make money and even if
losses but if you make money and even if
losses but if you make money and even if you don’t make money I get paid and I
you don’t make money I get paid and I
you don’t make money I get paid and I get over the course of your lifetime of
get over the course of your lifetime of
get over the course of your lifetime of investing 30 40 years I’m gonna take 60%
investing 30 40 years I’m gonna take 60%
investing 30 40 years I’m gonna take 60% would you make that deal nobody would
would you make that deal nobody would
would you make that deal nobody would but they don’t know that they are all
but they don’t know that they are all
but they don’t know that they are all day long you truck if that is what you
day long you truck if that is what you
day long you truck if that is what you do with the average mutual fund today
do with the average mutual fund today
do with the average mutual fund today because the average in which you found
because the average in which you found
because the average in which you found with Forbes is 3.1 percent if you’re in
with Forbes is 3.1 percent if you’re in
with Forbes is 3.1 percent if you’re in a 401 K instead of saving money many
a 401 K instead of saving money many
a 401 K instead of saving money many times you get all the other fees
times you get all the other fees
times you get all the other fees according to Forbes it’s four point one
according to Forbes it’s four point one
according to Forbes it’s four point one percent those bad does to your ability
percent those bad does to your ability
percent those bad does to your ability to ever get financially free as it
to ever get financially free as it
to ever get financially free as it basically decimates it and how how’s
basically decimates it and how how’s
basically decimates it and how how’s that possible
that possible
that possible Jack Bogle had a vanguard taught me this
Jack Bogle had a vanguard taught me this
Jack Bogle had a vanguard taught me this he said Tony watch because people don’t
he said Tony watch because people don’t
he said Tony watch because people don’t know they they don’t do the math for
know they they don’t do the math for
know they they don’t do the math for every one percent you give away over the
every one percent you give away over the
every one percent you give away over the course of your lifetime that’s
course of your lifetime that’s
course of your lifetime that’s approximately 20% of your total take so
approximately 20% of your total take so
approximately 20% of your total take so if there’s 3 percent of fees you give up
if there’s 3 percent of fees you give up
if there’s 3 percent of fees you give up 60 percent you took the risks you’re on
60 percent you took the risks you’re on
60 percent you took the risks you’re on the line they took no risks and they’re
the line they took no risks and they’re
the line they took no risks and they’re going to take 60% over the lifetime of
going to take 60% over the lifetime of
going to take 60% over the lifetime of what you’re doing he said it’s highway
what you’re doing he said it’s highway
what you’re doing he said it’s highway robbery that’s why you killin s in the
robbery that’s why you killin s in the
robbery that’s why you killin s in the same stocks with Vanguard on an index
same stocks with Vanguard on an index
same stocks with Vanguard on an index and you pay 14 basis points which that’s
and you pay 14 basis points which that’s
and you pay 14 basis points which that’s another term by the way every time I use
another term by the way every time I use
another term by the way every time I use the term in the book I explain like
the term in the book I explain like
the term in the book I explain like basis points what the hell is the base
basis points what the hell is the base
basis points what the hell is the base points it’s point one four percent
points it’s point one four percent
points it’s point one four percent someone says 25 basis points that means
someone says 25 basis points that means
someone says 25 basis points that means a quarter of a percent right so if I say
a quarter of a percent right so if I say
a quarter of a percent right so if I say an index funds you know it is
an index funds you know it is
an index funds you know it is what it is in the books oh that smells
what it is in the books oh that smells
what it is in the books oh that smells good you two don’t get along the way and
good you two don’t get along the way and
good you two don’t get along the way and I give an example so to see what it is
I give an example so to see what it is
I give an example so to see what it is so what you do is you become an insider
so what you do is you become an insider
so what you do is you become an insider because because what happens is every
because because what happens is every
because because what happens is every type of powerful institution or
type of powerful institution or
type of powerful institution or organization or field has its own
organization or field has its own
organization or field has its own language because that’s how they keep
language because that’s how they keep
language because that’s how they keep power so if you go to your loiter
power so if you go to your loiter
power so if you go to your loiter there’s a lot of things you know I could
there’s a lot of things you know I could
there’s a lot of things you know I could easily do ourselves but we don’t know
easily do ourselves but we don’t know
easily do ourselves but we don’t know the right legalese so they’re words that
the right legalese so they’re words that
the right legalese so they’re words that you could say in English they say and
you could say in English they say and
you could say in English they say and legalese and we can’t do is we got Pam
legalese and we can’t do is we got Pam
legalese and we can’t do is we got Pam for it you know a good lawyer is a good
for it you know a good lawyer is a good
for it you know a good lawyer is a good lawyer but sometimes are things you
lawyer but sometimes are things you
lawyer but sometimes are things you could do you know some of the company
could do you know some of the company
could do you know some of the company online companies are charging $20 what
online companies are charging $20 what
online companies are charging $20 what some dollars used to charge 2004 the
some dollars used to charge 2004 the
some dollars used to charge 2004 the capacity to strengthen and increase your
capacity to strengthen and increase your
capacity to strengthen and increase your hunger is the one common denominator
hunger is the one common denominator
hunger is the one common denominator amongst the most successful people you
amongst the most successful people you
amongst the most successful people you know Richard Branson’s good friend of
know Richard Branson’s good friend of
know Richard Branson’s good friend of mine and Peter Guber Steve lent all
mine and Peter Guber Steve lent all
mine and Peter Guber Steve lent all these guys they’ve never lost their
these guys they’ve never lost their
these guys they’ve never lost their hunger most people are hungry to achieve
hunger most people are hungry to achieve
hunger most people are hungry to achieve a certain amount make a certain amount
a certain amount make a certain amount
a certain amount make a certain amount of money and then they get comfortable
of money and then they get comfortable
of money and then they get comfortable and relaxed or to get a certain level of
and relaxed or to get a certain level of
and relaxed or to get a certain level of fitness and then they relax but you know
fitness and then they relax but you know
fitness and then they relax but you know Richard is as driven today as when he
Richard is as driven today as when he
Richard is as driven today as when he was 16 years old starting I mean it’s
was 16 years old starting I mean it’s
was 16 years old starting I mean it’s like on fire and he’s 65 years old
like on fire and he’s 65 years old
like on fire and he’s 65 years old Warren Buffett is 85 years old he’s is
Warren Buffett is 85 years old he’s is
Warren Buffett is 85 years old he’s is driven today as when you know he began
driven today as when you know he began
driven today as when you know he began the journey right and so people that
the journey right and so people that
the journey right and so people that have that hunger I believe intelligence
have that hunger I believe intelligence
have that hunger I believe intelligence I love people that are wickedly smart
I love people that are wickedly smart
I love people that are wickedly smart and I work to be wickedly smart by
and I work to be wickedly smart by
and I work to be wickedly smart by educating and training myself and self
educating and training myself and self
educating and training myself and self what they’re training my brain but
what they’re training my brain but
what they’re training my brain but intelligent life there’s a lot of
intelligent life there’s a lot of
intelligent life there’s a lot of intelligent people can’t fight their way
intelligent people can’t fight their way
intelligent people can’t fight their way out of a paper bag right hunger is the
out of a paper bag right hunger is the
out of a paper bag right hunger is the ultimate driver because if you’re hungry
ultimate driver because if you’re hungry
ultimate driver because if you’re hungry you can get the strategy you can get the
you can get the strategy you can get the
you can get the strategy you can get the answer if you can’t model it you can
answer if you can’t model it you can
answer if you can’t model it you can find it another guy interviews a man
find it another guy interviews a man
find it another guy interviews a man named Kyle bass Kyle bass took 30
named Kyle bass Kyle bass took 30
named Kyle bass Kyle bass took 30 million dollars gathered money together
million dollars gathered money together
million dollars gathered money together a lot of money but other people’s money
a lot of money but other people’s money
a lot of money but other people’s money turn in a 2 billion in the middle of the
turn in a 2 billion in the middle of the
turn in a 2 billion in the middle of the subprime crisis that’s a very or a big
subprime crisis that’s a very or a big
subprime crisis that’s a very or a big return you can say that in two years
return you can say that in two years
return you can say that in two years right oh my god like how did you do this
right oh my god like how did you do this
right oh my god like how did you do this as CS market loose several books you
as CS market loose several books you
as CS market loose several books you even they open up the chapter in some of
even they open up the chapter in some of
even they open up the chapter in some of the most destroyed books written
the most destroyed books written
the most destroyed books written recently the gentleman who wrote Flyboys
recently the gentleman who wrote Flyboys
recently the gentleman who wrote Flyboys also wrote one of the books any sports
also wrote one of the books any sports
also wrote one of the books any sports I’ll talk about Kyle bass doing this
I’ll talk about Kyle bass doing this
I’ll talk about Kyle bass doing this this incredible piece it’s like it’s
this incredible piece it’s like it’s
this incredible piece it’s like it’s like being there with him
like being there with him
like being there with him but the way he did it was he risk six
but the way he did it was he risk six
but the way he did it was he risk six cents to make a dollar and you just
cents to make a dollar and you just
cents to make a dollar and you just leverage that up so he could be wrong
leverage that up so he could be wrong
leverage that up so he could be wrong how many times it still breakeven
how many times it still breakeven
how many times it still breakeven fifteen he’ll be wrong fifteen times and
fifteen he’ll be wrong fifteen times and
fifteen he’ll be wrong fifteen times and make money so what he’s also smart as
make money so what he’s also smart as
make money so what he’s also smart as hell he looked at things he evaluated
hell he looked at things he evaluated
hell he looked at things he evaluated things it’s more detail that I explained
things it’s more detail that I explained
things it’s more detail that I explained in the book but the core they all have
in the book but the core they all have
in the book but the core they all have in common is they risk for valuable
in common is they risk for valuable
in common is they risk for valuable returns the freedom fund is this idea
returns the freedom fund is this idea
returns the freedom fund is this idea nobody wants to save right and
nobody wants to save right and
nobody wants to save right and Millennials right now order the worst
Millennials right now order the worst
Millennials right now order the worst chop of it a long time and it’s not
chop of it a long time and it’s not
chop of it a long time and it’s not because they don’t care they’re
because they don’t care they’re
because they don’t care they’re irresponsible frankly they don’t trust
irresponsible frankly they don’t trust
irresponsible frankly they don’t trust the market you know they saw what
the market you know they saw what
the market you know they saw what happened in 2008 they don’t know where
happened in 2008 they don’t know where
happened in 2008 they don’t know where to really to go and so they’re being
to really to go and so they’re being
to really to go and so they’re being stimulated like crazy and they’re
stimulated like crazy and they’re
stimulated like crazy and they’re spending like crazy but if you really
spending like crazy but if you really
spending like crazy but if you really want to have freedom that what you have
want to have freedom that what you have
want to have freedom that what you have to do is you’ve got to take that
to do is you’ve got to take that
to do is you’ve got to take that percentage aside like Theodore Johnson
percentage aside like Theodore Johnson
percentage aside like Theodore Johnson did and you got to just say this is for
did and you got to just say this is for
did and you got to just say this is for me this is my free there’s a part of
me this is my free there’s a part of
me this is my free there’s a part of what I earn his basic as it is we all
what I earn his basic as it is we all
what I earn his basic as it is we all know this from investing that’s a part
know this from investing that’s a part
know this from investing that’s a part of what I earned that is mine and my
of what I earned that is mine and my
of what I earned that is mine and my family’s to keep and no one’s going to
family’s to keep and no one’s going to
family’s to keep and no one’s going to touch it I’m going to grow it and but I
touch it I’m going to grow it and but I
touch it I’m going to grow it and but I also believe that where you put that
also believe that where you put that
also believe that where you put that really matters and so indexing is the
really matters and so indexing is the
really matters and so indexing is the most basic way to do it for sure but
most basic way to do it for sure but
most basic way to do it for sure but what all these investors showed me is
what all these investors showed me is
what all these investors showed me is asset allocation is where the difference
asset allocation is where the difference
asset allocation is where the difference is in business right in life if you look
is in business right in life if you look
is in business right in life if you look at it the fourth key we talked about in
at it the fourth key we talked about in
at it the fourth key we talked about in the four steps is you got to really
the four steps is you got to really
the four steps is you got to really understand asset allocation because when
understand asset allocation because when
understand asset allocation because when I was with David Swensen David said Tony
I was with David Swensen David said Tony
I was with David Swensen David said Tony I said what are the dials you can move
I said what are the dials you can move
I said what are the dials you can move there’s a limited number of dollars you
there’s a limited number of dollars you
there’s a limited number of dollars you can move to increase your returns to get
can move to increase your returns to get
can move to increase your returns to get to your financial freedom faster he said
to your financial freedom faster he said
to your financial freedom faster he said oh there’s really only three he said you
oh there’s really only three he said you
oh there’s really only three he said you can make a better choice selection of
can make a better choice selection of
can make a better choice selection of the actual investments of the securities
the actual investments of the securities
the actual investments of the securities you can have better timing or you got a
you can have better timing or you got a
you can have better timing or you got a better asset allocation so let me give
better asset allocation so let me give
better asset allocation so let me give you a clue the first two will never
you a clue the first two will never
you a clue the first two will never happen he said because they cost money
happen he said because they cost money
happen he said because they cost money if you get them from somebody else and
if you get them from somebody else and
if you get them from somebody else and everybody’s wrong on timing everybody’s
everybody’s wrong on timing everybody’s
everybody’s wrong on timing everybody’s wrong in the stocks this is where all
wrong in the stocks this is where all
wrong in the stocks this is where all your money is made as asked look at that
your money is made as asked look at that
your money is made as asked look at that this leads to what sound goes against
this leads to what sound goes against
this leads to what sound goes against all the conventional wisdom which call
all the conventional wisdom which call
all the conventional wisdom which call all-weather allocation let’s talk about
all-weather allocation let’s talk about
all-weather allocation let’s talk about that that’s what which stocks only
that that’s what which stocks only
that that’s what which stocks only thirty percent yes like explain yeah so
thirty percent yes like explain yeah so
thirty percent yes like explain yeah so I sat down with a famous ray value right
I sat down with a famous ray value right
I sat down with a famous ray value right right and I prepared for 18 hours for
right and I prepared for 18 hours for
right and I prepared for 18 hours for that interview because he’s a genius
that interview because he’s a genius
that interview because he’s a genius there’s not that much on him I wanted to
there’s not that much on him I wanted to
there’s not that much on him I wanted to absorb it all so I got every little bit
absorb it all so I got every little bit
absorb it all so I got every little bit of it sat down with and it turned out
of it sat down with and it turned out
of it sat down with and it turned out ray was a fan of my work which I was
ray was a fan of my work which I was
ray was a fan of my work which I was touched by 20 years ago I guess he
touched by 20 years ago I guess he
touched by 20 years ago I guess he listened my programs he was very
listened my programs he was very
listened my programs he was very generous with his
generous with his
generous with his and we spent these three hours and in
and we spent these three hours and in
and we spent these three hours and in the three hours when I got to the end I
the three hours when I got to the end I
the three hours when I got to the end I said to Reyes said listen I really want
said to Reyes said listen I really want
said to Reyes said listen I really want help the average person so I got a
help the average person so I got a
help the average person so I got a question for you I did this with
question for you I did this with
question for you I did this with everyone I said if you couldn’t give
everyone I said if you couldn’t give
everyone I said if you couldn’t give your money to your children any of it
your money to your children any of it
your money to your children any of it and all you could do would be give them
and all you could do would be give them
and all you could do would be give them a portfolio or a set of investment
a portfolio or a set of investment
a portfolio or a set of investment strategies or instructions and they were
strategies or instructions and they were
strategies or instructions and they were going to start over and build it what
going to start over and build it what
going to start over and build it what would it be nice Tony I spent a decade
would it be nice Tony I spent a decade
would it be nice Tony I spent a decade figuring that out all my money is
figuring that out all my money is
figuring that out all my money is already there my kids money is there my
already there my kids money is there my
already there my kids money is there my money from philanthropy when I’m gone is
money from philanthropy when I’m gone is
money from philanthropy when I’m gone is there cuz I’m not gonna be here and I
there cuz I’m not gonna be here and I
there cuz I’m not gonna be here and I want something it’ll do well in the
want something it’ll do well in the
want something it’ll do well in the future and I don’t know what the future
future and I don’t know what the future
future and I don’t know what the future is going to be markets are gonna always
is going to be markets are gonna always
is going to be markets are gonna always change I need something that could work
change I need something that could work
change I need something that could work in any mark and I call it my all-weather
in any mark and I call it my all-weather
in any mark and I call it my all-weather fund most of us in the business are
fund most of us in the business are
fund most of us in the business are familiar with it a little bit and so he
familiar with it a little bit and so he
familiar with it a little bit and so he explained it to me and I have a good
explained it to me and I have a good
explained it to me and I have a good understanding and I said I get it so
understanding and I said I get it so
understanding and I said I get it so what you’re saying is the reason why
what you’re saying is the reason why
what you’re saying is the reason why this was obsessed him why is he defined
this was obsessed him why is he defined
this was obsessed him why is he defined the balanced portfolio in 2008 I got
the balanced portfolio in 2008 I got
the balanced portfolio in 2008 I got nailed on both sides why did that happen
nailed on both sides why did that happen
nailed on both sides why did that happen in 2000 everybody says portfolio theory
in 2000 everybody says portfolio theory
in 2000 everybody says portfolio theory this is supposed to protect me and it
this is supposed to protect me and it
this is supposed to protect me and it didn’t work but he said as soon as
didn’t work but he said as soon as
didn’t work but he said as soon as things get better no one talks about it
things get better no one talks about it
things get better no one talks about it we just forget about it happens again
we just forget about it happens again
we just forget about it happens again happened in 2000 happened in 2008 he
happened in 2000 happened in 2008 he
happened in 2000 happened in 2008 he said I figured it out when you have a
said I figured it out when you have a
said I figured it out when you have a 50/50 portfolio right that’s 50/50 of
50/50 portfolio right that’s 50/50 of
50/50 portfolio right that’s 50/50 of where you put your money in assets 6040
where you put your money in assets 6040
where you put your money in assets 6040 5050 I love you look at balanced
5050 I love you look at balanced
5050 I love you look at balanced portfolio right but he said the problem
portfolio right but he said the problem
portfolio right but he said the problem is that’s not balanced risk this is
is that’s not balanced risk this is
is that’s not balanced risk this is where people are crazy I’ve seen people
where people are crazy I’ve seen people
where people are crazy I’ve seen people write things up they see this in the
write things up they see this in the
write things up they see this in the book and say Tony Robbins is promoting
book and say Tony Robbins is promoting
book and say Tony Robbins is promoting first I’m not promoting anything every
first I’m not promoting anything every
first I’m not promoting anything every word in this book is from the best
word in this book is from the best
word in this book is from the best investors on earth anything it’s from me
investors on earth anything it’s from me
investors on earth anything it’s from me is about the emotions that I know for 36
is about the emotions that I know for 36
is about the emotions that I know for 36 years that’s been my expertise these are
years that’s been my expertise these are
years that’s been my expertise these are their views but I’ll tell you what’s
their views but I’ll tell you what’s
their views but I’ll tell you what’s amazing he’s a Tony when you have stocks
amazing he’s a Tony when you have stocks
amazing he’s a Tony when you have stocks and bonds half and half you’re not equal
and bonds half and half you’re not equal
and bonds half and half you’re not equal because equities are three times more
because equities are three times more
because equities are three times more volatile so your risk is ninety five
volatile so your risk is ninety five
volatile so your risk is ninety five five he said so that’s why people get
five he said so that’s why people get
five he said so that’s why people get killed in a 2008 he said I try to get
killed in a 2008 he said I try to get
killed in a 2008 he said I try to get this through to people he said but all
this through to people he said but all
this through to people he said but all of our people handle it you know you
of our people handle it you know you
of our people handle it you know you manage money for countries the largest
manage money for countries the largest
manage money for countries the largest you know pension funds on earth he said
you know pension funds on earth he said
you know pension funds on earth he said what people don’t this and they look at
what people don’t this and they look at
what people don’t this and they look at and go oh this is bond heavy the bond
and go oh this is bond heavy the bond
and go oh this is bond heavy the bond days are over because inflation is going
days are over because inflation is going
days are over because inflation is going forward he said it’s not true Tony this
forward he said it’s not true Tony this
forward he said it’s not true Tony this fund in the 1970s it was the worst time
fund in the 1970s it was the worst time
fund in the 1970s it was the worst time for bonds it was an extraordinary time
for bonds it was an extraordinary time
for bonds it was an extraordinary time for all weather because it is it looks
for all weather because it is it looks
for all weather because it is it looks over balanced because we only get the
over balanced because we only get the
over balanced because we only get the same level of risk you have to go for
same level of risk you have to go for
same level of risk you have to go for more long-term bonds or you have to use
more long-term bonds or you have to use
more long-term bonds or you have to use more leverage on the bond side
more leverage on the bond side
more leverage on the bond side and so when he was all done you know for
and so when he was all done you know for
and so when he was all done you know for the average person complex I’m seeing
the average person complex I’m seeing
the average person complex I’m seeing financial people look at this and write
financial people look at this and write
financial people look at this and write things up that are just silly saying you
things up that are just silly saying you
things up that are just silly saying you know this is this is never going to work
know this is this is never going to work
know this is this is never going to work as we’re in the you know interest rates
as we’re in the you know interest rates
as we’re in the you know interest rates the only place to go if in treats go up
the only place to go if in treats go up
the only place to go if in treats go up it’s a balanced fund the other areas
it’s a balanced fund the other areas
it’s a balanced fund the other areas kick in but here’s what’s interesting I
kick in but here’s what’s interesting I
kick in but here’s what’s interesting I think told the whole thing to me I said
think told the whole thing to me I said
think told the whole thing to me I said to him I said look I said this is
to him I said look I said this is
to him I said look I said this is wonderful he’ll give me something that
wonderful he’ll give me something that
wonderful he’ll give me something that very few people understand on the planet
very few people understand on the planet
very few people understand on the planet I think I really got it and I played it
I think I really got it and I played it
I think I really got it and I played it back to he said you got it I said here’s
back to he said you got it I said here’s
back to he said you got it I said here’s the problem he how much person is never
the problem he how much person is never
the problem he how much person is never going to know what to do with this and I
going to know what to do with this and I
going to know what to do with this and I said I’m trying to help somebody that
said I’m trying to help somebody that
said I’m trying to help somebody that needs to know what to do I said tell me
needs to know what to do I said tell me
needs to know what to do I said tell me you’re telling me to make this beautiful
you’re telling me to make this beautiful
you’re telling me to make this beautiful chocolate cake and you’re saying Tony
chocolate cake and you’re saying Tony
chocolate cake and you’re saying Tony you’re sad to do it use some sugar right
you’re sad to do it use some sugar right
you’re sad to do it use some sugar right use some chocolate use some dairy
use some chocolate use some dairy
use some chocolate use some dairy products I need know the amounts you
products I need know the amounts you
products I need know the amounts you know give me the amounts he goes 20
know give me the amounts he goes 20
know give me the amounts he goes 20 that’s my secret sauce and that’s when
that’s my secret sauce and that’s when
that’s my secret sauce and that’s when he told me he said what 10 years ago for
he told me he said what 10 years ago for
he told me he said what 10 years ago for you to even get it to talk to me it was
you to even get it to talk to me it was
you to even get it to talk to me it was five billion net worth 100 million
five billion net worth 100 million
five billion net worth 100 million dollars of getting in Michael and he
dollars of getting in Michael and he
dollars of getting in Michael and he said and now for 10 years I haven’t
said and now for 10 years I haven’t
said and now for 10 years I haven’t taken anybody’s money and she answered
taken anybody’s money and she answered
taken anybody’s money and she answered your own question I said you’re not
your own question I said you’re not
your own question I said you’re not taking money anyway it’s not going to
taking money anyway it’s not going to
taking money anyway it’s not going to compete with you the average guy he said
compete with you the average guy he said
compete with you the average guy he said is never going to make it talking to a
is never going to make it talking to a
is never going to make it talking to a wealth manager tell me what to do and he
wealth manager tell me what to do and he
wealth manager tell me what to do and he is so generous you know he’s giving up
is so generous you know he’s giving up
is so generous you know he’s giving up half his net worth like many other
half his net worth like many other
half his net worth like many other people and and in the end he said okay
people and and in the end he said okay
people and and in the end he said okay said but it’ll be complex I said I can
said but it’ll be complex I said I can
said but it’ll be complex I said I can make it simple he said well I don’t want
make it simple he said well I don’t want
make it simple he said well I don’t want leverage in it as I when we got leverage
leverage in it as I when we got leverage
leverage in it as I when we got leverage because it won’t be perfect I said I
because it won’t be perfect I said I
because it won’t be perfect I said I don’t care if it’s not perfect you’re
don’t care if it’s not perfect you’re
don’t care if it’s not perfect you’re idea of unperfect will be somebody else
idea of unperfect will be somebody else
idea of unperfect will be somebody else idea is the best thing they could do and
idea is the best thing they could do and
idea is the best thing they could do and they lane up the numbers we ran the
they lane up the numbers we ran the
they lane up the numbers we ran the numbers and use the same back testing so
numbers and use the same back testing so
numbers and use the same back testing so you saw a year-by-year how it really did
you saw a year-by-year how it really did
you saw a year-by-year how it really did over the last 75 years of modern
over the last 75 years of modern
over the last 75 years of modern investing and here’s what’s amazing like
investing and here’s what’s amazing like
investing and here’s what’s amazing like all weather similar in 75 years it’s
all weather similar in 75 years it’s
all weather similar in 75 years it’s been right 85 percent of the time
been right 85 percent of the time
been right 85 percent of the time what’s even more extraordinary is the 15
what’s even more extraordinary is the 15
what’s even more extraordinary is the 15 percent what it wasn’t doing well what
percent what it wasn’t doing well what
percent what it wasn’t doing well what it knew well it’s average losses 1.6
it knew well it’s average losses 1.6
it knew well it’s average losses 1.6 percent not 50 40 30 20 the last 10
percent not 50 40 30 20 the last 10
percent not 50 40 30 20 the last 10 years a 250 percent hit his biggest loss
years a 250 percent hit his biggest loss
years a 250 percent hit his biggest loss in 75 years was less than 4% minus three
in 75 years was less than 4% minus three
in 75 years was less than 4% minus three point nine five and that was 2008 when
point nine five and that was 2008 when
point nine five and that was 2008 when the market exploded you know down to 51
the market exploded you know down to 51
the market exploded you know down to 51 percent here here in the allocations yes
percent here here in the allocations yes
percent here here in the allocations yes in the book which would make a normal
in the book which would make a normal
in the book which would make a normal person gag initially it sucks only 30
person gag initially it sucks only 30
person gag initially it sucks only 30 percent that’s right even though it’s
percent that’s right even though it’s
percent that’s right even though it’s their stocks on average supposed to gain
their stocks on average supposed to gain
their stocks on average supposed to gain what nine percent of yes nine point to
what nine percent of yes nine point to
what nine percent of yes nine point to long-term Treasuries 40 percent yeah
long-term Treasuries 40 percent yeah
long-term Treasuries 40 percent yeah intermediates 15 gold seven-and-a-half
intermediates 15 gold seven-and-a-half
intermediates 15 gold seven-and-a-half commodity seven
commodity seven
commodity seven have ya absolutely counter wisdom I know
have ya absolutely counter wisdom I know
have ya absolutely counter wisdom I know it’s amazing
it’s amazing
it’s amazing you know when I read interviewed David
you know when I read interviewed David
you know when I read interviewed David Swensen he said he wrote a book and then
Swensen he said he wrote a book and then
Swensen he said he wrote a book and then when he said the whole secret to success
when he said the whole secret to success
when he said the whole secret to success is to be contrary to what else believes
is to be contrary to what else believes
is to be contrary to what else believes but the math on this is what works
but the math on this is what works
but the math on this is what works here’s what’s interesting that looks
here’s what’s interesting that looks
here’s what’s interesting that looks like your heavy bronze 40 and 15 55 %
like your heavy bronze 40 and 15 55 %
like your heavy bronze 40 and 15 55 % bonds and it looks that way visually in
bonds and it looks that way visually in
bonds and it looks that way visually in terms of volume you are panned in terms
terms of volume you are panned in terms
terms of volume you are panned in terms of risk you’re not you’re still you’re
of risk you’re not you’re still you’re
of risk you’re not you’re still you’re making is you’re equally way to think of
making is you’re equally way to think of
making is you’re equally way to think of it this way what triggers things to grow
it this way what triggers things to grow
it this way what triggers things to grow is inflation or deflation in terms of
is inflation or deflation in terms of
is inflation or deflation in terms of price certain things do really well in
price certain things do really well in
price certain things do really well in inflation start doing deflation growing
inflation start doing deflation growing
inflation start doing deflation growing economy shrinking economy and he’s
economy shrinking economy and he’s
economy shrinking economy and he’s figured out which quadrant you need to
figured out which quadrant you need to
figured out which quadrant you need to put each to actually have equal risk and
put each to actually have equal risk and
put each to actually have equal risk and that’s why it’s not well this year this
that’s why it’s not well this year this
that’s why it’s not well this year this formula has done it’s one percent better
formula has done it’s one percent better
formula has done it’s one percent better than the markets in 13 and the third
than the markets in 13 and the third
than the markets in 13 and the third right now and but more importantly three
right now and but more importantly three
right now and but more importantly three weeks ago when the market dropped and
weeks ago when the market dropped and
weeks ago when the market dropped and gave up all of its entire benefits for
gave up all of its entire benefits for
gave up all of its entire benefits for the entire year and everybody’s guts
the entire year and everybody’s guts
the entire year and everybody’s guts were checking there was no gut check
were checking there was no gut check
were checking there was no gut check because they went up a quarter of a
because they went up a quarter of a
because they went up a quarter of a point so the beauty of this is I’m sure
point so the beauty of this is I’m sure
point so the beauty of this is I’m sure you know there was studied under the
you know there was studied under the
you know there was studied under the last 20 years and the studies from 1993
last 20 years and the studies from 1993
last 20 years and the studies from 1993 to 2013 and spied Albar and they found
to 2013 and spied Albar and they found
to 2013 and spied Albar and they found that the market the S&P 500 during that
that the market the S&P 500 during that
that the market the S&P 500 during that time did nine point two percent on
time did nine point two percent on
time did nine point two percent on average just as you said but you know
average just as you said but you know
average just as you said but you know what the average mutual fund men now
what the average mutual fund men now
what the average mutual fund men now owner got investor 2.5 percent that’s
owner got investor 2.5 percent that’s
owner got investor 2.5 percent that’s before tax why because we as investors
before tax why because we as investors
before tax why because we as investors always do the wrong thing emotionally
always do the wrong thing emotionally
always do the wrong thing emotionally that’s right we sell we should hang on
that’s right we sell we should hang on
that’s right we sell we should hang on we buy when we shouldn’t so the greatest
we buy when we shouldn’t so the greatest
we buy when we shouldn’t so the greatest thing that I think that Ray offers
thing that I think that Ray offers
thing that I think that Ray offers somebody the opportunity to do is
somebody the opportunity to do is
somebody the opportunity to do is actually stay in the locker because if
actually stay in the locker because if
actually stay in the locker because if you oh yeah if you got 1.6 percent as
you oh yeah if you got 1.6 percent as
you oh yeah if you got 1.6 percent as your big-haired if 4 percent was the
your big-haired if 4 percent was the
your big-haired if 4 percent was the biggest hit you’ve ever seen at 75 years
biggest hit you’ve ever seen at 75 years
biggest hit you’ve ever seen at 75 years I think you could stay in and you can do
I think you could stay in and you can do
I think you could stay in and you can do what Jack talks about which is stay in
what Jack talks about which is stay in
what Jack talks about which is stay in that market through time just names
that market through time just names
that market through time just names resetting each year it’s a reset once a
resetting each year it’s a reset once a
resetting each year it’s a reset once a year that’s the one recalibration so 15
year that’s the one recalibration so 15
year that’s the one recalibration so 15 minutes a year and you’re in the game
minutes a year and you’re in the game
minutes a year and you’re in the game thank you guys so much for watching I
thank you guys so much for watching I
thank you guys so much for watching I hope you enjoyed the video I’d love to
hope you enjoyed the video I’d love to
hope you enjoyed the video I’d love to know what you think have you read the
know what you think have you read the
know what you think have you read the book what Clips do you find here most
book what Clips do you find here most
book what Clips do you find here most relevant most helpful most interesting
relevant most helpful most interesting
relevant most helpful most interesting what changes are you going to make in
what changes are you going to make in
what changes are you going to make in your life as a result leave it in the
your life as a result leave it in the
your life as a result leave it in the comments below I’m going to join the
comments below I’m going to join the
comments below I’m going to join the discussion thank you guys so much for
discussion thank you guys so much for
discussion thank you guys so much for watching
watching
watching continue to believe and I’ll see you
”
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