MONEYMONEYMaster the GameMaster the Game
Tony Tony RobbinsRobbins
Tony RobbinsTony Robbins
EntrepreneurEntrepreneur Motivational SpeakerMotivational Speaker Business StrategistBusiness Strategist PhilanthropistPhilanthropist Multi-Millionaire/BillionaireMulti-Millionaire/Billionaire Author: Money – Master the Game Author: Money – Master the Game
Book & 6 Earlier BooksBook & 6 Earlier Books
7 Steps to Financial Freedom7 Steps to Financial Freedom Be an investor (Miracle of Compounding)Be an investor (Miracle of Compounding) Know the Rules (Cost of Know the Rules (Cost of
Investing/Hidden Fees) Investing/Hidden Fees) Setting Realistic GoalsSetting Realistic Goals Asset Allocation, Diversification, CostAsset Allocation, Diversification, Cost Lifetime Income Plan Lifetime Income Plan Invest Like the .001% - BillionairesInvest Like the .001% - Billionaires Enjoy a Better Life - PhilanthropyEnjoy a Better Life - Philanthropy
MythsMyths
Invest in Actively Managed Mutual Funds –Invest in Actively Managed Mutual Funds –Truth: 96% Fail to beat S&P Index (14 years Truth: 96% Fail to beat S&P Index (14 years Mutual Funds 2.59% vs S&P 9.38%) Mutual Funds 2.59% vs S&P 9.38%)
Mutual Funds Are Cheap – Truth: Fees Average Mutual Funds Are Cheap – Truth: Fees Average 3.17% (2 % over 10 years = 28%)3.17% (2 % over 10 years = 28%)
Published Mutual Fund Returns – Truth: Time Published Mutual Fund Returns – Truth: Time Weighted Returns vs Dollar Weighted Returns Weighted Returns vs Dollar Weighted Returns (Time Weighted 0 % vs Dollar Weighted -43 (Time Weighted 0 % vs Dollar Weighted -43 %!)%!)
Broker Here to Help – Truth: Broker is not Your Broker Here to Help – Truth: Broker is not Your Friend (Broker Yachts vs Customer Yachts or 49 Friend (Broker Yachts vs Customer Yachts or 49 % of Mutual Fund Managers own 0 % of Funds)% of Mutual Fund Managers own 0 % of Funds)
THE BROKERTHE BROKER
MythsMyths
Retirement is a 401K Away – Truth: Fees take Retirement is a 401K Away – Truth: Fees take up 50/70 Percent of Income (DOL Audits Fined up 50/70 Percent of Income (DOL Audits Fined 75 % of Funds Audited (Fees 3.1% Forbes)75 % of Funds Audited (Fees 3.1% Forbes)
Target Date Funds Just Do It & Forget It – Target Date Funds Just Do It & Forget It – Truth: High Fees, Exception VanguardTruth: High Fees, Exception Vanguard
I Hate Annuities and So Should You – Truth: I Hate Annuities and So Should You – Truth: Life-Time Annuities, Roth IRA, Fixed Index Life-Time Annuities, Roth IRA, Fixed Index Annuities, PPLI are Good. Variable Annuities Annuities, PPLI are Good. Variable Annuities Have High Fees, 4.8% except Vanguard & Have High Fees, 4.8% except Vanguard & TIAA-CREF(Ben Bernanke’s Two Largest TIAA-CREF(Ben Bernanke’s Two Largest Holdings are Annuities)Holdings are Annuities)
401K FEES 401K FEES
MythsMyths
You Have to Take Huge Risks to get You Have to Take Huge Risks to get Big Rewards – Truth: Structured Big Rewards – Truth: Structured Notes, Market Linked CDs, Fixed Notes, Market Linked CDs, Fixed Index Annuities, Protect Principle Index Annuities, Protect Principle (Warren Buffet – Don’t Lose Money, (Warren Buffet – Don’t Lose Money, Rule 2 See Rule 1)Rule 2 See Rule 1)
The .001 PercentThe .001 Percent
BILLIONAIRESBILLIONAIRES
David Swenson David Swenson
Yale Endowment Portfolio ManagerYale Endowment Portfolio Manager $1B to $23.9 B in 27 years$1B to $23.9 B in 27 years 13.9 % Annual Return13.9 % Annual Return PortfolioPortfolio
20 % Wilshire Total Market20 % Wilshire Total Market 20 % FTSE Market All REIT20 % FTSE Market All REIT 20 % MSCI ACWI ex USA20 % MSCI ACWI ex USA 15 % Barclays US Long Credit15 % Barclays US Long Credit 15 % US Treasury Tips15 % US Treasury Tips 10 % MSCI EM PR USD10 % MSCI EM PR USD
David SwensonDavid Swenson Notable CommentsNotable Comments::
Investors Interest TIAA-CREF & VanguardInvestors Interest TIAA-CREF & Vanguard Mutual Funds Far Worse than PublicizedMutual Funds Far Worse than Publicized Levers: Asset Allocation, Proportions, TimingLevers: Asset Allocation, Proportions, Timing Believes Asset Allocation > 100 %Believes Asset Allocation > 100 % Diversification is a Free LunchDiversification is a Free Lunch Index Funds are Maximum DiversificationIndex Funds are Maximum Diversification Tax-Advantage Investment 401K, Roth Tax-Advantage Investment 401K, Roth
IRA,etcIRA,etc Never Underestimate the US Economy Never Underestimate the US Economy
Ray DalioRay Dalio
Bridgewater InvestmentsBridgewater Investments $160 B Under Management$160 B Under Management 9.88 % Net Annual Return Over 40 Years in 9.88 % Net Annual Return Over 40 Years in
All Weather PortfolioAll Weather Portfolio 6 Losing Years Avg. 1.47 %, Worst 3.9%6 Losing Years Avg. 1.47 %, Worst 3.9% Market Timing is Playing Poker With the Market Timing is Playing Poker With the
Best Players in the WorldBest Players in the World All Seasons Portfolio More Than Doubled the All Seasons Portfolio More Than Doubled the
Performance of the S&P between 2000 & Performance of the S&P between 2000 & 20142014
Ray DalioRay Dalio
PortfolioPortfolio 30 % Stock, S&P 50030 % Stock, S&P 500 15 % Intermediate Bonds15 % Intermediate Bonds 40 % Long-Term Bonds40 % Long-Term Bonds 7.5 % Gold7.5 % Gold 7.5 % Commodities 7.5 % Commodities
Ray DalioRay Dalio
Stocks are 3 Times Riskier Than BondsStocks are 3 Times Riskier Than Bonds S&P Lost 9 Times in 40 Years with a Total S&P Lost 9 Times in 40 Years with a Total
Loss of 134 % while Bonds lost 3 Times Loss of 134 % while Bonds lost 3 Times with a Loss of 6 %with a Loss of 6 %
50/50 Portfolio is like having 95 percent of 50/50 Portfolio is like having 95 percent of Your Risk in Stock, Money & Risk not Your Risk in Stock, Money & Risk not balancedbalanced
4 Factors Effect the Price of Assets4 Factors Effect the Price of Assets Inflation, Deflation, Economic Growth Inflation, Deflation, Economic Growth
&Declining Economic Growth &Declining Economic Growth
Mark FaberMark Faber
PHD EconomicsPHD Economics Member of Barron’s RoundtableMember of Barron’s Roundtable Publisher of Gloom, Boom & Doom Report Publisher of Gloom, Boom & Doom Report Since 2000, Annual Return of 23 %Since 2000, Annual Return of 23 % Emerging Market Bonds Act Like EquitiesEmerging Market Bonds Act Like Equities PortfolioPortfolio
30 % Cash & Bonds30 % Cash & Bonds 20 % Stock20 % Stock 30 % Real Estate30 % Real Estate 20 % Gold 20 % Gold
Paul Tudor JonesPaul Tudor Jones
Tudor Investment CorporationTudor Investment Corporation $13 Billion Fund$13 Billion Fund 28 Years Without a Loss Including 200828 Years Without a Loss Including 2008 Number 1 Risk Control Factors are Number 1 Risk Control Factors are
Diversification & Asset AllocationDiversification & Asset Allocation Uses Heavily the 200 Day Moving AverageUses Heavily the 200 Day Moving Average Philosophy: Five to One, Risk vs Reward, Philosophy: Five to One, Risk vs Reward,
Allows Him to be Wrong 80 % of the TimeAllows Him to be Wrong 80 % of the Time Anticipation is the Ultimate PowerAnticipation is the Ultimate Power
Other Investment Gurus Other Investment Gurus
Warren BuffettWarren Buffett John BogleJohn Bogle Kyle BassKyle Bass Charles SchwabCharles Schwab Carl IcahnCarl Icahn T. Boone PickensT. Boone Pickens Sir John TempletonSir John Templeton David EinhornDavid Einhorn
WISDOMS WISDOMS Have a Strategy & PlanHave a Strategy & Plan Never Lose Money, Second Rule See Rule 1 (50 % loss Requires Never Lose Money, Second Rule See Rule 1 (50 % loss Requires
a 100 % Gain)a 100 % Gain) Invest at the Maximum of Pessimism (Blood in the Water)Invest at the Maximum of Pessimism (Blood in the Water) When Going Well, Human Nature Takes Over, Meltdown People When Going Well, Human Nature Takes Over, Meltdown People
Run for Cover. Discipline is Essential in Investing, Dollar Cost Run for Cover. Discipline is Essential in Investing, Dollar Cost AveragingAveraging
Risk Control (Risk vs Reward)Risk Control (Risk vs Reward) Knowledge is Potential, Execution is Mastery Knowledge is Potential, Execution is Mastery Diversification, Asset Allocation, Cost & Tax Efficiency Diversification, Asset Allocation, Cost & Tax Efficiency Power of Compounding (for 7 Remember the 72 Rule)Power of Compounding (for 7 Remember the 72 Rule) However the Strategy, Look at the ResultsHowever the Strategy, Look at the Results Very Few Beat the Market (10 %, Shoot %)Very Few Beat the Market (10 %, Shoot %) Taking Huge Risks For Maximum Rewards – Not a Good Idea Taking Huge Risks For Maximum Rewards – Not a Good Idea