Tony Robbin's Take On FIRE

[surfhb]

Never been a big TR fans but I think this video is very insightful.  He has a new book coming out I think will help many....especially those here who think 100% market investing, up until they are FIRE, is a smart financial decision.   A little surprised at the good advice.

Only if you have an hour to spare:

http://youtu.be/3vRDwdhqmoY

[skunkfunk]

Is there a summary out there for the more ADHD among us?

[superannuationfreak]

Here is transcript if you want to flick through:
http://hattrickgolfinstruction.blogspot.com.au/2013/09/being-wealthy-and-financial.html

I've never read his other books but I think if his new book helps get the messages of saving, asset allocation and having a margin of safety across to a wider audience then that's a good thing. I do however expect a rise in risk parity portfolios, to be abandoned once interest rates rise a couple of percent.

[hodedofome]

I've heard good things about his new book. Apparently his financial expertise is more than people think. He's worked with some of the best traders and investors in the world and they've all been impressed with how quickly he understands what they are doing and how he can help.

[sirdoug007]

There is some good stuff in here.  The visibility of Tony Robbins will help immensely in getting the good word out. 

He gets the essence of FI absolutely right:

"The formula for financial independence is so simple.  You can't achieve financial abundance unless you apply this not only in a cognitive sense, but consistently in your life.  And that is: Spend less than you earn.  Most people spend more than they earn.  What do you do with the money you don't spend?  You invest the difference.  I want you to create a money machine.  So while you're sleeping, it's still making you money.  So you are no longer trading the most valuable resource for money (time for money).  Now you are trading money for money.  You want money to go to work so that it's making a difference.  You want to create a machine.  You want it to feed you so you don't have to work.  That's what the money machine is."

[Gone Fishing]

It's Tony Robbins. His rapid-fire stage presence will keep even the ADHD interested. ;)

I made it 8 minutes (to the teary eyed woman), what did he say about 100% stocks?

[surfhb]

It's Tony Robbins. His rapid-fire stage presence will keep even the ADHD interested. ;)

I made it 8 minutes (to the teary eyed woman), what did he say about 100% stocks?

He tells Karl Ellar's story and the importance of smart Asset allocation.   Keep watching :).

[sobezen]

I enjoyed Robbin's video, it covered many essential financial mindset and practices.  I will share this with friends and family.  I love how he clarifies how many of us incorrectly perceive money, wealth, financial freedom and time.  Thanks for sharing. :)

[clarkfan1979]

I liked it.

[beaster]

He was on tim ferriss podcast recently (three episodes I think but I preferred the two with just tony Robbins) Like a lot of people I equate Robbins w the infomercials but I found the discussions quite interesting and will probably read his new book when it comes out (from the library of course !!)


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[surfhb]

I really enjoy his take on the psychology of investing and wealth more than the mechanics.....That part is easy.   Hope the book covers more of that

[RootofGood]

I skimmed the transcript (thanks superannuationfreak!) and it seemed pretty verbose.  I actually watched that video in bits and pieces a long time ago (a friend is a Tony Robbins master super duper trainer something or other, and shares often on facebook).  Yeah, he's a good speaker but it's a little too self helpy for me personally. 

I disagree with the premise that you won't ever truly feel wealthy.  Maybe I'm an odd duck, but I feel wealthy gosh darn it.  We have enough money now so that as long as we exercise just a modicum of prudence, we'll be fine and see our wealth grow long term.  Having the money buys power, freedom, control, and self determination over our own destiny.  Money, you might say, is the root of good. 

How will you know when you are wealthy?

Audience member:  "When my husband is no longer stressed about finances."
Then you are probably never going to be free

Umm, figure out your finances, reach your goals, then live life.  Stop worrying and learn to love the bomb. 

And as for the last quarter or third about investment buckets, from the transcript he says to split investments into three buckets and then only describes two (security bucket and growth bucket).  Conventional personal finances would call security bucket the "emergency fund" and then everything in growth would be your investment portfolio.  Nothing too radical there.  Make sure you have enough liquid and not at risk to cover 2 to 6 months and then invest the rest for growth.  And spend less than you make. 

I don't want to denigrate the guy too much but he seems a bit like Kiyosaki (without as much smarmyness of course!).   

[surfhb]

I'd go a bit further and say not to bear too much risk in your growth bucket as well.    I see many on this site advocating 100% stocks beyond their EF.   

[Kaspian]

Growing up I never wanted to like him (due to the infomercials), but I had to later admit Tony is one smart cat! 

I was having a rough go of it in Vancouver around 1997 and picked up the "Unlimited Power" cassettes for something like $3.  Damn, if they weren't worth every single cent.  I got everything I wanted within months of listening. I still use many of the tricks and disciplines in it.

I found that since then the majority of his stuff has been repeating a lot of the original while throwing in some new unfounded malarkey occasionally.   ...I still like him though.  And I think there's enough sage advice in 1987's "Unlimited Power" to last a person a lifetime.

[milesdividendmd]

This guy has received a lot of respect from a lot of people whom I respect.  I am very interested in leafing through his recent money book because he has access to many investors whose records are very impressive (Icahn, Dalio, Swenson, Bogle, etc...)

But I honestly can not get by the ego driven cheese factor.  It is all so cult-ish and self help-y.  I made it through about 10 minutes of the video before the nausea set in.  I just cant stand this style of motivation.

If his style is appealing to others, that's great.  I honestly think his financial message is sound.  But I just can't get by the megalomanaical sanctimony of it all.

[arebelspy]

Big +1 to rootofgood and milesdividendmd's posts.

I can't stand the guy's delivery/presentation, making it very difficult to access the content behind the distraction.

[DoubleDown]

You guys just reminded me of the infomercial guy in the 90's who talked about putting ads in local newspapers to make millions of $. I can't remember his name, but he was a young guy, and his delivery was classic. He always put his hands together in front of him, about 4-5 inches apart with the palms facing each other, moving them back and forth as he emphasized each word. "What if I told you... <move hands>... that you could make THOUSANDS ... <move hands> of dollars... every month <move hands> ... with NO <move hands> work, just by placing small ads in local papers <move hands>?!"

And then there are the late-night real estate infomercials...

[C40]

Big +1 to rootofgood and milesdividendmd's posts.

I can't stand the guy's delivery/presentation, making it very difficult to access the content behind the distraction.

You guys might want to listen Tim Ferris' podcast where he speaks with Tony - mostly about investing and his new book  to his interview on the Tim Ferris podcast. It's just him talking with Tim, rather than him up on a stage doing the "motivational speaker" thing. I listened to the entire thing and I'm planning to read his book.
(You can also get the podcast on iTunes)

[hodedofome]

Get past the first 10 minutes. Once you get past the interviews it gets straightforward and it's good solid advice.

[RootofGood]

Get past the first 10 minutes. Once you get past the interviews it gets straightforward and it's good solid advice.

I'd suggest skipping the video altogether, save yourself 50 minutes, and spend 10 minutes reading the transcript.  Or save another 10 minutes and skip it altogether.  It's nothing really novel or new if you have spent a bit of time reading the forums or blog here.  Otherwise just basic personal finance 101 (get an e-fund, invest the rest, and you can't spend more than you make or you can't save money). 

I'm not saying the sensible parts are wrong, just nothing new other than rehashed basic personal finance stuff.  You'd probably be better off flipping through 5-10 blog posts here to jog your memory on more novel financial/lifestyle topics. 

[RootofGood]

But I honestly can not get by the ego driven cheese factor.  It is all so cult-ish and self help-y.  I made it through about 10 minutes of the video before the nausea set in.  I just cant stand this style of motivation.

My friend has been to a handful of these AR conferences and I imagine he has spent many thousands on the conferences, training aids, seminars, webinars, etc. that they offer.  Maybe it's helped him immensely, but it certainly screams "cult" to me.

[surfhb]

Get past the first 10 minutes. Once you get past the interviews it gets straightforward and it's good solid advice.

I'd suggest skipping the video altogether, save yourself 50 minutes, and spend 10 minutes reading the transcript.  Or save another 10 minutes and skip it altogether.  It's nothing really novel or new if you have spent a bit of time reading the forums or blog here.  Otherwise just basic personal finance 101 (get an e-fund, invest the rest, and you can't spend more than you make or you can't save money). 

I'm not saying the sensible parts are wrong, just nothing new other than rehashed basic personal finance stuff.  You'd probably be better off flipping through 5-10 blog posts here to jog your memory on more novel financial/lifestyle topics.

Yes but the reason I posted this was because of my surprise that TR would be preaching such good and sensible advice.    He reaches far more people than MMM.

I struggle with the psychology of smart investing....the patience and the ability to keep a positive attitude since I'm starting late to this game.   I think I'll poke around at his other stuff

[plantingourpennies]

"Money: Master the Game will be a huge help to investors...Tony Robbins dropped by my office for a 40-minute appointment that lasted for four hours. It was the most provocative, probing interview of my long career, a reaction shared, I'm sure, by the other souls with strong investment values and sharp financial minds who populate this fine book. This book will enlighten you and reinforce your understanding of how to master the money game and, in the long run, earn you financial freedom."
-- John C. Bogle, Founder, the Vanguard Group and the Vanguard Index Funds

I struggle with the "ick" factor, but this sort of endorsement by Bogle makes me comfortable with recommending it to people who need the content wrapped in the sort of package TR presents.

http://www.bizjournals.com/albany/prnewswire/press_releases/New_York/2014/09/24/NY20702

[arebelspy]

Yes, there's definitely people who like that approach. The ones who need the handholding the most, it seems to me.  So I'm glad he's putting that content out there, even if it doesn't appeal to some of us.