Money: Master the Game - Tony Robbins

  • The most important financial decision you will ever make: decide what percentage of your income you will religiously save/invest.  Recommended: 15% or more.  Never fail to stick to this percentage.  Rain or shine.
  • Invest in index funds.  Not mutual funds.
  • Decide how much you will allocate to your "Risk/Growth Bucket" and how much you will put in your "Security/Peace of Mind Bucket".  This is determined mainly by how old you are (the younger, the more you can afford to put in Risk/Growth) and your risk tolerance (the more risk averse, the more you should put in Security/Peace of Mind).  Ideally, 70% in Risk and 30% in Security.  If older/more risk averse, do 60/40 or 50/50.  If really old, then even less in Risk Bucket.
  • How to allocate within the Bucket:
    • Risk/Growth Bucket:
      • 20% in Domestic Stock
      • 20% in International Stock
      • 10% in Emerging Stock Markets
      • 20% in Real Estate Investment Trusts
    • Security/Peace of Mind Bucket:
      • 15% in Long-Term US Treasuries
      • 15% in Treasury Inflation Protected Securities
  • Have a third Bucket - your Dream Bucket.  Have a certain percentage of your save/invest money go into this "bucket" to help fuel your dreams.  What do you want/need to do to keep you emotionally filled?  This is how you fund those things.
  • Use Dollar-Cost Averaging -  contribute regular set amounts into each investment monthly, regardless of how well it is performing.  This seems counterintuitive (emotionally, you want to feed the investments that are doing well and not the failing ones) but over the long run this wins.  Don't argue with Buffet.
  • Rebalance Annually.  Your portfolio will get out of balance as some investments do better than others. (Risk/Security = 70/30.  Domestic/International = 20/20. Etc.)  Once a year, rebalance to fit your decided percentages.  Again, this may be tough emotionally and feel counterintuitive when you have to sell some stocks that are doing awesome, but over the long run this will save you.
  • Check out Fixed Indexed Annuities (he refers to them as Hybrid Annuities).  They can be a pretty cool tool for some people.  You pay in a certain amount monthly for a pre-determined return (ex: 7% annually) for a pre-determined amount of time (ex: 20 years).  Then, when you want to "turn it on" you start getting a monthly income check from it.  The longer you wait to turn it on, the more the monthly check will be.
  • Have a fiduciary manage your portfolio.  They're required by law to be unbiased and give you the best advice.
  • Use StrongholdFinancial.com.  Also good - Vanguard and Schwab.