Tony Robbins

5 Passive Income Tips (Unshakeable by Tony Robbins) [Book Review]

Google+ Pinterest LinkedIn Tumblr

I remember my grandma's first-hand experience about the time when she received a massive retirement bonus from her job over a quarter million dollars and this was back in 1995 so you know that money was worth a lot more than it is now she was thrilled and then she became convinced to invest that money in stocks so she did all of it every single penny was given to a company to invest in stocks and guess what like a magic trick from your favorite magician that money went poof it disappeared without a trace needless to say she was devastated but the good news is this book will help many avoid making similar mistakes and hopefully this video will too [Music] the truth is on average every three to five years a bear market happens market crashes or bear markets caused a decline in the economy and so prices drop about twenty to sixty percent that's when words like recession and great depression gets thrown around to describe economic decline and if you watch the news you're likely to feel panic fall into pessimism and start to wonder will the market ever recover well outside of all the doom and gloom there are a few who see this crash as a time for us to invest more money at lesser cost these brilliant minds know that the crash is one of the greatest opportunities in our lifetime to move up the ladder you know why because everything goes on sale when the economy drops while people and shop owners are caught by surprise completely unprepared and then forced to sell their luxury homes and Lamborghinis at 50% off they are capitalizing on these real estate and stock investments at incredibly low prices one of the greatest investors of the last century said the best opportunities common times of maximum pessimism tip number one is the best time for you to invest is during a crash so I started to realize that the greatest danger to our financial health isn't a market crash it's being out of the market and since you cannot accurately predict the rise and Falls of the market one of the most fundamental rules for achieving long-term financial success is that you get in the market and stay in it for the long run but then that begs the question which stock investment should you make well this book recommends a solution that allows us to make money almost entirely on autopilot the solution is for you to buy and hold onto every stock in an index such as the S&P 500 this includes companies like Apple Google Amazon and Facebook which by the way are the four businesses that are in a race to become the first trillion-dollar company also an index fund protects investors against high transaction costs and taxes due to making fewer trades this is a strategy recommended by Valeo Swenson Warren Buffett and Jack Bogle tip number two is the safest and secure investment you can make is on index funds [Music] now let's look at a great example from the book imagine that two friends Joe and Bob decide to invest $300 a month Joe gets started at age 19 keeps going for eight years and then stops adding to this pot at age 27 you know he saved a total of twenty eight thousand eight hundred dollars Joe's money then come pounds at a rate of 10 percent a year which is roughly the rate of return of the US stock market over the last century by the time he retires at age 65 how much does he have the answer is 1 million eight hundred and sixty-three thousand two hundred and eighty seven dollars his small twenty thousand eight hundred dollar investment has grown to nearly a two million dollar investment so let's look at his friend Bob Bob gets off to a slower start and begins investing the same exact amount three hundred dollars a month at the age of 27 he's a disciplined guy keeps on investing three hundred dollars a month until he's 65 a period of thirty nine years his money also compounds at ten percent a year the result when he retires at age 65 he's sitting on a nest egg of 1 million five hundred eighty nine thousand seven hundred and thirty three dollars so if we step back for a moment we can see that Bob invested a total of one hundred and forty thousand which is almost five times more than the twenty eight thousand eight hundred that Joe invested yet Joe has ended up with an extra two hundred and seventy three thousand five hundred and fifty four dollars even though Joe never invested a dime after the age of 27 so because Joe started earlier the compound interest he earns on his investment brings way more value to his account the point of the story is that compound interest is a force that can catapult you into a life of total financial freedom tip number three is you don't need a lot of money to be wealthy you need time today's winners could be tomorrow's losers don't let that be you one of the biggest mistake you can make when getting into financial investments is relying on a financial broker to manage your portfolio first and foremost they are loyal to the shareholders and the big-money commissions they make by putting you on expensive actively managed funds you might end up with additional fees and taxes that will destroy your possibility of generating a passive income stream like the story about my grandma these companies are incentivized to create bigger profits for themselves this is a zero-sum game that you don't want to play give your trust of someone qualified who has your best interest in mind registered investment advisors like doctors and lawyers have a fiduciary duty and a legal obligation to act in your best interest at all times tip number four is your financial broker will make you broker the thing is so many adults my age are not investing according to the book about 50 percent of Millennials distrust of financial markets and keep a great amount of their savings in cash if you want to be certain that you'll never lose your money in the financial markets then you can keep your savings in cash but then you'll also never stand a chance of achieving financial freedom through investment as Warren Buffett says we pay a high price for certainty what he could have added was that we also pay a high price for fear if you live in unwarranted fear you've lost the game before it even begins how can we achieve anything if we're too scared to take a risk you have to focus on what you can control not on what you can when you become unshakable you have unwavering confidence even admits the storm you are no longer trapped by circumstances or by fear of the coming crash at the same time you don't want to be too confident that can lead to making bad decisions such as relying heavily on one stock like Apple or trying to predict the market Corrections and fluctuations remain clear-headed and use logic over emotions act on the basis of knowledge tip number five is don't invest emotionally in your financial investments and these are the five passive income tips I learned from reading unshakable like Tony Robbins if you know someone who is not a financial genius and may benefit from any of these five tips in this video then please share this video and of course if you liked the video leave a like if you like the channel please subscribe [Music] me [Music]

As found on YouTube