In our previous blog post, we went over motivational speaker, Tony Robbins investing myths #4-6. This week we are going to go over the last of the myths, #7-9.
All nine of Tony Robbins investing myths come from his New York Times Bestseller, “Money: Master the Game” – This is a great book about financial freedom and if you haven’t read it yet I suggest you do. Available free here, as long as you pay for shipping and handling.
Myth #7 – “I hate annuities and you should, too.”
“I cannot imagine a personal financial situation where I would recommend a VA, variable annuity, as a good idea.” That’s from John Biggs, the former chairman of TIAA-CREF. The common mantra on Wall Street is annuities are a bad idea, unless of course you’re buying one packed with mutual funds. Then they love it, which are the primary ones sold in the big brokerage houses.
Variable annuities are essentially mutual funds on top of mutual funds on top of mutual funds, tied into an insurance contract. They’re lumping them together and they’re charging you an incredible amount of fees. Your account balance is just eaten up if the market tanks. Many economists are going back through all of the rising popularity of longevity insurance, or income for life. It kicks in later in life and allows for individuals to never worry about living too long.
Myth #8 – “You got to take huge risks to get big rewards.”
“An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.” Benjamin Graham, “The Intelligent Investor”. Whether it’s the world’s top hedge fund traders like Ray Dalio, Paul Tudor Jones or entrepreneurs like Salesforce founder Marc Benioff or Richard Branson of Virgin, without exception, these billionaire insiders look for opportunities that provide asymmetrical risk/reward.
Number 8 of Tony Robbins investing myths is that if you have to take big risks for big gains. Warren Buffett’s top rules of investing. Rule #1 – don’t lose money. Rule #2 – see rule #1. Taking a swing for the fences with no downside protection is a recipe for disaster. Too many people are sold this dream that when you invest your money you can have these ridiculous returns. The reality is, those things don’t exist. These mutual fund companies try to sell you these magical funds that “do ten to 12-15%.”In reality, long-term, these simply do not exist.
Myth #9 – “The lies we tell ourselves.”
“Seek the truth and you’ll find the path.” Frank Slaughter. Here’s the truth. The ultimate thing that stops most of us from making significant progress in our lives is not somebody else’s limitations, but rather our own limiting perceptions or beliefs. Get the story out of your head as to why you cannot do something and stop relaying those stories to things that are out of your control. Take action over the two things you actually do have control over, your thoughts and your choices. Strive to make the right ones that will benefit your personal life and financial future. Everyone has a fear of failure at some level. At times, we’ve all been fearful that perhaps we’re not enough. We must strive to create breakthroughs, a moment in time when the impossible becomes possible. The concept of change your story, change your life, which is a pretty powerful concept. Everybody has a story. We all have a story of why we’re here today or what we’re doing, why we’re doing this. We create the right story for ourselves and the conversation we have in our mind that sets us up for success. This is the concept of divorce your story of limitation and marry the story of truth and everything changes.