WHAT THE WORLD’S GREATEST FINANCIAL LEADERS ARE SAYING ABOUT TONY ROBBINS “He has a great gift He has the gift to inspire.” —Bill Clinton, former president of the United States “Tony Robbins is a human locksmith—he knows how to open your mind to larger possibilities Using his unique insights into human nature, he’s found a way to simplify the strategies of the world’s greatest investors and create a simple 7-step system that anyone can use on the path to the financial freedom they deserve.” —Paul Tudor Jones II, founder, Tudor Investment Corporation, and legendary trader with 28 consecutive years of positive returns for his investors “Tony Robbins has influenced millions of people’s lives, including my own In this book he offers you insights and strategies from the world’s greatest investors Don’t miss the opportunity to experience the life-changing value of this book.” —Kyle Bass, founder of Hayman Capital Management and investor who turned $30 million into $2 billion in the middle of the subprime crisis “In this book, Tony Robbins brings his unique talent for making the complex simple as he distills the concepts of the best investors in the world into practical lessons that will benefit both naïve investors and skilled professionals.” —Ray Dalio, founder and co–chief investment officer, Bridgewater Associates, #1 largest hedge fund in the world “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 your financial freedom.” —John C Bogle, founder, the Vanguard Group and the Vanguard index funds, #1 largest mutual funds in the world “This book is not the typical financial book in any way It is packed with wisdom and vital philosophies to enrich your life A lot of books out there have more sizzle than steak to offer Tony’s is different This book will change your life.” —Dr David Babbel, professor of finance, Wharton School of the University of Pennsylvania “In this book, Tony masterfully weaves anecdote and expertise to simplify the process of investing for readers—priming their financial education and helping them effectively plan for their future.” —Mary Callahan Erdoes, CEO, J.P Morgan Asset Management, $2.5 trillion in assets under management “Tony Robbins needs no introduction He is committed to helping make life better for every investor Every investor will find this book extremely interesting and illuminating.” —Carl Icahn, Billionaire Activist and Investor “A gold mine of moneymaking information!” —Steve Forbes, publisher of Forbes magazine and CEO of Forbes, Inc “I have spoken at Tony’s financial events several times in the last few years, for which he pays me a fee But upon closer reflection, I should be the one who pays him a fee He has the incredible talent of taking complex knowledge from leading financial experts and converting it into simple steps that the average man can apply to achieve financial security and freedom.” —Marc Faber, winner of Barron’s Roundtable and publisher of the Gloom, Boom & Doom report “You can’t meet Tony Robbins, and listen to his words, without being inspired to act This book will give you the strategies to create financial freedom for yourself and your family.” —T Boone Pickens, founder, chairman, and CEO at BP Capital and TBP; predicted oil prices accurately 18 out of 21 times on CNBC “Robbins’s unrelenting commitment to finding the real answers to financial security and independence, and his passion for bringing the insights of the ultrawealthy to the average man, is truly inspiring This book could truly change your life.” —David Pottruck, former CEO of Charles Schwab and bestselling author of Stacking the Deck "If you’re looking for answers and you’re committed to creating financial freedom for yourself and your family, then Tony Robbins is your man Get this book, change your life.” —Farnoosh Torabi, award-winning author of When She Makes More: 10 Rules for Breadwinning Women “Sitting in the back of Financial Destiny nearly twenty years ago, I was a student of Tony Robbins’s who had a dream to help teach and empower one million women to be smarter with money Thanks to Tony, a year later I would be speaking on stage at his events, writing Smart Women Finish Rich, and ultimately creating a program that would reach millions of women worldwide Today there are more than seven million copies of my Finish Rich books in print, translated into 19 languages Tony changes lives, and he will change yours I, like you, will be reading MONEY cover to cover, and sharing it with my friends.” —David Bach, nine-time New York Times–bestselling author; titles include The Automatic Millionaire, Start Late, Finish Rich, Smart Women Finish Rich, and Smart Couples Finish Rich; founder of FinishRich.com “We’ve been selected by Forbes as the most innovative company in the world for four consecutive years Our revenues are now over $5 billion annually Without access to Tony and his teachings, Salesforce.com wouldn’t exist today.” —Marc Benioff, founder, chairman, and CEO of Salesforce.com “Tony’s power is superhuman He is a catalyst for getting people to change I came away with: It’s not about motivation as much as it is allowing people to tap into what’s already there.” —Oprah Winfrey, Emmy Award–winning media magnate “Tony Robbins’s coaching has made a remarkable difference in my life both on and off the court He’s helped me discover what I’m really made of, and I’ve taken my tennis game—and my life—to a whole new level!” —Serena Williams, 18-time Grand Slam tennis champion and Olympic gold medalist “I was afraid that my success would take something away from my family Tony was able to turn it around and show me that I’ve helped millions of people Probably the most intense feelings I’ve ever had.” —Melissa Etheridge, two-time Grammy Award–winning singer and songwriter “No matter who you are, no matter how successful, no matter how happy, Tony has something to offer you.” —Hugh Jackman, Emmy– and Tony Award–winning actor, producer “If you want to change your state, if you want to change your results, this is where you it; Tony is the man.” —Usher, Grammy Award–winning singer, songwriter, entrepreneur “Working with Tony Robbins, I felt unstoppable From that moment on, there was zero doubt in my mind about what I wanted and how I was going to achieve it I was so clear about what I wanted that I made it happen: I became world champion.” —Derek Hough, dancer, choreographer, and five-time winner of ABC’s Dancing with the Stars “Tony Robbins is a genius His ability to strategically guide people through any challenge is unparalleled.” —Steve Wynn, CEO and founder of Wynn Resorts “Before Tony, I had allowed myself to be put in a position of fear After meeting Tony, I made a decision not to be afraid anymore It was an absolutely game-changing, life-altering experience I’m so excited and thankful for Tony Robbins and the incredible gift that he gave me.” —Maria Menounos, actress, journalist, and TV personality “What Tony really gave me, a kid sitting on Venice Beach selling T-shirts, was to take risks, take action, and really become something I’m telling you as someone who has lived with these strategies for 25 years: I’ll come back for more again, and again, and again.” —Mark Burnett, five-time Emmy Award–winning television producer “What does this man have that everyone wants? He is a 6'7" phenomenon!” —Diane Sawyer, former ABC World News and Good Morning America anchor “Tony Robbins helps you take that first step to making real change in your life I have a pretty good life, but all of us have aspects of our lives that we want to make greater It’s life changing It really is.” —Justin Tuck, defensive end, Oakland Raiders, and two-time Super Bowl champion “Tony Robbins knows the rhythm of success He is an incredible source of inspiration, and his methods have improved the quality of my life I only work with the best, and Tony is the best.” —Quincy Jones, Grammy Award–winning musician, producer “Tony Robbins provides an amazing vehicle for looking at your life, mapping out a mission, and determining what’s holding you back and what you need to move forward.” —Donna Karan, legendary fashion designer, founder DKNY Thank you for downloading this Simon & Schuster eBook Join our mailing list and get updates on new releases, deals, bonus content and other great books from Simon & Schuster CLICK HERE TO SIGN UP or visit us online to sign up at eBookNews.SimonandSchuster.com CONTENTS Epigraph Foreword by Elliot Weissbluth, founder and CEO of HighTower Introduction by Marc Benioff, founder and CEO of Salesforce.com SECTION WELCOME TO THE JUNGLE: THE JOURNEY BEGINS WITH THIS FIRST STEP Chapter 1.1: It’s Your Money! It’s Your Life! Take Control Chapter 1.2: The Simple Steps to Financial Freedom: Create an Income for Life Chapter 1.3: Tap the Power: Make the Most Important Financial Decision of Your Life Chapter 1.4: Money Mastery: It’s Time to Break Through SECTION BECOME THE INSIDER: KNOW THE RULES BEFORE YOU GET IN THE GAME Chapter 2.0: Break Free: Shattering the Financial Myths Chapter 2.1: Myth 1: The $13T Lie: “Invest with Us We’ll Beat the Market!” Chapter 2.2: Myth 2: “Our Fees? They’re a Small Price to Pay!” Chapter 2.3: Myth 3: “Our Returns? What You See Is What You Get” Chapter 2.4: Myth 4: “I’m Your Broker, and I’m Here to Help” Chapter 2.5: Myth 5: “Your Retirement Is Just a 401(k) Away” Chapter 2.6: Myth 6: Target-Date Funds: “Just Set It and Forget It” Chapter 2.7: Myth 7: “I Hate Annuities, and You Should Too” Chapter 2.8: Myth 8: “You Gotta Take Huge Risks to Get Big Rewards!” Chapter 2.9: Myth 9: “The Lies We Tell Ourselves” SECTION WHAT’S THE PRICE OF YOUR DREAMS? MAKE THE GAME WINNABLE Chapter 3.1: What’s the Price of Your Dreams?: Make the Game Winnable Chapter 3.2: What’s Your Plan? Chapter 3.3: Speed It Up: Save More and Invest the Difference Chapter 3.4: Speed It Up: Earn More and Invest the Difference Chapter 3.5: Speed It Up: Reduce Fees and Taxes (and Invest the Difference) Chapter 3.6: Speed It Up: Get Better Returns and Speed Your Way to Victory Chapter 3.7: Speed It Up: Change Your Life—and Lifestyle—for the Better SECTION MAKE THE MOST IMPORTANT INVESTMENT DECISION OF YOUR LIFE Chapter 4.1: The Ultimate Bucket List: Asset Allocation Chapter 4.2: Playing to Win: The Risk/Growth Bucket race of, 233 you as creator of, 226, 229, 246 your stage in, 331–32 lifecycle funds, 157 life expectancy, 31–32, 409, 538 life insurance: borrowing from, 446–47 death benefit proceeds from, 447 PPLI, 443–48 in Security/Peace of Mind Bucket, 309 lifestyle, 209–10, 218 changing, 287–92, 612 and Dream Bucket, 341 moving to another place, 288–91 437 Lifetime Income plan, 46, 170–71, 308, 406–18, 613–14 annuities, 416–18, 419–41 income insurance, 415–16 John’s case, 412–14 Susan’s case, 414–16 Lincoln, Abraham, 19 liquidity, 302, 331 Livermore, Jesse, 525 living trust, 448–49 LL Cool J, 15 Lombardi, Vince, 51 longevity insurance, 426–27 “lost decade,” 107, 357, 366, 396 lottery: in retirement, 412 spending money on, 37, 334 love and connection, 77 luck, 228–29, 343, 412 Lynch, Peter, 354, 400 Magellan fund, 400 Maker Revolution, 559–61 Malkiel, Burton, 49–52, 59, 96–97, 326, 354, 356–58 on compounding, 50–52 on diversification, 325 on dollar-cost averaging, 355, 358, 365, 366 and index funds, 49, 97 on rebalancing, 359, 361 on tax-loss harvesting, 362 Mallory, George, 406, 409 Marcus Aurelius, 381 marketing, 85, 97, 102 market timing, 97, 296 Markowitz, Harry, 297, 379, 472 Marley, Bob, 232 mastery: execution as, 65 levels of, 42 Mayweather, Floyd “Money” Jr., 53–54, 210 McCarty, Oseola, 60–61, 62, 63 McDonald’s, 373–74 McGonigal, Kelly, 190–99 meaning, 575, 580–82 Meat Loaf, 52 Medicare/Medicaid, 149 Mellon, Andrew, 315 Merckle, Adolf, 66, 71–72, 73 Metallica, 314 MF Global, 123 Microsoft, 377 millionaires vs billionaires, 208–10 minimum wage, 263 mob mentality, 348–49 momentum trading, 325 money: as abstract concept, 3–4 compounding, 35–36, 49–52, 58, 60, 62–65, 256, 364 control of, 14 critical mass of, 33, 58, 89, 90, 408 doubling, 283, 284 emergency/protection fund, 216–17, 302 and emotion, 209, 210 and financial freedom, 5–6 and happiness, 588–91 loss of, 336 love of, as root of evil, 195 to make money, 192 mastery of, 6, 71 nest egg, 58, 257 and power, as reflection of creativity, 193 for retirement, 32, 210–11 spending plan, 253–56 as tool, trading time for, 54 what you earn vs what you keep, 273 where to put, see asset allocation worry about, 190–91 Moneyball, 65 Moneychimp, 119 money machine, 184, 192, 230, 254 savings as, 55–70 money market deposit accounts, 303 money market funds, 303 money masters: advice from, 455–57 author’s interviews with, 453–55 money pass, 333 Money Power Principles, 57, 230 Know the rules, 85, 609–10 You get what you tolerate, 155 Prepay your mortgage, 251–52 Tax efficiency, 277 monthly overhead, 215–16 Moore’s law, 564 Morningstar, 102 mortality expense, 169 mortgage-backed securities, 517 mortgage loans, 249–51, 385 interest on, 250 prepayment of, 251–52 trust deeds, 313 mortgage pool, 517 Moser, Ashley, 558–59 motivational bias, 333–34 Mott, Jim, 248 Mount Everest, 406 moving: to another country, 290–91 to another state, 288–90 Mr Rebates, 256 multitasking, 267–69 municipal bonds, 319–20 Munnell, Alicia, 139–40, 308, 427 Murdoch, Rupert, 83 mutual funds, 92–104 account fee, 115 actively managed, 93, 95, 100, 110, 124, 165, 479–80, 502 and annuities, 168, 424–25 associated costs of, 112 average returns, 116–18 bond, 158 cash drag, 115 cost calculator, 111 deferred sales charge, 115 dollar-weighted return on, 118–19 exchange fee, 115 expense ratio, 108, 113 failure to beat the market, 93–94, 96, 101, 106 fees of, 105–15, 119, 121, 141, 180, 273, 278, 479 and 401(k)s, 93, 110, 114, 139, 141, 144 high-cost, 85, 105, 112 index funds, 94 money market funds, 303 no load, 108 offer, 84 options, 163 pay to play, 144, 157 promise of protection in, 98 purchase fee, 115 ratings of, 92, 102–3 redemption fee, 115 retirement accounts in, 93, 110, 114, 141 returns on investment, 116–19, 400 sales charge (load), 115 soft-dollar costs, 114–15 as stacked deck, 88 stock-picking, 119, 180 and survivorship bias, 470 tax costs, 111, 114, 119, 279, 472 as $13 trillion lie, 93, 97 time-weighted returns, 118–19 transaction costs, 114 turnover in, 279–80 Namale Resort and Spa, 207, 341 nanotechnology, 562, 567 Napoléon III, 555 NASA, 557, 561 Nash, Ogden, 65 National Association of Personal Financial Advisors (NAPFA), 132 national debt, 149 natural resources, 556 Necker Island, 208 Nelson, Willie, 52, 61, 341 nest egg, 58, 257 Netflix, 465–66 Nixon, Richard M., 370–71 Nixon rally, 371–72 Norton, Michael, 589, 601 Notes from a Friend (Robbins), 597–98 numbers: off base, 240–41 “real,” 238, 364 Obama, Barack, 208, 560 Oduyoye, Darin, 499–500 O’Higgins, Michael, 398 oil, 506, 509, 510–11, 556–57 online rewards programs, 255–56 OPEC, 506, 511 opportunity, 269 optical illusions, 38–39 organ donation, 39–40 O’Rielly, William, 115 Orman, Suze, 254 Page, Larry, 377 Palm Beach, Florida, 289–90 passion, 573–87 passive investing (indexing), 97 paycheck, automatic deductions from, 64 pay to play, 144, 157 penny wisdom, 63 pensions, 34–35, 409 cash-balance plans, 155, 156 defined benefit plans, 155 do-it-yourself, 86 hidden fees in, 86 in Security/Peace of Mind Bucket, 308 Personal Fund, 111 Personal Power (Robbins), xxvi Peter, Irene, 297 philanthropy, 392, 457, 466, 486, 489, 494, 538, 595–96, 601; see also giving back photography, 269–70 physical mastery, 42 physiology, changing, 196–99 Pickens, T Boone, 47, 456, 505–13, 505, 596 Pitbull, 15 Pitt, Brad, 65 pivot, 265 plan: building, 206, 230–46, 247 choosing your adventure, 234–37 financial blueprint, 233–34 illusion of advantage, 232–33 late to the party, 242–44 playing your own hand, 231–32 proven, 187 rates of return for, 235 savings as foundation of, 56–57 speeding up, see speed it up timeline for, 292 too good to be true, 240–42 Platinum Partners, 62, 350–51, 509 population growth, 555–56 portfolio, 23, 101 All Weather, see All Seasons strategy; All Weather portfolio asset allocation in, see asset allocation balanced, 381–82, 384, 398, 412 diversity in, see diversification rebalancing, 358, 359–62, 363, 393n, 402, 613 60/40, 399 see also investments portfolio theory, 297, 379, 469 possibilities, 245 posture, improving, 197 poverty, 596–98, 599 Powell, Colin, xxvii Preisano, Michael, 115 present bias, 66 priming, 584–85 Prince, Bob, 387 private placement life insurance (PPLI), 443–48 accessing money in, 446–47 investment management, 446 probabilities, 361 probate, avoiding, 448 Protégé Partners, 95, 487 Pure Alpha, 375–76, 397 Qantas, 318 quality of life, 37, 292, 538, 576, 577, 580–82, 583 questions, wording of, 40 Quinn, Jane Bryant, 92 Ramsey, Dave, 254 Random Walk Down Wall Street, A (Malkiel), 49, 96–97 Rattner, Steven, 550 real estate: and financial meltdown, 313–14, 514–15, 516–18 first trust deeds, 286, 312–13 investment in, 283–86, 308, 323 residential real estate loan, 312–14 real estate investment trusts (REITs), 286, 323, 328, 473 rebalancing, 358, 359–62, 363, 393n, 402, 613 redemption fee, 115 Redstone, Sumner, 34 registered investment advisor (RIA), 126 repetition, 42 residential real estate loan, 312–14 retirement: automatic savings for, 64–65 being unprepared for, 90–91 contribution limits, 156 financial advisors for, 126–27 401(k)s, see 401(k)s individual management of, 140 inertia in planning for, 40 investment in mutual funds, 93, 110, 114, 141 IRAs, 93, 110, 148 money needed for, 32, 210–11 and moving to another place, 288 outliving your money in, 32, 421 pensions, 34–35, 86 quality of life in, 37, 538 saving for, 37 sequence of returns in, 412 and Social Security, 31–32, 34 and target-date funds, 158, 159, 162–63 and technology, 410 retirement communities, investment in, 284–86, 308 Retirement Savings Drain, The (Hiltonsmith), 109 retooling, 264, 265–66 return on investment, 116–20, 281–86 actual returns, 119, 414 asset allocation, 282–83 asymmetric risk/reward, 281–82 average returns, 116–18, 119, 415 diversification, 276, 282, 297 dollar-weighted returns, 118–19, 121 doubling your money, 283, 284 maximizing, 379 sequence of returns, 412 time-weighted returns, 118–19, 121 reversion to the mean, 321, 471 Richest Man in Babylon, The (Clason), 69 Riley, Theresa, 597 risk aversion, 400–401 Risk/Growth Bucket, 321–39 and asset allocation, 326, 336–39, 612 being prepared to lose, 321 collectibles, 324 commodities, 324 currencies, 324 diversification, 325–26 equities, 322–23 factors to consider, 331–36 high-yield (junk) bonds, 323 real estate, 323 structured notes, 324–25 riskless return, 174 Risk Parity, 390 risk/reward, 172–82 and asset allocation, 159, 326, 336–39, 383 asymmetric, 25, 173, 174, 180, 281–82, 283, 456, 486, 493–94, 515–16, 535–36 and balance, 382–83, 390 diversification, 297, 300, 379, 383, 456, 472–73 market-linked CDs, 178–79 market timing, 296 Risk/Growth Bucket, 321–39 security as subjective concept, 314–15 Security/Peace of Mind Bucket, 301–20 security selection, 296 structured notes, 176–78 risk tolerance, 331, 332–36, 399–401 Robbins, Bonnie Pearl, 284 Robbins, Tony: final words of advice, 607 interviews with masters, 453–55; see also specific names story of poverty to wealth, 602–6 Robin Hood Foundation, 16, 489 robotics, 562 Rockefeller, John D., 595 Roethke, Theodore, 557 Rogoff, Kenneth, 520 Rohn, Jim, 42, 246, 260–62, 263, 266, 585 role model, 206 Rolling Stones, 34 Roman Empire, annuities in, 167 Roosevelt, Eleanor, 212 Roosevelt, Franklin D., 31, 269, 409 Roosevelt, Theodore, 19, 331 Roth, Marc, 560 Roth, William, 150 Roth 401(k), 150–51, 152–53, 154, 235 Roth IRA, 150, 153–54, 236, 278, 442 Rothschild, Baron, 456, 523 Rowe, Mike, 265 Royal Bank of Canada, 177, 310 rule of 72, 283 Rutgers University, risk-tolerance scale, 332 Rwandan orphans, 592–93 S&P index funds, 92, 93–94, 95–96, 98, 99, 101, 105, 107, 182, 330, 354, 357, 383, 394–95, 396, 474 15, 173 Salesforce Foundation, xxvii Sandy Hook Elementary School, 591–92 Save More Tomorrow (SMarT), 66–68, 151, 236–37, 249 savings, 55–70 automatic, 59, 64–65, 69–70 compounding, 60, 62–65, 238, 280 creating wealth, 64 critical mass of, 90 cutting expenses, 253–56 discipline of, 543 financial plan founded on, 56–57 investment, 58, 90, 247–58, 292 mindful, 256–58 paying yourself first, 62 and pay raises, 67, 68 percentage of, 59, 63, 68–69 rate of, 37 for retirement, 37 as ultimate ATM, 55 Schilling, Curt, 52 Schwab, Charles, 10, 47, 116, 130, 235, 455, 529–39, 529 Schwed, Fred Jr., 124 Securities and Exchange Commission (SEC), 135, 530 security, subjective concept of, 314–15 Security/Peace of Mind Bucket, 301–20 annuities, 308, 438 asset allocation, 302, 310, 328–29, 338, 612 bonds, 303–5, 306, 315–20 cash/cash equivalents, 302–3 CDs, 305, 306 and compounding, 311, 312 home, 306–8 life insurance, 309 pension, 308 structured notes, 309–10 time on your side, 310–15 security selection, 471, 472 self-employment: and automatic savings, 65, 69 and Solo 401(k), 153 self-esteem, 580 self-fulfilling prophecy, 189–90 senior housing, investment in, 284–86, 308 sequence of returns, 412 serendipity, 228–29 service, 538–39, 586, 616 Simple Steps, 23, 41, 43–48 asset allocation, 45, 292, 295, 612–13 decide savings percentage, 45–46, 63–66, 609 invest like 001%, 46–47, 614–15 just it, 47, 615–16 know the rules, 44, 85, 609–10 lifetime income plan, 46, 613–14 make the game winnable, 45–46, 610–12 timing, 348–49 turn dreams into reality, 212–25 shareholders, 459–60, 461, 464 Shiller, Robert, 307, 323, 501, 595 Shoven, John, 31, 139 significance, 76–77, 204 Silicon Valley, 264, 557 Sinclair, Upton, 121 60/40, 399 Slaughter, Frank, 183 slavery, child, 600 small business: and automatic savings, 65, 69 cash-balance plan for, 155 and 401(k)s, 146–48, 152, 153, 181 Social Security, 243, 409, 418 as government liability, 149 and retirement, 31–32, 34 Social Security Act, 31 soft-dollar trading, 114–15 Solo 401(k)s, 153 Soros, George, 385 South Korea, education in, 266–67 Spanx, 271 speculation, 172, 325 speed it up, 611 change your life, 287–92 and Dream Bucket, 344 earn and invest, 259–72 get better returns, 281–86 prepaying your mortgage, 251–52 reduce fees and taxes, 273–80 save and invest, 247–58 spending plan, 253–56 SPIVA, 98 stable value funds, 160 stagger (lead), 232 state, physical, changing, 196–99 stock index, 93–94 stock market: diversity in, 104 and inflation, 386 long-term investment in, 93, 104, 329–30, 351 volatility in, 104, 382, 390 stock picking, 119, 180, 296 stocks: and bonds, 158, 160, 329–30 employer’s, 162–63 foreign, 328, 473, 535 poison pills, 464 story: changing, 194–95, 249 of empowerment, 190 limiting, 188–95 new, 192 power of, 188–95 as self-fulfilling prophecy, 189–90 tipping point in, 193 strategy: breakthrough in, 187–88, 199 save more and invest the difference, 248–58 stress: emotional, 191 financial, 190–91 physical signs of, 191, 197 Stronghold Financial, 130–32, 135, 163, 236, 310, 358, 403 Stronghold Wealth Management, 25, 130 structured notes, 176–78, 309–10, 324–25 student loans, 239–40 sub accounts, 168, 424 subconscious mind, 205–6 success: clues left by, 9, 187 destroyed by emotion, 355 psychology of, 189 and unconventional wisdom, 384–85 without fulfillment, 575 suitability standard, 125–26 Summers, Larry, 454 Sun Tzu, 369, 453 survival instinct, 570, 585 Swensen, David, 91, 468, 533 on active management, 165 on asset allocation, 296, 469, 471–74 author’s interview with, 295–96, 384, 468–75 on bonds, 316, 317, 318 on brokers, 125 on ETFs, 322–23 and index funds, 92, 472 on mutual funds, 102, 110, 470–71, 472 portfolio of, 326–31, 337, 339, 473–74 on rebalancing, 359 on returns, 276–77 on reversion to the mean, 471 on risk/reward, 295–96 Unconventional Success, 469 and Yale endowment fund, 10, 101, 110, 295, 468–69 Yale model, 276, 469, 471–74 SwipeOut, 596–600, 602 Tae Kwon Do, 42–43 Takahashi, Dean, 469 target-date funds (TDFs), 157–64, 181 glide paths of, 158 low-cost, 163 misconceptions about, 159, 162–64 performance of, 161–62, 163 and retirement, 158, 159, 162–63 stable value funds vs., 160 tax-advantage accounts, 235, 472 tax efficiency, 287–89, 402 taxes, 35–37 capital gains, 277 and compounding, 235, 277–78, 279, 445–46 deferring, 235, 236, 278, 279, 408 and depreciation, 285–86 and exclusion ratio, 421n and 401(k)s, 149–50, 152, 235, 472 future, 149–50, 153, 236 and home ownership, 308 income, 277, 290 and moving to another place, 288–90 and mutual funds, 111, 114, 119, 279, 472 and planning, 235–36 and PPLI, 444 and rebalancing, 362 reducing, 273–80 tax loss harvesting, 362–63 T-bills, 316 T-bonds, 316 teachers, 266–67 technology, 87 and agriculture, 264 artificial intelligence (AI), 569, 570 cloud computing, xxvii computers “R” us, 569–71 disruption caused by, 264–65 email, 553 and energy, 556–57 exponential growth of, 564–65 food, 566 genome project, 565 as hidden asset, 549–53 and internet expansion, 560–61 jobs in, 264 and living standards, 554–55 Maker Revolution, 559–61 medical, 410, 551–52, 557–59, 562, 566–68 nanotechnology, 562, 567 robotics, 562 SwipeOut, 596–600, 602 3-D printing, 410, 561–62, 567, 568 technology wave, 562–63 TED Talks, 18, 39, 67 Templeton, Sir John, 61–62, 350, 351, 456, 524, 540 author’s interviews with, 61, 79, 455, 540–45 on gratitude, 79, 347, 544–45, 577 and philanthropy, 62, 541, 542, 602 and savings, 62, 63, 542–43 on trust, 542 1035 exchange, 171 Tepper, David, 263, 517 Teresa, Mother, 541 Tergesen, Anne, 426–27 testosterone, 197, 334 Thaler, Richard, 66–67, 249 Thatcher, Margaret, 69 Think and Grow Rich (Hill), 19 $13 trillion lie, 93, 97 Thompson, Derek, 431 Thoreau, Henry David, 341, 576 3-D printing, 410, 561–62, 567, 568 Three to Thrive, 211–12, 225–26, 292, 585 TIAA-CREF, 169, 402, 447–48, 470 Tier capital, 442 time: and compounding, 311, 312 diversifying against, 355 value of, 287, 570 time-weighted returns, 118–19, 121 timing, 62, 256, 348–66 and dollar-cost averaging, 355–59, 363, 365–66, 613 getting in front of a trend, 270 and long-term investing, 351 market, 97, 296, 300, 354, 380, 471–72 mistake in, 177, 348 and mob mentality, 348–49 and patterns of investing, 359 and probabilities, 361 and rebalancing, 359–62 and tax loss harvesting, 362–63 and volatility, 363 tipping point, 90, 193 TIPS (Treasury inflation-protected securities), 305, 316–17, 328, 329, 374, 473, 474 tithing, 602 T-notes, 316 Today, 349–50, 485 tontines, 167 training, retooling our skill sets, 264, 265 transformation, 185, 195 Trebek, Alex, 301 Trichet, Jean-Claude, 518, 520 Truckmaster truck driving school, 259 Trump, Donald, 210 trust, absence of, 119–20, 125, 542 trust deeds, 313 Tubman, Harriet, 345 Tullis, Eli, 491 Turner, Ted, 595 TWA, 318 Twain, Mark, 11, 481, 566 Tyson, Mike, 6, 53, 60 uncertainty/variety, 75 Unconventional Success (Swensen), 469 unemployment, 264, 265 unicorns, 14n, 99, 180, 331, 350 United Parcel Service (UPS), 60 United States: income ladder in, 263 national debt of, 149, 236 states with no income tax, 290 Unleash the Power Within (UPW), 15, 194, 559 Unlimited Power (Robbins), 18 255–56 Uram, Matt, 551–52 Usher, 15, 18 Ustinov, Peter, 549 US Treasury bonds, 305, 316–18, 328–29, 400, 473, 474 US Treasury money market fund with checking privileges, 303 V2MOMs, xxvi value, added, 193, 261, 262–63, 265, 268, 269, 272, 343, 595, 611 value investing, 486 Vanguard Group: annuities, 169, 402 founding of, 470, 476–78 index funds, 95, 97, 113, 143, 144, 157, 472 mutual funds, 10, 477 return after taxes, 235 target-date fund, 163, 181 variety/uncertainty, 75 Venter, Craig, 566–67 Vichy-Chamrond, Marie de, 238 Virgin Airways, 173 volatility, 104, 301, 321, 356, 358, 363, 382, 390 wage, minimum, 263 Walton, Sam, 76 Ward, William A., 54 Warren, Doug, 138 water, potable, 565–66, 599–600 wealth: creation of, 64 final secret of, 588–606 growing, 176 keeping, 295 kinds of, 576 and living trust, 448–49 secrets of ultrawealthy, 442–49, 614 tithing, 602 without risk, 181 wealth calculator, 234, 236, 611 Wealth Mastery seminars, 332–33 Weissbluth, Elliot, 128–31 whale blubber, 556 Where Are the Customers’ Yachts? (Schwed), 124 Wilde, Oscar, 8, 410, 422 Wilder, Thornton, 577 Williams, Serena, 15 Williams, Tennessee, 30 Williamson, Marianne, 554 Winfrey, Oprah, 18, 210, 237, 271, 341 Winters, David, 460 women, as investors, 334 Wonder, Stevie, 564 Woodman, Nick, 269–70, 271 work: minimum wage, 263 not having to, 217, 218 pay raises, 67, 68 skills needed for, 264 unemployment, 264, 265 work ethic, 509–10 World Wide Fund for Nature, 556 Wynn, Steve, 15, 34, 76, 88 X Prize, 47, 554 XS, Las Vegas, 76–77 Yale model, 276, 469, 471–74 yourself, invest in, 260–66 Yousafzai, Malala, 586–87 YouTube, 270 Zgainer, Tom, 143 Zweig, Jason, 87 PERMISSIONS Ariely Tables: Dan Ariely Mutual Funds True Costs: Robbie Hiltonsmith, Dēmos Debt Mountain Cartoon: By permission of Michael Ramirez and Creators Syndicate, Inc Average US Consumer Spending: US Census Bureau I Had to Make Some Adjustments: Gary Varvel Editorial Cartoon used with the permission of Gary Varvel and Creators Syndicate All rights reserved David Bach Chart: David Bach Eggs in Basket With Grenade: Kurt Snibbe Raymond James TIPS: www.raymondjames.com Malkiel Volatility Chart: Dr Burton Malkiel Investment Highlights: Berkshire Hathaway: Icahn Enterprises L.P., August 2014 Investment Highlights: Icahn Enterprises L.P., August 2014 Icahn Chart: Icahn Enterprises L.P., August 2014 David Swensen Photo: Michael Marsland, Yale University Warren Buffett Photo: Kristoffer Triplaar/Sipa USA Ray Dalio Photo: Mike McGregor T Boone Pickens Photo: The Milken Institute Marc Faber Photo: Getty Images Charles Schwab Photo: Getty Images, Chip Somodevilla Sir John Templeton Photo: Getty Images, Ron Bull Ramirez Occupy Cartoon: By permission of Michael Ramirez and Creators Syndicate, Inc This book is designed to provide information that the author believes to be accurate on the subject matter it covers, but it is sold with the understanding that neither the author nor the publisher is offering individualized advice tailored to any specific portfolio or to any individual’s particular needs, or rendering investment advice or other professional services such as legal or accounting advice A competent professional’s services should be sought if one needs expert assistance in areas that include investment, legal, and accounting advice This publication references performance data collected over many time periods Past results not guarantee future performance Additionally, performance data, in addition to laws and regulations, change over time, which could change the status of the information in this book This book solely provides historical data to discuss and illustrate the underlying principles Additionally, this book is not intended to serve as the basis for any financial decision; as a recommendation of a specific investment advisor; or as an offer to sell or purchase any security Only a prospectus may be used to offer to sell or purchase securities, and a prospectus must be read and considered carefully before investing or spending money No warranty is made with respect to the accuracy or completeness of the information contained herein, and both the author and the publisher specifically disclaim any responsibility for any liability, loss, or risk, personal or otherwise, which is incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this book At the time of this publication, the author is in discussions with Stronghold Wealth Management to enter into some type of business partnership However, at this time, the author is not an owner of Stronghold, nor does he have any type of referral for compensation relationship In the text that follows, many people’s names and identifying characteristics have been changed Simon & Schuster 1230 Avenue of the Americas New York, NY 10020 www.SimonandSchuster.com Copyright © 2014 by Anthony Robbins All rights reserved, including the right to reproduce this book or portions thereof in any form whatsoever For information address Simon & Schuster Subsidiary Rights Department, 1230 Avenue of the Americas, New York, NY 10020 First Simon & Schuster hardcover edition November 2014 SIMON & SCHUSTER and colophon are registered trademarks of Simon & Schuster, Inc The Simon & Schuster Speakers Bureau can bring authors to your live event For more information or to book an event contact the Simon & Schuster Speakers Bureau at 1-866-248-3049 or visit our website at www.simonspeakers.com Interior design by Ruth Lee-Mui Cover photo by Richie Arthur Author photo by Navid Cover design by Impact Republic Library of Congress Cataloging-in-Publication Data has been applied for ISBN 978-1-4767-5780-3 ISBN 978-1-4767-5787-2 (ebook) ... transforming their personal and professional lives along the way But what I didn’t know until we met was that Tony Robbins is the real thing The man lives up to the hype of the brand His authenticity... to Tony s seminars to study his work, and they have all said the same thing: Tony Robbins is one of a kind, and we are lucky to have him in our lives.” Now, with Money: Master the Game, Tony. .. called the Steve Jobs of investing But ask any of the world’s financial leaders, whether they’re the chairwoman of the Federal Reserve, the head of an investment bank, or the president of the United