2019 Best Investing Long Term Strategies (Tony Robbins)
We want to be rich, to be able to buy anything we want, and to have access to a premium lifestyle.
While the end goal is clear, it’s hard to know where to begin your journey to being wealthy.
Something many self-made wealthy people have in common is that they are valuable in specific ways.
Even when millionaires and billionaires are taken out of the equation, many rich people — doctors, engineers, filmmakers — have gotten rich after adding value to themselves and then adding value to the world.
Investing Basics will make you more money
The core principle behind investing is that you end up making more money than you spent.
However, it is important to choose your investments wisely.
There are plenty of places for you to sink your money into, but figuring out which one of these will result in you profiting is difficult.
There are plenty of factors to consider when investing, so make sure you think about it rationally.
Talk to experts or friends who are experienced in investing before making a decision.
Tony Robbins tells the secret to earn your way into a fortune
Tony Robbins you should not fear corrections in the stock market
Tony Robbins wants to help Americans become financially literate.
You have to make money while you sleep,” he says.
That means not fearing corrections in the stock market and instead taking advantage of them.
According to his interview at CNBC:
“We are taught to be consumers, not owners,” the best-selling author and entrepreneur told CNBC on Wednesday.
That’s led to a crisis in savings. A
ccording to a recent BankRate survey, only 40 percent of Americans are able to cover an unexpected $1,000 expense with their savings.
Many also aren’t saving enough for retirement.
A 2018 study by the Federal Reserve Bank of Saint Louis found that only 27 percent of U.S. households have a defined benefit plan, or pension, and 33 percent have a defined contribution plan, such as a 401(k).
“You are not going to earn your way into a fortune. Even people that do that don’t usually keep it,” Robbins said on “Power Lunch. ” “You have to make money while you sleep.”
The only way to do that is by earning compounding interest, in other words, interest on your interest, he explained.
Robbins, a special advisor to CNBC’s Financial Wellness Advisory Council, pointed out the benefits in an op-ed for CNBC Invest In You.
For example, if a 19-year-old invests $50 a week and averages a 10 percent annual return, he or she will have over $2.2 million at the age of 65.
But even if you are older, it’s not too late to get in the game.
To have $1 million for retirement, a 40-year-old needs to put away $15,000 a year and a 50-year-old needs $37,000 a year, he said.
“No matter how much volatility there is, there are truths about the markets that you have to know, and they don’t vary.
And if you understand those, that’s the people that win the game.
But they become owners; they become capitalists,” said Robbins, who interviewed some of the biggest financial experts for his book “Unshakeable.”
That means you have to accept that there will be volatility in the stock market and that there are always corrections. In fact, six of the 10 best trading days in 20 years are within two weeks of the worst trading days, he said.
“There’s going to be a correction. You want to take advantage of when those things occur.”
He also said you shouldn’t worry about the runup in the market in recent years.
“So many people are on the sidelines because they hear all these stories,” he said. “You have to ask yourself, ‘Are we going to continue to grow as an economy? Do you think five years from now it’s going to cost more for a burger? Do you think it is going to cost more for your internet service?’
“The answer is yes. There’s going to be inflation.”
9 Best Investment Basics
John Templeton was a billionaire mutual fund pioneer that specialized in using a value investing strategy to buy stocks around the world.
Throughout the course of his career, Templeton was quoted as attributing his phenomenal success to the value investing strategy, as well as a few, key principles:
- Avoid the herd. Most people are driven by emotional considerations, not valuation. By focusing on fundamentals, you can use this to your advantage.
- Buy when there is “blood in the streets”. The most money is made when you buy at the height of fear.
- Take your profits when valuations are high. Don’t be afraid, or feel like you made a mistake if you watch the shares of stock you sold go higher.
- Pursue additional education. Despite being one of the most famous practitioners of a value investing strategy, John Templeton still made a point to become a Chartered Financial Analyst.
- Focus on income taxes. You don’t have to go as far as Templeton did – as a result of his billions of dollars in wealth, he renounced his U.S. citizenship, thus avoiding income taxes. He was a dual naturalized citizen of Britain and the Bahamas.
- Keep your costs low. Don’t fly first class. Don’t spend a lot of money on a car. The more money you have to put into your investments, the more money you will have to compound. As time goes on, this can lead to millions upon millions of dollars in additional wealth for you, your family, and your favorite charitable organizations.
- You don’t need to limit yourself to your surroundings. Growing up in Tennessee, John Templeton told one interviewer that he never knew anyone who owned stocks. If you limit yourself to the world in which you were born, you may never discover your true passions or the opportunities that lie beyond your horizon.
- Inflation is a natural byproduct of democracy. Politicians that are willing to spend more get reelected. When the government doesn’t have the money, it has to print it. Managing your portfolio for after-tax inflation is key.
- Bargains are more and more scarce as information becomes available. There were only a handful of security analysts in the world back at the dawn of value investing. Today, there are tens, if not hundreds, of thousands throughout the world. That means the job is going to be harder, but the rewards are still worth it.
Why markets went down
When stock markets tremble, the advice from financial advisors is simple: Stick to your investment plan.
That’s easier said than done.
If your financial house is on fire, you want to fight the flames or flee as surely as if your actual home were ablaze, behavioral finance experts say. To stand back, watch and periodically throw more money on the bonfire is tough even for the most seasoned investor, let alone your average 401(k) holder.
Humans are hardwired to feel drops in portfolio value more than equivalent gains, a phenomenon known as “loss aversion.”
So when you see the value of assets below their peak, the urge is to make moves to stanch the loss by selling.
But really, the smarter thing to do would be to hold — or even to purchase some more of these beaten-up stocks, a practice known as buying the dip .
During periods of volatility, in the long term it can pay to keep calm and invest on.
3 Things You should be aware when investing long term
In the end, only three things matter in investing for the long term:
- The price you pay.
- When you sell.
- The risk you take.
Get any one of those three things wrong, and your outcome will be far less than you have been promised by Wall Street
Generating wealth over time is a long haul type of play.
Investing over time can make you wealthy.
Some people happen to buy stocks that double or tripple.
Some people buy stocks that loose 50 percent or more.
Long haul plays are the best strategy.
You reduce taxes, trading costs, and the average investors appetite to chase returns.
The long haul type of buying can surprise you.
Surprising how often long haul buys become short term profit makers.
Buying long term and squatting on dividend payers or growth stocks is a good play because of the tax issues. Value investing isn’t old hat or outdated.
Good investing is boring.
Why you should Invest in ideas rather than instincts
The stock market is a very volatile one with fluctuations happening in split seconds (yes, just grin and bear it).
Investing in a certain shares calls in for a huge amount of risk.
But then, if you want to achieve something, risk becomes an inevitable part of it.
Stock market runs on it’s very own mantra, “No risk. No gain”.
Buying a stock requires a lot of technical and fundamental analysis, sorting strategies..
You must know a lot about the company’s current affairs before investing in it.
It is always better to invest your money in multiple stocks rather than putting everything in just one.
Diversifying safeguards your capital to some extent.
Even if, one share falls down the other that is getting a hike may balance it.
Do not try to time the market.
Simply invest as much as you can, every year.
Over the long haul, the markets tend to grow along with the economy.
Keep it simple. Invest regularly.
Mintco Financial Investment Planning
Managing your personal finances can, at times, seem to be an overwhelming process. And why shouldn’t it be? You’ve spent years accumulating assets based on your skills and experience in your area of expertise, which probably was not in the field of personal money management.
Why Mintco Financial Financial Advisory
Several factors set us apart from other financial planning firms.
For one, we are actual fiduciaries, not just salespeople masquerading as money experts.
As fiduciaries, we have a legal obligation to put our clients’ best interests first.
This works out just fine for us — but it might make you wonder what the financial planning firms that haven’t been willing or able to become fiduciaries are up to.
Any financial advisor you work with at Mintco Finnacial will be independent, meaning they’re not beholden to any product from any company, nor are they required to try to get you to invest more or more widely than you are prepared to.
Our only goal is to help you determine what is in your best interest, then guide you down that path. Our only obligation is to you.
Another crucial feature of Mintco Financial is that we are a fee-only advisor.
Unlike other planners who always start their work “on-the-clock,” we find that a fee-only approach is more beneficial to creating open dialogue and fostering a long-term relationship with our clients, allowing us to take care of you to the absolute best of our ability.
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