Unshakeable Summary: Tony Robbins

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Unshakeable Summary

Unshakeable Summary provides a free book summary, key takeaways, review, quotes, author biography and other critical points of Tony Robbin’s famous book.

Tony Robbins is a best-selling author. In his book Unshakeable, he offers a practical guide. This handbook is on the rules, values, and psychology of investing. These guidelines are relevant in the modern day volatile economy. The author builds knowledge from interviews with over 50 greatest money masters. This list also includes Warren Buffett. Robbins gives a right guide to attain financial independence. He advises about investing in indexes and mutual funds, and retirement plans. But besides this, he recounts core values in achieving economic peace of mind. Robbins notes the real goal of earning money. It is to live a satisfying life on one’s terms. getAbstract recommends this fun and helpful guide for people wanting to control their financial life.

“You need the insights, the tools, the skills, the expertise and specific strategies that will empower you to achieve true and lasting prosperity.”

This Summary Will Help You Learn

  • Why you need to focus on “what can you control” for financial success.
  • The reasons no one can beat the market reliably.
  • The importance of diversification of investments across nations.
  • Why you need to prepare even to respond to a bear market.
  • How financial independence can lead to a high quality of life.

Take-Aways

  • It’s not possible for anyone to reliably predict the stock market. But, predicting is not the key to success.
  • Control what you can for financial success. This is a must.
  • Compound investments over-time. This is the key to making wealth.
  • Save yourself from shifts in the market. For this, you need to develop a highly diverse portfolio.
  • Many people are ignorant of the fees they give to fund managers.
  • People mostly don’t trust their money advisors. And rightfully so.
  • Ensure that rewards of an investment beat its risks.
  • The assets you obtain must reflect your economic goals.
  • When market swings, your mind tends to be fearful. Don’t heed it.
  • “Financial liberty” allows you to lead a life of your dreams.

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Unshakeable Summary

Confidence and Serenity in a Volatile World

Today more and more people are getting financially insecure. This is a major source of anxiety nowadays. People want peace of mind. They want to be sure that they can meet their needs. Lead a comfortable life not worrying about money.

People crave to be mentally and financially stable. They aim to become unshakeable. They are unshakeable when the unknown doesn’t worry them. When the volatile economy doesn’t bother them. But, since the crisis of 2008, the world has become fraught with uncertainty. Interest rates are almost below zero. Plus, safe bets in bonds produce little or no returns. Even some leading thinkers in the finance sector are confused.

If you’re also confused, then there’s good news. Some people do have answers to your money problems. These specialists have identified how to gain benefits in both good and bad times. The list includes Warren Buffett, Ray Dalio, Jack Bogle, Mary Callahan Erdoes, and T. Boone Pickens. In the interviews, these experts recommended the principles for gaining lasting wealth.

Negotiating your economic life can be tough. But their tactics are intuitive and direct. For example, no one can foresee the future. So, don’t even try. You can be successful without predicting the future. Focus on what is within your control, and what isn’t. Ensure to take control of what you can. Don’t base your decisions on fear of the uncertain. The economy will never stop swinging. Hence, create an informed plan which makes you ready now for the next crisis. 

The Crash on the Horizon

Human beings have the instinct of recognizing patterns around them. Such awareness is how stone-age people learned to avoid carnivores. This awareness led them to hunt where herds would most likely appear. They also learned where to plant crops. Modern-day civilization also relies on identifying patterns. Financial markets also have a pattern. Effective investors use these patterns for their benefit.

The profound effect of compound interest fits a favorite, available pattern. Buffett says most of his wealth is due to cumulative impact of interest. But, to benefit from it, you should start young and continue for life. For example, suppose a person invests $300pm from the age of 27 until retirement. Assume that the interest compounds at 10%. Then this person will collect $1,589,733 when he’s 65. It’s difficult to become rich only from salary. The road to financial freedom is by saving money. This also includes investing steadily over the lifetime.

“Where to put my funds?” this is a tough question. Consider the 2008 crisis and the current market shifts. The idea should be to survive the inevitable coming downturn. Again, identifying pattern is critical. Learn to find patterns in the market and use them.

“Seven Facts”

Seven features of market shifts must shape the plan of every investor:

  1. Market corrections are an annual occurrence.
  2. Some corrections go above 10% downturn and become bear markets.
  3. It’s not possible for anyone to predict market shifts reliably.
  4. Despite periodic dips, the market will go up.
  5. Bear markets have a steady 3-5 years cycle.
  6. Market slumps turn into upturns. Just like confidence becomes fear.
  7. Getting out of the market is the most dangerous route.

Paying for Poor Performance

Many people invest to save for their retirement. Or to get the freedom to live as they desire. Financial stability and success allow you to pick the life you lead. But, the high fees of financial firms degrade the investments. A study by AARP reveals shocking results. It says that 71% Americans don’t know they’re paying a fee on their 401(k) plan. Such high and hidden fees can remove two-thirds of a portfolio’s value. Sadly, this shows that many believe that the financial sector works for their interests. That too, without any reason. But, most of the time this isn’t the case. Removing the high fee is a significant step toward a rewarding future.

Mutual Funds and 401(k) Plans

Many people seeking low-risk, reliable investments start with mutual funds (MF). This seems to be a decent, conservative pick. You can pick from the endless MFs and then diversify. This decreases the risk. But MFs are more beneficial for the financial sector and Wall Street. Not that much for the clients. Firms operate with the goal of maximizing returns for the stockholders – not the clients.

As money managers trade shares, there’s enough scope for human error. Each time they trade a share, you end up paying a fee. The stock price may increase enough to cover the fee. But when you finally sell it, you need to pay tax on the profit. High taxes and fees can decrease the value of your MF by 30%. Even more. Try avoiding MFs. Instead, invest in index funds. These funds involve some trades on a standard index. Hence there is a lesser fee and lower tax.

The government planned 401(k) to help people make tax-deductible investments. This would be part of their retirement savings. But many people having this plan don’t know the fees they’re paying. The financial sector didn’t have to give much accounting of the fees it levies 401(k). This was until 2012. It used a language in which an ordinary man can’t understand. The financial sector was charging too much from people who put funds in 401(k).

A researcher found that in a lifetime a person earning $30,000 and saving 5% pays $154,794 in fees. Such cost is higher for people with higher incomes. For nurses and teachers, the situation is worse. It’s because the American Employee Relations Income Security Act 1974 doesn’t include their plans. Lobbyists spoil government attempts to remove such hidden fees.

Be Wary of Financial Advisers

Nearly 40% of American use financial advisors. This percentage doubles for people having $5mn or more in assets. Still, 60% studied in 2016 don’t trust their advisors. They think that advisors work to meet their interests. Many big financial firms had to pay large sums for exploiting consumer funds.

Most of the employees at big financial firms are honest. But some face pressures to make money for their firms. They have an incentive to keep their employers above their clients. And more often than not, they give in to such push. 90% of the 310,000 money advisors in the US are brokers. Their primary goal is selling financial products. The incentive isn’t to save the client’s interests. Instead, they act to sell and maximize returns for their shareholders.

But, you may find advisors who’re not brokers. The correct advisor can give valuable guidance on many fronts. These include insurance, investing and taxes. Independent registered advisors are lawfully bound to hold their customers’ interests as the priority. They make up for only 10% of all money advisors. But, they are there. You may find them.

Many registered advisors also register as brokers. They play both roles. Find the correct advisor by checking his qualifications and credentials. You want a person who knows how to work in various situations. Someone who’ll help you fulfill your goals. You need to build a relationship with the advisor. Because he’s the person, who’d help you attain your dreams of leading a remarkable life.

 “Core Principles”

Successful investors are not merely lucky. They see and steadily approach the world. These people obsess over performance. They act by following four main precepts which determine how they invest. Follow the “Core Four”:

  1. “Don’t lose” – Great investors avert losses. This’s because losing makes it tough to start from scratch. It’s a matter of money and time. You may waste years recovering losses. Smart investors save themselves from nasty events.
  2. “Asymmetric risk/reward” – The returns you expect must be higher than the risks you face. An investment practice must increase returns and control risks.
  3.  “Tax efficiency” – Calculate investment success by the sum you retain. Neglecting tax implications is unwise. Improper handling of tax liabilities may cost a considerable amount.
  4. “Diversification” – Vary your portfolio dimensions. Diversify the investment types. Invest in many currencies and nations. Also, as timing is key, invest across time.

The Wealthy Mind

You may be your enemy when investing is concerned. This is because of the brain’s evolution. When you face a threat, the survival instinct comes in. People run for their lives. Financial decisions under such pressure are often wrong. Keep an internal control checklist to balance this impulse. Follow it with discipline. A market fall may not have the immediate deadly implications. But they can still be disastrous. Like damage of your retirement savings. For investors, 20% is a technique while 80% is psychology. 

“The single biggest threat to your financial well-being is your own brain.”

Common Errors

Investors are prone to many common mistakes. Luckily, such errors have easy solutions. People like seeking reassuring information. This is confirmation prejudice. To fight this, listen to people who don’t agree with you.

Investors mix recent situations with recent trends. This’s due to a cognitive fault. Its name is “recency bias”. They give more importance to ongoing events ignoring past knowledge. This is especially when people think about what to do in the future. An investor may buy stocks with the latest record of good performance. When its value falls, he/she may sell it impulsively. Don’t do this. Regain your emotional stability. Follow a simple rule – don’t sell when things are troubling. Another common mistake is acting from fear of loss. This is very common during economically volatile times. Investors hate losses. They’ll do anything to prevent them. “bull and bear markets” have both opportunities and risks. Preparation and knowledge are the cure for running out of fear.

If you don’t have peace of mind, money and success have no meaning. The most crucial skill to hone is the “art of fulfillment.”

Suggested Reading: Security Analysis Summary

Unshakeable Review

Financial security is said to be one of the major aspects of someone’s life. More anxiety in the world comes with the poor financial control of the people in the life. There is a lot of money problem, but when we read about the success stories of the world wealthiest people and the investors, we get enough motivation to be stable as far as money is a concern. To crash the horizon one must know about his financial pattern in the market to have more solid investments. All of the effective investors in the world use the pattern to know about the market and get the most out of it.

There are about seven facts about the financial market that must be kept in mind before making any of the investment. These financial facts also help the person to get minimum risk and have a maximum return in the market. According to the recent study the people not actually know where they are investing and that would be a most favorable way of investing for them. Many of the people in the American spend their life for paying the fee of the 104k plan. They think that they are securing the life financially, but in the actual sense, they are getting minimal on their investments.

There are many of the American who prefer to go to the financial advisors to doubles the investment and the money, but it is also not a right way to depend on the advisers because eventually, they are just willing double their rate of interest. Some of the core principles are

  • Don’t lose
  • Diversification
  • Tax efficiency
  • Asymmetric risk/reward
  • Don’t lose

So ultimately the people with the knowledge of the financial market and robust mental approach are likely to stand stable and become unshakeable as far as money is a concern.

Unshakeable Quotes

“You need the insights, the tools, the skills, the expertise and specific strategies that will empower you to achieve true and lasting prosperity.”

“The single biggest threat to your financial well-being is your own brain.”

“To my horror, I discovered that our [company’s] name-brand 401(k) plan…was loaded with expensive mutual funds, excessive ‘ad­min­is­tra­tive expenses,’ and fat commissions.”

“You’re never going to earn your way to financial freedom. The real route to riches is to set aside a portion of your money and invest it, so that it compounds over many years.”

“Neu­ro­sci­en­tists have found that the parts of the brain that process financial losses are the same parts that respond to mortal threats.”

“The trouble is, sitting on the sidelines even for short periods of time may be the costliest mistake of all.”

“If you don’t understand the incentives of your adviser, you’re liable to discover that you’ve done wonders for his financial future while potentially wrecking your own.”

“For me, getting first-rate advice has been a game changer, saving me a tremendous amount of money and time.”

“One reason why di­ver­si­fi­ca­tion is so critical is that it protects us from a natural human tendency to stick with whatever we feel we know.”

“Asset allocation is simply a matter of es­tab­lish­ing the right mix of different types of investments, [and] di­ver­si­fy­ing among them in such a way that you reduce your risks and maximize your rewards.”

“When you’re truly unshakeable, you have unwavering confidence even amidst the storm.”

“Like poker, investing is a zero-sum game: There are only so many chips on the table. When two people trade a stock, one must win and one must lose.”

“If you master the external world without mastering the internal world, how can you be truly and sustainably happy?”

About the Authors 

Tony Robbins, is a philanthropist and entrepreneur. He’s also the author of Money: Master the Game. Robbins is famous for his personal development and business events. Peter Mallouk was ranked the No. 1 money advisor in the US for three years in a row.

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Last update on 2018-09-24 / Affiliate links / Images from Amazon Product Advertising API

2 COMMENTS

  1. Yes, you are right to lead the life of dreams one must have financial liberty. Unshakeable life is the dream of everyone, but in the present age, I do not think so it’s possible unless we have financial liberty and the huge amount of fixed and current assets. Jack Bogle, T Boone Pickens is great man I agree with their recommendation that one must focus on the lasting wealth.

  2. Yes, I agree with you slumps can be turned into upturns anytime in an investment. Taxes are the expense that decreases income and returns on investment amount. At the time of investment it is better to calculate the Tax expense thus a clear estimation towards income or profit can be determined.

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