Money: Master the Game

Tony Robbins

2 ideas

1. Fund fees compound into lost wealth

   Mutual-fund expense ratios, trading costs, and advisory fees look small as annual percentages. But they are charged on the whole balance every year and compound against the investor for decades. A 2–3% total annual drag can consume a large share of an investor's lifetime returns, so cutting costs through low-fee index funds is one of the few return improvements an individual can guarantee.

2. All Weather risk-balanced portfolio allocation

   The portfolio is split across stocks, long- and intermediate-term Treasuries, gold, and commodities. The weights are set so that each asset contributes roughly equal risk, not equal dollars. The aim is to hold up across the four economic regimes: rising or falling growth, and rising or falling inflation. The book's simplified version is presented with more confidence than its limited backtest, which mostly covers a falling-rate period, can justify.

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