One Year of Gratitude — Day 50

For the last few days, I’ve been reading a book by Tony Robbins. It’s entitled “MONEY Master the Game.” Mentorbox, a group I’m a member of, recommended it. It struck me as odd because I thought Tony was a motivational speaker. What could he know about money? I’m glad I took their advice. He seems to know a lot about money. He explains things in a way that finally makes sense to me.
I’ve read a couple of books on personal finance in the past. When it comes to the family budget, I feel like I have a handle on things. We follow the Dave Ramsey Total Money Makeover plan. We’ve been using that for about eight years. I also enjoy Ramit Sethi’s suggestions in his book “I Will Teach You To Be Rich.” But, anything having to do with investments has been taboo to me. I’ve attempted to read Motley Fool and other investment strategy books. It was always like reading a book of acronyms in a foreign language. As a result, I always left my investment strategies it in the hands of the experts. You know, my financial advisors and 401K managers.
Tony’s book is giving me a reason to reconsider handing over my hard earned money to investment pros. I had no idea what I was paying in fees. I always took a guess when it came to asset allocation. I always based my assumption on risk tolerance, not the market itself. I just trusted that my broker always had my best interest in mind. I had no idea index funds are usually seeing 10% returns while mutual funds are seeing closer to 2.5%. I had no idea the 3.2% in advisory fees could consume 70% of my income over the long haul. I suspected the brokers had some advantage in their relationship with me. I never realized how much of imbalance there was, though.
I also was unaware of the role of a fiduciary. Fiduciaries are a different breed of advisor. They are bound by law to recommend investments that are in my best interest, unlike a broker. It turns out their advice is tax deductible. Also, not like a broker. And their fees are allegedly lower. It’s time to make a few calls and do a little investigation.
Is there a chance Tony’s numbers are wrong? Sure. He did interview some of the biggest names in the industry in his book. So, I guess his numbers are pretty accurate. Is there a chance he’s trying to sway me into buying services in which he’s now invested? It’s possible. Is there a chance his writing has piqued my interest to learn more? You bet your sweet bottom there is!
I’ve always left financial advisor meetings confused about my investments. I am grateful that Tony Robbins was able to put this content into words a layperson could understand. Thank you, Tony.
And that’s your gratitude for today.
