Podcast Summary
A new book by Peter Maluek and Tony Robbins called 'The Path' offers unique strategies for investors to accelerate their journey to financial freedom.: By following the steps in 'The Path', readers can find financial freedom through a solid plan and the right advisor.
Peter Maluek, the president and CEO of Creative Planning, and Tony Robbins have joined forces to write a new book called "The Path," which focuses on accelerating one's journey to financial freedom. The book, which comes out on October 13th, offers unique strategies for investors. Maluek and Robbins met through their work in the financial industry, and the motivation behind the book was to address the issues they see in the financial services industry and provide practical advice for those looking to start investing. While both have written financial books before, "The Path" stands out for its focus on the importance of having a solid financial plan in place before investing and finding the right financial advisor to meet individual needs. Maluek and Robbins believe that by following the steps outlined in the book, readers can take control of their financial futures and achieve financial freedom.
Discovering the importance of working with a fiduciary adviser: Working with a fiduciary adviser ensures unbiased advice, as they act in your best interest, get paid only one way, and don't sell their own products.
The financial services industry can be broken, with advisors often acting in their own best interests rather than their clients'. Tony Robbins, the author, discovered this when he found out he and his employees were overpaying for their 401(k) plans. He then interviewed industry experts like Alan Greenspan, Charles Schwab, and John Bogle, and learned the importance of working with a fiduciary adviser who acts in your best interest at all times, gets paid only one way, and does not own their own products. This separation ensures that the advice given is truly in the client's best interest, rather than being influenced by the adviser's own incentives.
The importance of clear financial objectives and a planning-led approach to investing: Recognize the importance of having a clear financial objective and a planning-led approach to investing. Seek out advisers with your best interests in mind and maintain a balanced and accurate perspective on the world to make sound financial decisions.
Having a clear financial objective and a planning-led approach to investing is crucial for making good financial decisions. It's important to remember that most financial advisers are salespeople, and you want an adviser who truly has your best interests in mind. Furthermore, having a balanced and accurate perspective on the world is essential for making sound financial decisions. Contrary to popular belief, life is actually better than it has ever been, and embracing this reality can help us become better investors. The future is likely to be better than the present, and accepting this fact can help us stay focused on our investment goals despite market fluctuations. It's natural for humans to be attracted to negativity, but it's essential to recognize the progress and optimism that surrounds us. By keeping a positive outlook and staying focused on our financial objectives, we can navigate the complex world of investing with confidence.
Shopify's all-in-one ecommerce platform and Yahoo Finance's investment management solution: Shopify simplifies ecommerce setup for businesses, while Yahoo Finance consolidates investment account access and financial news for investors, but be mindful of potential biases in media sources.
Shopify's all-in-one ecommerce platform has been a game-changer for businesses, allowing them to easily set up and sell products, from digital courses to physical goods, with features like a customizable storefront, chat functionality, and even in-person sales through their POS system. Shopify's ease of use, along with its powerful AI tools and award-winning customer support, has helped businesses of all sizes, from startups to established brands, succeed and grow. Meanwhile, for investors, Yahoo Finance offers a solution to managing multiple investment accounts in one place, providing access to financial news, stock analysis, and research to help make informed decisions. However, it's important to remember that media, including news outlets, are primarily focused on making profits, which can sometimes influence the information presented and potentially shape our perspectives in unintended ways.
Media's Legal Obligation and Prioritization of Negative News: The media prioritizes negative news due to increased viewership and higher ad revenue, creating a constant news cycle. Investing in globally diversified markets through the S&P 500 can capitalize on ongoing technological advancements and emerging consumer markets.
The media, being part of publicly traded companies, has a legal obligation to maximize returns to shareholders. They make money primarily through advertising, and attracting more viewers is key to charging higher ad rates. Negative news attracts more viewers, leading the media to prioritize negative narratives over positive ones. This creates a constant news cycle that keeps viewers engaged and coming back for more. Now is an excellent time to invest, particularly in globally diversified markets, due to ongoing technological advancements and the emergence of over a billion people from poverty who will contribute to increased demand for goods and services from publicly traded companies. The S&P 500 is an investment vehicle that can help capitalize on these trends.
Don't put all your eggs in one basket: Diversify investments across various asset classes to reduce risk and ensure consistent returns
Investing all your money in the S&P 500, which is often touted for its average yearly returns, is not a guaranteed safe bet. In fact, there have been periods, such as the "lost decade" between 2000 and 2010, where the S&P 500 produced 0% returns. To mitigate this risk, it's important to diversify your investments across various asset classes, such as international stocks, small stocks, real estate, bonds, and more. This way, even if one sector or index underperforms, you still have other investments that can generate returns. A classic example is the story of Jason, who had all his wealth in real estate and was devastated when the housing market crashed in 2008. By diversifying, you ensure that you're not putting all your eggs in one basket. The S&P 500 is primarily composed of US companies, so investing in international companies or other asset classes can help balance your portfolio and reduce overall risk.
Understanding emotional needs for better money management: Identify emotional needs to create a meaningful financial plan and harness the power of compounding for exponential growth.
Understanding and prioritizing our emotional needs is crucial when it comes to managing our money. Tony Robbins identifies six human needs: certainty, variety, significance, love and connection, growth, and contribution. These needs can influence our financial goals and the way we allocate our resources. For instance, those motivated by money for contribution may aim to accumulate wealth to fund charitable causes or volunteer their time. Those driven by certainty may focus on stable investments to reduce anxiety. Identifying these needs can help create a more meaningful financial plan. Another essential concept is the power of compounding, which can lead to exponential growth. This principle is illustrated by the story of Kodak, which almost invented the first digital camera but failed to capitalize on the opportunity due to a focus on film technology. Similarly, money that is invested and allowed to compound can grow significantly over time, doubling and doubling to create substantial wealth. Young individuals should consider setting aside funds as early as possible to take advantage of the power of compounding. By understanding and addressing our emotional needs and harnessing the power of compounding, we can create a more fulfilling and financially stable future.
The Power of Compounding at a Young Age: Start saving and investing early to maximize the power of compounding for financial growth.
Starting to save and invest at a young age is a significant advantage due to the power of compounding. Having a clear financial goal in mind is essential before investing, as it helps determine the appropriate investment strategy. Financial independence and retirement are different concepts; financial independence refers to having enough income to live without having to work, while retirement is the act of no longer working. Hiring the right employees can be time-consuming, but using a powerful hiring platform like Indeed can streamline the process by attracting, interviewing, and hiring all in one place.
Find high-quality candidates with Indeed's cost-effective job posting platform: Indeed delivers 4x more hires than all other job sites, making $75 sponsored job credits essentially free money for SMBs. Understand financial basics and choose unbiased financial advisers.
Indeed is a cost-effective job posting platform that delivers high-quality candidates, with over 80% of sponsored jobs resulting in perfect resume matches for employers. With Indeed, businesses get more value for their money, as it delivers 4 times more hires than all other job sites combined. For small and medium-sized business owners, this means a $75 sponsored job credit is essentially free money to upgrade job posts and find the best candidates. Another key takeaway is the importance of having a clear financial plan before starting to invest. This includes creating a net worth statement, setting financial goals, and understanding the difference between assets and liabilities. It's crucial to distinguish between assets that bring in money and those that require ongoing expenses. When it comes to choosing a financial adviser, it's essential to understand the difference between brokers and independent advisers. While brokers do not have a fiduciary obligation to act in their clients' best interests all the time, independent advisers are legally obligated to pick the best investments for their clients. This starting point ensures that clients receive unbiased advice and the best possible investment options.
Start small, manage debts and retirement plans, then consider an adviser: Beginners should focus on managing debts and maxing retirement plans. Once net worth grows, consider an adviser. Leverage employer-matched 401k plans for tax savings and guaranteed returns. Don't forget insurance for financial security.
If you're just starting out with your finances, focus on getting your debts under control and maxing out retirement plans like a 401k and Roth IRA before considering an independent financial adviser. However, if your net worth exceeds $50,000 to $100,000, it's worth looking into an adviser. For those working at corporations, take advantage of employer-matched 401k plans, as they offer tax savings, tax-free growth, and compounding benefits. Remember, even if the investments within the 401k are not your preferred choices, the match is a guaranteed return on your investment. Lastly, don't overlook insurance, especially as you grow older. Insurance, including life, disability, and health insurance, can provide financial security and peace of mind.
Protecting against potential adverse situations with insurance: Insurance is crucial for financial security, term policies offer coverage for specific periods at low cost, and neglecting any aspect of financial planning can derail the entire plan.
Insurance is an essential component of a holistic financial plan. It's important to protect against potential adverse situations, such as death or disability, to ensure financial security for yourself and your family. A term insurance policy can provide coverage for a specific period, at a relatively low cost, to help bridge the financial gap during that time. Additionally, it's crucial to consider all aspects of financial planning, including growing, protecting, and transferring wealth, as they are interconnected. The Path to Wealth by Mike Maloney provides a clear and step-by-step guide to help individuals understand and implement these concepts. Remember, neglecting one aspect of your financial plan can derail the entire plan. For more information, readers can pick up a copy of The Path to Wealth or visit Creative Planning's website.
Focusing on priorities for a fulfilling life: Understanding and focusing on priorities can lead to greater enjoyment in life and effective goal achievement, making the most of time, energy, and mental capacity.
The importance of prioritizing what truly matters in life for overall happiness and profit. This concept was touched upon earlier in episode 72 regarding markets and personal goals. During the conversation, Peter shared his belief that understanding and focusing on priorities can lead to greater enjoyment in life. This idea aligns with the importance of having a clear outcome and plan to effectively achieve goals. By knowing and focusing on priorities, individuals can make the most of their time, energy, and mental capacity, ultimately leading to a more fulfilling life. Listeners are encouraged to revisit episode 72 for further insights on markets and personal goals, and to check out Peter's book for more wisdom on profiting in life.
