“TURBOMIND BOOK CLUB” SUMMARY OF THE WEEK, March 19, 2017

UNSHAKEABLE

By Tony Robbins

Book summary by Tylor Jones

Hi, today’s book of the week is by Tony Robbins, UNSHAKEABLE.

This is an exceptional book and one of turbomind’s top picks for 2017.  A must read book for anyone who wants to learn more about investments, financial freedom and abundance.

It’s not only about finances but about how not to be one of those 80% of the people who end up retiring basically broke or without any money or income.

It also focuses on how to avoid the most common investment mistakes people make which usually end up in financial disaster.

Toni’s mission with “Unshakeable” is to help the average investor win the game of investing. He has the commitment to help as many people as possible win the game of investing.

I think he does a great job since one of the things that kill any investment is overpaying in fees and hidden costs and in the book he explains in depth about these fees and how to avoid them.

The easiest way to reduce costs and commissions and safely increase returns is through index funds.

The average non-index funds confiscate most of their bellow average returns in absurd fees and commissions, some of them hidden.

All of the proceeds from this book go to provide free meals for the hungry through his partnership with feeding America, the nation’s most effective charity for feeding the hungry.

The mission of this book is to transform your financial life.
Knowledge is power, but it is only potential power. Action is true power.

There is so much fear around in the world now, how are you going to make the best financial decisions when you are full of fear?

The reality is that leaders are good at anticipating, while the rest just react to circumstances. Read this book, and learn how to save money in fees and commissions and how to create a blueprint for a successful investment portfolio.

This is basically the summary of this book in one sentence:
When you develop the power of compounding, stay in the market for the long term having a big portion of your portfolio in index funds, diversify intelligently, and keep your expenses as low as possible, your odds of attaining financial freedom are extremely high.

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Here is a summary of the most important sections

THE RULE BOOK

 

Well, the first question we should be asking is what does it mean to be unshakeable?

Here is the definition of unshakable: an unwavering and undisputed confidence, steadfast commitment to the truth.

When you are unshakeable you have an unwavering confidence even amidst the storm. You are confident in the middle of a storm while others are panicking.

In any area of your life, it comes to “be one of the few who do versus the many who just talk”. The world is full of talkers but to create extraordinary results action is what separates the winners.

We live in a time in which even the greatest minds are confused.

Become one of the best of the best.

One of the greatest lessons in investing, which is also great news is that, you don’t have to predict the future to win the game; you have to focus on what you can control, not on what you can’t.

Control what you can control, means that you can control your actions and decisions.

In order to be a successful investor you need to learn the rules of the financial game and how you can win.

Remember, decisions equal destiny.

Peter Mallouk, a certified financial planner, is the owner of Creative Planning, one of the top independent financial advisor firms in the US, and co author of the book with Tony. This is his site, getaseccondopinion.com for more information and to get a second opinion on any particular investment.

The financial world seems overwhelmingly complex for the average investor and it makes it hard for him to win. There are over 40,000 stocks to choose from, over 3700 US stock exchanges and over 9500 mutual funds to choose from, and this is in America alone. Imagine the rest of the world.

One of the most important concepts of this book is that fees matter and make a huge difference between a good investment and an exceptional one.

The problem is that most funds make a great job at charging fees but a horrible one at giving you great returns. The result is that you overpay for UNDERPERFORMANCE.

If you overpay 1% a year it will cost you over 10 years of retirement funds, amazing. 1% seems like nothing for one year, but when you compound it year after year, it can be a huge number.

A very important distinction is that COMPOUNDING CAN GO IN BOTH DIRECTIONS. It can go in your favor or against you.

When you save, and compound returns, it accelerates money creation, when you overpay in taxes and fees it goes against you and your retirement, adding years to that financial freedom that you are looking for.

You can profit massively from the fear and turmoil creates.

Indexing (buying index funds) is the smartest strategy for regular people.

The reality is that most people find it really hard to sit and wait while there is massive change or chaos in the market. That is the hardest thing to do for the regular person.

This is why most people get below average returns in their investments. They move from one share or investment to the other following the crowd and the latest “hot” picks.

The average investor usually doesn’t beat the index funds. While the average return for the year between 1985 to 20115 for the indexes was 10.28%, the average return for the average investor was 3.66 per year.

Why this gap? Mostly is the effect of excessive management fees, outrageous brokerage commissions, and other hidden costs. These expenses are a constant drain on your returns.

The best investors prepare for the volatility in the market; they turn these ups and downs into their advantage.

The only way to truly win in this game is to stay for the long run. You can’t win this game unless you have the emotional fortitude to get in it and stay in it for the long run.

2. WINTER IS COMING BUT WHEN

Most people are scared of corrections and bear markets. However, here are some important facts about corrections.
The key to making money in equities is not to get scare out f them.
Peter Lynch.

Power: the ability to influence life’s circumstances. The fuel to produce extraordinary results.
It doesn’t matter how much you earn but how well you manage your finances. Many famous people who went bankrupt it wasn’t because of lack of money coming in, but bad financial decisions and bad management of their money.

Take for example  people like Rapper 50 cents who earned over 150 million, Kim Basinger who was earning at the top of her career over 10 million per film, even Michael Jackson who signed a 1 billion dollar contract end up supposedly owing over 300 million in debt.

It wasn’t because of earning money capability, but bad management.

Toni’s defends that you are not going to earn your way to financial freedom.

The best way is setting aside a portion of your income and invest it wisely year after year. That is how you become wealthy while you sleep, or at least is one of them.

He defends that you need about 15 times what you are earning right now in order to be financially free. So, if you earn about 100.000 per year, you would need about 1.5 million to retire. He says the actual number is more like 20 times, or in this case, 2 million.

At the end of this summary there is a comment about this.

You can have financial security or total financial independence, depending on what is your goal. There are different levels of financial abundance. You have to define and clarify your goals.

The key is to build your financial freedom fund, which is the source of lifetime income that will allow you to never have to work again.

The single best place to compound money over many years is the stock market.

Winter comes in average every year. This was in the last 100 years of the stock market.

When markets fall by at least 10% is called a correction. When they fall by at least 20% is called a bear market.

The biggest danger is not being isn’t a correction or bear market but being out of the market.

Here are some Facts:
1. Corrections have occurred about once a year since 1900.
2. Less than 20% of corrections turn into a bear market. So, that’s one bear market for every 5 years. Bear markets tend to occur between 3 to 5 years that is taking account from the last 15 years.
3. Nobody can predict consistently the markets.
4. The stock market raises over time despite short term setbacks.
5. Bear markets don’t last; the average is between one month and two years. On average they last about a year.
6. Bear markets become bull markets after they are finished.

The best opportunities come in times of maximum pessimism.
Be greedy when everyone is fearful and fearful when every ne is greedy.

Market turnmoil is not something to fear but something to welcome once you are prepare.

Japan is an exception; it has been down for the last 30 years. In 30 years it hasn’t been able to recover for its 1980s peak. That is something to take into account.

The stock market is a device for transferring money from the impatient to the patient. –Warren Buffet

Most people don’t take responsibility; they prefer to blame someone or something else.

The solution is not to come in and out, but to stay for the long run because if you miss some days in each month, it can lower your returns in as much as 50%.

3. HIDDEN FEES AND HALFD RETURNS
   How wall street fools you into overpaying for underperformance.

Fees can destroy your investment returns and your retirement plan. Fees are some of the worst offenders for financial freedom.

Most people want freedom, the ability to do what they want whenever they want.

About 70% of people have no idea what are their commissions or how much their fund management company is charging them. This even gets worse in their 401 k plan, which most people believe there are no fees whatsoever. The majority is overpaying in fees and is costing them years of retirement.

You want to minimize fees in order to accelerate financial freedom.

The reality is different. Remember, the fund goal is to maximize income for their shareholders, not their clients.

The reality is that the majority of funds do not get extraordinary results in investment returns; they get extraordinary fees to manage your money.

That is a problem for your investment because the majority of funds do not beat the market indexes. You can do much better investing in market indexes funds. That is the easiest and probably the safest investments you can make.

The problem with most funds is that not only you are getting depressing returns with high fees but additionally you are getting hit with the tax bill collector. So it the worst of all worlds.

Index funds take a passive approach so they are not taxed equally as a regular fund which buys and sells constantly.

An actively managed fund charges about 3% per year, which is about 60 times the amount an index fund charges.

You are paying for underperformance.

Very few people have been able to beat the market, meaning the indexes over a long period of time. These include Warren Buffet, Ray Dalio, Paul Tudr Jones and Carl Icahn.

Warren Buffet instructed that after his death, his fortune to be invested in low cost index funds.

So, in conclusion, on the long term is very hard to beat index funds, first because of their returns and second because their lower tax brackets.

4. RESCUING OU RETIREMENT PLANS

What you 401 k provider don’t want you to know

Most people have no clued how much their 401 K is charging them in fees, most of them hidden fees. The average American worker looses a fortune in fees. Some of these plans are a real rip off.

All of the big name providers accept payments from the mutual funds they offer in 401k plans. This is one of the worst abuses you can find.

If you work for a smaller company, most likely you will be forced to invest in funds with higher fees. This is a widespread abuse across American.

Tom Zgainer, CEO of a company called Americas Best 401 k, told Tony, the 401k  business is “the largest dark pool of assets nobody really knows how or whose hands are getting greased”. He charges one fee and offers index funds from the best companies. Tom saves the average investor more than 57% in fees. You can check this site here, showmethefees.com to know more about real and hidden fees.

Tony even changed the plan that was offered in one of his companies after discovering these fees and commissions.

5. WHO CAN YOU REALLY TRUST

Pulling back the curtain on the tricks of the trade

A financial advisor is a decision that can affect very powerfully your investments and retirement. Chose a world class advisor to clarify your goals, priorities and results you want to achieve.

The majority of American with 5 million and over has financial advisors. They believe their advisor works in their best interest, but most of the time is not the case.

The largest financial forms have worked out over 179 billion in legal settlements just in the last 8 years.

The problem is that 90% of the financial advisors are just brokers selling you what they want you to buy. They sell what they are incentivized to sell.

A financial advisor falls into one of these three categories,
1. A broker
2. An independent advisor
3. A dual registered advisor.

Brokers dot have to recommend the best product for you.
A registered investment advisor has a fiduciary duty with you. Only about 10% of the financial advisers are registered investment advisor.

The problem is that the majority of independent advisors are registered as both fiduciaries and brokers. They can play both sides of the game, and that can be conflicting of interests.

Some advice on how to proceed and select and advisor:

1. Checkout the advisor credentials, about qualifications.
2. Make sure you chose an advisor that can help you grow your investments.
3. Make sure the advisor has experience working with people just like you and that you can relate on a personal level.

Get a second opinion by visiting getasecondopinion.com

7 questions to ask an advisor:

1. Are you a registered investment advisor?
2. Are you or your firm affiliated with a broker dealer?
3. Does your firm offer proprietary mutual funds or separately managed accounts?
4. Do you or your firm receive any third party compensation for recommending particular investments?
5. What is your philosophy when it comes to investing?
6. What financial planning services do you offer beyond investment strategy portfolio management?
7. Where will my money be held?

IMPORTANT TIP:
sign a limited power of attorney that gives the advisor the right to manage the money but NEVER to make a withdrawals.

Key points to remember:

1. Become a long term investor who doesn’t trade in and out of the market, who investor the long term and is not shaken by corrections.
2. The vast majority of managed mutual funds overcharge for underperformance. Must cheaper and better to invest in cheap fund indexes.
3. Excessive fees can kill your retirement
4. Be wise to choose an independent advisor one who looks in your best interests, not just selling and getting commissions.

SECTION 2

TH UNSHEAKEABLE PLAYBOOK

6.THE CORE FOUR.
The key principles that can help you guide your investment decisions

The most successful people aren’t just lucky; they have a different set of beliefs. They have a different strategy. They do things differently than anyone else. The key is to recognize successful patterns and model them.

What do the most successful investors have in common?

They follow 4 principles. They are obsessions for them.

1. Don’t lose. They ask themselves, how can I avoid losing money? The more money you lose the hardest is to get back where you started. Defense is 10 times more important than offense; you have to protect your downside.
2. Asymmetric risk reward. The rewards should vastly outweigh the risks. They seek to invest as little as possible to make as much as possible. Paul Tudor Jones for example used to look for investment that would return 5 times the investment. Look for limited downside and huge upside. Reduce risks while maximizing returns. Citigroup shares were trading at 97 cent a share at the bottom of 2009 financial crisis, within 5 months were trading at $5, that’s a 500 return on your money.
3. Tax efficiency. The real number that matters is the after tax number. When you invest for the long term, holding the asset, you reduce the taxation of that particular asset.
4. Diversification. Don’t put all your eggs in one basket.
   Diversify across different asset classes.
   Diversify within asset classes.
   Diversify across markets, countries, and currencies.

Diversify across time.

Chapter 7
SLAY THE BEAR

If you live in fear you have lost the game before it even begins

The market has risen 266% since its low in 2009, just amazing.

Historically the market has returned an average of 10% per year.
Bad news can be the investor’s best friend.

When you buy a bond, you are making a loan to a government, a company, or some other entity. When you lend money to the government you buy a treasury bond. US Bonds are usually pretty safe investments with little rewards.

You can have a portion of your investment portfolio in bonds and other in shares and snap them once in a while depending on market conditions.

Holding money in cash is not a very good option since after inflation it reduces its power.

The type of asset classes depends on your investment goals. You need a customized game plan.

Here are some important points,

1. Asset allocation drives returns. Never bet your future on one country or asset class.
2. Use index funds for the core of your portfolio.
3. Always have a cushion. Hold a portion in bonds, shares, etc.
4. The rule of seven. Have 7 years of income apart in really secure place.
5. Have a small portion to explore new investments and options.
6. Rebalance frequently your portfolio.

Never underestimate the awesome power of disciplined saving combined with long tern compounding.

The majority of investors buy when something is going up and sell it when something is going down. The best investors do the opposite; they buy when there is growing pessimism and hold them for the long run.

Section 3
SPYCOLOGY OF WEALTH

The ultimate game changer is to find something to serve, a cause, someone to serve.

Every day, think as you wake up, “Today I am fortunate to be alive, I have a precious human life, I am not going to waste it” Dalai Lama.

An important distinction is that having financial wealth doesn’t mean you will be wealthy as a human being. Some people have a lot of money but are extremely poor spiritually and emotionally.

When you develop the power of compounding, stay in the market for the long term, diversify intelligently, and keep your expenses as low as possible your odds of attaining financial freedom are extremely high.

Real wealth is emotional, psychological and spiritual. It’s possible to be financially rich and emotionally rich.

Success is about living a magnificent life on your terms, not living someone else’s dream.

The key to experiencing abundance is by being grateful. The more you acknowledge grace in your life, the more you will seem to have it. A deep sense of appreciation brings more and more grace in our lives.

If you want to create an extraordinary life you must master the art of fulfillment. You must focus beyond yourself.

You must keep growing to be fulfilled. Either you are growing or you are dying. If you don’t keep growing you will become frustrated and miserable. That’s a fact of life. You got to keep growing, learning and expanding yourself.

Additionally, you need to give. If you don’t give there is so much you can feel inside. We are driven by our desire to contribute.

As Tony states, Success without fulfillment is the ultimate failure.

Unless you help yourself you cannot help others.

A man is but the product of his own thoughts. What he thinks he becomes. Mahatma Gandhi.

Look for ways to grow personally, constantly exploring different ideas about how to reach a whole new level.

There are basically two personal states you can live in. One is the Energy rich state. Here you feel energized, powerful, confident and optimistic. You can also call it the “Beautiful state”.

The other it’s the “suffering state”. In this state you feel tired, overwhelm, frustrated…etc.

One of the best things you can do for yourself, your life and the people around you is to make a commitment to live in this BEAUTIFUL STATE. That is one of the most powerful decisions and commitments you can make to take your life to a whole new level of possibility and enjoyment.

 The commitment to be happy, to enjoy life, to be at your best possible state no matter what happens.

Two years ago Tony would allow himself to easily fall into a suffering state.  He would get frustrated, pissed off, overwhelm by small things. Now he changed that. He makes an effort to live in this beautiful state no matter what.

When you are in this beautiful state too enjoy more out of life, make better decisions and make life better for other people.

The problem is that the human brain isn’t designed to make us happy and fulfilled. It’s designed to make us survive.  This 2 million year old organ is always looking to see what’s wrong or what could go wrong, for whatever can hurt us, so that you can flight or take flight with it.

An undirected mind operates constantly on a survival mode, constantly identifying ad magnifying these potential threats.

Make a commitment to be constantly in a beautiful state, a high energy state.

A BEAUTIFUL STATE It’s a state when you feel love, joy, gratitude, awe, playfulness, creativity, caring, growth, curiosity, and appreciation.

A suffering state is a state when you are feeling stress out, worried, frustrated, angry, depressed, irritable, overwhelm, resentful, fearful.

There is nothing worse than a rich and privileged person who is angry and ungrateful.

Ultimately, the mental and emotional state in which you live is the result of where you choose to focus your thoughts.

Our lives are shaped not by our conditions but by our decisions. If you look back 10 or 15 years you will recall a decision you made that truly changed your life.

The decision that shapes your life the most is the decision to being happy, not matter what happens in your life.

Commit to enjoy life not only when everything I going great but also when things are not perfect, when everything is against you, when injustice happens, when you don’t feel so great, when you lose something or someone you love.

Stop suffering and start living in a beautiful state regardless what happens. Unless you make this commitment your survival mind will find a way to go into suffering mode whenever your goals, desires and expectations are not met. What a waste of life.

You have to take a decision that you are responsible for state of mind and for your experiences.

I am done with suffering; I am going to live every day to the fullest and find juice in every moment, including the ones I don’t like. Life is just too short to suffer.

Practice the 90 second rule:
Give yourself 90 seconds to continue in that state, and then make myself stop it and change it. Whenever you catch yourself, stop, slow down your breathing.

Miguel tip: start breathing deeply, slow down, hold your breath for a couple of seconds, then exhale slowly and start all over again. Do some affirmations as your breathe deeply.

Remember, “What’s wrong is always available but also what’s right”.

The good news is that you can rewire your nervous system. You need to change your focus. Start there.

There is POWER IN HAPPINESS. There is power in feeling great. Happiness is an advantage in your relationships, in your business, in your health, and in everything you touch.

Living in a positive and happy state, no matter what happens in your life, is the ultimate freedom. It’s also the ultimate gift you can give someone you love. It’s the experience of absolute abundance, an abundance of joy that is true wealth.

“To overcome fear, the best thing is to be overwhelmingly grateful”. Sir John Templeton.

There is a great meditation Tony does, in order to change from a suffering state into a beautiful sate. You can see it in page 3309 in kindle Amazon version. Nothing better for this to start with a sense of gratitude and fill yourself with it.

If you would measure the electrical impulses in your brain and heart with an electroencephalogram (EEG) while you are in a suffering state they would both be jaded and out of synchronicity.

After a simple3 minute meditation the lines of your heart and brain become more organized and tend to look almost identical between the two of them. This is the power of a meditation.

“The purpose of a business is to provide happiness, not to pile up money”  B.C. Forbes.

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CHALENGE SOME OF THE BOOK IDEAS

I love this book and most of the information, ideas and suggestions. There are several suggestions, however, that could be challenged. There are many paths to financial freedom, not all of them work for everyone.

Not all paths work equally for everyone.

Here are some of the suggestions Tony mentioned in the book that I would like to discuss with him:

1. The single best place to compound money over many years is the stock market.
   My answer: Well, this can be true for some investors. For others, the best way for compounding their money is through their business, or the creation of new business from that one, like Richard Brandon. Take Sam Walton and Wallmart for example, as a way to compound his money through re-investing in their business. Others compound through building a brand and through real estate like Donald Trump does.
   In addition, if you were living in Japan and investing from 1990, your returns would really suck, unless you diversify overseas. Take that into consideration. Basically a 30 year bear market.
2. Toni’s defends that you are not going to earn your way to financial freedom. He best way is setting aside a portion of your income and invest it wisely. That is how you become wealthy while you sleep.
   My answer: again as in suggestion one, it depends. You can perfectly earn your way into financial freedom if you build businesses, you are still earning an income but producing an asset simultaneously. Its exponential income.
3. He defends that you need about 15 times what you are earning right now; he says inn reality that number should be about 2 million. But it depends what type of income you are producing and what rate of expenses you are having.
   My answer: this depends also on your expenses, and specially what type of income you are producing. Is it from job? Is it from royalties, income property?

For example, let’s say my income comes from rental properties, or from a small hostel I have. And I am producing 100.000 basically in residual income, and let’s say I live in the hostel in the upper floor, and it’s all paid. So I am earning 100.000 basically net, with little taxes, in addition my expanses are about let’s say 40.000 a year, I have a over 50% of my income. Do I really need 20 times my income in saving?

These are some fascinating conversations you could have with anyone who is interested in maximizing their returns through investing.

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Some quotes and terms I love in “unshakeable”

“To overcome fear, the best thing is to be overwhelmingly grateful.
Sir John Templeton.
You need to give. If you don’t give there is so much you can feel inside. We are driven by our desire to contribute.

 

Be one of the few who do versus the many who just talk.

Decisions equal destiny.

 

The most successful people aren’t just lucky; they have a different set of beliefs. They have a different strategy. They do things differently than anyone else.
If you live in fear you have lost the game before it even begins
Never underestimate the awesome power of disciplined saving combined with long tern compounding

 

Posttraumatic stress or much better Posttraumatic growth. Much better the second one.

What’s wrong is always available but also what’s right.

You can rewire your nervous system. You need to change your focus.
Knowledge is power, but it is only potential power. Action is true power

The ultimate game changer is to find something to serve, a cause, someone to serve.
Power: the ability to influence life’s circumstances. The fuel to produce extraordinary results

The stock market is a device for transferring money from the impatient to the patient.

Most people don’t take responsibility; they prefer to blame someone or something else.

Most people want freedom, the ability to do what they want whenever they want.

Our lives are shaped not by our conditions but by our decisions.

The decision that shapes your life the most is the decision to being happy, not matter what happens in your life.

Every day, think as you wake up, “Today I am fortunate to be alive, I have a precious human life, I am not going to waste it”.  Dalai Lama
Having financial wealth doesn’t mean you will be wealthy as a human being.
When you develop the power of compounding, stay in the market for the long term, diversify intelligently, and keep your expenses as low as possible your odds of attaining financial freedom are extremely high.

Real wealth is emotional, psychological and spiritual. It’s possible to be financially rich and emotionally rich.

My entire life has been focused on HELPING PEOPLE TURN THEIR DREAMS INTO REALITY. What is that you really want.

It’s about living a magnificent life on your terms, not living someone else’s dream.

The more acknowledge grace in your life, the more you will seem to have it. A deep sense of appreciation brings more and more grace in our lives.
If you want to create an extraordinary life you must master the art of fulfillment.
You need to master your internal world in order to master your external world.

You must keep growing to be fulfilled. Either you are growing or you are dying. If you don’t keep growing you will become frustrated and miserable.

You need to give. If you don’t give there is so much you can feel inside. We are driven by our desire to contribute.

Success without fulfillment is the ultimate failure.

Unless you help yourself you cannot help others.

A man is but the product of his own thoughts. What he thinks he becomes. Mahatma Gandhi.

I am always looking to grow personally, so I am constantly exploring different ideas about how to reach a whole new level.

The problem is that the human brain isn’t designed to make us happy and fulfilled. It’s designed to make us survive.  This 2 million year old organ is always looking to see what’s wrong or what could go wrong, for whatever can hurt us, so that you can flight or take flight with it.

An undirected mind operates constantly on a survival mode, constantly identifying ad magnifying these potential threats.

Make a commitment to be constantly in a beautiful state, a high energy state.

A BEAUTIFUL STATE It’s a state when you feel love, joy, gratitude, awe, playfulness, creativity, caring, growth, curiosity, and appreciation.

A suffering state is a state when you are feeling stress out, worried, frustrated, angry, depressed, irritable, overwhelm, resentful, fearful.

There is nothing worse than a rich and privileged person who is angry and ungrateful.

Ultimately, the mental and emotional state in which you live is the result of where you choose to focus your thoughts.

Commit to enjoy life not only when everything I going great but also when things are not perfect, when everything is against you, when injustice happens, when you don’t feel so great, when you lose something or someone you love.

Stop suffering and start living in a beautiful state regardless what happens. Unless you make this commitment your survival mind will find a way to go into suffering mode whenever your goals, desires and expectations are not met. What a waste of life.

You have to take a decision that you are responsible for state of mind and for your experiences.

There is POWER IN HAPPINESS.

“The purpose of a business is to provide happiness, not to pile up money”  B.C. Forbes.

Tom Zgainer, “The 401k  business is “the largest dark pool of assets nobody really knows how or whose hands are getting greased

 

My entire life has been focused on HELPING PEOPLE TURN THEIR DREAMS INTO REALITY. What is that you really want.

There is nothing worse than a rich and privileged person who is angry and ungrateful.

 

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IMPPORTANT BELIEFS

1. Real wealth is emotional, psychological and spiritual. It’s possible to be financially rich and emotionally rich
2. The decision that shapes your life the most is the decision to being happy, not matter what happens in your life
3. What’s wrong is always available but also what’s right”.
4. Living in a positive and happy state, no matter what happens in your life, is the ultimate freedom

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“TURBOMIND BOOK CLUB” SUMMARY

10 things I learnt from the book “USHAKEABLE, by Tony Robbins”

 by Tylor Jones

 

It’s hard to summarize 10 things out of a book with as much information as this one, especially so much interesting information.

There are so many new and interesting concepts and ideas that it is painful to leave so many out, but for the sake of finishing this section we have to choose the 10 most important ideas.

Ok, here they are,

1. The majority of investors do not beat the market, meaning, they don’t beat the most important indexes. The majority of investors are average investors producing average returns. The majority of investors do not have the long term view strategy to create extraordinary investment results. So, the average investor doesn’t know about how much their mutual fund is charging, doesn’t know about taxes. They tend to be more speculators than investors. You want to define and clarify your financial goals and dreams to develop the right strategy to achieve them.
2. The average investor is exposed to ridiculous high fees from mutual funds. They are overpaying them for underperformance. The average mutual fund produce below average returns with excessive management fees and other hidden cost. 1% a year in fees can add years to your retirement plan. The average non-index fund confiscates most of their below returns with absurd fees, most of them hidden. Fees matter, and make the difference between a good and an exceptional investment. A regular managed fund charges around 3% a year, that is about 60 times what an index fund charges.
3. Compounding interest is the most powerful tool you have in your financial arsenal to create financial freedom over time. It’s hard to be financially free just by income along. The magic formula is:
   INCOME plus SAVING, plus INVESTING, plus COMPOUNDING INTEREST, meaning reinvesting the returns you get. The key is to set aside some money every month and invest it. Create the discipline that no matter what, you will separate part of your income for your FINANCIAL FREEDOM FUND.
4. Over time the stock market is one of the best places for compounding Investing in cheap index funds is one of the best tools you have for financial freedom.
   Index funds charge a very low management. In addition, since they have a long term view and strategy, they buy and hold, so you will be paying little taxes, which by itself increases the return of the investment. So index funds have the best of both worlds: low management fees, plus low taxable income.
5. Corrections and bear markets offer the absolutely best opportunity for creating great returns. You shouldn’t be afraid of corrections; you should be preparing for them. Furthermore, you shouldn’t stay out of the market because of them. This is an expensive proposition. Most people lose because of this. There has been a bear market (20% fall in price) on average every 5 years and a correction (10% changes) every year for the last 50 years. Times of maximum pessimism offer the best opportunities to buy. If you let your fear run your life you already lost the game.
6. Asset allocation drives returns. Never bet your future on one country, one asset class or one market. Diversify your portfolio intelligently.
   Always have a cushion. Hold a portion in bonds, shares, etc. The rule of seven. Have 7 years of income apart in really secure place. It could be bonds for example.

7. The most successful people aren’t just lucky; they have a different set of beliefs. They have a different strategy. They do things differently than anyone else. The best investors in the world do these four core things:
   They make an effort not to lose money.
   2. They look for asymmetric risk reward. They ask themselves how can I receive the greatest returns with the smallest risk?
   3. They look to reduce their taxable income by holding assets long term.
   4. They diversify between different asset classes, different markets and different countries.
8. How you feel determines what you can and cannot do. The most important decision you can make in your life is the decision to live in a beautiful personal state. What is a beautiful state? It’s when you, a state of possibility, energy, creativity, gratefulness. This is the commitment to be happy regardless of what happens or goes in your life. You have the opportunity that regardless of what happens; you make a decision to enjoy your life, to feel your best. You can train yourself to feel great at all times regardless what happens.
   The challenge we have as humans is that the human brain isn’t designed to make us happy and fulfilled. It’s designed to help us survive. This beautiful 2 million year old organ is always looking to see what’s wrong or what could go wrong, for whatever can hurt us, so that you can flight or take flight with it
9. The extraordinary power of GRACE, of being and feeling grateful for not only you’re the blessings you have, but also, for your challenges and difficulties.
   The more grateful you are the more things to you will have to be grateful for.
   The more acknowledge grace in your life, the more you will seem to have it. A deep sense of appreciation brings more and more grace in our lives.
   Gratitude is the healthiest and most powerful emotions you can have and live by. You can’t be grateful and be in fear, or be grateful and be irritated at the same time.
10. THE POWER OF GIVING AND CONTRIBUTION. You need to give. If you don’t give there is so much you can feel inside. We are driven by our desire to contribute, to help others.

So, in summary,
When you develop the power of compounding, stay in the market for the long term having a big portion of your portfolio in index funds, diversify intelligently, and keep your expenses as low as possible, your odds of attaining financial freedom are extremely high.

Furthermore, when you feel grateful not only for the blessing, but for the challenges in your life, you, not only enjoy financial freedom but emotional and spiritual abundance. In addition, when you give and contribute to other people, you create true prosperity.
“To overcome fear, the best thing is to be overwhelmingly grateful”. Sir John Templeton

6-Poweractions you can take:

 

Here are some mandatory actions I recommend from reading the book:

 

1. The very first thing you want to do is to define your financial goals and dreams. What exactly do you want? How much money you want to earn, set aside, and invests? What are your ultimate financial goals? These questions you must answer if you want to create true abundance in your life. Do you want to earn 10.000 a month a million a month? How much do you want to retire with? What net worth do you want to have?
2. Start your “FINANCIAL FREEDOM” Fund TODAY, which is the source of lifetime income that will allow you to never have to work again.
   This can be as easy as opening a saving account by the name of FINANCIAL FREEDOM FUND ACCOUNT.
   Make the commitment to add money into this account no matter what, no matter if you are in debt, or struggling. Even if it’s a penny, add every month some money into this account. This helps you develop the discipline to save and invest, which is a key habit for financial freedom habit.
   by the way, you cannot touch this money for any reason. This is your retirement fund. Your own personal retirement fund. You only pull money from this account in order to make investments.
3. Contact several registered financial advisor and make an interview with them. You have the most powerful questions you can ask them as well as a web site to get a second opinion. Getasecondopinion.com
4. Make a commitment to live in a beautiful state at all times. A high energy beautiful personal state is a place where you feel grateful, optimistic and great. Make a commitment to be grateful and happy regardless of what happens.
5. Spend some time every day being grateful, even if its 5 minutes per day. Set aside some time for this, can be just after waking up or before going to bed. Open an investment account with a brokerage you like. Start investing in index funds.
6. Make a commitment to start giving. Find a cause that is bigger than yourself. One that inspires you to contribute. Every month separate a portion of your income for this. It doesn’t matter of its one penny. You could also donate your time or knowledge.

Tylor Jones, Master Coach at turbomind.com.
Contact me Through WhatsApp or Telegram for a 45-Minute Free Coaching Session. I love helping people and Businesses become Exceptional. +507-6426-9450. keep updating this list regularly….