A Blueprint To Achieve Financial Freedom & Success | Tony Robbins EP 795

0:00Hi, my name is Lewis Howes and welcome to the Daily Motivation show.

0:09I met with David Swenson. He took$1 billion, turned it into$24 billion in two decades, in 20 years. Just mind-boggling. A billion a year, right? Just think about that double doubling. It's just mind-boggling. And I asked him, I said, what are the dials? What are the only dials we can touch? And he said, Tony, to increase your return, there's only two things you can do. He said, you can make better selections of stocks. He said, you can have better timing. He said, and you can have better asset allocation. He said the first two will never happen because the first two cost you money. Got to hire somebody.

0:39Everybody's wrong on the timing. He said asset allocation, which simply means dividing your money into different buckets. Some of those buckets are secure so that even though you think you're going to be a genius, you're going to make money no matter what, that money goes slower, but it'll always be there and it'll give you freedom for the rest of your life. There's a growth bucket, which is also a risk bucket. We forget that. Yeah. Because one of the things Ray Dalio taught me, he said, Tony, everybody invests in what they think they know. You grew up with real estate. You're not a genius, but you made money in real estate because anybody can when real estate's growing up.

1:08You think you're a genius. You think you know stocks. Oh, you're a genius, you know, in 1999, right? You're a genius in 2010 when things started to grow. He said, whatever you invest in, in your lifetime, that area is going to drop 50 % to 70%. There's zero exception. It can show you mathematically and it can show you historically. So he said, you have to diversify even though you don't want to. And you have to divide these monies up. So every one of them taught me different asset allocations. But the one that I think is the most valuable for anybody to really take advantage of is Ray Dalios. Because Ray Dalios figured out, why is it in 2008, if your stockbroker, your financial planner said, we're going to protect you, we're going to put you half in stocks and half in bonds.

1:49Why did they both go down? You weren't protected at all, summing up in 2000. And he figured something out. When you think you're in a balanced portfolio, you're not balanced. And the reason is stocks are three times more volatile than you'll find in bonds. What does that mean? It means when you think you're 50-50, you're 50-50 with your money, but you're not 50-50 with your risk. You're 95 % at risk and 5 % on the good side. That's why everybody loses. So he figured a formula because he said, look, someday I'm going to be gone. I want my kids to have the money long term. I want all the philanthropic things I'm doing to be taken care of.

2:22So he spent 15 years studying the markets and figured out how do I design a portfolio that'll make money every time? Like if it loses money, it lost in 75 years. It's lost 1.6 % when it's lost, but it's been right 85 % of the time. If you went to Vegas and you were planning to work for 75 years and make money 85 % of the time, and when you lost, you lost 1.6%. And when you gained, you gained more than 10%. The biggest loss in 75 years is 3.95%, less than 4%. Wow. So why do people not make it in the stock market? Because when you take a 50 % hit, they all say stay in. Nobody, the average person never stays in.

2:59Sure. If you look at the last 20 years, the average person, the stock market over 20 years, from 1993 to 2013, has averaged 9.2%. Pretty cool compounding. You double your money pretty quick doing that. Right. But the average mutual fund investors make 2.5%. Why? Because they freak out. They sell when it goes down. They buy when it's looking good. It's the wrong time to buy it. They don't know what to do. So what Ray Dahlia's strategy does, and by the way, he's never shared this strategy ever. He lays it out. You can do it yourself or you have someone else do it for you. But it takes 15 minutes a year and 85 % success over 75 years.

3:34And I could take any time period. It lasts 30 years. You lost money four times. One of those is 0.003%. So it's really breaking. And again, the most you ever lost, less than 4%, average 1.9%. So if you're looking for a plan, I'd put some money there. And the other money that I would do is I'd take some of that money and I'd look at what are the biggest trends. I have a lot of my money also in senior housing. And the reason is twofold. It's a demographic inevitability. There's this giant wave of baby boomers and there isn't enough senior housing to take care of them. And I also, I like it. I like to create a quality place for someone to be able to be lived and take care of and so forth.

4:07But there's huge income from it and there's the growth in the asset itself. So I'd be looking at what are the big trends. But I would make sure I locked down a segment of my money that just, I took a percentage of my income no matter what, and I made it really big, and I made it so I never have to work again. And that's where I am now. I don't have to work. And what's ironic is when you interview people that make at least$750 ,000 a year, just under a million, 80 % of them say they'll never retire. When you interview people that make a very little amount of money, they all talk about wanting to retire.

4:35And the people that do retire say they'll retire after 75. The real goal is not to have to work. If you don't work, you're going to start breaking mad because we all need to be productive to feel alive. to me being great is being outstanding to stand out from all the rest and and as you know in sports it can be by you know a few microseconds right you know in olympics you know it can be a nose hair and you stand out if you stand out you show other people what's possible not everybody likes that some people get angry and think you're showing them up other people get inspired i've always been inspired by somebody who's the best in the world at what they do and so i think greatness is somebody who just will not settle and finds a way to do, be, share, and create in life what they want as opposed to fitting in.

5:18I took a quote from Aristotle saying, you know, how do you really live your life? Well, if you don't want to upset anybody, it's really simple. Don't do anything. Don't say anything. Don't be anything. And everybody will like you. But if you want to have a quality life, I think you just have to put yourself on the line. And so to me, greatness is people that put themselves on the line, they keep growing, they won't settle.

5:48I am so excited for you to finish the rest of your day strong. If you enjoyed this episode, make sure to click the link in the description and it'll take you to the full episode of my other show, The School of Greatness. Make sure to come back tomorrow for another episode of The Daily Motivation Show. Thank you.