Tony Robbins’ latest book, The Holy Grail of Investing, written with Christopher Zook, is a strong sales pitch for investors to move into alternative investments such as private equity, private credit, and venture capital.
I decided to give it a chance to challenge my current plans to stay out of alternative investments. The book has some interesting parts — mainly the interviews with several alternative investment managers — but it didn’t change my mind.
The book begins with the usual disclaimers about not being intended “to serve as the basis for any financial decision” and not being a substitute for expert legal and accounting advice. However, it also has a disclosure:
“Tony Robbins is a minority passive shareholder of CAZ Investments, an SEC registered investment advisor (RIA). Mr. Robbins does not have an active role in the company. However, as shareholder, Mr. Robbins and Mr. Zook have a financial incentive to promote and direct business to CAZ Investments.”
This disclosure could certainly make a reader suspect the authors’ motives for their breathless promotion of the benefits of alternative investments and their reverence for alternative investment managers. However, I chose to ignore this and evaluate the book’s contents for myself.
The most compelling part of the pitch was that “private equity produced average annual returns of 14.28 percent over the thirty-six-year period ending in 2022. The S&P 500 produced 9.24 percent.” Unfortunately, the way private equity returns are calculated is misleading, as I explained in an earlier post. The actual returns investors get is lower than these advertised returns.
Ray Dalio and uncorrelated investment strategies
The authors frequently repeat that Ray “Dalio’s approach is to utilize eight to twelve uncorrelated investment strategies.” However, if the reported returns of alternative investments are fantasies, then their correlation values are fantasies as well. I have no confidence as an investor that my true risk level would be as low as it appears.
Much of the rest of the authors’ descriptions of alternative investments sounds good, but there is no good reason for me to believe that I would get better returns than if I continue to own public equities.
I choose not to invest in individual stocks because I know that I’d be competing against brilliant investors working full-time. I don’t place my money with star fund managers because I can’t predict which few managers will outperform by enough to cover their fees. These problems look even worse to me in the alternative investment space. I don’t lack confidence, but I try to be realistic about going up against the best in the world. Continue Reading…
In the quest for Financial Independence, milestones vary from mastering debt to embracing minimalism.
We’ve gathered insights from nine professionals, including Finance Experts and Founders, to share their personal triumphs. Discover how these individuals have navigated their paths from mastering debt through frugality to paying off mortgages independently.
Mastering Debt through Frugality
Achieving Total Debt Freedom
Securing a Higher-Paying Job
Early Retirement through Real Estate
Eliminating Debt with Side Hustles
Embracing a Debt-Free Minimalist Life
Regulating Finances with Nervous System
Strategically Paying off Student Loans
Paying Off Mortgage Independently
Mastering Debt through Frugality
Each milestone marked an important stage towards a more confident future on this road to Financial Independence. One turning point occurred when I became a master of managing Debt and adopted frugality as my way of life.
Although, in my pursuit of financial freedom, it dawned on me that Debt was both a burden and a tool; this happened at the time when I decided to confront my debts openly. Eventually, I divided them by interest rates and then talked with lenders about much better repayment terms. With discipline and focus, little by little, I got rid of a mountain of debts while coming closer to financial liberty after each payment.
Another significant landmark was when I began practicing frugality. For instance, being mindful of small savings that accumulate over time into significant wealth-creation opportunities has been one key lesson that I learned from this approach. In other words, I dissected every expense into what need was involved for its necessity or want and became good at finding creative ways to save without losing sight of the quality of life.
Whether it is meal planning or relying on loyalty programs or DIY solutions; being frugal does not mean living without but instead making conscious decisions towards personal financial objectives.
Whenever I look back on the path that led me toward my financial independence, I don’t see these checkpoints as just what they are; instead, I think of them as turning points in how I think and act. Learning how to manage debt properly and adopting a saving lifestyle have given me complete autonomy over my financial future, thus laying down a foundation for abundance and stability. –– Arifful Islam, Finance Expert, Sterlinx Global LTD
Achieving Total Debt Freedom
One of the biggest milestones on my journey to Financial Independence was finally becoming 100% debt-free. This achievement felt especially meaningful because it required a serious commitment to smart money management and embracing a frugal lifestyle.
Early in my career, I was weighed down by a ton of student loans and racked up credit-card balances. I realized all that debt was just holding me back from reaching my bigger financial goals and living the life I really wanted. So, I made a decision to make paying it all off as fast as possible my top priority.
I started by creating a super-detailed budget that accounted for every dollar of income and expenses. Then I looked for any areas where I could cut back on non-essential splurging: like eating out, entertainment, shopping sprees, etc. Any money I could free up got funneled directly towards making bigger debt payments, focusing on the highest-interest accounts first.
At the same time, I fully embraced a more frugal, minimalist lifestyle overall. I learned to appreciate simple, free pleasures and find joy in experiences over buying a bunch of material stuff. I also hustled to increase my income through side gigs like freelancing or selling unwanted items.
Through diligent budgeting, living frugally, and a strategic debt repayment plan, I managed to become 100% debt-free within just a few years. Not only did it drastically improve my overall financial situation, but it gave me this incredible sense of freedom and control over my life. It laid the foundation for even bigger money wins down the road while teaching me the value of living below my means to prioritize long-term goals. –– Loretta Kilday, DebtCC Spokesperson, Debt Consolidation Care
Securing a Higher-Paying Job
The most critical milestone I reached was getting a job that paid more than just “enough.” I’ve tried freelancing, selling online, starting a website, doing social media, and I even tried digital marketing for a startup. But it wasn’t until I got a plain old job that just paid more than I needed that I found everything I needed: peace of mind, freedom from debt, the start of a retirement fund, and more.
For anyone who’s struggling even $50 makes the difference between starving or surviving: I suggest just building your skills and portfolio and moving up to better-paying jobs. Get the certainty and security that comes from a regular salary, one that allows you to pay all your bills and gives you breathing space.
Once that’s done, you have the room to plan for the future, to pay off debt, to organize your finances so that if you want to budget, it’s actually possible. — Debashri Dutta, Founder, Dmdutta.com
Early Retirement through Real Estate
Being able to retire in my early Thirties was a significant milestone toward Financial Independence. I started investing in real estate in my twenties, and I had to work two jobs and live frugally to afford a down payment.
But today? I don’t have to worry about working a job I’m not particularly passionate about. Instead, I can spend my time doing what matters more to me, like coaching others who want to escape the rat race and build financial security for themselves.
Bottom line: If you have a goal in mind, short-term sacrifices will be worth it in the long run. — Ryan Chaw, Founder and Real Estate Investor, Newbie Real Estate Investing
Eliminating Debt with Side Hustles
I gained Financial Independence through hard work and side hustles. The biggest milestone I achieved was paying off US$60,000 in student loans. That debt was debilitating, and I was able to pay it all off by devoting all the money I made from side hustles to debt reduction. After I paid off my student loans, I used the same methods to pay off the house.
The next milestone that was incredibly important to me was having US$250,000 in savings. That milestone was important because it felt like the investment income began to snowball. It also felt like my hard work was paying off, and it made it easier to make the effort to save money after that point because I felt it working. — Jonathan Geserick, Managing Attorney, Texas Probate Pros
Embracing a Debt-Free Minimalist Life
I had a business go very south about 10-15 years ago. I held on way too long because it was “my baby.” Because of this, I racked up a lot of debt that I really knew I shouldn’t have, trying to save the business.
I moved that debt into a very low-interest situation long ago, which allowed me to pay a very small amount towards the principal and interest every month. That was a great solution; however, I recently decided to just pay the whole thing off. Continue Reading…
Billy and Akaisha Kaderli, early retirement advocates, simplify the process of estimating your retirement savings needs.
Akaisha and Billy at the Tour Eiffel, Paris Image courtesy RetireEarlyLifestyle.com
Are you preparing to retire?
It’s going to happen someday, no matter if you want to retire early or later these questions below need to be answered.
How much do I need to retire?
Without going into complicated spreadsheets and analysis, a simple way to determine your “number” is to multiply your current annual spending by 25.
First you need to figure out what you are spending per year. Do you know? Most people have no idea where their hard-earned dollars go.
We offer an easy-to-use spreadsheet in our book The Adventurer’s Guide to Early Retirement, or you can make one yourself. The important thing is that you know how much you are spending annually.
For illustrative purposes let’s use this data
The 2022 Consumer Expenditure Survey by the Bureau of Labor Statistics reveals that the average American household’s monthly expenses total approximately $6,081, equating to $72,967 annually. We will round this to $73,000.
Are you above or below this average? Remember, this is not your take-home pay, but how much you are actually spending on rent/house payment, car, insurance, gas, clothing, and everything else that you spend money on.
Using the 73K figure, multiply this by 25 = $1,825,000 Dollars is how much you need to have invested in liquid assets. Most studies use 60% stocks, 40% bond portfolio. In our opinion that’s a bit conservative but it all depends on your personal risk tolerance. In our case Social Security and cash are our bond equivalent; thus we have a higher stock allocation.
Regarding Social Security, do you know what your estimated annual payments will be? Simply go to SocialSecurity.gov and create an account. All of your contributions and work history will be there as well as the number of quarters you have accumulated. You need a minimum of 40 quarters of work history to qualify for your payments.
Don’t get discouraged by the $1,825,000 figure, but how are you going to get there?
Based on December 2023 data from the Social Security Administration the average monthly cheque is $1,767.03 or $21,204.36. Multiply this figure times 2 in your household equals $42,408.72.
$73,000 expenses minus $42,409 in Social Security payments leaves a $30,591 income deficit that you need to create from your investments to cover your expenses.
Looking better?
Now let’s multiply $30,591 times 25 and your new “number” is $764,775 that you need to have invested in a stock/bond/cash portfolio.
If you are retiring early like we did before your retirement age, you will need to have enough invested to cover your living expenses before receiving your Social Security. Maybe that is 20 years or more so you need to plan accordingly.
How to get to your number
Hopefully you’ve already started investing and have a growth portfolio that is matching market returns or close to it using the ETF, VTI, Vanguard Total Market. Now you know how much you have to contribute through the years to arrive at your target, assuming that you will continue spending $73,000 per year. Continue Reading…
Life can get hectic, and sometimes special occasions sneak up on us faster than expected. Whether it’s a friend’s birthday, a colleague’s promotion, or a last-minute holiday party invitation, forgetting a gift can leave you scrambling. But fear not! With a little creativity and resourcefulness, you can still find the perfect present, even if you’re on a tight deadline.
This guide explores nine fantastic last-minute gift ideas suitable for any occasion, from birthdays and holidays to anniversaries and graduations. These options cater to various tastes and budgets, ensuring you can find something thoughtful and memorable, even with limited time.
1.) Hand-painted portraits
A unique and personalized present, a hand-painted portrait captures the essence of your loved one. You can commission a portrait based on a favourite photo, featuring their pet, or showcasing a cherished memory. While some artists might require a significant lead time, many online platforms offer expedited services where you can receive a digital file within a few days. This digital file can be printed on canvas, framed, or used to create a variety of personalized gifts like mugs, phone cases, or tote bags.
2.) Audiobooks
Audiobooks are the gift of knowledge and entertainment, making them perfect for busy individuals who enjoy listening while commuting, exercising, or doing chores. Consider the recipient’s interests when choosing an audiobook. Do they love historical fiction? Perhaps a captivating biography or a classic novel they haven’t read yet would be ideal. For mystery lovers, a suspenseful thriller could be a great choice. Many online audiobook retailers offer instant downloads or gift memberships, making them a convenient last-minute option.
3.) Colourful Wall Art
A vibrant piece of art can instantly transform a space, adding personality and a touch of joy. Explore online art marketplaces or local galleries (if time permits) to find unique prints or paintings that suit your recipient’s taste. Abstract art offers a conversation starter, while landscapes or floral prints can add a touch of serenity.
Pro-Tip: Consider the recipient’s home decor style when choosing the artwork.
4.) Cheesecake and Rose Bouquet
Who can resist the delightful combination of a delicious cheesecake and a beautiful bouquet of roses? Many online bakeries and gourmet shops offer gift sets featuring decadent cheesecakes paired with stunning floral arrangements. This decadent indulgence is ideal for birthdays, anniversaries, or simply to show someone you care.
5.) Create a Video Tribute
For a sentimental and heart-warming gift, put together a video montage celebrating your relationship with the recipient. Gather photos and videos from throughout your time together, add some heartfelt music, and maybe even record a personalized message. Continue Reading…
Navigating the financial landscape of the medical industry is essential for healthcare professionals and medical students aiming to build successful careers. Understanding the economic aspects enhances the ability to make informed decisions and contributes to better resource management, ultimately improving patient care.
Here’s what to know about the financial side of the medical industry.
By Dan Coconate
Special to Financial Independence Hub
Image by Adobe Stock/Photographer Nuttapong Punna|.
When it comes to fast-growing industries, few stand out like healthcare.
While the top priority in healthcare is always quality patient care, you can only provide that care if you can afford to keep the lights on.
In other words, strong financial management is the foundation that allows any healthcare organization to fulfill its primary purpose.
Let’s take a quick look and discover the financial dynamics of the medical industry, covering budgeting, revenue cycles, and economic challenges healthcare providers face.
Cost Management and Budgeting
Cost management aids in sustaining healthcare facilities. Hospitals and clinics must carefully budget for various expenses:
Staffing
Medical supplies
Equipment
Technology upgrades
By implementing strategic budgeting practices, healthcare providers can optimize their operations, reduce waste, and allocate resources more efficiently. This is particularly vital in rural areas, where financial constraints can impact the quality of healthcare services.
Funding and Revenue Streams
Understanding the various funding and revenue streams is fundamental in the medical industry. In Canada, healthcare is primarily funded through public sources, including federal and provincial government allocations. However, private contributions, grants, and partnerships also supplement these funds.
Healthcare professionals and administrators should be well-versed in navigating these financial avenues to ensure their institutions remain well-funded and capable of delivering high-quality care.
Financial Compliance and Regulations
All healthcare providers must adhere to financial compliance and regulatory standards. This includes maintaining accurate financial records, adhering to billing practices, and ensuring transparency in financial transactions.
Compliance safeguards entire institutions against legal repercussions and builds trust with patients and stakeholders. Staying updated with the latest regulations and implementing financial management systems can prevent discrepancies and enhance operational efficiency.
Investment in Technology and Innovation
Investment in technology and innovation is a significant financial consideration for professionals in the healthcare industry. Advanced medical technologies, electronic health records (EHRs), and telemedicine platforms require substantial financial outlays but offer long-term benefits. Continue Reading…
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