Tony Robbins recommends portfolio optimization only once a year.

Laura Hermes

2017-02-19 07:41:00 Sun ET

In his recent book on personal finance, Tony Robbins recommends that each investor should rebalance his or her investment portfolio *only once a year* to invest for the long-term.

Robbins defies the conventional wisdom and so suggests that a smart investor should admit that he or she lacks any special advantage in a myopic attempt to beat the market.

A multi-year investment period extends the time horizon for the typical investor to earn both dividend yields and capital gains with much more probable success.

Robbins also points out that it is pivotal for the typical investor to start investing in stocks for their higher long-run average returns during his or her professional career.

Given the power of exponential compound interest growth, dividend yields and capital gains help accumulate capital wealth much faster.

The typical investor's ability to accumulate passive income determines a larger fraction of his or her wealth at retirement age because this income accumulation follows the law of exponential compound interest growth.

In contrast, the typical investor's salaries and bonuses only represent a smaller fraction of his or her wealth at retirement age because this income accumulates over time with no compound interest.


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Warren Buffett invests in American stocks across energy, transport, and finance etc.

Daphne Basel

2017-07-07 10:33:00 Friday ET

Warren Buffett invests in American stocks across energy, transport, and finance etc.

Warren Buffett invests in American stocks across numerous industries such as energy, air transport, finance, technology, retail provision, and so forth.

+See More

Harvard financial economist Alberto Cavallo empirically shows the recent *Amazon effect* of faster retail price adjustments.

Amy Hamilton

2018-08-23 11:34:00 Thursday ET

Harvard financial economist Alberto Cavallo empirically shows the recent *Amazon effect* of faster retail price adjustments.

Harvard financial economist Alberto Cavallo empirically shows the recent *Amazon effect* that online retailers such as Amazon, Alibaba, and eBay etc use fas

+See More

Most major economies grow with great synchronicity several years after the global financial crisis.

John Fourier

2018-01-19 11:32:00 Friday ET

Most major economies grow with great synchronicity several years after the global financial crisis.

Most major economies grow with great synchronicity several years after the global financial crisis. These economies experience high stock market valuation,

+See More

President Trump blames the Federal Reserve for its *crazy tight* interest rate hike.

Becky Berkman

2018-10-13 10:44:00 Saturday ET

President Trump blames the Federal Reserve for its *crazy tight* interest rate hike.

Dow Jones tumbles 3% or 831 points while NASDAQ tanks 4%, and this negative investor sentiment rips through most European and Asian stock markets in early-O

+See More

President Donald Trump releases his plan to slash income taxes for U.S. citizens and corporations.

Jacob Miramar

2017-09-03 10:44:00 Sunday ET

President Donald Trump releases his plan to slash income taxes for U.S. citizens and corporations.

President Donald Trump has released his plan to slash income taxes for U.S. citizens and corporations. The corporate income tax rate will decline from 35% t

+See More

Bill Gates and Warren Buffett shared their best business decisions in a 1998 panel discussion.

Laura Hermes

2017-11-13 07:42:00 Monday ET

Bill Gates and Warren Buffett shared their best business decisions in a 1998 panel discussion.

Top 2 wealthiest men Bill Gates and Warren Buffett shared their best business decisions in a 1998 panel discussion with students at the University of Washin

+See More