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

The finance ministers of Britain, Canada, France, Germany, Italy, and Japan team up against U.S. President Trump at the G7 forum.

Jonah Whanau

2018-06-02 09:35:00 Saturday ET

The finance ministers of Britain, Canada, France, Germany, Italy, and Japan team up against U.S. President Trump at the G7 forum.

The finance ministers of Britain, Canada, France, Germany, Italy, and Japan team up against U.S. President Donald Trump and Treasury Secretary Steven Mnuchi

+See More

President Trump criticizes the potential media merger between AT&T and Time Warner.

Chanel Holden

2017-11-05 09:45:00 Sunday ET

President Trump criticizes the potential media merger between AT&T and Time Warner.

President Trump criticizes the potential media merger between AT&T and Time Warner, the latter of which owns the anti-Trump media network CNN. President

+See More

IMF chief economist Gita Gopinath predicts no global recession with key downside risks at this delicate moment.

Charlene Vos

2019-04-29 08:35:00 Monday ET

IMF chief economist Gita Gopinath predicts no global recession with key downside risks at this delicate moment.

IMF chief economist Gita Gopinath predicts no global recession with key downside risks at this delicate moment. First, trade tensions remain one of the key

+See More

Santa-Barbara political economy professor Benjamin Cohen proposes new fiscal stimulus to complement the current low-interest-rate monetary policy.

Daphne Basel

2019-08-28 14:46:00 Wednesday ET

Santa-Barbara political economy professor Benjamin Cohen proposes new fiscal stimulus to complement the current low-interest-rate monetary policy.

Santa-Barbara political economy professor Benjamin Cohen proposes new fiscal stimulus to complement the current low-interest-rate monetary policy. Cohen fin

+See More

Apple revises down its global sales revenue estimate to $83 billion due to subpar smartphone sales in China.

James Campbell

2019-01-09 07:33:00 Wednesday ET

Apple revises down its global sales revenue estimate to $83 billion due to subpar smartphone sales in China.

Apple revises down its global sales revenue estimate to $83 billion due to subpar smartphone sales in China. Apple CEO Tim Cook points out the fact that he

+See More

Tech unicorns blitzscale business niches for better scale economies from Uber and Lyft to Pinterest, Slack, and Zoom.

Dan Rochefort

2019-05-03 11:29:00 Friday ET

Tech unicorns blitzscale business niches for better scale economies from Uber and Lyft to Pinterest, Slack, and Zoom.

Key tech unicorns blitzscale business niches for better scale economies from Uber and Lyft to Pinterest, Slack, and Zoom. LinkedIn cofounder and serial entr

+See More