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
Treasury Secretary Steven Mnuchin indicates that there is a good conceptual trade agreement between China and the U.S. in regard to intellectual property protection and enforcement.
James Campbell

2019-10-05 07:27:00 Saturday ET

Treasury Secretary Steven Mnuchin indicates that there is a good conceptual trade agreement between China and the U.S. in regard to intellectual property protection and enforcement.

Treasury Secretary Steven Mnuchin indicates that there is a good conceptual trade agreement between China and the U.S. in regard to intellectual property pr

+See More
Mark Zuckerberg develops Facebook as a social network platform to help empower global connections among family and friends.
Amy Hamilton

2020-02-12 09:31:00 Wednesday ET

Mark Zuckerberg develops Facebook as a social network platform to help empower global connections among family and friends.

Mark Zuckerberg develops Facebook as a social network platform to help empower global connections among family and friends. David Kirkpatrick (2011) T

+See More
President Trump withdraws America from the Iran nuclear agreement and revives economic sanctions on Iran for better negotiations.
Chanel Holden

2018-05-06 07:30:00 Sunday ET

President Trump withdraws America from the Iran nuclear agreement and revives economic sanctions on Iran for better negotiations.

President Trump withdraws America from the Iran nuclear agreement and revives economic sanctions on Iran for better negotiations as western allies Britain,

+See More
Treasury Secretary Steve Mnuchin indicates that the Trump team puts the trade war with China on hold.
Olivia London

2018-05-19 09:29:00 Saturday ET

Treasury Secretary Steve Mnuchin indicates that the Trump team puts the trade war with China on hold.

Treasury Secretary Steve Mnuchin indicates that the Trump team puts the trade war with China on hold. The interim suspension of U.S. tariffs should offer in

+See More
Apple and Samsung are the archrivals for the title of the world's top smart phone maker.
Olivia London

2018-06-25 12:43:00 Monday ET

Apple and Samsung are the archrivals for the title of the world's top smart phone maker.

Apple and Samsung are the archrivals for the title of the world's top smart phone maker. The recent patent lawsuit settlement between Apple and Samsung

+See More
Agile lean enterprises remain flexible and capable of reinvention in light of new megatrends such as digitization and servitization.
Amy Hamilton

2020-10-20 09:36:00 Tuesday ET

Agile lean enterprises remain flexible and capable of reinvention in light of new megatrends such as digitization and servitization.

Agile lean enterprises remain flexible and capable of reinvention in light of new megatrends such as digitization and servitization. Shane Cragun and Kat

+See More