Tony Robbins, money guru, professional speaker, and GOBankingRates Top 100 Money Experts, wants to make sure that when you make an investment, you do it wisely. For Robbins, his professional training and personal experience have led him to the following information on what to do and what not to do when it comes to cultivating wealth.
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Robbins has previously highlighted that the main thing that will transform your financial life is to start investing early and then increase it over the years. Robbins shared this money tip with GOBankingRates through an illustration.
“Take two 19-year-olds, each of whom invests $300 a month ($3,600 a year) between the ages of 19 and 27, just eight years. They put it in the market with a 10% annual return, the stock market average over the last century. One stops contributing at age 27 and lets it compound. The other starts investing $300 a month at age 27 and continues until age 27. “65 years: 38 years of investment versus eight,” Robbins said. said.
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“Who has the most money at 65? The person who started early and stopped at 27 ends up with almost $2 million ($1,985,000),” Robbins explained. “The one who started later but invested more time has about $1.38 million. That’s the power of capitalizing and starting early.” This shows how the late investor is missing out on almost $600,000 by not starting early and being consistent with using compound interest to increase the initial principal amount.
These aren’t the only obstacles Robbins has seen over the years with investors of all ages and levels trying to expand their financial portfolios. On his website, Robbins also noted that there are additional mistakes someone can make when investing and urged everyone to avoid these potential pitfalls. This included allocating assets in the wrong place, using a broker instead of a fiduciary, not paying enough attention to the taxes related to their investments, overpaying for high-cost mutual funds, and not rebalancing a portfolio on a regular basis.
In a Facebook video, Robbins recalled the time he interviewed Warren Buffett, who shared the sage wisdom that, at the end of the day, the most important investment anyone can make is in themselves. This point just reiterates Robbins’ advice to not ignore the concept of starting early and being consistent with compounding growth in your investments. Doing so in the present is one way to ensure that your financial future is bright and lucrative.