Unshakeable: Your Financial Freedom Playbook by Tony Robbins
Tony Robbins has been a bastion of the motivation movement for decades through his live seminars, CDs, DVDs and engagement on social media. He has also authored a number of books along the way. His latest, Unshakeable: Your Financial Freedom Playbook, co-written with Peter Mallouk, provides a framework for achieving financing goals sooner with seemingly less hassle than you might imagine.
What’s it all about?
Unshakeable is a store of great content to assist you to better understand your finances and to take control of future performance. The central theme of the book is about recognizing the power of compounding both positively in terms of time spent in the market and negatively with respect to the corrosive effect of high fees over time. While these concepts are nothing new, I did appreciate the availability of concrete steps to put these principles into practice.
Robbins, illustrates the importance of time in the market as follows (P43):
“…if you invested in the S&P 500 from 1996 to 2015 but missed the top 10 trading days, your returns would have halved to approximately 4.5% as compared to a respectable 8.2%.”
Essentially, if you sell during corrections or bear markets and miss out on the upticks that follow, it could lead to thousands of dollars in lost earnings when returns are compounded over time.
High Fees Are Sooo Icky!
Unshakeable goes on to illustrate the damaging effect of high-fees on wealth accumulation. Often, investors can be seduced by the seeming high performance of a particular investment product promoted by advisers. However, these types of product may come with additional fees and charges which are triggered when they deliver a return which beats the market by a certain margin. As a result, once these deductions are applied, your net returns could be merely equal to or be less than market returns. Compounded over the years, this scenario could lead to significant lost earnings.
So how can you benefit from this new found knowledge? Robbins highlights the advantages of index funds where you hold a basket of stocks which track indices like the S&P 500, FTSE 100 or ASX 100. The combination of low management fees and a long-term buy and hold strategy can lead to significant returns when compared with actively managed options. For specific details on how this happens, you will have to read the book. Personally, Unshakeable has provided plenty of insights which I am planning to implement over the next little while. I would be interested to hear if you felt the same while reading the book (please let me know below).
A Word of Advice
Note, Unshakeable is geared towards an American audience and touches on a few concepts which apply strictly to US citizens such as retirement plans. That being said, there are plenty of great takeaways here which would be of value, irrespective of you live.
The concepts discussed in Unshakeable are straightforward but may be difficult for you to implement, particularly during challenging times in the market. What sets this book apart from other texts is that Robbins devotes significant pages to the mindset (Page 141 onwards) needed to achieve long-term financial success. I can’t stress enough the value of this section. I think it would be particularly handy to revisit on a regular basis to stay calm during periods of market turmoil.
Incidentally, Unshakeable is a companion piece to Robbins’ 2014 release Money: Master the Game. Coming in at 670 plus pages, the latter is a much more detailed blueprint for financial mastery. Reading Unshakeable has piqued my interest in reading this earlier title. I hope to share a review of Money: Master the Game with you in the not too distant future.
Unshakeable is perfect for:
- Simplifying complex financial concepts
- Providing a starting point for your financial journey
- Providing a step by step plan for financial success
- Providing tools to help you stay motivated on the road to financial freedom.
Unshakeable is available at from quality retailers including:
Rating: 4 out 5 stars.