I am with you - Why would someone listen to Ray Dalio when we can profit from the sage advice provided in the KZfaq comments section

@@garymorgan7785 strong. Why would you say that? Would you agree with any of their guidelines? If yes, which ones?

They're True Experts [tm] and Kind People with no hostility in their hearts and who truly want nothing but your best.

Go long on beanie babies and tulips.

I know man, I basically just come here for a KZfaq telling me to buy ***

"Tonny Robbins hungry!"

lol

@High Frequency Radio I think we owe ourselves.

Thanks!

Rebalance how? In what sense?

fred kramer I mean the portfolio. Rebalancing it yearly, as Tony Mentioned takes 15 mins. If your assets are allocated into the right mutual funds, why rebalance? Just based on current market trends? I’d prefer the type of portfolio I could, more or less, make and forget about. Ya know?

The lion's share of our debt is owed to the federal reserve which can be wiped out over night by getting rid of the federal reserve system. So ya! Just an illusion.

Rich go for stability.

The rich do not build their wealth in the stock market. They do it through starting businesses and owning income producing real estate. What the rich utilize the stock market for is income and wealth preservation and most of them are very conservative. Like well over 50% in fixed income securities.

Yup - I just hope it has a happy ending.

A lot of these strategies contradict each other and everyone has different ideas in the financial markets.

David Bach does not practice what he preaches. If you do a little digging into his past, you will find out that he comes from wealth. His grandmother was a self-made millionaire, and when David was at the age of 7, she helped him buy his first share of company stock in McDonald's. When he became an adult, he worked in the finance sector for Goldman Sachs and then wrote his first book in 1998. He's literally been writing the same book over and over again for almost 30 years. He did not build his wealth by simply refusing to buy a latte every morning like he's telling everybody else to do. He started a legitimate business and built an empire. The key to wealth is not by cutting costs of the little things that bring you joy in life. It is by finding hyper expansive ways to increase your income.

when market is rallying yes its better , but when there is a crisis or down year Ray is much better

@@urosuros2072 I believe that's what @mikee.9846 just said, didn't he?

Why not an index universal Life policy. Invest in the market at a cap and never risk losing any money. It’s impossible if set up by a honest educated financial advisor

He’s a total hack.

That's the best advice I've heard yet it's what makes the most sense.

It was scientifically proven that a passive index fund has a better return than any actively managed fund in the long run

John Possum what etf do you prefer?

Yeah the best fund manager is America. Buy VTSAX and dont listen to bullshit

@Abitamim Bharmal some? like what? 10%? And what are the fees that they charge? Plus the net worth and investment minimum required to get in?

What's that?

@@TheRGFam A synthetic bulletproof material. They make bulletproof vest out of it....

or just an S&P500 index fund.

+Bryan Wheelock If you are a younger investor, this is a legitimate choice, but the closer you get to retirement, you really should hold some bonds.

+stephen geraci I disagree. If you buy and hold, don't sell just because the market is down, etc, you can hold 100% stocks. The S&P index is heavily diversified too.

+Bryan Wheelock Yes, but don't you need to take money to live on in retirement? What if the market goes down 40 to 50% which is has done before, someone in retirement needs the money to live on and they are taking it out at the worst time. If you are diversified with bonds, you can leave it alone and take from the bond fund. Warren Buffett actually agrees with you, but he does say to hold enough in cash to feel secure and put the rest in the Vanguard 500 Index. However, his favorite holding period is forever and I guess he tells you to hold enough in cash so you can take the money you need to live on in really bad markets. However, if you have other sources of income in retirement, sure you can definitely have it all in the S&P.

stephen geraci The ideal age for retirement according to most Americans is 60-65 (not that most will retire), and even in 2008, someone with an index fund wouldn't have lost everything unless they were foolish enough to sell. 10% in cash or fixed-dollar investments, 90% in index funds.

Danial Howe 😂😂🤣. Best place for it! He's a Wanker Banker now..😵. Wow!!! 😁

he's also in bed with the MLM industry. anything for a buck.

Explain to me what you are talking about? do you know this Tea Torbes personally?

you don't know when you time is up so it would be pretty bad if you happy to be in the bumpy part of the ride when you croak

Its all about buying and selling, balancing assets. Not just buy and hold. Rebalancing might earn you 10-20% more just by doing it once a year instead of just owning stocks. Thats why different asset classes are important.

I like resonate with knowing and comparing the family of strategies. Props.

Alan Burt thank you

Is that average or actual? Also pre or post tax? -thanks

@Alan Burt is this what you're using? I'm only 30 and I feel like i should be very aggressive.

Jason Waite radical advice from Dalio

Lol no you didnt say that.

Lol no you didnt just say that

Nice observation.

@Marten Dekker You are correct

everyone doesnt have enough money to live off of 10% per year

Human nature/ego will ensure that never happens.

Higgs000Boson what program or system do you use to run backtest like that ?

How the 33% been working for you???

Alan Burt at least he let us know what year he started the backtest

mrgilc13 this is what you use www.portfoliovisualizer.com/backtest-portfolio#analysisResults

I know this comment was from a year ago, but thought i'd point out a couple things on this point. There is first going to be some slight differences depending on the durations that Robbins' suggested allocations were using for the two bond allocations (though I have not read his book), as well as the composition of the GSG commodities fund (GSG has a higher oil allocation than the CRB index, for example, and went down 65ish% in 2008 while CRB went down around 45%). A bigger point though is the distinction between the max drawdown and worst year. I tested the allocation using those same ETFs and while I got a similar max drawdown, the worst year still ended up being around 4% (eyeballing it tells me that it is from stocks, commodities, and gold all completely falling apart in mid to late 2008 but before the massive bond rally (28% in TLT, 12% in IEF) happened in the last two months of the year, which likely made back a significant chunk of that drawdown).

Judging from your comment, it’s amazing that you’re the idiot who doesn’t understand there are many types of risk. Putting 70% of your money into treasuries exposes you to purchasing power risk. Bond rates are below inflation. Treasuries are always a safe harbor, but right now they don’t grow your money. People who fear down markets are going to have very poor investment outcomes.

No, you just have mud in your ears. Listen to it again, and it will make sense.

It means that after a year prices of bonds, equities, gold, etc change. Therefore the balance of portfolio changes as well. By reset / recalibration he meant buying (or selling) appropriate assets to restore the balance.

@@SharleyParamonov Well put! 👍

Portfolio investing. Read Tony Robbins book "money master the game" - it is about the top genius Billionaire investors and what they recommend to average people. The simple version is buying ETF. The more advanced version is getting a Fiduciary (not a broker) and look into TIPs, REITs, Structured notes and other investment vehicles that the average investor isn't aware of that the rich know about. Hope that helps.

He’s asking you to build a portfolio for ‘what if’ scenarios rather than what Warren Buffet would advise. If stock market crashes, you will be higher than average aggressive investors. Good Advice for millionaires and billionaires

@@ichoudhury007 i have to agree with you. Tonny mostly talks abt strategies that are good if you have money. Ur average person wont be a billionair via an eft or bonds.

@@ichoudhury007 .

@@fanelemabaso2514 You make it sound like billionaires are minted all the time. Most people won’t become billionaires, no matter what they do or how much effort they put into it.

Alan Burt, that _seems_ impressive until one pauses to reflect that Robbins' summation of "financial wisdom of the greats" was published in November, 2014, _but_ the extraordinary market period to which you refer had the HIGHEST U. S. INFLATION & INTEREST RATES of the 20th Century. Interest on the U.S. 10 Year T-Bond reached 16%. Not quite so hard to average 9.88% portfolio return with handfuls of 16% bonds. And, the financial "greats" Robbins interviewed for his book were all finance industry "insiders" like his son currently is in the financial firm some say Robbins plugged 47 times in his book which this video is _really_ about.

wow

Very good financial book. Read it early this year.

Immense respect for Ray Dalio, this is a serious question.

Yes, I remember hearing most people are making no more than 4% annual interest rate per year in mutual funds because they are selling and buying at the wrong times. They sell when the markets are low and then they buy high. This is the absolutely wrong thing to do. I am going heavy into mutual funds with a company called Summit Global Investments. We can likely afford to ride the market for about another 18 years with my retirement funds in large growth stock mutual funds. We are hoping to average over 12% annually per year.

That's the tough part. It's the bear markets that make these sorts of strategies worth it, since being able to weather them with minimal damage is what keeps the long term average returns close to that of stocks (if i recall, the backtest for this allocation approached a long term 8.5% or so vs 9.2% for stocks, which does diverge dramatically with compounding, but still). I know that Robbins was aiming for something without leverage, but Dalio's answer would be constructing something that consistently minimizes volatility and gets moderate returns throughout all sorts of conditions and then leveraging up to the desired volatility that he or others are comfortable with. Do it 3x and suddenly there's 20%+ average returns with a very bearable maximum drawdown of -12%. The risk is of course the carefully tested relationships completely falling apart in the future, but Dalio thorough studies of intermarket relationships throughout every historical economic condition possible makes that probably unlikely.

All weather portfolio is designed for long term performance, if stocks went up 100% you can definitely expect a significant decline coming in the short term. It will out perform stocks in the long term, because it hardly declines. Where as stock can decline -20-50% in bear market.

People like Dalio are probably wanting the best returns for the least risks. Once you have money, you want your money to make money for you and the preserve that wealth. This ratio while great on theory is probably not affordable for people like us. You need wealth from the start to have this kind of allocation. Sure it's nice to avoid risks while having some returns but for us, we need to have as much returns as possible if we want to ever retire (hence risking a large portion of money to the stock market). In other words, this is a great portfolio. But probably not for people like us.

What do you suggest then einstein? With population growth and advances in productivity, I think the 2020s and 2030s will be even BETTER than 1950 to 2010. I hold a masters degree in finance and am doing a PhD in one right now, if anything, you are ignorant about the markets.

I've read too many books on investing. Including warren buffet. And these experts agree on that stocks are way riskier

@Marten Dekker The only ignorant person I am aware of is the moron that thinks "irregardless" is a word. You've just proven your lack of knowledge & intelligence.

rotagbhd But, irrespective of your comment…

@@King-ue4dg Buffet says 10% short term bonds, 90% equities.

Just because it’s been around a long time doesn’t mean it works. The Chernobyl nuclear plant was built in 1972. It’s still around.

It’s much better, but it’s boring and doesn’t sell books (Robbins) or magazines (Forbes)

But why are you dividend investing at such a young age? 🤔 You should be going after growth stocks and ignoring dividend investing. The only people that dividend investing makes sense for are senior citizens that need a current income.

M1 Finance.

Vanguard, Fidelity, Charles Schwab or E*TRADE.

You have neither.

rusilver2 why would capital amount effect return %?

@@Newlinjim IT doesn't affect return %, but if you are drawing income from investments every month then it matters. It's much easier to live off 1% of $10 Million ROI than 1% off $100k ROI.

@@CmanCorporations this is a nest egg fund idea that you can draw from when you're older....its not meant to be drawn from right from the start....you can get the clue by the Nest Egg words in the name.

@@jdz101 Following this strategy will produce a very small egg

Very important to understand Ray Dalio's principles behind this strategy. It's incredibly hard to manage (because of expenses) in real life. This is not a set it and forget type of strategy. If you read Ray Dalio's book he explains this pretty clearly. It's not that simple, unfortunately.

@bizkitgto HA. All things are not as simple as they seem my friend. ETF exposure is way different than Futures contracts and hedging (which is what Bridgewater & Associates uses to pull off this strategy). I do agree it is more "defensive", but the other undiscussed thing is that fact that it has a >50% fixed income allocation and that has been during a 30year bull market in bonds. Be curious to see how fixed income holds up in a rising rate environment.

@bizkitgto Depends on the client for managed accounts; Personally I like private equity.

bizkitgto I have no context for giving you advice my friend. 🤷🏾‍♂️You're welcome to schedule a complimentary chat though. www.djh-capital.com

You know it’s mostly BS when the tell you gold

you miss the whole point of the video...........................sad------and investing in general

Then your leaving money on the table, but you will be good with vanguard. I don't care what they say I'm not putting bonds or precious metals in my portfolio. I put the solid companies with my recipe. Time will tell but I'm very confident with my research.

@@stangtrax bonds are to offset bear markets. That's why you keep it around 10-20% for aggressive portfolios. Even Warren Buffett said he would buy 90% vanguard s and p ETF and 10% government bonds for his family after his death. But we dont have 1 billion to make 100s of millions off of dividends. Put most in stocks but keep bonds for the bear markets so you can add the dividends to your cheap stocks

William Morris 100% agree. I’m 17 so of course I need to be an aggressive investor, but I’m still 80% stocks and 20% bonds.

@@wallopwallop9125 vclt has done well for me.

Which is why you pretty much need to own EVERYTHING! Index funds, REITs, precious metals, commodities, bonds treasuries, inflation protected securities, cash, and everyone should learn a trade and start their own business.

It is under valued, has been undervalued, what makes anyone think it will correct? When was the last time it did?

🤣🤣🤣🤣🤣

The guy is HUGE!!!

And that is what Ray Dalio did and shared with Tony who just shared it with you.

Did you watch the video?

@@bhough410 , no, I'm not too sure he is into asset allocation. I thought that sales was his specialty. guys like Ferri and Bernstein and Schulthesis are recognized experts in the file, not sure about this guy; sorry.

He did. It is in the book! Search for the video.

That would have been quite a feat considering he’s dead

Congrats, but that worked well in that 4 year timeframe / cycle segment. Wont work so well 2019 -2023 timeframe. Tony is talking about a permanent approach that works across all cycles.

You must be regretting the 70 / 30 split now...

Physical gold?

yes

Alan B

VOO, 100% as I grow old I'll slowly start moving to bonds...

Interesting

You are exactly right. I’m glad there’s at least one other sane person here. 👍

Good luck during the next stock market crash. You're going to need it.

if you bothered to read Tony's book, you'd realize his advice comes FROM Bogle.. and FROM Dalio.. he quotes them throughout the book and devotes entire chapters to then but do you.. keep blindly hating

Michael G so it’s not his advice

@@ShidaiTaino tony's book is a collection of advice from certain successful investors/ppl of the industry.. including jack.. so yes, go read jack's stuff too.. my point is, the original comment made it seem like tony was giving original advice, which he (as he admits with most of his material) isn't.. hence why he doesn't like being called a "guru".. he shares information/strategies he finds useful, and packages it in tony robbins fashion (enthusiasm, actionable/real strategies, coming off genuine/caring, etc).. i'll never understand the hate for this guy.. listen to his stuff with an open mind.. especially his early stuff (personal power)

@@yaywoot123 Which book are you referring to? Unshakable?

@@Coolguynom1 Money Master The Game

tamirble no not his attitude