Investing

Was listening to Tony Robbins, Get the Edge program, and in particular his take on finances.

He also talks about investing about 10% of your income into stocks. Basically he states that over a time average, the stockmarket has always provided greater return than other investments such as property.

He staties strongly in paying yourself first. This really applies for people who have high debt. Fortunately a lot of the personal finance stuff out there does not apply to me because I do not have a high risk debt like credit cards etc. My university debt is around $25000, but thats inflation adjusted and doesnt really bother me.


So if I were to start investing $200 per month on stocks that I CHOOSE, and assume that my average per annum return is 12% which is re-invested, in thirty years I'd be sitting on just over $700k.

He also talks that a key strategy to investing and getting rich over the long term is asset allocation. For example he talks about investing into two different baskets, one named security, the other growth. The security basket is one where you put a certain percentage of your money like say 50% and the other 50% into your growth basket. So lets say your growth basket is doing really well, if you pull money out, make sure some of it goes into the security basket. Its basically assuming that the growth basket has high risk associated to it.