What financial advisors can learn from Tony RobbinsArticle added by Brad Johnson on May 31, 2013

Brad Johnson

Topeka, KS

Joined: July 12, 2007

My Company

Advisors Excel

Obviously Anthony (Tony) Robbins is well-known for being a "motivational speaker" type of personality. However, after seeing him live three times already in 2013, I can tell you that this is selling him short.

Aside from Robbins’ magnetic energy and boisterous stage presence, there is one thing that stood out to me that really boiled down why he has such a huge following worldwide. It's his ability to "simplify that which is complex."

After devoting countless hours to analyzing the traits and practices of some of the top-performing financial advisors in the industry, I’ve recognized the same common thread in almost every single one of them. They are able to take something as complex as the financial world and its combination of thousands of investment products and scenarios and summarize it in a way that the average person can understand.

“Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.” — Steve Jobs

With that goal in mind, here is a very cool discussion I heard Tony walk through that simplifies how to conceptually grow your retirement nest egg. Tony highlights three simple asset allocation “buckets” that can not only help clients "get to retirement" but motivate them along the way.

Tony opened the discussion by mentioning that it's key to have a percentage you are comfortable with for each bucket so that emotions don't cause irrational decisions down the road. Let's dive into how he describes each bucket.

No. 1 — Security Bucket (cash, IRA, insurance, home, fixed income investments)

The security bucket represents investments that aren't designed to have large swings in value and act as a foundation to a solid retirement plan.
  • Characteristics
    • You won't lose it.
    • People don't want it because it's boring.
No. 2 — Growth Bucket (mutual funds, real estate, indexed funds, options, stocks, collectibles)

The growth bucket is where you put higher risk/higher reward growth investments.
  • Characteristics
    • Reward is higher; however, so is risk.
    • This is the bucket that people want to put money into because it's more exciting. (Exciting when it's working; you want to die when it's not.)
No. 3 — Dream Bucket (big goals/dream purchase — private jet, yacht, island vacation, art, luxury car)

This is the fun one! The dream bucket consists of the things you don’t actually need but rather, the things you want and that you are willing to work extra hard to achieve. Without a dream bucket, what are you working for?
  • Characteristics
    • Put things in here that excite the hell out of you!
    • These should be things you are buying for emotional enjoyment.
    • This is what drives you to earn income. Gotta have a dream!
Starting out, money should be split between buckets one and two, with the dream bucket acting like the fuel on the fire to help you attain your big goals.

That's it. Like I said, a very simplified view on how to motivate your clients on their journey towards retirement success.

Question: What strategies are you using to "simplify the complex" for your prospects and clients? You can leave a comment below.
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