Tony Robbins is a renowned passionate motivational speaker. He has the uncanny ability to get you fired up about almost anything. In 2009 he decided to do something about the state of money management in America. This is presented in his book, MONEY Master the Game: 7 Simple Steps to Financial Freedom. In that book, he goes through the steps to get you to be financially independent. He teamed up with 50 of the top finance and investment experts in the world. One of those is Ray Dalio, CEO of Bridgewater. The largest hedge fund in the world. Together this dynamic duo presents a portfolio that they believe will do well in any market climate. This is called the All-Weather portfolio
There is also an All-Seasons portfolio. The All-Seasons portfolio was developed by the Bridgewater hedge fund that Ray Dalio oversees. The All-Weather portfolio is a more simple portfolio than the All-Seasons portfolio.
Both are portfolios that pay homage to the Permanent Portfolio by Harry Browne. You can read more about the Permanent Portfolio in The Permanent Portfolio: Do Well No Matter What Happens
Tony Robbins and Ray Dalio Portfolio: Master Your All-Weather portfolio
Contents
- 1 Tony Robbins and Ray Dalio Portfolio: Master Your All-Weather portfolio
- 2 Asset allocation pie chart for the Tony Robbins and Ray Dalio Portfolio
- 3 Returns and risk for Tony Robbins / Ray Dalio’s portfolio
- 4 Building the portfolio
- 5 Asset Allocation for Tony Robbins and Ray Dalio All-Weather portfolio
- 6 Advantages and disadvantages of Tony Robbins / Ray Dalio’s All-Weather portfolio
- 7 Resources
- 8 Summary and your next steps
Asset allocation pie chart for the Tony Robbins and Ray Dalio Portfolio
Returns and risk for Tony Robbins / Ray Dalio’s portfolio
| Portfolio name | Asset class count | 1 year return (2019) | Year to date | 10 year return | CAGR since 1989 | Drawdown | Risk Level | Expense ratio | Yield |
|---|---|---|---|---|---|---|---|---|---|
| Tony Robbins / Ray Dalio Portfolio | 5 | 18.50% | 2.78% | 7.45% | 8.41% | -3.71% | 1 - very low risk | 0.16% | 1.67% |
Building the portfolio
Below you can see which mutual funds or ETFs you can use to build the portfolio. They are the best-in-class funds and ETFs for this purpose. They are low-cost index funds that best capture the asset class. Read here how we selected the best funds.
Asset Allocation for Tony Robbins and Ray Dalio All-Weather portfolio
- 30.00% US Total Stock Market (VTI)
- 40.00% Long Term Treasuries (TLT)
- 15.00% Intermediate-Term Treasuries (VGIT)
- 7.50% Commodities (DBC / GSG)
- 7.50% Gold (IAU)
Advantages and disadvantages of Tony Robbins / Ray Dalio’s All-Weather portfolio
Advantages
- Based on the All-Weather strategy, a hugely successful investing strategy by the world’s largest hedge fund.
- Constructed by one of the most influential investment experts in the world (Ray Dalio).
- Holds asset classes with low correlation to each other (when one asset class goes up, another goes down)
- A low-risk portfolio – it’s drawdown is small compared to the broader market.
- Tony Robbins has researched the portfolio thoroughly, and he doesn’t do anything half-heartedly!
Disadvantages:
- Lower returns than the S&P 500, mainly because of the higher bond portion of the portfolio.
- Risky bond allocation. The bond portion may not do well in (2018) a rising rate environment.
- May not give you enough returns so that you can reach your financial goals.
Resources
Go here for a rebalance excel worksheet.
Shortly after the book release, Tony Robbins published Unshakeable: Your Financial Freedom Playbook. This is a condensed version of Money: Master the Game
It is well worth your time. Tony Robbins writes with passion and has your best interests at heart.
Summary and your next steps
The Tony Robbins / Ray Dalio’s portfolio is a portfolio built on the foundation of the successful investing strategy by Ray Dalio. It should do well in all market climates but may to too bond heavy and may not give you the returns that you require. The book by Tony Robbins is fantastic and if you don’t intend to implement the portfolio I encourage you to pick up his book as it is an eye-opener. Especially if you are new to investing and personal finance.
Unsure that this is your next portfolio? Sign up for our newsletter and be educated on portfolios, stocks and how to make enough money to go to Europe next year.
Be sure to leave a comment if you have anything to add!