Tony Robbins, the famed financial expert whose personal finance seminars and books have reached an estimated 50 million people, according to Forbes, has written a new book offering advice on avoiding the biggest financial mistakes.
“The most dangerous thing is being out of the markets,” Robbins told the FOX Business Network’s Maria Bartiromo.
Robbins said he and Peter Mallouk, president of wealth management firm Creative Planning, spent five years vetting 50 of the best minds to get the greatest financial secrets for their new book “Unshakeable.”
They found that one of the biggest mistakes investors make is trying to time the markets.
“I know so many millennials…that saw this carnage in 2008. They stayed out, they are still waiting,” said Robbins. “Since Trump came in, we are up 11% in three months, so you [have to] get in the market and you have to stay there.”
Mallouk added: “People take their personal emotions whether it’s from childhood or politics or whatever and they apply it to markets and markets are not that correlated to things that people think that they are.”
The 5 Biggest Investor Mistakes
1. Failing to take advantage of compounding
2. Trying to time the market
3. Paying too much in fees
4. Not diversifying
5. Not getting into the game
Robbins said the best way to overcome the fear of investing is learning how the markets work.
“We have a correction every year since 1900 on average…80% of those corrections – they last two months.” Robbins said a bear shows up about every five years.“They last a year, they cost about 33%,” he said, “but they don’t cost anything if you don’t sell.” He added every bear market in U.S. history has been followed by a bull market.
And when it comes to your overall investing strategy – have your investments be need-based, said Mallouk.