News, Vision & Voice for the Advisory Community


What one financial advisor discovered after plunking down $12 for Tony Robbins' 'Money' manifesto

The self-help guru's Seven Easy Steps! to wealth contain a few sound nuggets but gimmicks, fallacies and straw men abound

Tuesday, November 25, 2014 – 10:12 PM by Guest Columnist James D. Osborne
no description available
James Osborne: I sacrificed two evenings of actually learning something and improving myself to instead struggle through a few hundred pages of misinformation.

Brooke’s Note: On the back cover of Tony Robbins’ new book, “Money: Master the Game” is praise from Jack Bogle, T. Boone Pickens and Carl Icahn. Hop inside the book and see more gushing from David Pottruck, David Bach, Serena Williams, Oprah, Bill Clinton, Diane Sawyer, Donna Karan and Marc Benioff. Steve Forbes and Kyle Bass join the love-fest, too. But let’s face it, these are not the hardest people to impress. They are celebrities and having a little credit in the kudos bank from one of the planet’s finest promoters is a no-brainer for them. Reader beware. What real-life financial advisors think about the book is telling. They are people accustomed to seeing things for what they are on behalf of clients and knowing how to communicate that. I don’t agree with every word written here (and tomorrow we’ll publish a piece that emphasizes where the book goes right) but it is anywhere but in left field. I met with another advisor earlier today over coffee who gave a very similar appraisal of the book (he was only halfway through and planned to finish it over the weekend). Tony, if you read this article, know that this column represents the kind of open mind combined with healthy skepticism that you will encounter when you speak for two hours at Brian Hamburger’s conference in Las Vegas in a couple of weeks. Something tells me you can adjust your approach, even your thinking because as this column points out, your intentions seem good.

The article was previously published here and was featured on Nerd’s Eye View.

In case you aren’t obsessively plugged in to the financial web/Twitter/blogosphere, mega self-help guru Tony Robbins has a new book out on finance and investing, “Money: Master The Game.” (Simon & Schuster 2014) (I’m not going to link to Amazon because I don’t want you to buy it. But we’ll get to that.) Everyone has been abuzz this week because of Robbins’ alleged wonder portfolio inspired by Ray Dalio’s All-Weather strategy. I would give you links to everything everyone has written about it in the last three days, but Tadas already did so just go there and read everything if you’re interested. See: Tony Robbins is set to crash the RIA party with two hours of testosterone.

What I found was that most of us talking/writing about the book hadn’t read it, and I felt like I should give it a fair shake. Robbins was supposedly encouraging low-cost index fund investing and a fiduciary standard, which are good things. So I plunked down $12-something for the Kindle version. As it turns out, I sacrificed two evenings of actually learning something and improving myself to instead struggle through a few hundred pages of misinformation.

As one would expect from a self-help guru, the book has just seven easy steps for you to master money! Yes, just seven steps! And let me tell you all about them in just a minute!

“My promise to you is this: if you will stay with me and follow the 7 Simple Steps in this book— the steps that have been distilled from the world’s most successful financial players— you and your family will win this game. And you can win big!”

One of Tony’s recurring themes is that he is opening a door to the public that was previously closed to all but the top 1%. In general, I really hate this concept. Everyone wants to believe that rich people are getting special treatment from the investment industry, which just isn’t true. Most of the time, they are just getting gussied-up, fee-laden, complex products that underperform a simple diversified portfolio.

There aren’t any financial magic tricks, OK? But this theme comes up nearly every chapter. Tony really wants you to believe that he’s letting you into the secret club of the ultra-wealthy. All for just $12! He reinforces the idea that the little guy gets screwed by bringing up high-frequency trading and other misunderstood populist ideas. See: Are ultra-high-net-worth clients really worth it?.

“I’ve been obsessed with finding a way to help everyday people take control of their money and fight back against a system that’s often been rigged against them. The fix has been in for years, and it hasn’t gotten a whole lot better with all those so-called reforms on Capitol Hill.”

Even when there is good advice in the book, this theme is distracting.

The secret

The writing feels like reading the script of a late-night infomercial, with promises of solutions that are always led into with 'But wait, there's more!'
The writing feels like reading the
script of a late-night infomercial, with
promises of solutions that are always
led into with 'But wait, there’s

The single most irritating thing in the book is his constant tease about this “ideal portfolio,” a Ray-Dalio-All-Weather-Lite asset mix. He references the -3.93% drawdown in 2008 at least a dozen times in the book before he ever talks about the actual asset allocation. He does things like (inappropriately) comparing this -3.93% 2008 performance to the peak-to-trough decline in the S&P from Oct 2007 to March 2009. He brings it up again and again like it is a get-rich-quick secret we can learn about if we just stay tuned!

I get that this is largely his gimmick but the book does not present itself as an actual tool to help people make informed decisions. When Robbins finally unveils the portfolio we find that it is generally just a long-term, bond-heavy mix that performed exceptionally well over the past 30 to 40 years thanks to the tailwind of the longest bond bull market in our history.

But Robbins doesn’t take much time to point that out, and quickly dismisses concerns over interest rate risk. In fact I don’t remember him using those specific words at all. See: The cost of waiting for interest rates to rise.

Hightower connection

Another recurring theme in the book is the “experts” that Tony has “partnered” with to bring solutions to the masses. In a world where registered investment advisors are the fastest growing segment of retail investment advice, Robbins singles out Hightower Advisors as the gold standard (and I am honestly not sure why). HighTower partnered with Tony’s personal advisory firm, Stronghold Financial, to offer a robo-advisor-like service, and Tony pitches it hard in the book. See: Elliot Weissbluth will referee — with a human bias — a debate on robo-advisors starring Joe Duran, John Michel, and Jon Stein.

Stronghold states that Robbins has no financial interest in the business, which makes me wonder why he presents it as the only reasonable opportunity for people to invest well. He could talk about simple Vanguard Lifestrategy funds or services from Wealthfront or Betterment but he completely ignores these options, which are all less expensive than Stronghold’s offering at 0.75%. See: Betterment’s Jon Stein talks human-RIA coopetition but breathes fire about fellow online RIAs.

Robbins is also quick to pounce on mutual fund fees and brokers who charge commissions but doesn’t bat an eye at 1% asset-based advisory fees. He claims more than once that asset-based fee advisors provide “conflict-free” advice which I take a small issue with. See: What is the value proposition of a financial advisor — and how is a budding RIA culture upping the ante?.

Stronghold is just one of Robbins’ “partners,” all of whom he swears are offering products and services described in the book out of the goodness of their own hearts. These include a 401(k) provider and an annuity wholesale firm.

Product parade

The other recurring pitch, other than Dalio’s All-Weather portfolio mix, is Tony’s assurance that you can make money in the markets with zero downside. He teases this for some time, and finally lets on that he is a huge proponent of structured investment products. A large section of the book is devoted to the near-mythical (alleged) benefits of bank-owned structured notes, equity-linked CDs and equity-indexed annuities. Robbins reads like a schooled product salesman, touting the wonderful benefits and quickly glossing over risks and opportunity costs of these products. See: An X-ray of one affluent, educated and sophisticated investor’s portfolio shows how it was chewed up by fees.

One of my core tenets is that the investment world is one of trade-offs and opportunity costs. Can you get most of the upside of stocks with zero risk? Probably not. Are there additional costs such as lost liquidity and marketability of these products? Yes! If you are going to tie up your money for seven to nine years anyhow, might you be better off just taking the market risk? Most likely. Good advisors and educators bring these opportunity costs to light, they don’t parade certain products or strategies as the be-all-end-all. He does the same thing with a Roth IRA vs. traditional IRA conversation, holding up the Roth as a wonderful gift from the IRS and not an issue that deserves some thought and a decision that involves careful assumptions about the future. See: Look at the benefits, but beware the dangers, of Roth conversions.

Robbins’ favorite financial product is an equity-linked annuity with a guaranteed living benefit rider. I can tell you that I personally know ZERO fiduciary advisors who would recommend such a product with any regularity. For instance, if Robbins had done any real research he would have quickly discovered that most guaranteed income benefits simply pay back investors their own money over time and offer very little, if any benefit.

He would know that there is a wealth of research done about providing stable retirement income as it relates to the 4% rule, immediate annuities, low interest rates or sequence of returns risk. He could have taken five minutes to call Michael Kitces or Wade Pfau and ask about their industry-leading research instead of calling some guys who started an annuity wholesaling business. But nuance is lost on Robbins and like many others he seems to fall for silver bullet solutions. See: The 25 financial advisors with the biggest online presences — and a frank analysis of what online omnipotence does (or not) for them.

Useful nuggets

There is a great deal of doublespeak in the book. Robbins tells people they should invest in simple index fund strategies but also that markets are treacherous and they “should be ready to lose all of their money.” He bashes Wall Street mega-firms and holds up the CEO of J.P. Morgan Asset Management as a saint and genius. See: The New York Times exposes JPMorgan’s brokers, yet again.

He says that investors should own index funds but turns around and claims that “many of J.P. Morgan’s fund managers have beaten the market” and there are asset classes where you (apparently) should buy an actively managed fund, despite all evidence to the contrary. He tells us that the investment industry is out to get us with expensive, complex products and then recommends that we buy them anyhow. He insists that you should work with a fiduciary but also that you should consider Reg D-offered private placement REITs, structured notes and equity-indexed annuities, products rarely recommended by knowledgeable fiduciaries.

To this point I am making out that there is nothing of redeeming value in the book, which is unfair. Robbins does stress several points that deserve to be acknowledged:

- He stresses the importance of working with a fiduciary advisor over a broker, which I agree with wholeheartedly.

- He brings up the topic of behavioral finance and why we are so given to make the same mistakes over and over again (he even borrows a few sketches from Carl Richards!).

- He reviews the power of compound interest and the incredible benefit of saving early and often.

- He encourages readers to put their savings strategies on autopilot to give them the best chance at saving and investing regularly.

- He reminds readers to be mindful of their spending habits.

Biased result

I could spend another 1000 words on the logical fallacies, misinformation, straw men and mathematical shortcomings of the book, but I won’t. In the end I think Robbins likely has good intentions, but went about this book in a really strange way.

Perhaps it is because he is foreign to the world of finance that he seems incapable of understanding things like opportunity cost or liquidity penalties. He strikes me as someone who stumbled into the investment arena and “discovered solutions” that many other professionals 1) have known about for decades and 2) are capable of seeing trade-offs and shortcomings of these “solutions.”

The most disappointing part of the book is the underlying assumption that Robbins is the first person to come across investments such as non-traded REITs, equity-indexed annuities, market-linked CDs and structured notes and he is doing the world a service by telling us all about (only the positive aspects of) them. As a result the book comes off as very biased, using the language of a financial salesman and not an impartial fiduciary advisor.

If an individual really wants to get ahead financially and has the will to educate themselves through reading, there are a dozen books they should start with over “Money: Master the Game.” A short list would include:

Jack Bogle’s “The Little Book of Common Sense Investing” (Wiley 2009)

Daniel Kahneman’s “Thinking, Fast and Slow” (Farrar, Straus 2011)

Jason Zweig’s “Your Money and Your Brain” (Simon & Schuster 2008)

William J. Bernstein’s “The Four Pillars of Investing” (McGraw-Hill 2010)

So read those, and pass on this one.

James Osborne is a Certified Financial Planner professional who has spent his career in the investment management industry, helping clients manage their portfolios and plan for retirement, legacy and lifetime goals. In addition to the CFP ® professional designation, he has an MBA in Investment Management from the University of Colorado. James has previously instructed CPE courses for the Colorado Society of CPAs. His disillusionment with the standard practice of investment management firms led to the creation of Bason Asset Management in late 2012.

Related Moves

Elliot S. Weissbluth, Hightower Advisors mastermind, cashes out and vacates chairman role as Pershing's ex-CEO Lisa Dolly takes a board seat

The Chicago rollup's founder got paid better by doing the second-stage exit and the new cast on the Board also includes Bob Oros ascending to chair and Darrell Horn of Green Square Wealth Management joining

February 19, 2021 – 8:58 PM

As Bob Oros-led HighTower reboots, it bags an ex-Goldman RIA, hires two, makes a CMO imminent, and clarifies mission

The new CEO will need to somehow weave together the debris of the first roll-up run and the new one to the satisfaction of RIAs and the hundreds of people already inside the HighTower umbrella

March 20, 2019 – 11:32 PM

HighTower gets a new CEO, to be revealed later, as Elliot Weissbluth moves upstairs

Elliot Weissbluth's move upstairs ends an era, as Thomas H. Lee's reign begins in earnest, and Mark Cabezas comes in as M&A head.

September 13, 2018 – 2:21 PM

Marty Buchaus

Marty Buchaus

April 23, 2016 — 7:57 PM

Did you Read the book.. The doublespeak you speak of is most prevalent here. In your Article. I’m not even completely through the book yet.. and find your take on it.. Biased Your apparently entrenched in your old school way of thinking. Though this type of conversation is what this country and society is all about so keep on keeping on man.. but I don’t think your quite on base.



April 23, 2015 — 5:17 PM

I’m no Tony Robbins Guru, I’ve never listened to anything he has said nor read anything he has written. I read this book because I friend I trust highly recommended it. While I do agree that over 90% of the book is useless motivational mumbo jumbo, his message and investment strategy makes sense. I think this guy James does not like it because essentially what Tony Robbins is advocating essentially makes his career choice irrelevant. The emperor has no clothes if you will. You don’t need to pay someone tons of money to manage your assets, at least most people don’t, unless you are ultra wealthy. You can’t time the market, you can’t pick stock winners and losers. What Tony is saying, is really nothing more than the advice that John Boogle has been preaching for years. Again, I think James is just upset because Tony Robbins exposed the fact that you don’t really investment advisers. To be fair I’d be pretty upset if someone said my job was irrelevant.



January 7, 2015 — 7:10 PM

I’ve just finished reading this book, and while agree with the assessment of the writing style, I find this review by Mr. Osborne to be completely missing the point. This is not a book for experts in the financial industry. It’s a book for everyday people who are decidedly NOT experts, written in a way that that allows them to see where pitfalls, opportunities and security exist. There’s a lot of discussion about growth, and also about safety. For a guy like me, the book opened my eyes to a lot of aspects of an industry that I’ve previously been unable to wrap my head around. Will I follow every word of advice in the book? Nope. But I have made an appointment with an RIA and will have at least enough understanding of the topic to participate in my end of our conversations.



September 16, 2015 — 2:13 AM

the author of this review is an id10t, robbin’s book is for the 90% of dumbass americans that are broke and live pay check to paycheck!
you dumbass

Howard Hafetz

Howard Hafetz

January 25, 2015 — 8:04 PM

I have been an Financial Advisor, and manager, for 31 years, and while I have a Clu, and Chfc, I do not hold myself out as the ultimate “guru”, of finance! And with all due respect,James either, are you. I by no means advocate for the ultimate “salesman” Tony Robbins, but you lay out your MBA,like it has credibility to the advisory world, when you know it does not! I am sure you probably know, but have conveniently forgot to mention, that many compliance departments in large financial firms, do not even allow you to use a MBA designation, because they feel it can be mis-construed by the public, as holding yourself out as having experitse that is not relavent to financial advise! Did you forget to mention that!
And by the way, you failed to mention in your piece, how you make a living. Do you charge fees, or do you provide expert advise philanthropically? Do you make your living writing “so-called”, consumer friendly articles? Do you get paid for that?
You point out that a small number of fiduciarys’ advise using FIA’S with guaranteed riders, really? Where did you get your research from on that? Have you ever researched Jack Marion’s materials? Have you ever read any Wharton School of Business, papers on the subject, that evealuates “real” data?
Stop calling others out as shams, when you are nothing more yourself?
Do you have the ultimate answer to retirement concerns, that have no risk? None, such as longevity risk, interest rate risk, global turmoil risk( i.e. price of oil!). If you did have those solutions, you wouldn’t have to work for a living, giving people advise!
Oh, maybe you could write more articles like this one, and give “any” financial rewards to charity, since you won’t need the money!



December 10, 2014 — 7:16 AM

Two days invested to provide you with the fodder for your next article…not the worst investment you could have made. You bring up some great points and mostly criticisms. Wish you had decided instead to try to add to Tony’s effort to educate us…it’s a shame you didnt because it seems like you might be able to help.

Wilbur Smith

Wilbur Smith

December 12, 2015 — 5:59 PM

you string words together but make no sense.typical of those that market in risk based assets. ctd



July 17, 2015 — 5:04 PM

I appreciate that this author doesn’t negate everything Tony Robbins puts forward, but his criticism misses the whole point of the book: The majority of people have no idea how much their investments actually earn them, how many fees they pay and why, and what better options are available. Robbins cuts to the chase to provide this service, in a way that people can both relate to and can take action on.
he never pretended that it would be the most nuanced, comprehensive guide of all time. And he did sweeten the deal by telling people what proven billionaires do. If the author is a billionaire, then fair enough.
Otherwise, take the book for the service it is. I have no doubt that anyone who just gets interested enough in caring for their portfolio more actively will save loads of money thanks to this book. When the author creates something similar, then I look forward to his critique.



May 27, 2015 — 1:43 PM

Tony Robbins is not arguably the world’s top motivational speaker for nothing and his track record proves it. This book pitches to people who have probably not made a success of their investments or are too scared to go out on their own. They need to be motivated which is why a lot of this book contains motivation speak. It is an easy read, debunks a lot of myths put out by the financial investment industry and gives the man in the street some idea as to how to manage his money better than perhaps he is doing now. What is wrong with that? Researching the web it is only the so-called financial experts who are knocking this book. The reasons are pretty obvious.

Abbie Smith

Abbie Smith

March 7, 2015 — 5:18 PM

Tony Robbins’ book “Money, Master the Game” is my Bible.

Teresa Vollenweider

Teresa Vollenweider

November 26, 2014 — 6:32 PM

From the investor’s point of view I would add a couple of books to read to James’ list and a couple of PBS Frontline Emmy-winning documentaries to watch.

Books that will help you understand the modus operandi of the financial disservices industry:
Take On The Street by Arthur Levitt, former chairman of the SEC
Pound Foolish by Helaine Olen

Documentaries to watch to help you understand the modus operandi of the financial disservices industry:
The Retirement Gamble
Money, Power and Wall Street



December 6, 2014 — 9:27 PM

So we are back to square one, confusion and double talk. What to do, what to do…..........



September 16, 2016 — 9:34 PM
The book does not mention anything about the basics of Gold or Silver which is like the basic real money , that 99.9 of the uiltra wealthy families own in the world since the history of time , i started to doubt everything else he was "Selling in His Book "


March 6, 2017 — 3:34 PM
Financial advisors recommend indexed annuities like cab drivers recommend Uber. They don't like that someone with just a life insurance license can sell an annuity. Are people over hyping them? I'm sure. The reality is they are great investment vehicles for a large majority of investors going into retirement and it's hard for them to admit.
brooke southall

brooke southall

March 6, 2017 — 6:29 PM
Great how, Ken? The high fees, the low returns or the opaque disclosures?


March 6, 2017 — 7:18 PM
Hey Brooke, well from your comment it sounds like you've only seen indexed annuities that have high fees & low returns. What fee are you considering to be high? I personally have some between .5-1% including rider fees and everything, that doesn't seem high to me considering you'll pay that in a regular mutual fund. Indexed annuities don't have opaque disclosures, agents do. I agree that some agents may misrepresent, but that's not the indexed annuity's fault. As far as returns, can you please explain? I have an annuity client that gained 15% from February 2016-2017 anniversary dates. OBVIOUSLY that isn't close to what he should expect every year nor do they return that every year, but how can you state something has low interest rates when you have the potential for that type of return? Maybe saying that "long term" averages could be lower or they have the "potential" to be lower, but blatenly saying they are low interest rates is using the same opaque language you are accusing them of using in the first place.

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING

RIABiz Directory sponsored by:

Directory Sponsor Logo