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Wealth mastery: asset allocation "buckets"

Here is the third of my blogs on my attendance at the Anthony Robbins Wealth Mastery training session.

This is another great example of a “system” taking away so much of the risk usually associated with investment and speculation.

The system is that you allocate your assets into categories that give you the right balance of security and growth, and allow a pre-defined amount for spending and enjoyment.

Depending on your age (years to retirement) and whether you are aggressive or conservative in your approach, a set percentage of your assets are earmarked for:

1.  Security bucket – say 40%.  This is “rainy day” cash – aim to have enough to cover 6 to 12 months living expenses.

2.  Growth bucket – say 40%, broken down into:

a.  Buy and Hold investments – 20% (property, long-term shareholdings etc)

b.  Momentum trading – 20% (trading shares, options etc)

3.  Dream bucket – say 20%. Spending money to reward yourself for your successes in the first two buckets.  For most people this is cars, homes, boats, holidays etc.

At K&H I am hoping to develop a service or perhaps run training sessions for clients to pass on some of this (and other knowledge).  Please let me know if you are interested in finding out more to help you on the path to greater wealth and financial independence.

4 Responses to “Wealth mastery: asset allocation "buckets"”

  1. KJ says:

    Hi, I attended WM 2009 in Newport Beach. What was your take on how to fill the buckets? Should you fill the buckets sequentially (1, then 2, then 3) or in parallel (re-invest proceeds from your Growth bucket into your Security, Growth, and Dream buckets evenly)?

  2. Andrew Gray says:

    Hi KJ
    I can’t remember what they recommended on the course itself, but I am pretty sure that you should do it sequentially, or maybe Security and Growth in parallel with Dream last?
    How did you find the course generally? To be honest I was disappointed with the emphasis on stock trading and lack of guidance with “real” (value creating) business ideas. The financial independence planning was great though.

  3. Toni says:

    Hi, I have been studying the asset allocation that Tony has taken from John Templeton model and the allocation is a % of the initial 10% of your income i.e. of the 10% you pay yourself you put say, 30% of it into security (never touch it) and 70% into growth and then you take the profit from t he growth bucket and divide it into one third to security and re invest one third to growth and the final third to the dream bucket. The dream bucket only gets a share of the profits.

    • andrew.gray says:

      Thanks Toni
      As a general comment, I wonder how many people follow these guidelines? Personally, I have put about 65% of my surplus towards repaying debt (mortgage) and 30% into security, with 5% at most on the “dream” stuff (most of my dreams are free!).

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