Ray Dalio Taught Me Everything I Needed to Know About Money — By Talking About Death
The billionaire hedge fund manager reflects on losing his son, and how to move forward after tragedy
Opinions expressed by Entrepreneur contributors are their own.
Ray Dalio has made more money for investors than any hedge fund manager in history. He built Bridgewater Associates into a $150 billion powerhouse. His insights shape economies. Presidents call him. His book Principles is gospel on Wall Street.
But when I asked him about the moment that changed him most, he didn't talk about markets. He talked about mourning.
In 2020, Dalio lost his eldest son, Devon, in a car accident. Devon was 42.
"You have all the money in the world," I said to him, "but you haven't been immune from pain."
"That's right," he replied. "Every painful experience is a learning lesson."
We often say money doesn't buy happiness. Dalio went further: It doesn't buy immunity. Not from loss. Not from heartbreak. Not from the kind of grief that splits a life into "before" and "after," making every win feel irrelevant.
In that moment, he wasn't a billionaire investor. He was a father. A grieving father, trying to live inside the unimaginable. "What do I want from life?" he asked. "Meaningful work and meaningful relationships. Through radical truthfulness and radical transparency."
No mention of status. No mention of money. Just truth. Connection. Perspective. And pain as a guide — not a detour.
One of Dalio's life formulas goes like this: Pain + Reflection = Progress. That idea wasn't born in a boardroom. It came from devastation. From that, he developed a regular practice: He'd journal memories with his wife each morning over tea. It was a way to keep his son close, and to create space for the ache.
"You will find the sweetness will increase, and the bitterness will decrease," Dailo said. "The ache will always be there. But you'll learn how to dance with a limp."
Most people of extreme wealth hide their wounds. Dalio lets his breathe. He shared how that grief didn't just change him — it clarified him.
He told me that he used to chase success by building better models, hiring smarter analysts, optimizing performance. Then he lost Devon — and learned that the best investment is in people. In meaning. In having a "worst-case number" that gives you peace of mind, and the freedom to focus on what matters more.
I've interviewed countless financial giants, but none spoke about loss this plainly. None offered the permission Dalio did: to fall apart, to reflect, and to rebuild — not just wealth, but wholeness.
"If you know what your worst-case scenario is," he said, "and you know you're good, and your family is good, then you have peace of mind. And you have power."
I flew to New York to interview Ray Dalio for my podcast Money Rehab. I expected a conversation about markets. What I got was a lesson in mortality, meaning, and the one asset that no hedge fund can secure: love.
And that might be the most valuable principle he's ever shared.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
a day ago
- Yahoo
America headed for 'economic heart attack' on government debt, spending warns billionaire
Billionaire Ray Dalio, founder of Bridgewater Associates, is sounding the alarm on America's chronic spending, national debt nearing $37 trillion, combined with a $2 trillion deficit that may balloon with President Trump's 'One Big Beautiful Bill.' "We're spending 40% more than we're taking in and this is a chronic problem. So what you're seeing is the debt service payments beginning to squeeze away, not beginning, well into squeezing away. So it's like plaque in the arteries squeezing away buying power. And as you can do the numbers you will see that you can have an economic heart attack as a result of that That we're going to very soon get to the position that you need debt to pay the debt," said Dalio on FOX Business Network's 'The Claman Countdown.' Nearly One-third Of $36T National Debt Needs Refinancing As Trump Demands Rate Cuts Dalio also outlined a pathway to ease the economic credit crunch. "We are at a juncture right now that, if we can, soon, very soon, while the economy is still good, cut the deficit to 3% of GDP, which is possible. You only have to change a couple of things, change spending by four percent, change tax income by four percent, then you'll have a lower interest rate as a result. This is possible. It was done between 1991 and 1998, that balance, if everybody gives a little bit, there's a possibility of being able to get it down to 3%. If you don't do that, and we probably won't do that, It is like the plaque building in the heart. And so we are now then going to have not only more debt and more debt service encroaching on our spending, But it's also going to mean that we're going to have a supply-demand problem," he said. The Congressional Budget Office estimates Trump's tax bill could lift the deficit to $2.77 trillion. The White House has pushed back on the CBO's scoring and estimates, saying it doesn't factor in revenues, including what tariffs are bringing in. Former Trump economic Advisor Larry Kudlow, now host of FOX Business Network's 'Kudlow,' has also pointed out the CBO has a history of missing the mark and "under-reported" the first go-round of Trump's 2017 tax cuts by $2.3 trillion over the past seven years. Read On The Fox Business App The bill continues to make its way through Congress and is expected to be on the President's desk by July article source: America headed for 'economic heart attack' on government debt, spending warns billionaire Sign in to access your portfolio
Yahoo
5 days ago
- Yahoo
Tributes paid to student killed while skydiving in Devon
Tributes have been paid to a university student who was among two people killed while skydiving. Chiropractic student Adam Harrison, 30, died in the incident near Dunkeswell Aerodrome in Devon last Friday. Mr Harrison, from Bournemouth, was a student at the town's Health Sciences University. Vice-chancellor Professor Lesley Haig said: 'Health Sciences University is a close-knit community, and the loss of Adam is being felt across our entire institution. 'This is a deeply difficult time for many of our students and staff. 'Our thoughts and heartfelt sympathies are with Adam's family, friends and all who knew him. 'We are doing everything we can to support our community, and we encourage anyone affected to reach out. 'Support services are available for both students and staff, and we are urging those affected to talk to someone and access the support they need.' Mother-of-four Belinda Taylor, 48, from Totnes, also died in the incident, which is now the subject of an investigation. Tributes were paid to Ms Taylor by her family on Monday. Ms Taylor's son Elias Baaklini, 20, a business student from Acton, west London, told the PA news agency: 'She was a very caring woman, always supporting no matter what it was. 'She didn't care as long as you were happy, we all loved her a lot and she will be very missed. 'She was a very positive woman as well, she liked to do exciting things so it's just a tragedy that she went off to have fun, do something she'd never done before, experience something new and we lost her.' Mr Baaklini said he was in Exeter, Devon, with his two older brothers on Friday to celebrate one of their birthdays. In a statement issued on Sunday, SkyDiveBuzz Dunkeswell said it was 'heartbroken' by the incident and was fully co-operating with the investigation. It said: 'Our deepest condolences go out to the families, friends, and everyone affected by this devastating event. 'As per standard procedure, the relevant authorities were contacted immediately, and the appropriate investigation protocols were initiated without delay. A British Skydiving Board of Inquiry will now investigate the accident. 'Once complete, a report – including conclusions and any recommendations – will be submitted to the coroner, the police, the Civil Aviation Authority (CAA), the British Skydiving Safety & Training Committee (STC), and other relevant bodies. 'Safety is, and always has been, our top priority. We are fully co-operating with the investigation and continue to uphold the highest possible standards in everything we do. 'No further details will be provided at this time. We respectfully ask for privacy for all those affected, including our team, during this incredibly difficult time.' The Civil Aviation Authority confirmed that it was aware of the incident but could not comment further due to the ongoing investigation. A spokesman added: 'We will work closely with the relevant authorities to understand what happened and are awaiting the report into the incident.'
Yahoo
6 days ago
- Yahoo
‘Worse than a recession': Billionaire investor Ray Dalio sounds alarm on Trump's economic agenda
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. The founder of Bridgewater Associates, one of the world's largest hedge funds, has voiced concern that President Donald Trump's economic agenda could lead to 'something worse than a recession.' 'Right now, we are at a decision-making point and very close to a recession,' billionaire investor Ray Dalio told NBC's Meet the Press. 'And I'm worried about something worse than a recession if this isn't handled well.' Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) A recession is typically defined as two consecutive quarters of negative GDP growth. A much more 'profound' change would be a breakdown of the current monetary order (it's worth pointing out that Dalio correctly predicted the 2008 financial crisis). Trump has triggered global economic chaos with his on-again, off-again tariffs, with steel and aluminum tariffs on imports from China and the EU now at 50%, and the president's 90-day pause on reciprocal tariffs to reach expiration in mid-July. With markets in turmoil and consumer confidence plummeting, more economists believe a recession is likely. But Dalio believes Americans could be facing more than a recession. Tariffs, combined with a high level of debt and a rising superpower challenging the existing superpower, could lead to 'profound changes' in the world order. 'Such times are very much like the 1930s,' he told NBC. The end of the Second World War ushered in a new monetary and geopolitical world order. But history tends to repeat itself. 'These go in cycles that can be measured, and I worry about the breakdown of that kind of order, particularly since it doesn't need to happen,' he told NBC, adding that there are better ways to restructure debt. Whether tariffs are implemented in a 'stable' way or a 'chaotic and disruptive way' can make 'all the difference in the world,' he said. But so far, the tariffs have been akin to 'throwing rocks into the production system.' In other words, highly disruptive. 'Right now we're at a juncture,' he told NBC. He believes Congress needs to get the budget deficit down to 3% of GDP while managing trade deficits 'in the right way.' If not, there will be a supply-demand issue for debt and 'the results of that will be worse than a normal recession.' Read more: Rich, young Americans are ditching the stormy stock market — If you're an average American, how can you heed Dalio's warning? Start by establishing an emergency fund (if you don't already have one) that will cover at least three to six months of expenses — perhaps more, if you're in a job that could be impacted by tariffs and trade wars. Pay down high-interest debt (like credit cards) and avoid building up more debt if possible. It may also be a good time to diversify your investments across different asset classes to mitigate risk. That might mean adjusting your mix of stocks, bonds and other assets. If you're close to retirement, you might want to shift to lower-risk assets, like dividend-paying stocks. Alternative investments, such as gold and real estate, are often considered a hedge against inflation and recession. Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link. If you'd like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver. To learn more about how Priority Gold can help you reduce the tariff impact on your nest egg, download their free 2025 gold investor bundle. If you're an accredited investor, Homeshares allows you to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning, or managing property. The fund focuses on homes with substantial equity, utilizing Home Equity Agreements (HEAs) to help homeowners access liquidity without incurring debt or additional interest payments. This approach provides an effective, hands-off way to invest in high-quality residential properties, plus the added benefit of diversification across various regional markets — with a minimum investment of $25,000. With risk-adjusted target returns ranging from 12% to 18%, Homeshares could unlock lucrative real estate opportunities, offering accredited investors a low-maintenance alternative to traditional property ownership. If you're new to hedging — a risk management strategy that can help offset losses by purchasing investments in an opposite position to an existing investment — you may want to consult with a financial advisor to see how this could help mitigate risk in your portfolio. can help you find someone that's right for you. is an online platform that connects you with vetted financial advisors. Just answer a few quick questions about yourself and your finances and the platform will match you with experienced financial professionals best suited to help you develop a plan to achieve your homeownership or retirement goals. You can view the advisors' profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire. Depending on whether you're close to retirement or not, you may want to adjust your retirement strategy — and adjust your risk tolerance to match that strategy. If you're a young investor, you still have time for the market to recover, so avoid panic selling. JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it's too late) This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Millions of Americans now sit on a stunning $35 trillion in home equity — here's 1 new way to invest in responsible US homeowners This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
