I've just retired recently and I must say I found this video informative and great to review. These psychological concepts are much more useful for individuals attempting to avoid mistakes than I realized when I was first introduced to them. This is probably why Warren Buffett talks so much about temperament being crucial to his investing success.

As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?

Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.

In Europe this margin debt is a bit more restrictive. You usually get here a max loan of 75% of your current asset value (given they are stocks like Apple etc or big ETFs). If you have 100.000 in your portfolio, you can maximum loan 75.000. That way the bank "ensures" that you/they do not run in a margin call with every small movement. Still, I would not considere taking 75% of margin debt, but rather 30-40% as maximum. This way, you can invest and can survive even a market crash of 50% 🙂 But of course, this is more for "buy and hold" not for speculation on a short term. Also I only consider ETFs, not single stocks... way too risky.

All bank pro's only recommend that you invest a broad ETF if you use a margin that way your investment is protected because it's not just a size.

I borrowed against an insurance policy at 6%. invested the money and made 10 to 12% on it for years. Insurance company kept begging me to pay off the loan. No way.

Warren Buffett underscores the vital importance of understanding compounding and adopting a long-term perspective for financial success, as leveraging the compounding effect and maintaining a extended investment horizon enable individuals to accumulate substantial wealth through patience and strategic planning.

I love the accents lol and your comfortable and casual manner thank you. I must tell you my perspective on my home's equity and it's an ethical one. The equity is MINE, not the banks. Yet, the banks make it near impossible for me to ACCESS the equity unless I cash out re-fi which costs a lot of money. Not sure what a home equity costs to set up but my point is I can't just walk up to the window and ask for some of my equity. 2ndly, the bank is USING my money to make investments with. So, if the banks are using my money/equity and I put down 20% to start with I sure as heck want a piece of that game. I see this arrangement as criminal. and unethical. RE: stocks. NEVER ever use MARGIN on stocks, especially with borrowed money. ALL stocks are bad. EVEN the blue chips. A margin call on AMZN would have occurred 9X. I will however, use margin to buy LEAP options, which are a form of leverage and then hedge them. If you don't know how to hedge then just commit your xtra money to a good mutual fund and DCA every 2 weeks and check back in 30 years. But, if you MUST invest your home's equity only do that if you know how to hedge using options. The advantage of stocks over RE is the liquidity and the ability to hedge. I haven't heard of a way to hedge an income property gone bad. In a few years I will pay off my mortgage with a HELOC (low cost), use the equity to scale up my options strategy. I see no point in leaving the money all to the bank. As long as I am protected with a hedge and I make more from the investment than interest loan rate, my heirs can have the equity left in the house and the hedged stock portfolio upon my death. I'm just re-positioning my wealth. The banks keep making money off the homeowners year after year. Learn how to play their game. BTW, I'm am sure pension funds and Insurance companies know how to hedge. To NOT hedge stock investments is insane, imo. Learn to use options wisely and with a hedge. Or I promise the AMZN scenario will come to bite us all more sooner than later. The market is open for business everyday bc the market makers owned by the banks know how NOT to lose. They love naïve investors. These unskilled investors keep the lights on, lol. Just like a casino.

I love tha show, however, I have to disagree. You assume that margin investors max out on what they can borrow & all the investments tank. This cam be farther from the truth. I borrow on margin about 10%, of the value of ny stock portfolio, & buy blue chip businesses like banks, Utilities, food companies index funds and ETF's. I pay off the margin debt, & now I have more equity. Those stock also provide, a growing dividend stream. Not to mention, I write the interest off on my taxes. You also assume the worst,for the stocks, that an investor purchases. I believe, any good investor builds a diversified portfolio which helps to mitigate a market on the downside. A bear market, is a great way to load up on quality companies, & increase projected returns. Margin debt, is a good use of borrowed money, as long as the investor is not over leveraged. Even if stocks fall, a portfolio that employs only 10-15% leverage, will most likely not face a margin call.

Owning a house IMHO is piece of mind now and into the future. Our house costs us a fraction a month compared to rent currently and even if you have a mortgage (mortgages and there payments typically go down each year) Unfortunately to many people want to live like there rich, $100,000 kitchens, $50,000 bathrooms etc so the house becomes a huge monthly payment.

Doesn't matter to me so long as the income isn't "Earned" with auctual hard labor but rather just traded then yeah

Is Nortel Huawei now?

If you borrow money to buy blue chip stocks like Apple, Google, Microsoft etc and invest the money into a TFSA if your investment goes down it’s just a waiting game and you can sell options against your stocks to make more than enough income to pay the interest on the money. So I guess what I am saying borrowing against your house equity via a Heloc can make sense. Now if someone buys crypto or very speculative stocks like cannabis than your gambling not investing.

you didn't talk about exempt market securities or the tax benefits of borrowing to invest.

Mr Sam Deymon really knows how to trade, it's deep knowledge of how the market works, reading signals to perfection, I feel very safe trading with him.

Theres 2 sides to that coin.

Noooooo

Loc prime +.5 buy blue chip dividend stocks paying 4-6%. Pay down loc.