I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my inherited portfolio of about $2.5m. I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
@KaurKhangura3 ай бұрын
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
@brucemichelle5689.3 ай бұрын
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
@foden7003 ай бұрын
My partner’s been considering going the same route, could you share more info please on the advisor that guides you?
@brucemichelle5689.3 ай бұрын
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’COLLEEN ROSE MCCAFFERY” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
@foden7003 ай бұрын
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
@Fatihu-nqАй бұрын
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@Anita-o9oАй бұрын
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@Fatihu-nqАй бұрын
@@Anita-o9o However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
@Anita-o9oАй бұрын
@@Fatihu-nq Oh please I’d love that. Thanks!
@Fatihu-nqАй бұрын
@@Anita-o9o Clementina Abate Russo is her name
@Fatihu-nqАй бұрын
Lookup with her name on the webpage.
@c.t.u.o11 ай бұрын
I follow and love your videos. sadly, it's been a while since i visited it has been a very rough year... i am experiencing one of the most challenging phases of my life... Lost a fortune lnvesting in emerging companies. Hopeful, for a turnaround.
@polinaivanova661011 ай бұрын
Investing so much in emerging companies is a horrible decision. BTW, I commend Gary's trading pattern too. Different perspective, different technique
@E.E.F.2 жыл бұрын
I paid off my house 20 years ago, have no debt and ample cash. I can sleep easy and retire early whenever I want to. I still have a sizeable retirement account.
@Adam-kv2dh2 жыл бұрын
You don't have to answer but I'm curious to know what your income was during that time?? 40-60k or 80k+?
@604h22a2 жыл бұрын
This videos isn’t for your boomer
@E.E.F.2 жыл бұрын
@@Adam-kv2dh Around 55k when I paid the house off. It can be done with a frugal lifestyle. I am not so frugal now. :-)
@Adam-kv2dh2 жыл бұрын
@@E.E.F. very nice 👍🏻👍🏻 I'm cheap myself at the moment lol trying to get ahead only debt I have is mortgage. I didn't go to college
@MechE11B2 жыл бұрын
@@604h22a Why are you assuming they are a boomer?
@mathixvw Жыл бұрын
With my mortgage at 1.9%, I earn money with that 10% inflation Nevertheless, a point that should be highlighted in this video is the financial freedom. As long as you have debt, you are accountable towards banks and might loose everything if things turned out badly. In the meantime, if you pay your debt earlier, you may earn less money than if you didn't, but you'd acquire financial freedom and you'd whatever you'd like with your income afterwards. Also, investing first only works out if your debt has a lower interest rate than your investments.
@ryanwilliams9899 ай бұрын
Scholars who study the stock market’s historical performance estimate that over time, the payment (and reinvestment, and compounding) of dividends have contributed anywhere from 30% to 90% of the S&P 500’s total returns. I want to spread across $400k into profit yielding dividend equities but unsure of which to get into.
@BiancaSherly-qt6sb9 ай бұрын
Simply put, if you’re not investing in dividend stocks, you’re doing it wrong.I stopped listening and taking financial advise from these KZfaqrs, because at the end of the day, I end up with a bunch of confusing stocks without knowing when to take profit, In reality, all I needed was professional advice to take advantage and make profits.
@maryHenokNft9 ай бұрын
Very much appreciate it Scholars who study the stock market’s historical performance estimate that over time, the payment (and reinvestment, and compounding) of dividends have contributed anywhere from 30% to 90% of the S&P 500’s total returns. I want to spread across $400k into profit yielding dividend equities but unsure of which to get into.
@maggysterling332549 ай бұрын
@@maryHenokNft That's impressive, have you always had guidance?
@maryHenokNft9 ай бұрын
Not exactly, I started out with a financial advisor called *Camille Alicia Garcia* Her honest approach gives me complete ownership and control of my positions, and her rates are incredibly affordable given my ROI. However, do your due diligence before contacting a financial advisor.
@StellaMaris-lv2uq9 ай бұрын
This reference seems valid.. Just looked up her full name on my browser and found her website without sweat over 15 years of experience is certainly striking!
@DadsCigaretteRun2 жыл бұрын
Great video but I will say…nothing made me feel more in control of my finances then paying off all my debt. I make good money but having no debt makes me feel like I have doubled my income which means I can invest much more
@tinmanslickgreasy9992 жыл бұрын
Yep the family went completely debt free right before my wife went back to school for her RN. We did not have cc debt or auto debt but we wanted our home payed off before she started college (we are middle age) plus going to school was going to cost us and we planned on paying it all in full per semester. She graduated debt free, works at the hospital, we have better insurance thats more affordable. We still spend like when the income was just one instead of two. So being debt free and her working it feels like we really have tripled our income. But I'll be honest...when we went completely debt free 3 or 4 yrs ago, it was and still is the best feeling ever! Everyday it feels good knowing I'm not paying on any debt anymore. Bills still come but its way way easier for me once the house was payed off and our cc we still use but we pay the off every couple of weeks. If one can invest 10% save 10% have the emergency fund maxed out to their liking. And be debt free.. That feels like freedom.....👍
@DadsCigaretteRun2 жыл бұрын
@@tinmanslickgreasy999 I still have a mortgage but all CC, vehicles, etc are completely paid off and literally nothing has ever let me feel more in control of my destiny than this.
@tinmanslickgreasy9992 жыл бұрын
@@DadsCigaretteRun right on...RIGHT ON!👍
@blaakcoffee2 жыл бұрын
Facts!!
@hainguyenhoang10312 жыл бұрын
In my opinion, it depends on each person's comfortability of holding debt. As the video said, the type of debt is important too. If your debt is in credit card with 30% interest rate, it must be paid out. However, if your debt is mortgage, especially in rental property, there is no reason to clear it fast because the rental income pays for the mortgage itself. Just my 2 cents!
@Riggsnic_co6 ай бұрын
Concerns about a potential recession and the Fed's talk of interest rate hikes have left me uneasy. I'm unsure about my $440K portfolio strategy, considering the uncertainty of a recession and the possibility that interest rates may not rise significantly
@martingiavarini6 ай бұрын
I completely understand your concerns. But In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.
@bob.weaver726 ай бұрын
I agree. This is why having the right plan is invaluable, my $510k portfolio is well-matched for every season of the market and recently hit 100% rise fromm early last year. I and my CFP are working on a more figures ballpark goal this 2024
@TheJackCain-846 ай бұрын
Mind if I ask you to recommend this particular coach you using their service?
@bob.weaver726 ай бұрын
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
@TheJackCain-846 ай бұрын
Thanks for this. Found her and looked through her credentials before contacting her. Once again many thanks.
@mohitnikumbh5932 жыл бұрын
The math is unquestionable but the math only works from a practical stand point if you invest the remaining amount. If you are going to spend that amount on consumer goods, better pay off the debt and stay out of debt.
@ChrisInvests2 жыл бұрын
Absolutely!
@dericanslum1696 Жыл бұрын
...well...OBVIOUSLY...
@jordycorvers7465 Жыл бұрын
fictitious returns without taking into account emotions (of investors) like buying high and selling low and without taking into account the costs associated with investing leads me to believe that even at 2% interest it is better to pay off debt FIRST and then start investing...
@ElAteoMexicano Жыл бұрын
@@jordycorvers7465 If you really can't control your emotions, then yes that's the best strategy. I opened a brokerage recently and bought some index funds and an individual stock. I'm not selling any of it for at least 12 months so I will pay the lower long term vs. short-term capitol gains tax rate. My mortgage is 2.25% APR. I can't bring myself to make extra payments on it with that interest rate.
@Jonathanped Жыл бұрын
Paying off debt is never a gamble. This is the way.
@danicegewiss862 Жыл бұрын
I'm doing both... investing $25 weekly and paying an additional $100 monthly on our mortgage. We're also building our emergency fund by $25 weekly. We have well over $1,000 in the fund.
@ChrisInvests Жыл бұрын
Sounds like you're making progress 👍
@malachycarson5846 Жыл бұрын
not sure if it is worth investing if you are getting less returns than you would by paying your debt. but yeah saving some for an emergency fund. I have paid all my debt and have saved $100,000.00 I am unsure what to invest in the market at this point, seems like everything is going down. will see how things pan out in the next six months b4 i do anything...... keep going it happens faster than you think and having no debt is such a feeling of freedom..... nothing else like it.
@Dafish1738 Жыл бұрын
@@malachycarson5846 search of how to dollar cost average. Slowly contribute into the market. There is a chance it will still go up as well. Can’t be too skeptical.
@malachycarson5846 Жыл бұрын
@@Dafish1738 nope. i think i will go with Warren Buffet's advice rather than some random from the net...... clowns bragging about their crypto accounts to me... yeah they weren't scamming me but still I was right they are broke. even worse the ones that went into debt for crypto. for basic peoople like me that don't have much to gamble with i think it is better not to take much risk. OK maybe a mere 10% of your investments in random things, but nope, i don't like taking chances.
@gbear34 Жыл бұрын
@@malachycarson5846 Just start buying companies that you think will have a bright future. The time to buy is as stock prices decrease, not as they increase. Think long term.... you could make 40-60% returns in 5 years as the economy bounces back!
@ExplorationRandomDestination Жыл бұрын
I am about 3-4 years into my investing journey if you asked me in my first 3 years I would have chosen to invest. Now I am 100% sure i would pay off debt.
@ExplorationRandomDestination Жыл бұрын
@@CaribbeanHustla i see alot of people say invest instead of pay off debt but investing is a risk 100% of the time while paying off a debt is guaranteed. My moms mortgage is 2500 If paid off her monthly cost would drop to 650 property tax. Guaranteed 22,200 a year in fewer expenses. If she invested the cost of her mortgage instead of paying it off she would need to 10%+ on the markets every single year for it to be worth it. Investing is only better in theory and would assume that you would never be forced to sell during down years. This is what decimated people in 2008 stock market crashes and people cant afford mortgages or anything so people are forced to sell stocks at pennies on the dollar. Ended up losing all of their investments and their homes, cars etc (that they could have paid off instead) thousands of people ended their own lives because of that crash and losing everything. I get that in theory investing is far more lucrative in theory but the reality is that most people are not beating the markets about 6% of investors do and most of those are already wealthy. It would take 15-20 PERFECT years for you to really see the benefit start to outweigh the risks vs mortgage pay off which would be immediate relief.
@Will-uj7yu Жыл бұрын
@@ExplorationRandomDestination if you are forced to sell your investments you made a mistake somehow. Also it doesn't take 10%+ a year to beat paying off your mortgage, just more than the interest rate of your mortgage is which is usually very low. You dont need to beat the market at all, the market has returned an average 10% CAGR for decades.
@squodge Жыл бұрын
I had a huge debt back in 2015, about £50,000 (roughly $60,000). I decided that paying off the debt made more sense because the APR was roughly 9.9% (mostly credit card debt), so it made zero sense to invest, as there is no way of investing that guarantees more than 9.9% return. Then at the end of 2019, I paid off all my debt. and two years later I'd bought my first property. So yeah, if I can do it, anyone can do it. Why do I say that? Cos I work as a secretary - I earn a modest salary. Being frugal helps a lot too.
@user-ps1ft1hy4j6 ай бұрын
@@Will-uj7yu And you might need decades for that to play out. Those returns are for the LONG term, which 1) some people may not have or can't afford to have (people die/have bills to pay), and 2) starting your buy-in point is basically buying into a mystery, and mysteries often start off or wind up with someone dead. You CANNOT correlate long-term results with short-term results. You yourself note we are talking about averages, not guarantees or anything remotely close. A paid-off debt is a guarantee and doesn't require any timing at all.
@SokemRokemRobot2 жыл бұрын
There's nothing like having no debt... a lot less stress, and a lot more money in my pocket.
@ChrisInvests2 жыл бұрын
There sure are some huge advantages
@aightm82 жыл бұрын
@@ChrisInvests you can't just look at the numbers. You have to consider the return on a risk adjusted basis. Paying off debt gives a 100% risk free return. At a time where interest rates are rising and central banks are tightening, it's 100% guaranteed
@ChrisInvests2 жыл бұрын
@@aightm8 I addressed this point in the video
@Damon-qt3fw2 жыл бұрын
Amen
@karlabritfeld7104 Жыл бұрын
I'm there, been debt free for 15 years.
@susannabruemmer36832 жыл бұрын
According to Elon Musk", Since I’ve been asked a lot: I will always advise, we buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.
@candideharrison55682 жыл бұрын
My advice to new investors: Buy good companies stocks and hold them as long as they are good companies. Just do this and ignore the forecasts and market views which are at best entertaining but completely useless
@stansburyclarice49682 жыл бұрын
The key to big returns is not big moving stocks. It's managing risk in relationship to reward. Having the correct size on and turning your edge as many times as necessary to reach your goal. That holds true from long term investing to day trading
@susannabruemmer36832 жыл бұрын
PRISCILLA DEARMIN-TURNER, That's whom i work with
@luiskoogler79262 жыл бұрын
i have seen loads of news of PRISCILLA DEARMIN-TURNER on the internet, she must really be that good for she to be talked about in such a way..,is she on youtube? please how do i reach her
@susannabruemmer36832 жыл бұрын
No she's not!...You can just put her name on google and you will be directed to her website and drop her your message.
@thehunter98532 жыл бұрын
An advisor in the 80s once told i and my colleagues at work that the only way never to go broke was to buy good companies. Miss Anita, of blessed memory then asked him how can one know good companies? This question is still lingering on mind. Great Video BTW!
@Thompson78882 жыл бұрын
After my experience in 2017 of slow emotional torture when i lost more than half of my portfolio here is my strategy i don't hold minor companies and hot picks except i want faster profits at that time or when i get greedy i then opt for them through a Pro only because being very much more profitable it is riskier too and i can't handle Lol.
@amydiscovered26652 жыл бұрын
I hope people will learn from your experience don't invest what you can't afford to lose.
@sonyablack20152 жыл бұрын
I am in a similar fix, My portfolio is down with my tuition fee.
@YTDataAnalyst2 жыл бұрын
@@Thompson7888 May i ask Who's the Pro you work with? A friend recommended an American but his charges and term are quite crude.
@katrinaotto75452 жыл бұрын
@@Thompson7888 Smart Strategy! Pls what are your thoughts on ETFs and how profitable are they? And again can you say a genuine Pro to hire or work with till i get better. Someone who wouldn't run with my money. 🤣
@dancalmpeaceful39032 жыл бұрын
A fellow co-worker asked me the same question years ago....especially during the rocking 90's.... My answer: Do both. At this point however, I am not in debt....so what I do now is save in a money market (for emergencies) AND invest....EACH paycheck. First though - you WILL NEED to establish an emergency fund. Get that done first.... Years later when I got laid off - I had paid my house off MANY, MANY years earlier. I sailed through the layoff without an issue. Others weren't so lucky... Do both...
@nerdobject53512 жыл бұрын
I couldn't agree more. I think the value of having your house paid off far exceeds that money you would have invested.
@dancalmpeaceful39032 жыл бұрын
@@nerdobject5351 yeah...I mean, when you pay EXTRA on it, you are MAKING money...by SAVING interest. Those extra payments GUARANTEE you that you at least make whatever your interest rate is... And yes, I know you're not making 10 to 20% like you can with a mutual fund - BUT, it is guaranteed and you do get your house paid off faster. I got mine paid off in 11 years....and as I say, that PAID off when I was LAID off (sounds like a poem). I know some poor bastards who had to see their house.
@GP-fw8hn2 жыл бұрын
Yes the financial formula is obvious. The problem is we are not robots and do not follow any formula to the T. Also the psychological benefit of having your house paid is unmeasurable. The weight you feel lifted off your shoulders when your house if paid off is incredible. Do what you feel is best but do not ignore the psychology of money and debt. And for most the best path is to simply be debt free.
@davidguarin3582 жыл бұрын
Tks a lot
@theoriginalfleabag2 жыл бұрын
I forget I'm not a robot at times.
@larrythomas60682 жыл бұрын
When your debt free you don't need that much money coming in
@TheAnswer2012 жыл бұрын
💯 I prefer being debt free than rolling the dice …
@blacktea692 жыл бұрын
Yea once you have a place secured I'm gonna chill out for a bit. Maybe find work I like
@getinthespace7715 Жыл бұрын
Depends on your risk tolerance. Debt is a guaranteed liability. Investment is only the possibility of a return. If interest is significantly less than inflation it makes it more tempting to service it minimally and try to make money in the market.
@Will-uj7yu Жыл бұрын
depends on your time horizon. Investment is practically speaking guaranteed return over the long term if you invest in sound cash producing assets and are diversified.
@PatrickButterly Жыл бұрын
I know this is aimed at a US facing audience and I believe there is some significant differences across the world, but depending how you invest (and where) there are also tax implications where nowhere do you get taxed on paying off debt.
@jg7286 Жыл бұрын
If you make below the roth max income level, your argument is completely negated as you never pay taxes again after 59.5 and at 144k filing singly that encompasses most of our society
@PatrickButterly Жыл бұрын
@@jg7286 I don't understand how that applies to different countries
@mcmerry2846 Жыл бұрын
Inflation here was 14% last year 😂
@jamesmaduabuchi61002 жыл бұрын
The wisest thing that should be on every wise individual's list is to invest in different stream of income and don't depend on the government to bring in money especially now the pandemic is hitting the economy
@wilsonjudson16502 жыл бұрын
you are definitely right , waiting on the government is a big waste
@jamesmaduabuchi61002 жыл бұрын
Investments are the stepping Stones to success especially if you been guided by a professional
@jessicamamikina76482 жыл бұрын
Investing is good but investing in the right thing is the actual key to success . who is your pro ?
@jamesmaduabuchi61002 жыл бұрын
That was exactly what I did, I trade with a professional stock expert "TERESA JENSEN WHITE " who i met in one of the seminars..
@jamesmaduabuchi61002 жыл бұрын
There are so many investment out there but if profits must be considered then not all investments are good to go into.
@rodgerpudwill9008 Жыл бұрын
I found a mixed strategy worked best for me. When the mortgage was “new” the additional $$$ paid on the mortgage reduced the term significantly with each additional payment, typically several months. However, after executing this strategy for quite some time, the reduction in the mortgage term with an additional principal payment was not much (determined by your actual circumstances). I then switched to investing the additional money, which enabled me to fully pay off the mortgage balance on retirement, allowing me to enter retirement debt free (which was a major financial goal). This strategy was made more complex by the fact that at the start of the mortgage term, my disposable income (and thus the amount available to use to execute the strategy) was much less than at the end of my career, which is typical (I assume). However, the mixed strategy paid off significantly for me.
@JeanValjean875 Жыл бұрын
The thing is mostly people are better off paying off their debt because they don't have the self discipline to invest the difference. They'll just blow it all. That's why they're in debt!
@ChrisInvests Жыл бұрын
So true 😬
@c.k27782 жыл бұрын
When it comes to investing, diversifying into sectors based on their projected growth is key. There’s no shortcut to getting rich, but there are smart ways to go about it. Been into this experience since 2016 and have acquired over 2M dollars. *Get more info below*
@c.k27782 жыл бұрын
l engage in different prolific lnvestments- launchpad IDOs, ¢rypto, stock, NFTs, and multifamily real estates through proper planning and management of a widely known financial consultant *(Genevieve Glen Rogers)* and the experience remains the best for my finances
@c.k27782 жыл бұрын
You can make quick internet research with her name *(Genevieve Glen Rogers)* where you can easily get in touch and as well write her
@wewhoareabouttodiesaluteyo93032 жыл бұрын
Pay off debt now that interest rates are increased and then invest to keep those expenses from becoming debts. Only thing is businesses do not do this. They leverage debts and invest their profits.
@Craigstrasser2 жыл бұрын
Thanks for watching, msg the number above I have a great offer for you👆🏻👆🏻
@sergiemercier78562 жыл бұрын
I believe I could benefit from additional help in navigating the market; it is utterly daunting. I've liquidated $120,000 of my assets and would appreciate some suggestions on where to invest my money.
@alexiigor25682 жыл бұрын
You may simply follow up on his recommendation; some of them turn out well.
@richardsimeon72722 жыл бұрын
At this stage, I believe professional services and advice from a financial advisor are your best hope for staying ahead of the market.
@antonialangstone16242 жыл бұрын
@@richardsimeon7272 Investment coaching seems tempting, but I'm not sure how to get started. Have you ever hired a coach? How was your experience?
@richardsimeon72722 жыл бұрын
@@antonialangstone1624 Yes, I'm in contact with a broker, and over the last 5 months, I've been able to stay afloat during market crashes, and my $160,000 portfolio has grown by more than 40%.
@maheernaadim30342 жыл бұрын
@@richardsimeon7272 That's accurate, contacting a consultant during the pandemic was how I was able to navigate the insane stock decline at the time.
@nerdobject53512 жыл бұрын
One of the variables no one talks about when paying down mortgage vs. investing is personal freedom and time. Without a mortgage you have no 'pressing' bills with the exception of property taxes so you can work less, take bigger risks, change careers or start a business. The possibilities are nearly endless. I quite frankly find that retiring/slowing down at 63, 67, 69 is insane. The gives you a max of 20 years pending your health of actually doing things and that is no time at all. Giving up that 800 - 1,000,000 is well worth the time and freedom you can by getting an extra decade or maybe even two. This obviously a very personal question and people have to decide whats best for them. I still think you should invest 15-20% but I think anything you can manage after should go into your mortgage principle.
@ChrisInvests2 жыл бұрын
I get what you're saying but if you have more money invested/passive income wouldn't it accomplish the same thing?
@nerdobject53512 жыл бұрын
@@ChrisInvests I think I missed including a big part of this at that was all of my retirement investment goes into my 401k currently which I max out and Which I can’t touch until 60. Then I refinanced to a 15 year mortgage and plan to pay off at 50. I’m currently 39. The question would be if I had a 30 year mortgage would that extra I’m putting into my 15 be better served in the stock market from my current age to 50. Then use that “pending taxes” to pay off the mortgage (if at all).
@duneme2 жыл бұрын
Compounding is a key too! If you only invest once, that’s just not enough to do the trick!
@monacpriest70012 жыл бұрын
Lately I've been considering setting up an investment account for retirement, I have set asides $240k but somewhere along the line, I get cold feet maybe because I'm a rookie and have no idea what I'm doing, please I could really use some guidelines.
@orangenote33252 жыл бұрын
I have the same fear too because I think I'll make a mistake
@dragonkiss30552 жыл бұрын
If you are new to the markets, I'd advise you get some kind advise or assistance from a financial consultant or Investment coach. That’s the most ideal way to jump into the market in these uncertain times.
@mredemption70162 жыл бұрын
@@dragonkiss3055 I agree with this, Investment coaching sounds like a great idea, thought about it before but never knew how to go about it, Have you used a coach? what is the experience like?
@dragonkiss30552 жыл бұрын
@@mredemption7016 Profit comes for proper trade execution. I have racked up in profits $558,405 from $185k capital in august last year to be exact on my portfolio, but i have to attribute some credit to my adviser, 'Mary Freed Lorenz". I watched a news interview on where she featured during an IPO and spoke proficiently, caught only her name and did a search later online.
@hacksmith75942 жыл бұрын
@@dragonkiss3055 I just looked up this person out of curiosity, surprisingly she seems really proficient, I thought this was just some overrated BS, I appreciate this.
@MrOfficer2352 жыл бұрын
I understand the math. However the equation doesn’t assume enough risk and the overall emotional benefit of living in a paid for home. I’d rather live with a paid for house with zero risk than a little more in my portfolio that is still subject to market volatility.
@mrhuangsta2 жыл бұрын
Save investment in s&p is fine for people who want the 9-5, live frugally, and retire when they're 65 with a couple mil in the bank. But for anyone wanting to live a little more lavishly or do more things before retirement age, exploding your income via businesses, side hustle etc rather than dumping it in s&p is the logical move.
@kevingrant44912 жыл бұрын
Its easier to succeed in sp500 than it is to succeed in business......the average person.
@mrhuangsta2 жыл бұрын
@@kevingrant4491 for sure it's easier. Set it and forget it until 30 years later. But nowadays there are hundreds of businesses that people can start for a few hundred dollars that is very low monetary risk and would of course require a lot of elbow grease. For me at least, I'd much rather use a few thousand dollars lying around to use it towards building something that could have explosive growth rather than throwing it all in a 8% s&p. The 8% could come later after I've exponentially grown my once-limited capital.
@kevingrant44912 жыл бұрын
@@mrhuangsta you and I are not regular / average people. I can tell you have alot by your optimistic view on owning assets. Most people will fail badly at running a business long-term. That is why I recommend 401k and after tax index 500 shares or small muti family houses so they don't end up broke later in life because of failed business ventures. I feel they will grow into business as they age if their financial education teaches them to. You are 100% right.......but wrong for majority of people. I'm 57yrs old.....all I own now is a lot of heavily leveraged real estate and sp 500 shares.....first generation wealthy.
@mrhuangsta2 жыл бұрын
@@kevingrant4491 amazing. I've obviously still got a lotttt to learn!
@76luislara Жыл бұрын
It all depends on the interest rates. When interest rates are high like now, is better if you pay off your debt. If you had credit cards sitting in 20-30% interest, better to pay those off.
@ChrisInvests Жыл бұрын
True
@IrisP9892 жыл бұрын
We used debt as a leverage and now own a rental and just hit $1 million dollar in our net worth. If we spent years paying off our first home’s mortgage, we would never purchase a second house and gain equity in both homes.
@MarkSmithhhh2 жыл бұрын
yep, I think timing matters of course but I'm in the same boat...not 1 million dollars net worth but about half a million, just shy of it...took money I could have paid off all my debt with and invested it, now I have more than enough to pay my debt AND live comfortably with a big chunk of savings...if I had paid My.debt off I'd just now be done with it and be debt free but also have no money
@KINGkong3747 Жыл бұрын
Do you own both homes yet?
@IrisP989 Жыл бұрын
@@KINGkong3747 Not yet but it doesn't matter since net worth = assets minus liabilities. My assets' worth is much higher than my liabilities (2 mortgages and one car loan. No other debt. Credit cards are always paid off every month).
@IrisP989 Жыл бұрын
@@MarkSmithhhh That's smart.
@KINGkong3747 Жыл бұрын
Yes I know what a net worth is and leverage is. I don’t think net worth is the proverbial catch all for you’ve made it. Plenty of people with significant net worths who’ve still gone broke due to being over leveraged. Until you’ve payed off both properties you’re not in the clear yet, sounds great in theory, but say the HVAC goes out, or your renter trashes the place, can’t get a new tenant for months, or an economic recession/lose your job and your unable to hit the monthly payments. It is still a risk. I just hope someone in your position with debt, especially a car payment, is still living below your means, accumulating plenty of liquid assets to cover you in such a case.
@dancalmpeaceful39032 жыл бұрын
The real secret....Pay such a huge amount down so when you take out your loan for your house, it's only $500 a month or less. That's what I and my wife did. IF YOU CAN'T DO THAT - then you have NO damn business buying a house unless you enjoy financial slavery.... We knew I could get a job at Burger King .....and STILL MANAGE to keep the house IF I got laid off. And yes, I did get laid off....but it was many, many years AFTER I had paid the house OFF. And yes, we sailed through the layoff without an issue. Having no debt is FREEDOM. While we were paying off our house - we invested the WHOLE way along too......DO both. By the way - 2nd secret - Never, EVER, BUY NEW cars....buy USED cars.....WITH cash (emergency savings - see how that works? ABS - Always Be Saving)
@HIB8012 жыл бұрын
This was sound advice 5+ years ago. If my mortgage was 500 per month I could only afford a 2 bed 1 bath 1000 square foot condo in the Midwest. Also because of the chip shortage it’s smarter to buy new cars rn if you have the option. Used cars are insanely overpriced and people are purchasing hybrid and electric vehicles now. Not many of those on used market.
@petelee24772 жыл бұрын
Have you seen the vehicle market? A decent used vehicle currently cost about as much as a new one. Unless you want some 1997 ford ranger with 198,000 miles on it that will probably spend more time in the shop then on the road then you are better off buying new. I assume most people just want something dependable, low cost, and low maintenance.
@dancalmpeaceful39032 жыл бұрын
@@HIB801 I would agree....that IF a used car is only a few thousand LESS than a new car, yes, you may was well get a used car. For me, I buy shit cars for not much more than 6 grand - hence I a new car is not an option for me. All I'm saying is that you need to GET your monthly mortgage payment down to a VERY reasonable amount per month. AT one point, I had mine down to $368 a month. Needless to say, I paid my house off in 11 years...
@HIB8012 жыл бұрын
@@dancalmpeaceful3903 368 is wild. Mine is almost 10X that.
@dancalmpeaceful39032 жыл бұрын
@@petelee2477 Well...I can't say I've looked.....for quite some time. And maybe I will get sticker shock when I do...in the meantime my Toyota has only 165K...so I"m good for another 20K or so. I don't drive very far nowadays...so it may be awhile before I have to bite the bullet. We'll see...
@kayjeffs37412 жыл бұрын
I chose to invest first...a couple of my investments popped, and I was able to use that to pay off all of my debt
@ChrisInvests2 жыл бұрын
Popped? 😬
@kayjeffs37412 жыл бұрын
@@ChrisInvests I mean popped as in popped off...🚀🚀🚀
@ChrisInvests2 жыл бұрын
@@kayjeffs3741 oh 😁👍
@nathansmith37862 жыл бұрын
Buy a good cross section of an economy and you should do well over the long term. The market will be high in 10 to 20 years, and significant higher in 30. It’s almost impossible for a company with no debt to go bankrupt. The U.S is about 50% of the global market place, pay yourself first. It’s time the market. Not timing the market. Last year I invested 200 grand in the S&P 500/ an allocation fund (with the help of my advisor Mary Margaret Carter of course) and made 670k, but guess what? I put it back and traded with her again and now I’m rounding up close to a million.
@tammywilson60302 жыл бұрын
Oh she has a webpage perfect
@boydsummerhays3222 жыл бұрын
Growing affluence is such a lovely thing to see
@GeorgeAusters2 жыл бұрын
How? The S&P500 is down right now
@JosiahK5552 жыл бұрын
This doesn't take into account market crashes while you have to service debt, do you want to be debt free in a crash where you may have reduced income or even lose your job? A lot of people lost their house in 2008 because they couldn't pay their mortgage. When you are debt free in a market crash you can still invest all your excess income instead of worrying about making payments.
@ChrisInvests2 жыл бұрын
Thanks for the comment. I mentioned risk a few times.
@HughJass-jv2lt2 жыл бұрын
Slight Clarification: A lot of people Lost their *JOBS* back in 2008-2010. Those with "No Savings'... immediately LOST their home. Those who *had* Savings...immediately started burning through it, in order to make the mortgage. But unfortunately, many of them were NOT able to land a comparable job that *Paid* what they needed. So ultimately, they Lost their *HOME* & their *SAVINGS.* In this scenario... it might be better to payoff the mortgage 'sooner' than later. Also, If you're thinking about caring the mortgage for the full 30 years... *AGE DISCRIMINATION* is a _REAL PHENOMENON..._ just something to keep in mind 🔥🔥
@Mark-xt5lo2 жыл бұрын
@@ChrisInvests no not really, you glossed over the risk, secondly you didn't mention that once the house is paid off, you now have a 350,000.00 asset so your calculation is missing at a minimum 350,000.00 - keeping the house value the same in your video, you would have approx 1.5k in money and appreciating asset with no risk versus 1.9 million. I'll take risk free and 1.5 all day long. Good luck with paying someone else your money for 30 years. Making a banker richer.
@ChrisInvests2 жыл бұрын
@@Mark-xt5lo the house is paid off in the end of both scenarios
@Tom-gr2lh2 жыл бұрын
If you want to maximize your wealth, you have to take risks. There are people who are more on the more conservative frugal side who would overpay the mortgage, conversely those with a higher risk appetite will gamble more on higher returns leveragung mortgage debt in the stock market. The latter mindset is similar to that of entrepeneurs where we can see the rewards are very high for success.
@Craigstrasser2 жыл бұрын
Thanks for watching, msg the number above I have a great offer for you✍️👆🏻
@rorybray74872 жыл бұрын
Just follow Ramsey's baby steps, simple process to understand.
@MechE11B2 жыл бұрын
15% pre-tax income into retirement and the rest at the house, pretty darn good advice.
@Kevin-fn1rn2 жыл бұрын
Ramsey gives the same advice for every single person. He’s also stuck in his ways even when he’s wrong (mutual funds vs index funds).
@stevexspeed76492 жыл бұрын
@@MechE11B the money guys are way better than dave Ramsey
@inertiaforce78462 жыл бұрын
Dave Ramsey owns all.
@BarbellFinancial2 жыл бұрын
Dave Ramsey provides great advice for getting out of debt. But, I strongly suggest you do not follow his investment advice.
@dave11428 ай бұрын
Making the first 100k has been a marathon, I am 26 and at 75k mark, No useless spending, no vacations, just work, save and most importantly invest in options trading, thanks to my fiduciary Mr Arlto Eric, I am blessed and I believe I will keep been blessed
@finny_8 ай бұрын
I stopped believing in anything a long time ago, I have had to stand and fight for myself and family but 75k at 26 years is quite a milestone so cheers
@riviera93838 ай бұрын
Good for you but now you said how you make and retain more money, can you share your fiduciary link please
@dave11428 ай бұрын
Arltoeric that's his gmai address okay
@olivia41828 ай бұрын
Outstanding, this will be my first shot at trading and investing and I pray it favors me cause I can capture you speak from a place of delight
@riviera93838 ай бұрын
Thanks for sharing okay, I have mailed him
@carieyounginsurance2 жыл бұрын
I’ve done both and it served me well…now debt free except the house and working on that next. But following Dave Ramsey and the Money Guy- I came up with my own plan hybrid, stuck with it and was able to do both at the same time.
@ChrisInvests2 жыл бұрын
Great! I think that's the best way to do things...gather information from different sources and develop your own plan.
@mylapasaporte85942 жыл бұрын
I consider debt like cancer...do you want to be cancer free totally or have a little bit of cancer? In this scenario there's no mention of net worth assets minus liabilities. Plus the guy forgot to add the house value to the 1.09 Million which in 15 more years after house is paid off will have increased in value too. Once all debt is paid off , stress is significantly reduced...and then you can really invest aggressively and best part not worry about losing your house cause it's yours!
@tinmanslickgreasy9992 жыл бұрын
Yep being debt free is the best feeling day to day. We invest and save but we have no debt and that is worth a lot to me.
@tinmanslickgreasy9992 жыл бұрын
I think its important to invest, save and also get rid of debt. I know for some its harder than others but if you can work towards that goal and accomplish it....thats a good feeling.
@TheFirstRealChewy Жыл бұрын
If the money you bring in is greater than your expenses then you should be fine. Afterall, the payments on your debt is already factored in as expenses. If you feel that this will change in the future, then you'll want to reduce your expenses before it happens.
@Will-uj7yu Жыл бұрын
nah... debt is the one of the most powerfull tool you have to become rich. All the wealthy people are in debt. They just know how to use it properly.
@mcmerry2846 Жыл бұрын
@@Will-uj7yu indeed, I'm poor af and I have no debts 😂😂😂
@Azel2472 жыл бұрын
You can do both. Take 25% of your pay, put 15% into investments and 10% into paying down mortgage. That is a form of diversification as well.
@dancalmpeaceful39032 жыл бұрын
Actually people forget that EVERY extra bit of money they put on their principle...actually MAKES them money too....except IT'S GUARANTEED. Investing is now always guaranteed. I do both and have been doing so for years. I paid my house off long ago...but while I was paying on it, I kept investing too. Since I no longer have any debt, I put money in a money market fund AND continue to invest, of course.
@dancalmpeaceful39032 жыл бұрын
@@smokeyandthebandit2587 Basically yes - Divorce is financially devastating and takes at LEAST 10 YEARS to recover. Before you say I do - VET, VET, VET....and EVEN that doesn't guarantee anything... I told my son, when he DOES come up with someone he wants to marry, I"m hiring a private detective and I"m going to vet the shit out of her so bad, I"ll know what brand tampon she wears....AND since he'll have assets, we are going to set up the best pre-nup a lawyer can set up...
@dancalmpeaceful39032 жыл бұрын
@@smokeyandthebandit2587 Interesting. YOu definitely were trying to be responsible. Yeah..there are WAY TOO many broken homes. It's sad..and the kids pay the price.
@concernedcitizen45792 жыл бұрын
the bank can't call and pull the rug from under your feet when you have paid off your house and car(s).
@royallgood85742 жыл бұрын
I agree! My wif and I owe 80,000 on the mortgage. We decided to pay 10,000 a mo for the next 8 months.
@TheTurdballs4202 жыл бұрын
The teachers mafia, I mean teachers union called. They can and will pull the rug from under your feet if you don’t pay them. You don’t own that house, you just rent it from the teachers mafia. Don’t pay your property taxes and see what happens
@nothingtoseehere10972 жыл бұрын
They can if you don’t pay your property taxes.
@abrahams.lincoln67492 жыл бұрын
@@royallgood8574 I plan on paying $20k per month for the next year. Is that a good idea?
@cyliarabothata88572 жыл бұрын
EXACTLY 👌
@Sir0fficerNasty2 жыл бұрын
My mortgage is 2% 15 yr. The extra I can put towards it is pretty minimal right now, so I just invest it. I figured even in a bad market, I should do better than 2% over that time.
@Craigstrasser2 жыл бұрын
Thanks for watching, msg the number above I have a great offer for you⬆️✅
@BarbellFinancial2 жыл бұрын
Yes, with inflation as high as it is it does not mathematically make sense to prepay that mortgage.
@Mark-xt5lo2 жыл бұрын
@@BarbellFinancial fixed rate mortgage not affected - Arm and variable rates, yes. Secondly, and again, you cannot simply take risk off the table. you don't have a job, you cash investments and you pay debt - take the risk off the table and pay off the debt, you don't have dead money as you stated before, you have a paid off asset likely appreciating resulting in BUILDING WEALTH. - CASH is not WEALTH - MONEY is a TOOL to build wealth, don't believe me, go see history on how much money is devalued.
@hawkkent2 жыл бұрын
If you're still unsure, do half of both! This has the added benefit of limiting the psychological downside, as whatever would have been the right choice for, you got at least 50% right
@DadsCigaretteRun2 жыл бұрын
This is what I do. In concept the video is correct but if you are in debt over things that do not bring value it is best to try and get rid of it especially short term as the debt that kills people in CCs(which usually have insane interest rates) vehicles, and student loans.
@hawkkent2 жыл бұрын
@@DadsCigaretteRun yes, I guess my thoughts were mostly on low-interest debt, without specifying that
@ChrisInvests2 жыл бұрын
That's a great option!
@greg_2162 жыл бұрын
And that's what most financial experts advise. Pay extra on the mortgage only after you've saved some percentage of your income for investments. Whether that number is 10%, 15%, or 20% of your income, the overall advice is consistent: save for retirement first, then apply any extra to pay down the mortgage.
@z14sniperzps432 жыл бұрын
Yup I'm saving around 30% for retirement. Already have a 6 month emergency fund and my max OOP for healthcare saved. Next is paying down the mortgage 👍
@lowstringc2 жыл бұрын
I’d like to see the numbers of a both/and scenario = $500 extra to mortgage & $500 invested. Just from the money perspective, I’d wholeheartedly support investing the extra, but having the ability, and having paid off my home early, the psychological freedom this provides me is immense! If I lose my job we could survive on thrift and a McDonalds salary, which is an amazing feeling! My wonder, using your math (I’ve done spreadsheets and spreadsheets of my own for my own situation), is how a middle of the road strategy would fare..
@joshh2052 жыл бұрын
Paying off your house only frees up the money you pay on principal and Interest. Still have to pay property taxes and insurance. Your never really done paying for your property.
@aaront9362 жыл бұрын
Those who invest the extra instead of investing will come out ahead. It's simple math.
@doubleoblit Жыл бұрын
@@aaront936except that when you have a paid-for home, your career options massively open up, so that's incorrect. It's not "simple math."
@Peglegkickboxer Жыл бұрын
@@doubleoblit not really, your career options are a lot worse then as you're much older and have no ability to move elsewhere for work. It's not worth buying a house unless it's really cheap or you're really wealthy.
@PremusRed Жыл бұрын
@Peglegkickboxer that's just not true lol. Want to talk about paying forever. Renting your entire life is a far worse option, qualitatively and quantitatively
@Nolaman702 жыл бұрын
Paying off your house feels so good. About to pay off the 1st rental due to it's and higher interest rate then dump all extra cash into the 2nd rental to pay off. This gives me all of the rental incomes and no house notes. Life gets easier faster soon... with hardly any expenses as I never remarried...
@ChrisInvests2 жыл бұрын
Great!
@wrenchguy29372 жыл бұрын
At the end of the day, i think the point is still the same. People like to juggle both thinking like they are winning but at some point u need to pay off the debt. And at some point u need to invest if u want to live a financially free life.
@ChrisInvests2 жыл бұрын
Absolutely
@Will-uj7yu Жыл бұрын
You never really have to pay off your debt you can always take out more debt... but I understand at 60+ years of age you kinda want the peace of mind to be debt free and have less assets to manage.
@Thomas-80582 жыл бұрын
7:23 , I'd rather be debt free and having 1mil invested in 15 years-leaving me with the next 15 years to invest more without debt. Than to have debt for a total of 30 years investing towards 1.9mil. I feel like I'm missing something?
@TugaHuga2 жыл бұрын
What you left out is how much taxes will put a dent to those profits. In reality, even with all those numbers your 800k difference could shrink to as little as 100k depending on where you are from and your tax system. All that risk for 100k over 30 years may or may not be worth it for some
@grahfkarate17997 ай бұрын
I think doing both makes sense. 15% to invest and a chuck to the principal of the loan. No one has been evicted when the mortgage is paid for
@user-ps1ft1hy4j6 ай бұрын
Except over property taxes.
@xrpthegamechanger2 жыл бұрын
The best advice i ever heard is if you had a paid off house (the house you live in) would you re-finance it to invest into the S&P 500, i think MOST people (95%??) would answer that as "HELL NO". THERFORE I couldn't care less if therotical (and remember you get ZERO guarantees) returns on S&P 500 would make more cash, investing is a mild gamble and thats fine to do WHEN (& ONLY when) you have your basics of life in place. If things dont always go my way, i have a roof over my head and emergency cash to fall back on. Please pay off your mortgage ASAP then invest all you like.
@dancalmpeaceful39032 жыл бұрын
That's an EXCELLENT way of putting it. Yes - Invest too and always have...but I would NEVER put my house in jeopardy. I lived through the dot-com crash, the tele-communications crash, the crash of 2010, etc....but I always kept investing. Right now we are in good shape....but ALL during that time, including the rocking 90's...I kept paying extra payments on my house....needless to say we did it in 11 years.. When I got laid off - we had a PAID-OFF roof over our head.....and we sailed through the layoff without issues.... My son was worried he would have to quit college - I told him no - I have ALREADY pre-saved the money and instructed him to continue as that had been set aside years ago. Folks - you CAN do both...and I recommend you do so. Try to make extra payments on your house - that IS GUARANTEED investment and there is NO risk to that...
@aaront9362 жыл бұрын
At my current 30 year rate of 2.5% "hell yes" I would. If you can't make more than 2.5% on your money you're doing things wrong.
@xrpthegamechanger2 жыл бұрын
@@aaront936 my point was its not just an asset its your home that shelters you from the wind and rain and provides a safe place to sleep at night. Thats an essential of life, why not guarantee no matter what happens no one can take it from you, if you had all the money in an index fund, due to illness couldnt work what then? Sell all your index fund holdings? It could be a period of 50% loss you are in
@xrpthegamechanger2 жыл бұрын
@@dancalmpeaceful3903 exactly, i do both but like you focused first mostly on security and have zero regrets, now ill feel happier to invest more as i know i never need to dip i to that pot with zero debt to worry about
@dancalmpeaceful39032 жыл бұрын
@@aaront936 Here's my question - IF you got laid off - could you AFFORD the payments on your house....if all you could get was a job at Burger King? I didn't want to take a chance on getting laid off and not being able to make payments. So I put down over 1/3rd on my house ...and then refinanced at a lower rate years later. My house payment was only $358 a month for many years. This allowed me to DO both - pay off the house early AND invest at the same time.
@romelindareyes73372 жыл бұрын
I came to KZfaq to learn how to trade after listening to a guy on radio talk about the importance of investing and how he made $460,000 in 4 months from $160k. Somehow this video has helped shed light on some things, but I'm confused, I'm a newbie and I'm open to ideas.
@mackzack2972 жыл бұрын
Investing in stocks is a good idea, a good trading system would puts you through many days of success.
@kennethglenn48792 жыл бұрын
@@mackzack297 It is also possible to produce superior performance provided you do something different from the majority. However, most of us tend to pay more attention to the shiniest position in the market than to the cost of proper diversification.
@dicksoneteng21112 жыл бұрын
Exactly, the trick is to diversify your investment, don't panic when everyone else do and invest consistently
@viratkhan43072 жыл бұрын
@Gadafy Moses That's impressive. Are you giving him your money or it stays in your trading account? What's really the idea behind copying trades.
@viratkhan43072 жыл бұрын
@Gadafy Moses Can I get his service outside the US. Or his broker is registered in the US only?
@ACCOMPLISHEDSHEIS Жыл бұрын
Do both, but a bulk of your money goes towards debt while 10% in investments.
@Mark-xt5lo2 жыл бұрын
I absolutely 100% disagree with you on your comparison because in your scenario that you compared the difference of paying an extra 1000.00 on your mortgage versus investing over 30 years you did not equate for the appreciating asset of the house! How much is that house worth after appreciating for 15.7 years, and you have to consider that because that's the entire reason of why you're paying the extra 1000.00 towards the mortgage. This is where I have a serious problem with people like yourself Chris, you are spouting off this concept without really telling the whole story. How much does that house appreciated over 14.7 years that you spent paying off your mortgage early. It didn't stay at $350,000 for 30 years as you assume. What is the ROI of the property values in the area of where your home is at in your example? Even if you do pay off your house you're also still not accounting for the property taxes over those 15.3 years, so, this picture is incomplete. It's things like this that lead people down the path of not paying off debt. The biggest tool for building wealth is your income, period. Having no payments and being debt-free is absolutely the best outcome even if the math says otherwise. Secondly, You made very little mention of the market going down but there's also risks included like mutual funds within the investment that are not doing good and having to change those and who's managing the investment. The potential of losing a job, I'd rather have a paid off house that's appreciating in value have no payments. Finally, MONEY is not WEALTH, money is a tool used to build wealth, so at the end of the day, you have over a million, +350,000 that you left out of an appreciating asset and no risk, yeah, I'll take the paid off house any day of the week. You, can continue to be a slave to the lender.
@bdbill92662 жыл бұрын
If you have $1 payed off your mortgage your house will still appreciate in value the same as if your mortgage was paid off. The money in the paid off mortgage is dead money
@BarbellFinancial2 жыл бұрын
The appreciation of the house over that time period will likely be significantly less than what the stock market would return in that same time period. Even if the value of the house doubles, that’s a lousy return for that time horizon.
@bdbill92662 жыл бұрын
@@BarbellFinancial also the house will double in value if the mortgage is paid off or not so doesn't make sense to pay the mortgage off
@BarbellFinancial2 жыл бұрын
@@bdbill9266 Agreed. That equity is your equity regardless.
@bdbill92662 жыл бұрын
@@BarbellFinancial most people just can't see it. Emotions get it the way of making sound financial decisions. Paying a mortgage off is emotionally satisfying
@yvette111112 жыл бұрын
Man please. I'm paying off debt. Then I have more money to invest.
@Leclaudservices Жыл бұрын
I needed this video .I only make 27k and able to max out my Roth but I have 8k in student loans .I’m doing both actions from each paycheck .hopefully it’s paid off with this method
@korn111685 Жыл бұрын
I really want you to increase you income. Update that resume, cold call, walk in whatever you have to do but get that income up. Pay off debt, save, invest and live. Enjoy life!
@matthewmitchell2934 Жыл бұрын
It will be better to pay off your debt and then focus on the ROTH
@Leclaudservices Жыл бұрын
@@matthewmitchell2934 thanks for this advice but the crazy part is the only debt I have is paused so I’m kind of just saving it up until it resumes instead of paying it off
@Peglegkickboxer Жыл бұрын
Fight to get a better job, the faster you pay off debt the more freedom you have.
@Leclaudservices Жыл бұрын
@@Peglegkickboxer appreciate this
@edwardstanton3571 Жыл бұрын
If you knew you could afford $2700/month for 30 years, then you should have taken out a 15-year mortgage at 2.8%.
@tewksburydriver8624 Жыл бұрын
Paying off debt is important as is investing, but you cannot buy things with a paid for house. At the end of the day we all need actual money not just a lack of debt. Bottom line do both but investing for retirement is ultimately more important.
@jordycorvers7465 Жыл бұрын
at the end of the day people need an income.. if you already spent 3-4 out of the 12 paychecks you will recieve for the next 30 years then paying off debt will free that income.. so yes, I agree.
@Kado_Tornado Жыл бұрын
He talks about cash flow in the video
@thinkfloyd2594 Жыл бұрын
Horrible advice. No, you cannot buy things with a paid off house. That's called security, equity, and asset management. Paying a bank money so you can 'buy things' is naïve.
@tewksburydriver8624 Жыл бұрын
@@thinkfloyd2594… so apparently you missed the point entirely. There are plenty of poor people that live in a house with no mortgage and manage to barely squeak by. People need actual money, retirement income. What good is a house if you are practically broke. A house can be seized then what? Like I said, pay off your house but make sure you are saving money for your future living expenses. Some how that’s “horrible advice”.. Dolt.
@DC-qd9yx2 жыл бұрын
I think it all depends on one's risk tolerance. Those who can take higher risk, they will invest first and pay the exact monthly mortgage payment with the hope that the ROI of their investment will rise much more than their mortgage interest. Those who cannot afford risk, they will always say paying off debt is better as they cannot afford to lose their capital at all. For me, I am investing every extra penny and pay only exact monthly mortgage payment. My investment return is almost guaranteed to be much higher than mortgage interest. It's quite pointless to invest at age 45 or 50 when your time is running out. You might not even have chance to invest at that age due to various diseases. Invest at age 25-30 makes a hell lots of difference because you have time and you can afford to lose. So for me, invest first if you are young and pay off debt first if you are old.
@flux_inverter4500 Жыл бұрын
I would not discourage anyone from investing as it has advantages at any age. But yes, starting earlier is better and be disciplined enough not to withdraw those invested funds. Compounding over time is what makes investing more valuable than just paying off debt and putting money in a savings account. Risk tolerance is an important factor as well as other variables. Better to invest than not invest and also avoid bad debt.
@ExplorationRandomDestination Жыл бұрын
Idk i see alot of people say invest instead of pay off debt but investing is a risk 100% of the time while paying off a debt is guaranteed. My moms mortgage is 2500 If paid off her monthly cost would drop to 650 property tax. Guaranteed 22,200 a year in fewer expenses. If she invested the cost of her mortgage instead of paying it off she would need to 10%+ on the markets every single year for it to be worth it. Investing is only better in theory and would assume that you would never be forced to sell during down years. This is what decimated people in 2008 stock market crashes and people cant afford mortgages or anything so people are forced to sell stocks at pennies on the dollar. Ended up losing all of their investments and their homes, cars etc (that they could have paid off instead) thousands of people ended their own lives because of that crash and losing everything. I get that in theory investing is far more lucrative in theory but the reality is that most people are not beating the markets about 6% of investors do and most of those are already wealthy. It would take 15-20 PERFECT years for you to really see the benefit start to outweigh the risks vs mortgage pay off which would be immediate relief.
@seattlegrrlie Жыл бұрын
I don't have any high interest debt. I plan to keep it that way. A car loan, a mortgage, those are low interest loans which you leverage to have more money in your investments over time
@brucestiles6477 Жыл бұрын
Excellent video -- it fairly explains the pros and cons of each option, but does not choose one. There are many, many factors that affect the outcome, and different investors can have different values.
@ChrisInvests Жыл бұрын
Thanks Bruce! I try to leave it open ended for the viewer to decide.
@DerangedAussieMan Жыл бұрын
You forgot to include one important consideration: tax. Imagine you're paying 50% tax off your income. Is it better to pay off your 6% interest debt or is it better to invest that money at a 10% ROI? Assuming your investments are taxed and your debt isn't tax deductible, it's better to repay your debt. A dollar saved is worth more than a dollar earned, where tax is involved.
@abdullahalismaili37572 жыл бұрын
This is by far one of the best videos on KZfaq. Thank you for all efforts and for sharing. Please keep all the good work up.
@ChrisInvests2 жыл бұрын
Thank you..,Glad it was helpful 😁
@bretobrien17032 жыл бұрын
Love the videos, but am I missing something with the $2671 mortgage/investing cash stream breakdown? There’s no need at the end to subtract the interest paid; you already paid it! In each scenario you pay the same amount per month ($2671) and have (after 30yrs) a house with no debt. In scenario A you have 1.2M in investment assets, whereas scenario B has 2.17M in investment assets. Certainly scenario B was more leveraged (hence more interest) and carried more risk (as other people have mentioned), but after the 30 years you care what your investment balance is; you don’t care how much interest was paid on the way there…
@ChrisInvests2 жыл бұрын
The argument for paying down debt is that you'll pay less in interest. In scenario 2 you pay much more interest than scenario 1 so it needs to be figured in.
@bretobrien17032 жыл бұрын
@@ChrisInvests Eh, not quite. It’s already figured in by the fact that (given the cash stream is constant) more interest paid necessarily means less money contributed towards investments. The reason you come out ahead in B isn’t because you invest more money, it’s because (by the “virtues” of leverage) you are able to invest money *sooner*. Again, the interest paid is not a debt left to be accounted for. If anything, you could account for the capital gains tax on the investments at the end; as that is (albeit deferrable until withdrawal) a debt to be paid. I encourage people to look up numerous other breakdowns that demonstrate what matters is some combination of your debt/leverage comfort and the timing/amount of investment contributions (which is, of course, a complementary function to the interest payments).
@ChrisInvests2 жыл бұрын
@@bretobrien1703 the interest paid in both scenarios needs to be subtracted by the total invested to make a decision
@jasonsanders86232 жыл бұрын
In what world would you not consider the interest paid??? That makes zero sense.
@bretobrien17032 жыл бұрын
@@ChrisInvests … Meaning one should really have a strong preference for scenario A over the additional scenario C above? The interest paid is *already* baked into the calculation. Is it not strange that you’re somehow including something that is neither an asset nor a liability into the calculation at the end? Not sure what else to say..🤷♂️
@thomasstella52482 жыл бұрын
Most people think... investing in crypto is all about buying coin and leaving it to rise,😂common it takes much analysis to be a successful crypto trader
@trench28622 жыл бұрын
2022 crypto should be in every wise individuals list, in some weekly time you will be ecstatic with discission you made today ....
@beatricenebraska54562 жыл бұрын
@@benwoodruff4621 this must be an investment with expert Mrs Patricia....
@brandondicks61962 жыл бұрын
Mrs Patricia is the right person to start trading cryptocurrency with ..she knows her way around the crypto world ..she has been helping me increase my investments everyday for over months..
@warnerrobins37802 жыл бұрын
@@brandondicks6196 that's amazing, I have been hearing about Mrs Patricia and her genius mind in the crypto market, please how did you earn such good amount?..
@jasondoerfler95452 жыл бұрын
Mrs Patricia is my professional assistant, I have been trading with her for 8 months now... I've really made over $200,000 from her strategies in trading of cryptocurrency.
@TheFirstRealChewy Жыл бұрын
Let's say you are the bank and you have the option of either lending a single person $500K for 30 years at a low interest rate, or putting $500K in an index fund that tracks the S&P 500. Which would you rather do? Seems like an easy decision, right? So if you are the person that got the $500K, would you prefer to quickly pay it back, or invest rhe extra payments in an index fund that tracks the S&P 500? At long as you can make the minimum payments for the life of the loan, investing the extra will work out in your favor. Also factor in inflation. When you take out a 30 year mortgage, you pay the same amount each year for 30 years. However, due to inflation, the value of the dollars you paid in year 1 is worth more than the value of the dollars you paid in year 30. So even though the total dollar amount over 30 years seem high, when you determine how much it is in today's dollars, you realize that you didn't actually pay double the cost of the house. In fact, it's a lot less. So should you rush to pay back a low interest loan with the dollars that have a high value?
@alejandroalvarez15442 жыл бұрын
Before watching video and I will. Never regretted once over past 5 years that paying off debt slowly and over time was a bad idea.
@Tonyforeman6592 жыл бұрын
As the economy crisis keeps rising, one needs to have different streams of income that doesn't depend on the Govt. A well detailed diversified investment in the Crypto market is needed to survive, as well as secure a profitable investment future.
@Kokoben12 жыл бұрын
Investing has the best results when you trade under a professional guide, Ethereum or some other cryptocurrency is going to be the global standard of payment. It'll be of greater value than national Fiat.
@Maricel_oronan2 жыл бұрын
@Danny Fager I agree with you, COVID-19 taught us the importance of having a plan "B" income. You are not safe with just one paying job, when nobody knows what will happen next. Look at what happened to so many of you
@Maricel_oronan2 жыл бұрын
Job will pay your bills, business will make you rich but investment makes and keep you wealthy, the future is inevitable 💵
@stephenadams86982 жыл бұрын
@Wilbert Dickson Interesting I have a lump sum doing absolutely nothing at all in my bank account, I wanna get something started with it. You seem to be doing excellent for yourself, how do you achieve this?
@stephenadams86982 жыл бұрын
Do you trade on your own??
@jbr19522 жыл бұрын
Maybe the question should be how much stress you want in your live.
@ChrisInvests2 жыл бұрын
Good point
@manoloborja3882 жыл бұрын
It's quite complicated, especially taking the current state of Fiat and supply chain issues where inflation and food supply are threats.....just do the best you can, just do something and improve as you go along and as results unfold. It is currently the 5ime to be nimble and pivot according to need.
@Dell77889 ай бұрын
Debt comes with interest so a 10% growth means nothing until its invested for 10 years. Its always better to get out of debt besides your home and then start to invest
@jasonsaeger Жыл бұрын
I think Dave Ramsey may have a different opinion on how to handle the situation!
@JK-Visions2 жыл бұрын
The problem with investment in stocks is that you can sell it and then spend it. That not the case if you pay down your mortgage.
@ChrisInvests2 жыл бұрын
That's important for many people!
@mikerodix4800 Жыл бұрын
Sure you can, just refinance the house and spend away
@Hunty49 Жыл бұрын
It depends on the size of the debt. 5% interest on a home loan you lose more money than you'd make with 15% profit on investments. Put extra money on the home loan to pay it off quicker will be better.
@Todd.T Жыл бұрын
1. Emotions don't count. Good feelings don't make money. Good feelings don't make you look for that better job. 2. Math. Which looks better 3. Security. What if it goes wrong 4. When I say investment it doesn't mean stocks, and it doesn't have to. The world seems to be stupid about this because for some reason, investments means to own stocks for 99 percent of the people I meet and YT videos. Money in the house is dead it makes nothing. The value of the house is not static, it can fluctuate and is not an income producing asset, it's an appreciating liability. it can increase in value and you have to spend money to maintain it. Roof, driveway, furnace, plumbing, taxes, insurance. A mortgage is the cheapest loan you will get if you own your house or not. If you can beat the cost of a mortgage by using money that is secured so you HAVE to get your money back, I'll do it. You can extract enough money from a paid house to cover operating costs and pay it back, especially since 2010, without lifting a finger. The income could have been used to invest, go on trips, pay for a car etc. The money has gone nowhere, it's in an investment. I had an expensive repair on my car, actually a few of them. I save money monthly. I borrowed some money to put in an investment and put some cash in as well, used the old car for a downpayment and got another car (not new). I made enough money to be deposited to make the car payments, used some money from my saving habit to pay off the loan. It's been 4.5 years. I have paid off the money I borrowed, the investment had a deferred component, so when I cashed out to another I had more money to invest and the amounts paid to me went up. I put that investment in a tax free account. It compounds monthly and I'm getting 40 percent more than I was before and not paying taxes. Now I have half a year left on the car, a tax free monthly income, no loan debt, and a car. When the car is paid off it will be worth a fair amount and I can sell it and buy a newer version and the payments and insurance is covered by the original seed amount, but it's my choice. In reality, I will probably run it until its worth around $5k and sell it. By then, I should have 2.5X what I started out with in terms of money that I used to invest for the car specifically. I already had an emergency fund. I already have a retirement plan. I already have investments outside my retirement plan. It doesn't make sense for me to buy the car cash when I can drive it and have an investment provide a huge assist while I make money. The investments with higher returns usually have a higher cost to get in, so $12500 might give 7%, $25000 might give 8%, $50000 might give 10%, so spending the money on the car cash, can cost 3% or more. Soon, I will have to find a place to invest the car payments I no longer make. If the car dies, right back at it again. Every really wealthy person I know has everything on payments because they make so much with the capital and also utilize write offs. I should be no different.
@williamshippey9139 Жыл бұрын
Stay out of interest debt that is above the rate of inflation. Having debt below or at the rate of inflation isnt a bad idea provided the funds gained are used in a manner that will get you more value than you gave up. Additionally mortgage interest is tax deductible. That may not be a big deal at the lower end, but at the higher end it is a big deal in that it will move your upper end tax bracket significantly.
@Origami84 Жыл бұрын
You make more money by placing the money in what grants higher return. An investment with a 8% return is better than paying down a mortgage a 3% - or viceversa, of course. And yet, the debt must be payed regularly and WILL be there until it is repayed, while the investment usually can wait, and can also do not give the expected returns. So, if you invest instead of paying your debts more quickly, make sure that you can at least still cover your basic payment for the debt. There, 10mins saved.
@Macarto2 жыл бұрын
Why is borrowing money at a mortgage interest rate of 5% close to the rate of inflation, why is it borrowing for nothing?
@ChrisInvests2 жыл бұрын
The inflation rate counteracts the interest rate
@richsamuel2922 Жыл бұрын
I'm doing a hybrid. Paying of my house, saving for another and renting out this one.
@TheMechanicj2 жыл бұрын
I’m debt free in December then I can max out all my investment accounts and then pay cash for a brand new car take expensive vacations and be a millionaire no one takes home equity loans and invests it in the market it’s dumb
@M87user8 ай бұрын
Only works if you are American citizen. As an European you pay double tax. captial gain in USA market and additional 38% in Norway where I am (plus fees and currency exchange). At the end of the day the average 10% return on S&P500 gets reduced to 5% witch is basically mortgage interest rate + inflation (on average). while being exposed to risk for market not growing actually as fast as historically...
@rodrigok12204 ай бұрын
I pay myself first. Retirement accounts take time for compounding to occur. Of course, my mortgage is at 4 percent… I still think I’d put in regularly to a retirement account even if my rate was higher, just wouldn’t max it out.
@Diomedes012 жыл бұрын
Good video. Best suggestion overall is to minimize the requirement for debt in the first place. The less debt you incur, the better off you will be in the long run. Minimizing how much you take in student loans, the size of your mortgage, etc, can have massive benefits in the long run and allow you to increase your investment far earlier in your career.
@ChrisInvests2 жыл бұрын
Great point! Thanks for sharing.
@bdbill92662 жыл бұрын
Paying extra payments on your mortgage has never made sense to me. Money is worth more in the moment than it is in the future. Inflation naturally makes your debt less over time. Invest or enjoy that extra money now it money is always worth more today than it will be worth tomorrow
@ChrisInvests2 жыл бұрын
There are pros and cons to each but I definitely agree
@bdbill92662 жыл бұрын
@@ChrisInvests the only pro is the emotional satisfaction which isn't really a pro. Emotions keep people scared and poor.
@ChrisInvests2 жыл бұрын
@@bdbill9266 you don't think there are any other advantages to being debt free?
@bdbill92662 жыл бұрын
@@ChrisInvests I think it's good to be debt free from bad debts (expensive cars etc).With interest so low at the moment I don't see the point in paying debt when you can earn more than the outstanding debt with the extra cash in your pocket. Rush to pay your mortgage off and start investing later in life is a risky move as you only have 15 years to retirement therefore can only invest in low risk investments with limited time
@petelee24772 жыл бұрын
@@bdbill9266 news flash every investment is risky. I don't want to take any risks. I can take the 100% guaranteed paid off debt or lose all of my money on some risky investment. My risk tolerance is 0.
@landlord5552 Жыл бұрын
Key word is: ASSUME 1. ASSUME you as investor have no emotions and will act 100% rationatly 2. ASSUME not too many ,,black swans" comes to economy (covid+war strait within 3 years..for example) 3. ASSUME you can keep your work and enough salary for next 30 years 4. ASSUME you will not be terminally or just very ill in near future and not become homeless ECC.....unfortunatly life is not just pure mathematics.
@TheOldTapeArchive Жыл бұрын
It's not an either or. You can put 50% toward debt and invest the 50%. Your age also makes a difference. Anyone over 50 should focus more on paying off debt, especially a mortgage, as market returns are not guaranteed over any specific time. Other factors are inflation, which is certain to increase in the next 10 years beyond the previous 30 due to fed printing policies. As for paying off a mortgage, if you still owe $1000/mo property taxes, you need to make plans to move to a low tax state, especially after age 50-55. It also allows you to tap the net worth of your home.
@YasinNabi Жыл бұрын
“Business opportunities are like buses, there’s always another one coming.” - Richard Branson. This quote always reminds me of there are enough opportunities to grow in 2023... a fellow creator...====
@temoentertainingendeavors9730 Жыл бұрын
Not sure why you would subtract the interest when the money calculated is earned in spite of the interest paid. You still end with the money you don’t pay the $2xx,xxx twice
@theqyldguy4473 Жыл бұрын
One thing to keep in mind, if you pay off your house you may be able to retire after it's paid off in 14 years instead of 30, that $1,600 bucks may be the difference between working a job and staying home. And not many people would pay $1,000 plus what they are paying on the house to invest in the stock market after all their debt is paid off LOL. It's not about dying with the most amount of money in the stock market for most people, I'd say most want to retire early. Pay off the house, the cars, the credit cards and your expenses will be minimal in most cases. Then you could have a few high dividend ETFs like QYLD to pay the bills! 💪
@ChrisInvests Жыл бұрын
Good point
@Dell77889 ай бұрын
I did it the wtong way. I put 100k in stocks and roth then paid my credit cards and loans off. Now i wish i paid debt then invested bevause i would have bought stocks at a cheaper price. Now with no debt, no car payment. Im no longer investing and paying extra to pay my home off.
@Hushit Жыл бұрын
I think you should live lower than you make. See if you can even make more money and still keep living 3x under what you make. Pay personal debt off quicker
@michaelkeudel877011 ай бұрын
With today's Interest rates, this shouldn't be a question at all, gains aren't guaranteed.
@onehorsetoomany80062 жыл бұрын
Not considered here, likely because is it complicated and situation specific, is how taxes play into the picture. In my high tax state, that investment return could easily be reduces over 33% marginal rate, and I might be able to write off mortgage interest to save 33% instead. Your mileage may vary. (Note that the tax rate on investment income will typically be lower, but conventional IRA/401K returns get taxed at the full ordinary income rate). PMI, which has no benefit for the mortgage holder, was also not accounted for. Mortgage rates will always be higher than inflation at the time the loan is made. They will only be the same as inflation if inflation has risen since the loan was originated. If you anticipate higher inflation, though, a not paying off fixed rate mortgage early definitely makes sense. In fact, some people who bought houses just before the high inflation years in the 70s ended up paying less than the purchase price once inflation was taken into account. That is, the total of the principal and interest over the life of the mortgage was, after inflation, less than the purchase price of the home. Disclaimer: I am not a professional so don't construe this as advice. I don't expect to see that kind of brutal inflation again.
@ChrisInvests2 жыл бұрын
What about over the past couple of months? Inflation is 8%+ and interest rates were 3%, 4%, 5%, 6% etc.
@onehorsetoomany80062 жыл бұрын
@@ChrisInvests You are correct. I stand corrected. Interest rates have not caught up to inflation. It would have been more accurate to say that mortgage rates will always be above the prime rate, which is affected more by policy than by inflation.
@epizan Жыл бұрын
If you are going to keep debt you have to factor in risk. What are the chances that you could loose a job in the span of 30 years? If you are over 35 there is a decent chance that you could have to face a disability that makes you leave the work force in the next 30 years. The biggest thing that happens if you have no debt is that it gives you space to dream and allows you to start a business debt free. Imagine if your return was 30% instead of 10%. I know of a guy who did this and his income jumped to $400,000+ in 2 years. You could move to part time on your current job and start your dream company. What could you accomplish with the extra time?
@jamesr9400 Жыл бұрын
wayyyy ahead of ya, i havent been paying my student debt for YEARS now lololol
@ChrisInvests Жыл бұрын
😬
@neilcook16522 жыл бұрын
THIS IS VERY BAD ADVICE......clear all debt ASAP and don’t pay banks or anyone else interest, if you can’t afford it don’t buy it, live within your means!
@ChrisInvests2 жыл бұрын
Interesting perspective
@jtowensbyiii60182 жыл бұрын
That's horrible advice Neil
@adamspiker55072 жыл бұрын
Great video! I don't think this was mentioned, but I think another good question to ask yourself about what to do with your extra cash would be" do I want to spend the rest of my life in this house, or will I probably need a bigger or smaller house someday?" If you don't plan to spend the rest of your life in your current house, it would make more sense to make the minimum payments and invest your extra cash
@ChrisInvests2 жыл бұрын
Interesting point. Thanks for watching!
@austinyoung8946 Жыл бұрын
If you pay off all debt youll be less stressed ans have more money to invest once its paid off.... its that simple where as if you invest and it tanks your out alot of money and stuck with debt