How do you quit the rat race? Do the millionaire math and set your targets! 🎯 .
Save your income - create multiple flows of income - invest in passive income streams. Rinse and repeat! 💸 .
For more info click on link in bio @10xyourskills . 💥🔥💯
Happy Friday #InstagramFam , the weekend is here! Many of you will have not only the weekend off, but Monday off as well for President's Day. Some of you are already off of work, or getting ready to leave work, so take some time to think about fixing your financial situation.
In the spirit of Fix It Friday, each week I will ask for you all to send any questions you have dealing with Personal Finance, Investing, Budgeting, Retirement, etc...If I get a lot of the same questions, I will address your questions in my next YouTube video! Be sure to Subscribe and Like my Page 😉.
In my next video I will discuss a few of the reasons I'm getting LESS involved with picking individual stocks in my individual and retirement accounts, in order to simplify my investments.
Be sure to leave your questions in the comments below!
🏷️Tag a friend and a family member who needs this!
👍 Like this post!
🌐 Check the link in my Bio for a link to my AJ Mobile Money YouTube Page!
If you have taken my investments class or you’re a close friend you know I’ve been teaching this for years. Stash is testing a stock-back program similar to what I teach my clients about buying stocks. Look at what you’re spending your money on and analyze the companies balance sheet and growth potential and then own shares of the stock. If you consume it enough you should own it. Check you stash account to see if you were invited to be apart of the beta testing. DISCLAIMER: As always do your research before investing in the stock market. This post is in no shape or form telling you to purchase stocks from everything you consume but t enlighten you that if you are spending a lot on something you should consider owning it. Invest at your own risk! When in doubt consult a financial professional. #financialfreedom#financialadvisor#financialplanning#investment#stock#bond#etf#indexfunds#mutualfunds#realestate#entrepreneur@stash_app
Standard & Poor’s? Does that mean it’ll make me poor?😢
On the contrary, the S&P 500 is generally accepted as the best measurement of large-cap US stocks.🏢🇺🇸
The word “Poor” in this case refers to one of its founders: Henry Varnum Poor, who was actually very savvy when it came to business and finance.🤓
If you’ve ever heard the phrase, “I’m beating ‘the market,’” or any other variation of that, they are usually referring to the S&P 500, the Dow, or some other similar index.
Did you know you can invest in ETFs (Exchange Traded Funds) that are based on the S&P 500?!
11 382 days ago
Investing can be scary. However, you don’t have to bet on a limited set of stocks and hope they increase in value. Instead, you can bet on the American economy by investing on index funds, like Warren Buffet suggests. Owning a stock is owning a part of a company. Owning index funds is owning a part of the American economy. And while companies can go bankrupt, the entire economy will not. Our recommendation to you: buy index funds and hold for as long as you can.
The average new car payment in the US is $523 per month. If every 5 years you buy new car and trade in your old one, you can keep your $500/month car payment going forever with nothing to show for it. Ashley is doing it the NORMAL way.
However if you buy your cars in cash by saving $250/month that gives you $15,000 every five years saved for a car PLUS the trade in value of your old car is likely about $8,000. So you can spend $23,000 every 5 years to buy a (new or used) car and STILL have the other $250/month left over to invest like Amanda!
My previous car I bought for $3,000 in cash and drove it for six years. It was great! Maybe a few hundred bucks per year at the mechanic to fix this or that. I sold it 6 years later for $1,500. Total cost of ownership: About $48/month. You might need to drive an old beater the first time like this to save up for your next car in cash.
It’s such a subtle difference. Do you notice which cars around your were bought new or used? Which ones have $500/month payments and which drivers are slowly becoming wealthy?
28 2753 days ago
“Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund (I suggest Vanguard’s)” - Warren Buffett
The best investor in recent history tells people to invest in index funds. This quote came from the Berkshire 2013 shareholder letter, before TOTAL Stock Market Index Funds became popular. I believe Warren would like those even more than the S&P funds. Total Stock Market funds are comprised of the entire S&P 500, but also about 3000ish other stocks. The S&P 500 portion makes up about 86% of the total stock market fund anyway, so they’re very similar. The smaller companies have more growth potential though 👍🏼
John C. Bogle, on stock-picking vs index fund investing.
Since 80% or more of active fund managers fail to beat the market in the long-term, it makes more sense to just bet on the market.
Click the link in bio👉 @officialgreggarcia
Join SnowBall.Money family!
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Snowball is the first Smart Crypto Investment Automation Platform aka (SCIA) that empowers everyone to make smart investments into crypto. And will change the game in how people invest in crypto currency.
It's no secret that the crypto market is down, so WHY Snowball and why now?
Let me ask you a question…
Once money goes fully digital, do you think it will ever go back?🤔
Yale just invested 6% of their endowment into crypto because crypto has no correlation to real-estate, stocks, gold or government bonds and hence risk-adjusted-return.
Another study shows that a 5% investment into crypto with a portfolio of 55% in stocks and 40% bonds not only minimized draw downs but doubled returns over a 4 year period.
Fidelity, Nasdaq, Harvard any many institutions are flooding into this industry in a bear market. What does that mean for you?
You can use "dumb" crypto platforms like Coinbase, Robinhood, Binance etc. that want you to time the market, move money across accounts, use hardware wallets and choose which tokens to buy or...
You can let Snowball do the heavy lifting by buying an index made by a professional fund who is managing $10m+.
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✔️Sick of managing your own portfolio?
✔️No background in crypto?
✔️No knowledge about investing?
✔️No sleep because you don’t want to miss out on this global transition to digital currency?💤
No problem! Snowball’s got your back. 🤚
We’re creating the first Smart Crypto Investment Automation (SCIA) platform, that gives you access to crypto portfolios previously only available to millionaires.
Just choose the best performing one, tap a button, and let Snowball automate the investment process.
Another portfolio outperforming yours? Switch with another tap 😉
LINK in bio 👉 @officialgreggarcia
3 314 days ago
Mr. Money Mustache is the man. A couple of years ago I was having a bad day at work and googled “How much longer until retirement” and I stumbled upon his blog.
I devoured his articles. I read all 600+ of them. He talked about financial independence in a way that I’d never heard before.
He made me want to be free and I’ve been pursuing that dream ever since.
Just discovered index funds! I’m a bit late to the party (i.e., no Financially Independent; Retire Early for us) but there’s still time before retirement. Everyone who doesn’t know how to invest should at least consider passive investing to secure your financial future. Pick a stock index and a bond index, invest, forget, and open in 10-40 years.
Excerpts from the book “The Bogleheads’ Guide to Investing”.
Talking about index fund investing. Want to learn about how it works, what we expect from the global economy (are we heading for a recession) and even a risk I talk to my clients about?
Watch this video
2 324 days ago
For anyone who hasn’t heard of Mr. Money Mustache (MMM) please read the following 3 page foreword he wrote for the book “Playing With Fire”. I’m only 6 pages in and already this book is a great read.💪 @mrmoneymustache@scottrieckens@playwithfireco
S&P 500 Average Returns per year (2009-2017)
2009 - 26.46%
2010 - 15.06%
2011 - 2.11%
2012 - 16.00%
2013 - 32.39%
2014 - 13.69%
2015 - 1.38%
2016 - 11.96%
2017 - 21.83%
The S&P 500 represents 500 of the best companies publicly traded in America. Over the past 9 years the S&P 500 has seen an average return of over 15% per year. The S&P 500 is widely recognized as a benchmark for index funds.
Data from www.slickcharts.com/sp500/returns
I was going though old posts and found this oldie but goodie that cracks me up! It goes through the psychology of most investors (please give it a google!) and shows what we all hear time and time again....
1. No one can time the market. Put money in consistently and STAY IN.
2. Index funds for the win. Buying a little bit of all companies in the form of index funds is clutch. BY FAR MOST people will lose when they try to pick individual stocks and predict what companies will do well over time. Passive is where it’s at. Active traders underperform over time. Disagree? Warren Buffet and John Bogle agree.
3. Set it and forget it..... literally... is better. Okay, well you SHOULD know where you money is at, but don’t move it around and try fancy things. Chose a solid portfolio of index fund (s) and leave it be. Keep contributing money.... slow and steady.... and let it sit. Which brings me to #4....
4. Time is the true money maker. Yay compound interest. (Oh and you DO have to put money in it)
My personal two simple strategies for investing?
1. All in a Total Stock Market Index fund.
2. 33% into 3 types.... large cap (growth).... mid cap (growth and income).... aggressive growth (small cap).
If you have more questions or want to learn more about portfolios and stocks... I have several awesome things linked in my bio you can read! 😍🙌🏼💪🏼
11 1435 days ago
💡Found yearly returns from NASDAQ 100 index that I own right now. Last year wasn’t that good. 🙅🏻♂️ But what’s interesting is that in it’s worst year - in 2008 - it returned -42%. So you would lose less than a half of your portfolio. That’s in the worst case scenario. Can’t lose all your money with it. 🤔 What do you think?
Do you know how I decided to own NASDAQ 100? I wasn’t planning on buying an index fund, but in December 2018 @freetradeapp didn’t offer US stocks. So the second best option for me was to buy an index fund that included Facebook. 😌
In February 2019 @freetradeapp released US stocks feature and I bought #Facebook stock as well. Now the challenge is to decide how much I want to invest in each one. 🥁
1 105 days ago
I downloaded the US stock market performance going back 100 years and wrote a small program to see how effective consistent investing has been in the modern economy. And it has been great! Over the 40 year timeframe your $250 per month only adds up to $120,000 invested, but your end account value averages $1,980,563!
The WORST this strategy has ever performed is if you started in 1969 and ended in 2008 in the middle of the financial crisis. Your $120,000 would have turned into only $1,230,502. The best it has ever performed is if your 40 years ended in 1999 at the height of the dot com boom where you would have had $3,509,126.
If your 40 years ended in 2018 you would have had $1,612,888 despite suffering through the dot com bust and the financial crisis in the last 20 years. .
Don’t let volatility be the enemy of massive growth. $1.2M or $3.5M are both a whole lot better than $120K.
And, importantly, I don’t think 100% in the S&P 500 for the duration of your life is the best investment strategy, although it’s close. I personally put 100% of my portfolio in a “target date index fund”. Check the link in my bio for a recent blog article on why target date index funds are so good.
People think investing is complicated. It’s not. But you do have to understand some of the language. I get a lot of people messaging me saying that it’s impossible to make 8% return. If you decided to invest one index fund 5 years ago, you would have outperformed the majority of investors. Let’s not complicate this guys. Learn the language of money, invest in what you understand, don’t overpay on fees and you’ll be just fine. #etf#standardandpoors#sp500#indexfunds#thecuriousinvestor
45 32712:05 AM Jun 20, 2018
Investing in Index Funds is a great way to build wealth long term with relatively low risk due to their large diversification.
Index Funds are a blend of companies, bonds, real estate, or commodities that track a certain market.
Due to their low annual management fees, you only pay a fraction of your investment in fees.
Index Funds can be bought as very liquid ETFs, which means you can jump in and out of them whenever you want.
By diversifying across Index Funds and across global markets, you reduce your exposure to a single market or asset class and thereby reduce volatility and risk in your portfolio.
The four major asset classes are: Stocks, Bonds, Real Estate, and Commodities.
Swipe left for some Index Funds in different asset classes located both Domestic and Internationally!
Please pay careful attention to the expense ratio, as this is the percentage of fees that you will pay each year on your invested money!
The dividend rate is the amount of money you receive annually per share invested.
Stocks usually have the highest chance for growth, but can also be riskier due to their higher volatility.
For example, if you freak out and sell all stocks in the midst of a crash, stocks will devastate your returns!
If however, you are able to keep emotions under control, and maybe buy even more, you should profit handsomely.
US bonds are seen as the safest investment option, but therefore only yield a low return.
KEEP IN MIND: higher dividend yields imply a higher risk!
Real Estate Investment Trusts are companies that engage in buying, selling, and renting real estate.
The commodity funds can give you some exposure to precious metals like gold and silver, but be aware that these do not pay out a dividend.
On the other hand, the Energy ETF does pay a dividend as the Fund is made up of energy companies.
DISCLAIMER: Always do your own research or consult a financial professional before investing. I am not a licensed consultant, this post is for educational purposes only.
Thank you so much for reading, and please leave a like if you enjoyed this post ❤️
20 2674:47 PM Nov 10, 2018
We have talked about the S&P 500 index frequently on this account. Have you ever wondering what the hell it was? If so, here you go. By investing in a S&P 500 index fund, you are investing in 80% of the market. 80%!!! So basically, if you invest in a S&P 500 index fund, you are basically investing in the market. And as we all know, the market fluctuates in the short term but trends upward in the long term. This is why I invest my money in the S&P 500, because over time, I will make a solid return. Tag a friend below who needs to know this! #sp500#vanguard#jackbogle#indexfunds#etf#etfs#thecuriousinvestor
Here are some low risk investments for you guys!
1. US Treasury Bonds:
By purchasing a US Treasury security, you are lending money to the US government in exchange for a fixed interest.
There is a wide variety of options available including Treasury Bills, Notes, Bonds, and even Inflation Protected Securities.
To find out more, go to www.treasurydirect.gov where you will find all the details!
2. Index Funds:
Index Funds are passively managed funds which copy the performance of a certain index, like the S&P 500.
I won’t go very into depth on these as you can find a detailed post about Index Funds on my page!
3. Paying off Credit Card Debt:
The returns you will receive from the low-risk investments listed here are probably lower than the interest you pay on your credit cards. PAY OFF YOUR CC DEBT FIRST!
4. Real Estate Investment Trusts:
REITs are companies that invest in and operate properties to generate income.
Buying REITs gives you nice exposure to the real estate market, which tends to be less volatile than stocks.
To find out more about REITs, check out the REIT post from a few days ago!
5. Dividend Aristocrats:
Dividend Aristocrats are companies that have increased their dividend payouts for 25 or more consecutive years.
This long track record proves that they have some large competitive advantage and management knows what it’s doing.
Dividend Aristocrats tend to outperform regular stocks over the long run!
6. Peer-To-Peer Lending:
This form of investment is relatively new and can generate some nice returns!
You lend out money to individuals around the world through a P2P platform like ViaInvest.
To lower risk, it may be wise to keep your investment capped at about $15 per person.
Do you have any money invested in one of these? Let me know!
Thank you for reading and please leave a like and comment if you enjoyed ❤️
47 3417:07 PM Nov 20, 2018
This is not financial advice*** Rule 1: never invest in anything you don't understand🙃