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Here's How The Rich Invest Their Money

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Looking for help with Financial Planning?
I am a Chartered Wealth Manager and Partner in a financial planning practice based in the UK. If you would like to find out more about working with us, please follow this link: go.novawm.com/getintouch
References
I would highly recommend watching the Rational Reminder Podcast episode on Alternatives.
• RR #219 - Expected Ret...
The Performance of Hedge Fund Performance Fees
papers.ssrn.com/sol3/papers.c...
Has Persistence Persisted in Private Equity? Evidence from Buyout and Venture Capital Funds
bfi.uchicago.edu/wp-content/u...
How to Use Alternatives in Your Portfolio
www.morningstar.com/alternati...
RISK WARNINGS AND DISCLAIMERS
Capital at risk. Past performance is used as a guide only. It is no guarantee of future returns. Different funds and asset classes carry varying levels of risk depending on the geographical region and industry sector. You should make yourself aware of these specific risks prior to investing. The property market can be illiquid; consequently, there can be times when investors will be unable to sell their holdings. Property valuations are subjective and a matter of judgement. VCTs, EIS and SEIS should be regarded as higher risk investments. They are only suitable for UK resident taxpayers who can tolerate higher risk and have a medium to long term time horizon. Owing to the nature of their underlying assets, these investments are highly illiquid. Investors should be aware that they may have difficulty, or be unable to realise their shares at levels close to or that reflect the value of the underlying assets. Prevailing tax rates and reliefs are dependent on your individual circumstances and are subject to change. We do not provide tax advice. Any examples used in the video are for illustrative purposes only and you may get less back than the figures shown. This video does not constitute personal advice. We do not take any responsibility for third party websites and content we may link to from this video. Issued on behalf of Nova. Nova is a trading name of Nova Wealth Limited, which is authorised and regulated by the Financial Conduct Authority (FRN: 778951) and is a limited company registered in England & Wales (10739796).
James Shack™ property of James Shackell
Copyright © James Shackell 2024. All rights reserved.
The author asserts their moral right under the Copyright, Designs and Patents Act 1988 to be identified as the author of this channel and any video published on it.
00:00 The question?
01:25 What are they investing in?
03:30 The Power of Diversification
04:49 Commercial Property
06:17 Property Funds
07:07 Commodities
07:36 Private Equity
10:57 Private Equity Funds
14:00 Hedge Funds
15:32 Conclusion

Опубликовано:

5 авг 2024

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Комментарии : 549

@JamesShack 29 дней назад

WARNING! Please please be wary of bots that are trying to impersonate me in the comments. Lately, they have been offering "Coaching courses" and trying to get you onto WhatsApp. This is not me it's a scam. I will never try to contact you; you can only get in touch with me via the link in the description of the videos. My audience skews heavily to older people who are more likely to fall victim to scams. So if you see any comments from bots, please report them. It's really helps to protect others in the community. Thanks in advance!

@adambritain5774 29 дней назад

There’s a ‘decision’ of the videos is there…? 😂

@RobCLynch 29 дней назад

@@JamesShack yes I've just received an invite to the coaching course, with a WhatsApp number to add lol. I've reported it.

@jonasking3670 28 дней назад

Also there are the bots that comment on their own posts under different accounts in order to fool people into looking up some “advisor”. You can tell it’s happening because the responses don’t sound like how someone would respond to someone else.

@JosephCarlsonShow7 28 дней назад

How to contact you?

@guyr7351 28 дней назад

@@jonasking3670yes these are so annoying and to most of us obviously so fake. Mr/mrs so and so grew my £10,000 or doubled it in a month blah blah blah. If you click on them and report them they get deleted but I guess the bots just re post.

@davidreichert9392 28 дней назад

A good rule of thumb is that if your portfolio is too boring to discuss in social situations, you've done it right.

@JamesShack 28 дней назад

Haha, I like it.

@jeremyhill3837 28 дней назад

This made me laugh! Reminds me of my mates reactions when I start telling them about market index funds 😂😂😂

@Roman49837 24 дня назад

I know a very smart and wealthy guy that worked for NASA. One day I asked him about his investing strategy. He told me “just put everything on the S&P500, that’s it”. 😅

@SD-gw5vm День назад

@@Roman49837 I work with a market risk analyst at an oil trading firm and they said the same thing to me

@spivvo 28 дней назад

I am a retired institutional fund manager (36 years in the industry). I’ve seen it all from the inside and agree with 100% of what this gentleman is saying. The money that wealthy people put into alternatives is their “fun money” the equivalent of an ordinary person buying a few lottery tickets. They kid themselves that itis diversifcation but it’s just thinly disguised greed and generally what they gain in return they give away in fees…. And that’s the lucky ones. So good to see such sound advice being given.

@nigairlines 24 дня назад

Plus people tend to focus on making money investing whereas the way to make more money is by increasing or having a good income. Most of them didn't study and think they'll become rich by trading or investing, at this point it's the same as buying a lottery ticket.

@tamwilfred 21 день назад

Greed or the feeling of hitting it big. Most of my investments are in index funds but I use a small percentage of my portfolio value and invest in single stocks and alternative investments. I fool myself in thinking maybe I see something people don't see yet. I just want to speculate sometimes. I treat them as a lottery ticket. Sometimes people need some excitement in investing. Nobel Memorial Prize-wining ecnomist Paul Samuelson famously stated that "investing should be dull, it shouldn't be exciting; investing should be more like watching paint dry or grass grow". Maybe I just want to add an expresso in my coffee to get a little excitement but I'm not betting the entire farm on some of my speculative investments.

@RudiNesta 10 дней назад

Totally agree with this!

@paulvilagos7008 28 дней назад

Thx James for saying it outright : "People shouldn't consider their homes an investment" thank you very much.

@themiddle4220 28 дней назад

Just one point that needs emphasised. The JP Morgan survey (or similar) of HNWI is a self-selecting group. The richest cohort of individuals (excepting inherited wealth) are typically company owners, rather than those taking income from employment. As such, the stats are always going to show a substantial % of HNWI having their wealth in private stocks, since they are company owners. That’s less of a result of a ‘wealth strategy’ of the HNWI - if you excluded owners of their own companies (as opposed to people with the wealth able to buy into private equity), the mean average holdings would no doubt be rather different.

@JamesShack 28 дней назад

Other studies I've seen show that wealthy individuals have 70-90% of their net worth tied up in their own business. I picked this study because it's based on Family Offices which should give us a better understanding of what their "investment" portfolios look like. As demonstrated in the video, it's not that dissimilar from US endowment funds.

@themachine300 28 дней назад

That last analogy about Federer is a really great point.

@DonatellaVersace44 12 дней назад

I believe investors should focus on under-the-radar stocks, especially given the present rollercoaster nature of the stock market. 35% of my $270,000 portfolio consists of collapsing stocks that were previously respected, and I don't know where to go from here.

@BINDERANDREAULRIKE 12 дней назад

Explore the option of engaging financial advisors, estate planners, or tax experts. Their specialized expertise can assist you in navigating intricate financial decisions.

@EstefaniaWalter66 12 дней назад

Accurate asset allocation is crucial, and some individuals use hedging strategies or allocate part of their portfOlio to defensive assets for market downturns. Expert guidance is vital for achieving this. This approach has helped me stay finan-cially secure for over five years, yielding nearly $1 million in returns on invest-ments.

@CharleyHull-dn6nh 12 дней назад

Pls can you leave the info of your Financial advisor here, I am really in need of one.

@EstefaniaWalter66 12 дней назад

She goes by ‘Melissa Jean Talingdan’.’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.

@CharleyHull-dn6nh 12 дней назад

I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you

@Greylocks129 28 дней назад

If you don’t understand it don’t invest in it…

@JamesShack 28 дней назад

Agreed.

@jollama 28 дней назад

All my investments are based on what influencers say and I’m up 15% overall despite not understanding a single thing they said

@niallrunswick938 28 дней назад

@@jollama precarious

@jollama 28 дней назад

@@niallrunswick938 I’m sure VOO, QQQ, SCHD, VGT, and DGRO are precarious

@Greylocks129 28 дней назад

@@jollama is it sustainable over 40 years?

@wulfrunian77 28 дней назад

Always top notch advice James The only finance influencer people should listen to

@JamesShack 28 дней назад

Thank you for saying so!

@edwardkenworthy7013 28 дней назад

It's worth remembering that "The Rich" also invested in Theranos.

@williewonka6694 28 дней назад

Yes, and with Sam Bankster Friedman and Bernie Made-off as well.

@Elaba_ 27 дней назад

Bloody hell.

@dlc2479 27 дней назад

Right

@romybrater1353 26 дней назад

I will add that 99.9% of the victims of Maddoff's scam were yltra wealthy. But those also were ultra greedy...sad.

@rubyus7332 26 дней назад

They’re rich, that’s why they can afford to lose money! 😂

@juriteller3688 27 дней назад

No, do NOT copy them, they invest like this because they are already rich. If you want to get rich do NOT copy them.

@tobiaskallweit3911 27 дней назад

^ this.

@alansach8437 9 дней назад

Correct! They can afford to take a big hit and ride it out, or "buy the dip", throwing more money in. The average person may not be able to afford that.

@AnOldGuy164 28 дней назад

My wife and I are 75. We have always invested 100% in stocks. The broad market. We set a goal for the annualized return. The broad market gave us that and more. There was and is no need for us to look for other investments.

@gorkyd7912 27 дней назад

The investment strategies that worked for boomers in the most prosperous decades in world history are unlikely to continue working for their children.

@rgarri6396 23 дня назад

You have done good as of today, pray you get to keep it! You made it to the top, don’t fall off, it’s a long way down.

@al4xs 28 дней назад

The longer I have been into investing as salary increases etc the more I am favouring simplicity. All world Etf in an isa, some cash savings accounts and obviously heavily into S&S SIPP with higher rate salary. My individual stock picks have not really done better than S&P. And when you at in time, effort, keeping up with news etc... It's just not worth the hassle. The mega rich live in a different world. Cant really apply same logic to the average person.

@tamwilfred 21 день назад

Stock picking can be challenging. For most investors, broad-based index ETFs are an excellent way to build wealth. However, if you enjoy researching companies and allocating a small portion of your portfolio to individual stock picks, it can be an engaging and potentially rewarding experience. That's my approach - using a small percentage to make informed bets and add a touch of excitement to my investment strategy. For example, I was fortunate to recognize Apple's potential in the mid-2000s and invested a small amount that has grown significantly.

@lyndonrichards5279 28 дней назад

I agree with the simple funds,but ditch the bonds and add a sattelite fund such as a nasdaq tracker.

@gorkyd7912 27 дней назад

If you're actually poor and you put your few thousands in index funds you're going to at best have a few thousand dollars that beats inflation. Meanwhile your wages are going down and expenses are going up. Investing is for rich people who have enough money that a modest return actually means something.

@lyndonrichards5279 26 дней назад

@@gorkyd7912 really, I've just done 35% for the last 12 months and my portfolio is over 500k. 15% a year will double every 4.8 years. Your comment is ridiculous.

@Jakeyosaurus 29 дней назад

Great video as always, was wanting to see a video touching on venture capital!

@JamesShack 29 дней назад

You're very welcome!

@theemannetje2096 25 дней назад

Keep up the videos jakey!

@nextlevelcooking9039 28 дней назад

There are a handful of hedge funds I absolutely would love to invest in. The only problem is I don’t meet the $10 million minimum investment requirement 😂

@JamesShack 28 дней назад

Haha exactly.

@williewonka6694 28 дней назад

Consider yourself lucky.

@g.t.richardson6311 26 дней назад

Most Hedge funds have a long history of hitting the big time for one year Out of 10 or 15 years and making 116% return, And then go on a nine year run of losing 15, 18, 22, 27% etc

@jamesodell3064 20 дней назад

@@g.t.richardson6311 And bragging about their one time hit to get more investors.

@QuincelSC 29 дней назад

Given the high fees of these alternative investments mean most rich investors would have done better just with huge index fund investments, I'd be interested in a video on why they use alternatives given the downsides. Is it really smart for them or do they just get suckered into it by sales? You discuss this a bit at the end but is there more (or more rigorous evidence you could discuss)?

@RobCLynch 29 дней назад

Good point. It wouldn't surprise me if rich people use high risk ventures as tax write offs (assuming some assets create a loss) so that they could offset their losses against capital gains.

@philipjamesparsons 29 дней назад

You beat me to it. Maybe they are influenced by others in their circle, investing into venture capital funds. Index funds investments would have made a rich person very rich over the last ten years.

@alecdurbaville6355 29 дней назад

Tax breaks

@pauliusmatiusovas4102 29 дней назад

Yeah like rich invest to take losses and you invest for profit, keep dreaming

@KirkFickert 28 дней назад

@@pauliusmatiusovas4102 It depends. Like this year I'm aiming for a loss on farm incomes since that's in a Trust because how that Trust is taxed. Granted I'm doing things like fixing a shed that took wind damage a couple years ago, getting ditches cleaned out and dredged and other land improvements, some of which needs to be done, but given the option of spending it vs. losing 37% to taxes. And if it goes negative this year I can write off other gains in that trust. Now at the end of the year I'm putting all the farms into a LLC vs. a network of the 4 Trusts things current sit in...

@MrDuncl 25 дней назад

Something you missed is that the average middle aged person should have a large proportion of their wealth invested in a pension. Mine is definitely worth more than my house. I have no idea how the DB part is invested while the choices given by my employer for the DC part were very simplistic (I chose the World Tracker). In contrast the U.K's Ultra Rich probably hit their lifetime allowance years ago. Yes I know it has now gone but only recently.

@sinematographers3344 28 дней назад

Larry Fink says BlackRock’s deal to acquire Preqin could lead to indexing private markets

@edwardkenworthy7013 28 дней назад

"Private Equity Firms Are Typically Very Dishonest" ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-r3_41Whvr1I.html

@VRNocturne 23 дня назад

While they are stocks, I would think BDCs might be a Private Equity-esque investment? After all, BDCs invest in (or make loans to in exchange for equity stakes) private companies. They often provided dividend income along with potential for share price appreciation as well. So, obviously, not the EXACT same thing, but it's a way to gain access and BDCs diversify their holdings, which, by proxy, diversifies your piece of said BDC.

@A-Name-101 28 дней назад

The mantra KISS is usually the best rule to follow. So for me that is low cost tracker funds in an isa & pension.

@Jeffybonbon 27 дней назад

The majority of homes in the past 20 years have not beaten Inflation

@BlaBla-jj6sh 12 дней назад

@@Jeffybonbon Neither has your wage. And as far as homes are concerned: they are all about one thing: LOCATION. Homes in popular locations have absolutely beaten inflation - and then some.

@scottdaniels5976 23 дня назад

For Private Equity, best for avg investors is BX, KKR, ARES, & OWL and BDCs like ARCC, MAIN, CSWC, FDUS, OBDC...On Hedge funds, I like when Buffett challenged any Hedge fund Mgr vs the S&P 500 over 10yrs he would give them $1M.....Buffett won.

@lystraeus- 25 дней назад

Great video, James! However there is one asset I want your opinion on: farmland. Unlike residential property (over-exposed for most) and commerical property (business cyclic, rich people's fun money, just a sector fund in the case of REITs) it actually does offer a distinct asset class. However, it's extremely hard to get into unless you're a farmer. And as far as I've seen, there's no direct property fund investing in farmland in the UK.

@danielberger3669 17 дней назад

ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-tUe0sB72iRA.html Same principle would apply to farmland ;)

@Insertnamehere3000 28 дней назад

In my experience many rich people are directly investing in real estate leveraging debt so they don’t have to pay much tax. I suspect this is more common vs purchasing units in a fund.

@williewonka6694 28 дней назад

really good point. Instead of income and Capital gains, they live on debt, which is not taxable.

@tigerrx7 12 дней назад

You’re also looking at data for people who are in wealth preservation, not aggressive wealth creation

@OllieX123 28 дней назад

Rich people already have plenty of money and don’t need to build wealth, they just want to conserve it. So they’re gonna go for less risky assets, but for the rest of us we still need to build it.

@leonhenry4861 26 дней назад

Exactly, if they already earn 500k+ after several years or earning it, it’s really about keeping that cash safe and away from taxes and messy divorces. The rest of us are trying to turn 100k into 1 million, which is why a lot of us lose money.

@lupin8750 28 дней назад

Too many bots in your comment section but great video as always

@JamesShack 28 дней назад

Tell me about it

@ronloftis9080 4 дня назад

You did not mention BDC funds as a way to invest in startup companies and private equity. Funds in the USA like ticker symbols MAIN, OBDC, ARCC

@red0pineapple 28 дней назад

Was expecting to be generic clickbait garbage, but this was actually a very well-informed video! Kudos

@johnboyginger 29 дней назад

The ability to afford top Financial Advisors and tax lawyers on-call helps too. 😉

@williewonka6694 28 дней назад

I doubt that, those guys are largely money sucks that cannot beat the index funds.

@scottiswatchingtele 19 дней назад

i've never seen a top-notch financial advisor. they're just money strippers

@TenantRepGuru 27 дней назад

Excellent summary.

@eddied112 27 дней назад

James - once again thank you for a clear and well presented video that illustrates whilst we may think the grass is greener... it often isn't.

@gerry2345 27 дней назад

I like this vid.Good insight and interesting..

@ayanansariansari4427 28 дней назад

Thanks I bought Kardden and I can't be more happy about it

@iandavies7 27 дней назад

Good video, as always. However, I was hoping to learn a bit more about the schemes and structures they use to minimise their tax liability.

@polivios13 28 дней назад

Forgot to mention private credit

@MrAlwaysBlue 27 дней назад

Do you mean peer to peer lending?

@tamwilfred 21 день назад

@@MrAlwaysBlue He's likely referring to the bigger picture. These are most likely small to medium-sized companies (SMEs) that need capital for expansion. This could be a startup or an established business experiencing growth. The funding stage could be Series A, Series B, or bridge funding.

@andrewbatey2636 29 дней назад

Hi James, thanks for all the content I really enjoy all your videos. Recently come across the book lifecycle investing by Ian Ayres and wanted to know your thoughts on this approach. I’m 27 and have some time till retirement. A leveraged approach makes sense in a lot of ways seeing as I don’t actually need to access my pension for 32 years. Was wondering if you might consider making a video on the topic? Keep up the great content - thanks!

@JamesShack 29 дней назад

Hi Andrew, I have not read the book, but I am familiar with the idea. How are you thinking about getting that leverage?

@andrewbatey2636 28 дней назад

Hi James, thanks for replying. Just to be clear, I haven’t committed to this yet as you can imagine I’m naturally sceptical. So far all I have come across is multiplied ETFs such as SSO/ TQQQ. The expense ratios are high at 0.95% (relative to global vanguard trackers) but that seems low vs loan borrowing. My other query was around the feasibility of leverage in a high interest market. Honestly I don’t know the best way to facilitate it and wondered if it’s a subject you are asked about enough to make a video on? Cheers again!

@Whoop0 28 дней назад

@@andrewbatey2636 Leveraged ETFs are dangerous and not the same as a leveraged portfolio, they're designed to be held in the very short term not long term. Research volatility decay.

@markcarter9476 28 дней назад

Great advise, ignore the fluffy, clever stuff and go for what makes sense.

@chuckmurray1825 28 дней назад

Thanks for another great video. Always good to see the big picture from the eyes of a professional.

@JamesShack 28 дней назад

Glad you enjoyed it Chuck.

@chuckmurray1825 28 дней назад

@@JamesShack Guess who is re-retiring next year and moving to Europe?! Waiting to see the new NHR details from Portugal. It's now down to Puglia, Italy or the Algarve in Portugal.

@JamesShack 27 дней назад

@@chuckmurray1825 congrats! They’re all great choices.

@williewonka6694 28 дней назад

Nice little video!

@battj1 26 дней назад

Brilliant video, thanks James, so very helpful!

@BF1GUN 26 дней назад

Nice one, James. Thank you.

@memecentral2890 28 дней назад

What's in the "other"???. I want to know. (The black segment in the pie chart).

@JamesShack 28 дней назад

I would like to know too, they don't actually specify it in the report. privatebank.jpmorgan.com/eur/en/services/wealth-planning-and-advice/family-office-services/2024-global-family-office-report

@JamesShack 28 дней назад

Probably things like collectables.

@mattmurdoch4345 4 дня назад

Is there a minimum amount that you need to make it worth to consult with a financial advisor?

@ElsyObbink 28 дней назад

The boy was no longer sleepy, but full of energy and excitement.

@lenb9037 28 дней назад

I agree with the points made in this video but the comparison of the average investor to the wealthy investor should be tempered by the wealthy investor likely having acquired their wealth from starting a private company and then buying valuable property. One would therefore expect these to be a major part of their investment and have nothing to do with choice on their behalf.

@Attipud 24 дня назад

Hi James, I’d like to see your comments about private credit

@edbifulco 29 дней назад

Regular people invest to make money. Rich people have a financial advisor to KEEP and not lose their money. Very different.

@stevenrix7024 28 дней назад

Could just buy government bonds for a guaranteed 4-5%, in that case…

@brymills 28 дней назад

Except rich footballers… they seem to invest to keep rich people rich without risking their own money..

@e.t.theextraterristrial837 28 дней назад

That's because they already have a lot of money. Most of us plebs are just trying to get that elusive goal of buying a house. If I was rich, I'd own at least 2 properties. One for my own, the other as investment.

@mmabagain 28 дней назад

@@stevenrix7024 That 4-5% will be down to 2-3% in a year or less.

@tommyboy3227 25 дней назад

James, at 5:04 you mention that a home isn’t an investment, and I think a video on this would be very interesting. For instance, does your home equity contribute to your net worth, and should your mortgage be subtracted from this? Is your house "more of" an investment if you intend to sell it and downsize in later years? Etc etc.

@JamesShack 25 дней назад

Yes, it could be interesting. I would just need to think of a catchy title and thumbnail, which is hard!

@pingupenguin2474 28 дней назад

You can't invest like the rich when you are just starting out and don't have much money. Some investment types have minimum amounts you have to deposit.

@marianelavelasquez9696 27 дней назад

You are the best!!! What a wonderful, informative video 🎉

@yuvalramon 10 дней назад

Thanks very nice analysis, but to be able to get in right you should add leverage and debt presentage on any asset type. Hope you can add that

@stevenfarrall3942 25 дней назад

Very articulate. Point. I've been saying this (with a few extra insights which I am not going to share with a competitor 🙂 ) from the late 80's.

@johnjordansailing 27 дней назад

What about PMs? BTC? Also, are most financial assets in reality highly correlated?

@daleal7250 22 дня назад

Putting money into BTC isn’t investing, it’s speculation which is more akin to gambling. Don’t put any more money into it than you are willing to lose.

@johnjordansailing 22 дня назад

@@daleal7250 You do you buddy.

@Josephbasta827 2 дня назад

I lost over $70k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Natalie Strayer. .

@Charlottehornets4 2 дня назад

I'm surprised that you just mentioned Natalie Strayer here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.

@Rodriguezpaul-9 2 дня назад

The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills.

@EricLopez4167 2 дня назад

Natalie Strayer has really set the standard for others to follow, we love her here in Canada 🇨🇦 as she has been really helpful and changed lots of life's

@carolynvo7802 2 дня назад

I'm new at this, please how can I reach her?

@Scottweeier846 2 дня назад

After I raised up to 125k trading with her I bought a new House and a car here in the states also paid for my son's surgery Glory to God shalom.

@stephanem5125 27 дней назад

Great video and clear explanation. Thank you

@davidwhyman1189 24 дня назад

EIS and VCT - indeed, the UK Tax regime encourages investment into these vehicles, which could be appropriate for my Scottish friend Cliff Barrie. Thanks David.

@matthewhunt9707 20 дней назад

The advisors are sending them into these other categories because they get paid higher fees. For the long term be in a low cost broad based equity fund/etf

@arubaga 24 дня назад

My model portfolio is 60% VTI, 20% VGIT, 12% VCIT, 8% VMBS. For bonus point guess my state.

@ronloftis9080 4 дня назад

You are reclined in a chaise lounge sipping a Mai Tai in Aruba in a state of bliss.

@mikerodent3164 28 дней назад

I think some of this irrational behaviour at least is driven by two things: 1) hiding/disguising what you have and 2) gaming the tax systems of the world

@mikerodent3164 20 дней назад

@GrahamStephen¹²⁸¹³¹⁷⁵¹⁴⁰ Thanks M8! Have you ever looked up the meaning of the words "sad w*nker"?

@seanbyrne2220 29 дней назад

Superb video you should do more

@JamesShack 28 дней назад

Thank you, I will

@TheZippyMark 4 дня назад

This is an excellent video, so well explained 👍

@hitronica 18 дней назад

Curious what your thoughts are on these new options based ETFs such as JEPI of GPIQ? They own an index (e.g. S&P500 or Nasdaq) and use options (selling covered call and puts) to produce income (like 10% or more a year). What's encouraging is they don't have insanely high fees, most are less than 0.50%. These may have a diversification advantage in that their performance will be different from a traditional stock or bond fund. This is similar to what some hedge funds do for ultra wealthy investors but without the high fees. So exposure to stock market, high income, and low fees.... they have a lot of potential but also sounds almost too good to be true. Am I missing something? Do we know how these funds would perform in a bear market for the stock index they track?

@joekuhnlovesretirement День назад

Great summary.

@MrWhoAmI57 28 дней назад

Great video. What Is the wealth threshold used here to be deems part of "The Rich"?

@Whoop0 28 дней назад

see 2:50, $50m+

@MrWhoAmI57 28 дней назад

@@Whoop0 Missed that, thank you

@ms8742 27 дней назад

Very well done and sound advice. Once you get to where you can retire or close to it, you want to preserve your capital. Don't take unnecessary risks. One other investment to consider if you are at retirement age is an IRA with a fixed annuity as part of the investment. I locked in 5.5% for five years. Safe with no risk and no tax hit.

@sineadodonnell986 4 дня назад

Can I book a consultation with you living in Ireland

@shamone10 28 дней назад

Man if I knew how to edit videos I so would have gone for your video editing job haha! Keep up the good work, really enjoy all your vids

@JamesShack 28 дней назад

Glad you enjoyed it!

@mrsterling5306 22 дня назад

He is correct, your primary residence is NOT an asset! If you are renting out 1 or 2 of the bedrooms in the primary residence, then that property is in fact an Asset cuz it is PRODUCING INCOME.🙂

@apessimist7295 27 дней назад

Look at what big investors want and what they don't yet have. Just buy small positions in small companies that often get bought by larger companies. For example, the mining industry in australia will likely produce a large amount from manufacturing materials for EV techonology. Blackrock and Vanguard's competitors are buying those companies namely China and their companies, so stands to reason they might want them in the near future.

@giorgos997 28 дней назад

Rich people, in general, use risk diffusion and hedging in their investments, which helps them navigate through difficult situations where regular people might panic and sell at a significant loss.

@theroboticscodedepot7736 23 дня назад

I find it incredible you didn't initially mention precious metals! Silver and gold are the investments of a generation. And yes YOU CAN earn produce income from holding precious metals!

@dwaynesview 18 дней назад

Just invest in BTC or lose out to inflation. Really simple.

@albertboulderwardthe3rd590 26 дней назад

How do we report them James?

@JamesShack 26 дней назад

The three dots next to the comment.

@albertboulderwardthe3rd590 26 дней назад

@@JamesShack Thanks, have now reported.

@DonaldUrquhart-ds9ir 28 дней назад

Thank you James. I really appreciate the time you take to make these videos. They are excellent, and have stoked a real interest in me as regards my own financial planning. I particularly like the honesty of your videos. They helped me to gain sufficient knowledge and to feel informed enough to seek out a Chartered Financial Planner circa 8 months ago. At the start, I must confess that I had a nagging suspicion that they might try and persuade me to invest in some of these higher-risk and impenetrable (to the lay person at least) products, which, thankfully, was not the case. In fact, its been a really good experience for me so far. Looking forwards to your next video and sorry the 'Fulham investment' hasn't been great - yet!.

@JamesShack 28 дней назад

Thank you for taking the time to comment, and all the best with your financial planner !

@valk_7233 27 дней назад

So, just going for stocks, bonds and real estate is the most simple way to build wealth and be mostly well diversified?

@valk_7233 27 дней назад

@JamesShack_info Begone bot!

@Higuannn 22 дня назад

The 1% of rich people think of how to invest their money to increase their wealth during the recession. While 99% of struggling hard-luck people think of how to survive without food and daily necessities in the recession and the coming hyperinflation

@dasfahrer8187 27 дней назад

Great, but many of those options aren't available to those that don't qualify as an "accredited investor".

@molocouk 28 дней назад

6:35 spotted the moment when James had his 3rd glass of wine. 😅 Great video as always James, thank you.

@JamesShack 28 дней назад

Someone else has called this out, but I still can't see it! What's the mistake ?

@molocouk 28 дней назад

@@JamesShack Just the minor spelling mistakes in the 'low investment minimums' line. Sorry for being a pedant!

@jesseporter5807 19 дней назад

A huge difference is dividends. 2% on $200 is $4. That barely covers round trip commissions on an options play. 2% on 2mil is 40k. That’s a big difference! Investing isn’t based on total income it’s based on a fraction of disposable income. A 50k lifestyle when earning 55k leaves a small percentage of 5k to invest. Very different if you have a large dividend financing most of your living expenses. 63k invested atm, with 1.5k in annual dividends. Hope to see that snowball grow.

@billB101 28 дней назад

Good info, thanks.

@rightkerfuffle 28 дней назад

Is the glitch in the matrix at 6:39 to prove you’re not AI or just a sign you’ve not employed that video editor yet?!

@JamesShack 28 дней назад

No edit yet. Even I can’t see it …?!

@User12345fan 25 дней назад

Whoever says copy, what a bad idea. Never copy.

@hTyKn1 28 дней назад

I'm sticking to my index funds. Warren Buffett famously won a $1m bet that a hedge fund manager couldn't beat the S&P500 over a 10 year period. He won easily and if it's good enough for Buffett then...

@asphaltandtacos 27 дней назад

There are market neutral funds available to retail investors. I don’t recommend them due to the reasons outlined in this video. I have considered investing in wine.

@TuRo-Maserati 15 дней назад

Agree - Complex diversified investments are like private schooling....a social signal to your new peer group that you (too) are a cut above !

@rraych1 24 дня назад

Why are you picking on Federer?

@TuRo-Maserati 15 дней назад

Well for a start anyone who wears their own merchandise deserves picking on in my book - racquet(eering) notwithstanding 😊

@joeyjebouskie6632 28 дней назад

Before I even watch this episode, I'll side with Morgan Housel; no, you (the average person) shouldn't

@JamesShack 28 дней назад

Agreed.

@KirkFickert 28 дней назад

I just buy tillable acres. Every couple years pick up another 80 - 100 acres. I've got a farmer that leases the land and will lease whatever I'll buy in that area. Farm income alone is nearly 4x our household expenses. Yeah all the CFP's and CFA's of the world tell me how I could sell everything and they'll guarantee me double the returns.

@DiscoFang 28 дней назад

That last chart showing Risk/Return of Stocks & Bonds with Hedge Funds shows how hilariously blunt and to the point that data can be. Those fees are doing what for me??

@provian 28 дней назад

Can you make a video about leveraged securities? I suspect it will probably be something along the lines of most people are better off avoiding altogether but would love a different perspective (... or in this case confirmation bias)

@RobCLynch 29 дней назад

For me, i dont understand bonds (never have) and given their performance over the last 18 months, im happy with my unit trust funds. They're open ended and very well diversified (covering all stocks). Since 2002, they've grown well and even a huge bear market wouldn't do much damage. My benchmark is the 1929 crash and if a repeat of that occurred, i would still be in profit. I think you're right to highlight that rich people will entrust their capital into the hands of expensive advisors, because they can afford to. But im happy with my 5 global funds.

@JamesShack 28 дней назад

Interesting how you’re anchored to the price you bought at (as most people are). By that logic, if someone invested into exactly the same funds as you hold today, and there was a crash next year. They would be more likely to sell than you. Even though you both own the same thing. It’s irrational, but a key part of investors psychology.

@keywanataeii7307 17 дней назад

Thank you very much for helping newbies understand complex trading issues. Your channel is truly valuable for anyone who wants to become a successful trader.

@NealIRC 25 дней назад

I'm not rich, but invest my money in high-dividend paying stocks and high-dividend paying ETFs. I.e., for every $1000 you put in, get $40-50/month.

@yuvalramon 17 дней назад

What about debt?

@SigFigNewton 25 дней назад

You don’t want to copy the investment portfolios of the wealthy. They’re geared more toward wealth preservation. They play it safe and as a result leave some gains on the table.

@johnbabb296 5 дней назад

Were there any suggestions on what the retail investor can do? I listening to this video late night so I may be tired. What I heard is to invest in productive assets, start a business.