Emily and Clark - Thank you!!! Step by step, click by click, these are perfect! Between this and your last video, I've opened my first account and made my first investments. This weekend my wife and I will have our first sailing class, which combined with investing, will hopefully lead to a sailing retirement with passive income in a few years. I can't thank you enough for the hope that this is giving me!!!
Please keep making videos like this to break down investing for the average person. I have absolutely no one in my personal or professional life that will teach me how to invest I really have to learn on my own. I am living paycheck to paycheck with much bigger aspirations for myself. Thank you so much for going step by step I hope to one day actually have a Schwab account if you really do think it’s a good idea for anyone.
Yes I do. Why not start now? If someone invested only $1 a day for the last 30 years in an index fund they would have over $20,000 after inflation. And the last 30 years have been particularly bad stock market years. It's important to start early, even if you start small. More videos coming.
If you are retired or near to it and can't want to wait 10, 20, 30 years to get your "enough" money, there are dividend stocks that pay10% more or less - monthly and quarterly. A dividend stock is for income, not capital appreciation, though it's nice if it can do that too. I like monthly because I can budget money better plus if you are reinvesting those dividends you get more shares, you get more money, more shares, more money etc. So a 10% dividend might actually pay 11% over a year. I like BDC's (Business Development Corporations) and REIT's (REtail Investment trusts) stocks because they pay the highest dividends i know of. (If there are better ones, let me know) They can pay high because if they pay most of their revenues as dividends, they pay little to no income taxes. The trick is to learn how to research a company to see if it is sound. IMO, stay away from "This stock is going to be the next Amazon!" and other get rich quick promises. Good, reliable information in the market is gold and like gold it can be hard to tell from pyrite or "fool's gold." Always DYOR (Do Your Own Research)
This was a stellar series. Thanks for doing it. I know very little about the ETF, Mutual, and general stock markets, however I have been extremely active in the FX market for 8 or 9 years now. It was nice to see how I can manage my own 401k a bit better. There is always something new to learn. Hope to see you out there one day - Rylee (Tanton 43)
Thanks JIFD. There are several more videos coming in this series. The next two should be even more useful. Please feel free to share the series if you think friends might find it useful. We would appreciate the exposure. Looking forward to seeing you out here. When will you be coming this way?
These videos are great I have enjoyed watching to see how you are doing this. Interesting to see what others invest in and the approach used. Here in the UK many brokers charge platform fees up to 0.45% on holding funds so I hold ETFs as the platform fee is capped on ETFs and stocks. So it is worth checking out the fees closely. This Schwab account looks good with the card for spending - going to take a look. Best regards from the UK!
You're welcome Marvin. Glad you found the videos helpful and you started investing. Please consider sharing our videos and playlist on social media. I'd like to have more viewers.
Hey guys, I have been really enjoying the video series so far! I was wondering if you plan on releasing all the videos for "doing it" before you move on to the other topics? I am really excited for the "habits and motivation" section as that is what I've been struggling most with lately.
We wanted to get these three out first. Now we will jump around between all 5. I think theory will be next as we seem to be talking about that most just now. But first we are doing some boaty stuff, after all we are a sailing channel, Emily is currently editing our March Adventure Log video and we have something planned on choosing a dinghy.
Thanks. So nice of you to say. Hope it works out for you. After all we are currently living in interesting times! But why wait 10 years? Share our playlists on social media. We would appreciate the channel promotion.
@@EmilyAndClark My fb friends are not really english speaking.And those who are,are Indians,which is a whole other story regarding investing,for me and them. Not really into sailing also(Assam is too far away).I restrict myself to share only "lifesaving" content on fb.
You guys have helped me actually understand investing a little more, thanks allot, love the series. I just don't know what happens afterwards? What are the things one must look after and what are the flags of knowing if an investment wasn't a good investment?.
An index fund is as good as the overall economy. That's the point. I'm doing some investment theory videos but in short if you plan on "buy and hold" don't bother watching anything. Just keep buying and everything averages out in the end.
It is. You have discount brokers there. Also, you can invest in the US market in US dollars with Schwab if you like. There are tax issues but I know Europeans who do. One was my ex-father in law. He is an economics professor in Belgium. Kinda a big deal in his field.
In the UK I have an account with Vanguard which works well for me. Take a look at this UK broker comparison site monevator.com/compare-uk-cheapest-online-brokers/
If you like your local economy getting a brokerage account shouldn't be a problem at all. Find one who has the services and tools you want. Understand their fee structure. The magic word to Google is 'discount broker'.
@@EmilyAndClark I don't like my local economy much: productivity is low and political stability is particaularly weak right now with brexit! I'm most likely to use vanguard to invest in US funds like VUSA to invest in the S&P :) Thanks for all the content and replies!
Excellent how-to video, but not my cup of tea. I use my modest savings as a backup, live as frugally as I can, and do electrical boat work I really like doing anyway and get paid. Really relaxed, can live from 4 days work a month. Yes, not much security. In my opinion it is better to have the cookie now then wait for two until you develop diabetes :-) At the age of 49 I quit regular employment, all going well for a little over a year now.
DON'T use what we use. We were stuck using an old DSLR I already had before RU-vid. We were out where we couldn't get good new equipment. We just bought a Lumix G85 and expect to really like it. We have only used it in one video shoot do far and it was flawless. (Our cruise-mas video, upcoming). We talk about it a bit in that video. Good videos are more about the editing, and being willing to reshoot when your camera fails you, then the gear.
It's possible. My ex father in law lived in Mons, he he kept a Schwab account. There is a higher minimum deposit and you will have additional US tax burdens. But it might make sense if you want to either have access to the US market or "hide money". You might be better served with a local discount broker.
Sounds very optimistic. However assuming 10 % annual increase or annual dividend from your investment (which in itself is optimistic) you need to invest at least 500.000 US to survive.
Yes. If you're lifestyle required 50,000 and you spent everything and made 10%, you would need $500,000. Congratulations on your math. That's why it's important to start investing early or to live frugally or both. It's not an unachievable goal.
It is. Just read the description of this video. (If you aren't a US resident there may be different rules and conditions or it just might not work for you) And congratulations on starting the process of "paying yourself".
You mentioned you use some dividends and distributions as income. How much do you rely on these chips? I have a lot of savings to get me through a year of sailing or so, but thinking about investing that. Do you suggest investing all savings into a brokerage account such as this and existing on the dividends?
That's what I did but everyone should do what they are comfortable with. Some save up for a few years and sail with the plan of selling the boat and going back to work after. I worked till I felt I didn't have to go back. Do for me virtually everything is in the index funds I talk about in the "Pay yourself first" series. And yes I live on dividends, though I might sell off some principal when I give up sailing to buy land.
It's not a savings account. You are actually buying part of a company and share in it's profits and losses. It averages so much better then a savings account's tiny interest payment. Please see this video where I explain this. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-EHTQnG5l-Qg.html.
Generally that kind of product has a high cost (to pay for all it's marketing) and the bond market is too low due to quantitative easing. So no, I think my approach is still best. If you find a bond fund that pays a guaranteed high rate I'd like to know about it.
@@EmilyAndClark Cost, not at all. I use a bond etf - aggregate and passive to the full bond index. Cost is only .06 MER. I use it to mitigate risk, or to have some dry powder if markets tank.
I probably should switch to dividends but I really just watche total growth. What I've gone with is an index fund as I describe in the videos. Low cost and the relative stability it the S&P or whatever.
Thank you very much! If your dividend income is not enough to live from, you can always decide to sell 3/4% of your total stock-value each year? So in the end it may not matter if its an high dividend or low dividend etf or fund, as long the total growth is good?
Not necessarily for an index fund. Any good index fund is going to follow the market in general, that's what they do and why we want to buy them. All the important information about them was on the table. But charts are available, feel free to compare that way if you like.
I may sound dumb asking this. Let's say I have roughly 10 grand, with all but one month's living expenses sitting in a regular savings account at a credit union. Is it possible to transfer all that to Schwab, have the savings sitting in investments; and then pulling from that monthly, to the checking account, for regular expenses?
If you just move it to your broker you can write checks against it. But if you buy a position in an investment that money is not available to you unless you sell your position. I'll be doing a more in-depth video on this and other things but in short, at today's interest rates money not invested is loosing due to inflation faster then it's interest growth. Your money is evaporating.
Yes in the 4.01 video I believe. I've used this card all over including Grenada. I wouldn't travel without a Schwab card. That card allows me to access the CASH in my account. I keep some cash available for expenses but the vast majority is invested. So you may want to invest the bull of your money, but keep some available.as cash so you're not having to sell some of your position when you want to pay your bills each month.
There is about every kind of fund you could imagine out there. What you should be looking for to get known monthly returns is a fund based on bonds. But, the bond market had been ruined by the government, "quantitative easement". I'm in growth because of that, it's more volital but pays more on average over time. I don't think you should be concerned about monthly payouts. Why not get one big payment a year and you just meter it to yourself? Finally, Google "hard money lending". It's kinda like legal loan-sharking. There is risk and it's not for everyone but if the collateral is good it can return high rates and known monthly returns. It's a bit more hands on. I used a local company and just supplied the capital. Worked for me. Only time I had to foreclose the company did all the work and I got paid, it just took time. I think I ended up doing better then a clean payoff in the end.
Brilliant thanks for your reply. That’s a good idea to just pay myself one yearly lump sum. I live in Sydney and we don’t seem to have all the variety of awesome mutual index funds here like you do in USA. I guess it costs companies here too much to track the US Stockmarket than the local Australian Stockmarket. We have a retirement scheme here called Superannuation which you can access when you’re 60 it’s like the 401K funds in USA. My Super fund is fully invested in International equities, mostly top US companies and some internationals with low fees 0.09%. But yeah I want a good Mutual Index Fund I can play with outside of my Super retirement plan that could pay me dividends /yearly income without destroying the overall balance. Like a Schwab, Fidelity, Vanguard etc. I’m going off the 4% rule/SWR ideas I’ve heard off Mr Money Mustache etc. I’m far from retiring hopefully by 2030 when I’m 45. But to accelerate this retirement I’ll need to find a low cost index fund in a couple years here in Australia. Unless you know of one? Currently I’m dabbling in Spaceships voyager investments app which are kind of like a robo advisor Acorns or Betterment. They seem to be tracking US Markets particularly tech stocks. Anyways sorry for long message. Really appreciate your thoughts and ideas. You appear to live an ideal lifestyle just sailing the seven seas! Cheers Josh
Thanks Josh. Sounds like you are doing the right things. I'm afraid I know nothing about opportunities in Australia. Hell, I'm no expert about the US, just sharing what I've learned and what worked. Do us a favor? If you think your friends might like our stuff how about sharing our playlist on social media. We'd really appreciate the promotion. Viewers is what makes this fun.
Things have changed drastically and you should NOT invest in any stock market/mutual fund/ETF at the moment. Google 'S&P500', set the timeframe to 'max' on the graph and look at. Anyone with intellect should see a problem. When this next crash happens, it's going to be very bad. I'm normally against precious metals, as they don't provide steady income, but at the moment, they are the only safe place to put your money. With metals, you need to physically order and hold it... otherwise you truly don't own it. Avoid precious metal ETFs, there's no metals backing them up on the Comex exchange. Also research what a 'bail in' is... Your cash in the bank is also not safe. Best wishes. Cheers
@@EmilyAndClark I always have to laugh when someone who doesn't understand the system attempts to ridicule someone who does. If you look at the S&P500 graph over the max period and don't see a problem, then there's little purpose reading further. The 'bail in' is a recent change in government legislation, and you can view it on most Western government websites (I've confirm the US, Canada and Australia). If you're denying the existence of the official government legislation, then I would have to say you're the crazy tin foil hat wearing conspiracy theorist. Thank you
@@d_1066 you say you understand the system, then you will understand inflation will always drive up the market, as well as very good performing companies. If you truly understood the "system" you would have millions in the market, including real estate and bonds. My guess is you don't though. Just a hunch.
@@jasonkoslow4174 you truly have cognitive impairment due to two reasons (1) you think you're making money due to inflation. If you can't understand how this is incorrect you're wasting my time and yours. (2) you suggest markets will rise indefinitely. Not even a monkey would believe this
We will do a video about the power of the US dollar soon, and what happens with inflation, investments, and other spending over the long-term. Stay tuned. As for gold, like individual stocks, the price can go up and down sporadically, and you can certainly make some money buying low and selling high if you get your timing right. Depending on the period of history you look at, gold sometimes outperforms the market, and sometimes it doesn't. Many people buy gold for "when the shit hits the fan," in that case, they are taking their chances that gold will stand up as a currency in a dystopian situation. The two of us live in a society on the water here it's hard to get goods and supplies. We do a lot of trading and bartering. Personally, if we're investing in metal, it will probably be can openers, tools, hardware and mason jar lids. But I digress. Check this out for a straight answer about gold vs. the market. www.investopedia.com/ask/answers/020915/has-gold-been-good-investment-over-long-term.asp
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