3 Tips: 1.Focus on savings 2. Diversify-across places, asset classes etc. 3. Be wary of debt that doesn't aid in savings, or might not earn you a return in excess of the debt. Avoid debt for consumption 4?- Also if you're going to time the market, do what goes against your instincts/makes you uncomfortable, such as buying when others don't want to.
@@shreyasr1989 Look at how the total stock market ETF "VTI" has done compared to your average focus fund or stock. It does better through humility and diversification. The S&P 500 beat your average hedge fund from 2008-18.
Remember to verify all of your accounts with your phone number and not your email address and if you use an email address do not put your real name in it!
Refreshing to see a good interviewer..... asks a relevant question and allows Ray Dalio to answer fully without constant i interruption, unlike so many others..... this approach is of value to the audience
@Abū al-Qāsim Muhammad ibn very true. also, Corporate Media shamelessly only puts white women on TV to sell ads. it's as simple as that. plus stupid propaganda...
Dalio should run for president! He has a great understanding of economics, business cycles and capital markets. But then again, smart rational people don’t tend to run for president.
Vote for Andrew Yang ‼️ Many of Dalio’s economic policy insights are the same ideas Yang is running on. He has a podcast episode with Joe Rogan, check it out.
MGM YES!!! I watched that episode and was very impressed by what he had to say, and how well he was able to go through the numbers and facts and defend his arguments. But if he wants to get votes, he will have to learn to spike peoples emotions more. Most people vote based on emotion. Trump knew that and was VERY successful in doing so!
Dalio is a shark like the rest of them managing the world's most successful hedge fund FOR THE WEALTHY. He may be somewhat transparent but he 100% isn't telling you everything that's going on. You don't want people like this as president, they lack empathy. Ever heard him talk about wealth disparity, how corporate tax cuts were a bonus for the rich, how loopholes in our tax laws allow for him and his friends to avoid paying their fair share, etc.? No, because he's a wealthy globalist just like many of the others. He and Buffett are humbling at times, but they're still sharks and they'll react when they sense that there's blood in the water.
First - Look at how much you have saved to live off of and for how many months Second - Invest in assets rather than have in cash Third - Do the opposite of the general public opinion
1. Have a positive cash flow each month, and save that cash in a separate account. 2. Use the savings to buy assets, assets that increase in value or increase your income. 3. Be different. Don't follow trends when purchasing assets.
I love learning from Ray Dalio. I've read his book Principles and I must admit it is by far one of the most compelling, detailed, beneficial books that I've ever read. Thank you for sharing the knowledge you've accumulated, when applied it is very beneficial.
6:00 for the 79th richest man, the GOAT hedgefund manager, raised in USA, to say this shows just how important it is. All his life he would've been surrounded by people telling him everything that goes against this statement.
1) Saving: find out how much you save vs. borrow 2) Diversify In multiple areas 3) Invest opposite your instincts (against the crowd - buy when others are selling and sell when others are buying)
Sebastian Heine, I agree with you. He is really talented manager and Investor And do you remember his amazing video “ How economy works? It’s a incredible simple way to show everyone how work complex systems.
Good advice for everyone to follow Even though some finance books and blogs like mr money moustsche and the Dave Ramsey show already cover this many times Good reminder !
I feel lucky to watch a fantastic video on RU-vid from Ray Dalio tonight. The language he used was very simple to understand, also the way he speaks is very understandable, the way he explains is very clear and his wonderful design ability accompanied his highest level of knowledge on economics and highest level of experience on economical subjects has made a great impact over me. I would like to say ´`Congratulations`` for all of his first class skills but I think he deserves more than that single word.
I will simplify it further: (1) save 3 to 6 months of your take home salary in a checking account (2) after you are done saving, invest 15%-20% of your monthly take home pay into a vanguard target retirement fund
0:57 Think about your savings. 1:35 How do I save well? 2:20 Diversify well 2:55 BE CAUTIOUS ABOUT DEBT 3:52 Buy when no one wants to buy, but be careful Social Security & Pensions will lead to a squeeze 5:47 Wealth Gap 6:40 Conneticut youth, Education 8:54 Private-Public Partnership
Nice Video! Great content as always. Investing is the most important thing anyone can do for themselves to create passive income. Don’t save your money because it ends up losing value
For so many, just because they don’t have the knowledge to invest in stock they prefer keeping their money in the bank and saving it up. I can tell because I’m in that shoes too
Lakshay P You can start up a long term investment to be able to gain passive income so in such means instead of you keeping money in the bank and just saving it you invest in what will give you returns daily, weekly, monthly or yearly
Basically he is saying to do the George Constanza thing...eat the eclair in the trash can because nobody wants it at the risk of looking silly....I can do that.
This is cool allen. Truly smart earnings , I have entertained the thought of changing how I make a living. I believe this will work as an alternative to make extra cashflow.
When i save - someone else is missing out on their pay, meanwhile my savings need a safe place to grow, not in a bank account. When a large segment of the population all save, the economy tanks, which can lead to those very people who are trying to save losing their job. The house of cards of the economy, based on debt, is a trap with no escape. The only way out of the debt trap is to Not Get Into the debt trap. To invest in long term economy we actually need the opposite of what our government has been doing. We need the rich and profitable corporations to pay their share in taxes, then invest those taxes in education and maintaining the (crumbling) infrastructure build new systems (solar or wind farms say) that support long term high paid jobs, creating stablility - If you expect people to borrow to buy a new house you should expect they want a stable well paid job first. Our long history if cutting funding for public education has left the USA lagging WAY behind all the rest of the OECD countries and thus that much further to go to catch up.
Absolutely I agree ☝🏻 with Ray. Everyone must focus on 1. Saving systematically I’d add else to create emergency 🚨 fund for different critical situations 2. Focus on growing of your savings with average annual compounding rate which will be higher than (% inflation + % taxes) and at the same time not to lose your capital. 3. To develop such behavior to counter impulsive emotional spending.
i would go overweight in metals right now. your recommendation is exactly what he's talking about, its exactly what the herd has been doing for the last decade and things are about to change. read his essay "paradigm shifts." he's a very smart man
summary 1. think about your savings. How much in terms of time? 2. How do I save well? NB need to invest in assets that do better than inflation and taxes over time. Diversify well. Be cautious about debt. 3. Do the opposite of what your instincts are. Also: 1. pension obligations are the same as debt. 2. rich-poor divide needs to be better managed for capitalism to work.
This is a great video short and straight to the point. 3 Tips: 1) Know your monthly expense and focus on saving 2) Invest in assets and diversify across asset class and across countries. and 3) Don't follow the crowd as Ray Dalio writes in his Principle "Think for Yourself"
Nothing wrong with the savings account as long as you stop after your emergency fund reaches its limit. Everyone's emergency fund is different. Most recommend 3 months to 1 year of your living expenses for a security buffer. After your emergency fund has been reached, you want to start putting the extra money into high yield investments (stocks, real estate, etc.),whichever investments suits YOU the best. Key word is you.
C G thank you! I actually just hit the amount I wanted to save this month. So my goal for 2020 and beyond is to invest and pay off all my student loans. So I’ll guess I’ll just leave the amount I saved in my savings even tho it will get taxed lol 🤷🏾♀️
Savings accounts are not necessarily bad, they are usually not the best option. With inflation, costs of goods and services going up and losing purchasing power, and then also being taxed on the very low gain accumulated makes it even less desirable. If you plan on using it for something soon or if you really need to take time to create a plan on where to put your money it is fine. BUT savings accounts are not investments and if you want to grow your money, you will need to find investments you like.
Shelley Sheri I just want to always have 20k as an “emergency fund” so now that I have that the rest of the money I make so plan on investing and etc. so would you say it’s smart to leave that 20k in the bank ? Orrr
@@thelifeofnicx I think it's relative to your lifestyle and location. I live in a cheap part of socal, but because I own businesses and not a traditional 9 to 5, I have shifted the way I use money. The only debt I carry that keeps a balance are my mortgages. I keep a 1 year emergency fund for my living expenses, mortgage for my home and mortgages for my rentals in a high yield savings account. I consider myself really conservative because I have 2 small kids and non traditional sources of income. I sleep very well knowing that if all money stops coming in that I have a year to gather my thoughts and figure it out. The rest I have in stocks, but I want to become more defensive. Right now looking for something that will protect me from a downturn. Everyone should have a different number, but I think you should make sure to find something that will protect you, while still allowing you to grow. I have friends that are way more comfortable with high risk investments and I have tried it, but just don't think it's worth my peace of mind.
Thanks me later 😊 1. How much money can you save 2 How do you save well (Good Investments, diversify well) 3 Do the opposite of your instincts say (Do investment which feel uncomfortable) Thank me now ☺️
If you're gonna follow anyone's advice I would say that Ray Dalio is a good place to start. Praying for ya Ray, I can see it. Thank you for helping all of us become better.
There are many thought leaders when asked to give advice, give bullshit such as "don't underestimate yourself""pursue your dream""value happiness". Yes, it is true to some degree, but it is too vague, and not actionable. I respect these thought leaders for their status, but even more for Ray Dalio because of his honesty and consistency in his action and words. Reading his books and watching his interviews give no conflicts at all, but for a lot of book author, I don't think they really wrote the book.
Precious metals Gold Silver Platinum are probably the only things that aren't in a bubble right now I would stick to Silver and platinum however if you have your choice you could do ETFs tho I would suggest the physical metal
She did the interview really well Asked good questions and didnt interrupt him. You'd think that is what people notice.. Also there are a lot of people who look younger or older depending on the perception of the person looking at them.
The people commenting on her looks are probably in high school. All millennials know that she's a millennial. She did great job interviewing and was very professional.
I call BS on the pencil expense example. Bulk pencils run for less than $.05 each. Assuming a kid needed a new pencil everyday, that's cost the parent $9/ school year. But, I like Ray, and I thank him for sharing his worldview.
Schools need to teach about money I can give someone 1.000.000 $but if you dont know what to do with it then that million would just be like one dollar
meanwhile...7 million Americans are 90 or more days behind on their auto loan payments. Let's buy a nice expensive liability that you can't afford. lol
Rich and poor people always existed, in any society and any time in history. This was true even in the disastrous Soviet Union, where the rich were those in control of the communist party and their friends (it’s still the case in Russia). The real problem is the idea there is something wrong and we have to do something to regulate this “imbalance” between rich and poor people. This is a dangerous notion as is the opposite of the free enterprise and meritocracy system, which is the fundamental principle of capitalism. Pointing an imbalance or problem between rich and poor is a socialist idea and is very similar to what lead to the creation of Soviet Union. Sad to see this is happening in the US.
The problem is that the system we have is designed specifically so that a few will benefit and pull up the ladder behind them, leaving all others clamoring to the government for help. Real capitalism requires real money, and we haven't had that for a long time. What we have now is socialism for the rich and capitalism for the poor. Full blown socialism isn't the answer of course, but no poor person wants to hear that. They want someone to relieve their pain. They don't believe that our government funny money intentionally caused the wealth imbalance and their shrinking standard of living, and they think socialism might be the solution. They are on the right track thinking that we have to do something to regulate the imbalance, in my opinion. The only way to do that is to return to sound money, where it can't magically be counterfeited into existence by banks and the government. (As was demanded by our constitution, if you recall) There would never need to be any serious debt crisis if money was backed by real tangible gold and silver. The system would regulate itself. If a bank makes loans to people that can't pay it back, so what? The bank loses, and maybe learns a little in the process. If a government wanted to create a social program, it would be required to tax that society, not the children of that society. If a government wanted to fight a war, they would need to tax their citizens to pay for it. There is no logical reason why any free society would choose to use a fiat currency if they could instead use something like gold/silver. There are, however, logical reasons why governments would want to force it on us anyway, and none of those reasons work in favor of poor or middle class people. The three questions millennials really need to ask themselves is 1. What is money? 2. Where does it come from? and 3. Is it possible that the monetary system that we currently have is causing most of the problems our society is facing. When you get a solid grasp on these basic ideas, only then can you begin to understand the concepts of saving and investment in today's world. Ray tells them to concentrate on saving, but what is saving, exactly, if the instrument you use to save in is made of quicksand? Follow up question, is it necessary to save in such an instrument?
CHACE I have not educated myself in equities and know very little about them. Ill dig into them soon. What is it about equities that attract your attention?
I've been considering investing in precious metals but im still ignorant on which one would be a more prudent choice. I'm leaning on silver over gold. Anyone with more experience on the topic, I'd love to hear your thoughts.
