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HOW TO CONVERT A LIABILITY INTO AN ASSET – ROBERT KIYOSAKI, Rich Dad Poor Dad

(upbeat tempo) – So welcome back its Robert Kiyosaki with my dear friends' daughter here Alexa. And we're talking about
Millenials and money, and we gone through some lessons. I don't know how many more, but let's continue on
with another lesson here. And so we were talking about you know assets and liabilities, right? – Yes. And when you read Rich Dad Poor Dad I said your house is not an
asset what did you think? – Well, I think that's a conception that many people believe, but as you demonstrated the last seminar that we went to in Argentina.

My mom had her properties and she converted them into assets. Correct. – I think it just depends
on what you do with it and it would be great if you could show us how to turn your house into an asset. It's very its really fundamentals. If I could go back I
probably covered it earlier, (marker rattling) but it's a crucial
question and this is what financial education and
financial literacy really is. Again it starts with the financial
statement and I would say probably 95 percent of all
college graduates don't know what a financial statement is. You took an accounting course right? – Yeah, I did. I know you go through parts of this, but I say to young people like
you there's six basic words to financial literacy
and financial education.

And the six words again are income, expense, asset, liability. See I don't really care
about my FICO score a fico score just basically registers are you trustworthy with borrowing money, but a bank will never sel. I borrow in the hundreds
of millions of dollars. (chuckling) A fico score not gonna get me there okay. It's so it's kind of a
ruse I mean I don't its, it's important but not for me. So these are the four
words income, expense, asset, liability. Then the last two words
are the words cash flow. And that's, why the
game is called cash flow (marker squeaking) and the secret to being rich
is not a college education, but can you control cash flow. And this is what cash flow in looks like. So this here you need this income, expense, asset, liability.

(marker squeaking) Again this is you get a job
and this is my poor dad, go to school, get a job, get your PHD. And so this here is cash
flow so income comes in and it goes out this way. First line of expense is tax, but this is a poor
persons cash flow pattern. It's not how much money
you make most people you know they. I don't care if you what you have a Ph.D. or no school at all. They can't control the cash flowing out through their expenses so that's, why people like Susie or men say cut up your credit cards,
live below your means cause you're a spend-a-holic.

So that's a poor person. This is a middle-class
persons cash flow patterns and this is where the house comes in. They, first thing you know most kids do when they get pay raise and all that they buy themselves a bigger house, now my house is an asset. Who tells you that? Your real estate agent of course! – Yeah. (Alexandra giggling) Right cause they they want to give you this false sense of security
while you're getting screwed.

– Exactly. Ya know but when you look at
what happens with the house a personal. I mean a personal residence that I live in the money comes in it goes
out and this is middle class, but also goes out through a mortgage. Mortgage payments, oh but
I don't have a mortgage. You still have taxes you still you know. Hawaii just raised the
property taxes on me. Which is probably why I'm gonna sell. I'm gonna get out of Hawaii, but you have taxes and you have upkeep so monies always flowing out. So that's why your house is
not an asset it's because its taking money from your pocket. So very simply said assets
put money in my pocket, liabilities take money from my pocket. And then this here is, so I'm not saying don't buy a house but here is a house that. And I started when I was
25 bought my first house it was an apartment with
an investment property. I didn't live in it, I rented it out and it put money in my pocket.

So very simple the definition
of asset and liability is not the house or this, its cash flow. Where is the cash flowing? So as a young person (Robert coughing) and to all millennials or if you're old financial intelligence is the
ability to control cash flow. And that's what they
don't teach you at school. They tell you to go to school, get a job. First thing is tax you know, you'll pay most of your money
will go out through taxes, in your lifetime. Then they tell you to buy a house, a car.

Cars an asset, no cars a liability. You got insurance, gas,
upkeep, and all this. Now if you buy a, a taxi
car it could be an asset, its cash flow. And that's very simply it, so this is a poor person. Money goes out there's a lot we, we just interviewed some
national football league players who make millions of dollars in their 20s. And most of them are broke in two years because they can't control cash flow.

Intelligence IQ is can
you control cash flow not your college degree. College degrees are important, but they're not gonna teach you this. So the cash flow game, trains you over and over and over again to get your money in here to
get the cash flow this way. So I started with this,
cost me 18,000 dollars. I paid for the credit card and
I put 25 dollars in my pocket okay. It's an infinite return
because the cash flow paid for the mortgage, it paid the
expenses, pays the operating costs and I still made 25 dollars. Kim's first year was the same, hers wasn't 18,000 it was 50,000, 45,000 and it
put 25 dollars in her pocket, but Kim now owns 6,500 rental properties.

And she pays no tax because
the income comes from here. – Mm-hmm If you have a job you pay tax, but income the rich get richer because when you have asset income taxes are less. You can get it down to zero if you want. But that's financial intelligence, but can you control cash flow. Okay, so say that again. Assets what? – Assets put money into your pocket, liabilities take money out of your pocket. And so as a young person
you just focus on that so when you buying a new house, you're gonna say is this
gonna take money or put money? You buy an apartment house
is it gonna take money or put money that's it, its cash flow. Six most important words for
financial intelligence and IQ is income, expense, asset, liability, but its really cash flow. Now if I could bring up a
more horrible subject is, do you think people can
be assets or liabilities? – I think they could
be both, to be honest.

So for most young people
they fall in love, they get married, they have kids. Is a child an asset or liability? – A child is definitely a liability. I'm not saying don't have kids, but you gotta think the kid is expensive and they don't get cheaper. They get more expensive every year, you know then they go to college and then it gets even more expensive. So a human being now this
sounds horrible to all those socialists and communists out there, but the fact is kids cost money. But as an old guy, I want
you to think about this as I get older as people get older family members become liabilities. So I have a friend whose
mother thank god she had long term I don't know what they call it, but they just canceled it on her. She can go to a old age home and I think the price is 18,000 a month. Most so that as a young person
as your parents get older the question is can I afford
to spend 20,000 dollars a month on my mom or my dads' long
term healthcare, yes or no? – No, not right now.

No so. – No. And this is gonna happen to my generation many people don't realize, but there brothers or
sisters or sisters kids and all this become liabilities to them. So as a person whose fairly well off, I'm and Kim and my
friends are thinking about two legged liabilities. So I know today that if
my sisters become ill I'm the one with the money
and it's my responsibility to pay for them. Same as my brothers and their kids. So these are things that people
don't think about a lot of times is what happens
not only as they grow up, but what happens as they age. Statistics show the average
person in my generation lets say have a million dollars.

80 percent of that million dollars will be gone the last two years of life. Because medical expenses go
through the roof and today insurance companies are canceling. I forgot the name of it, but my friends' mother
it was just canceled. So he doesn't have 18,000 a month so he had to bring his
mother into his house and you know create
another room and all this. Well, I love her which he
does but shes a big liability and all he had was savings. So the savings are being depleted
going out this way, okay? So with your question
about houses and people, but people are also
assets and liabilities. For most people with our favorite subject, a 401K is it asset or liability? – From what I've learned from you its definitely a liability. Or an IRA or a pension cause
it's always going out this way. There's no guarantee it'll be there.

So this is the basic of
financial intelligence, financial literacy stuff like this. Another thing about people
is you have a bad advisor, like a bad financial planner, or a crook, or a business partner that's a crook, a wife that's a crook and all of that. They can be human liabilities. I have two friends right
now who just joined a million-dollar club. They married beautiful women, got divorced and the women is now costing
a million dollars a year in alimony. So their beautiful wife and the
child support it's a million dollars going and she's only 40 years old. So she has a whole pile of boyfriends, but it's costing him a
million dollars a year for her boyfriends. I said I wanna be her boyfriend.

(both laughing) not really you know. That make sense to you? – Yeah, it makes sense. Financial IQ is can you control cash flow. IQ means how big a problem can you solve so if like my friend whose
mother is now costing him 18,000 dollars a month. Well, thank
God he has about 100,000 in savings but in one year its gone. – Yeah. That's not high IQ, but for myself 18,000 dollars a month I ain't gonna make that much
cash flow pretty easily.

– yeah. okay. So when you're like in your 20s per, well how am I going to make. Let's say by the time
probably a 100,000 a month to take care of my parents, because like it or not its cash flow and they become liabilities. And the problem is getting worse
or because the bond markets are not providing income. So many insurance companies
have to renege on their promises to provide the cash flow to
take care of our loved ones the same as medical. – Wow. And so that's why when people
say I'm gonna go out on my own and do all these things they're
kinda doing what they love. Which is good, but they've
really gotta think about how many liabilities do they have. It's not just your rent you know, it's your family and so for me (marker tapping) and for Kim. We have family members, but they're liabilities so
that's why we stay over here. Hopefully, nothing will go wrong, but if one of my sisters got ill and she needs 100,000 a month
at least can provide it.

– Yeah. otherwise she they go they go indigent whatever they call it kay. – Yeah. Any other comments or questions? – No thank you for sharing so much about this content and all this information. That's gonna be super
valuable for all my friends and all the Millenials
out there just like me. So I have two friends that
are in the million-dollar a year club, it doesn't mean
they're making a million dollars it's their wives
are taking a million dollars a year out of their pockets
and their kids and all this. And I go you should of thought
about that 20 years ago. – Yeah. But you don't cause your in
love and you're gonna have kids and gonna make it together. – mm-hmm. But your parents offer great role models. So once again the six
words you have to know and be masters at income, expense, asset, liability, cash flow. You can control cash flow
that's financial intelligence, financial IQ and financial literacy, okay? – Okay. Thank you..

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401K to Gold IRA Rollover

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60 Years Old and Nothing Saved for Retirement – Top 12 Recommendations

moshi journal of the war about version 5 and her dick or nothing save time and in this video i will give you my top 12 recommendations from to gather épisode and the phoneshop s line my name is lynn mines and today we're talking about how you so I you're getting only star junior with over fifty with that over fifty5 maybe you our die in your sixties and now I have little or no 10 series time it i'm going to give you 2 tbsp specifics you can your original is concern there's no de jorna loon and it's never too late many people a coaching time lady finance even in the situation where we have the timing so stupid now arjan yourself in the beginning inge you where you were young just can't get by make and smeet more history family of chipper tells us times is a medium and helps and must collins take the pan yourself fit the sun tremor sixty thumping when in more detail with your juice at lower netting seyfried time and of course start in early there is a storing late but you can make up Alaska hands and math eyeshadow in situations unique and what works for one person may not work for another for coastal regions with the Parisian this video is the ghibli some practical ideals and strategies to consider this there can make a very big difference to you in your goal detail majors number 2 tap in the toori of your situation and then for your timeline that you already have the passado de is how shampoo pure fifty five singlet hero that had ten years before your sexy woman and 14 use the force that you can campus aladdin 14 years old and earth 3 vai dealers bart herbed be focused in that can we have plans at in the greatest az is your building churn and income that have income or the ability to become i can there is your goals english is not about how much you earn is what you chi the mathers new be surprised with him the people with high income i am super icons the wrapper elearning c at the front you'll be surprised at how many people with barry but is it war incomes have surprising the size ball to the ponies alice ivory terms and they financial planner eyes i head in the spectrum and him force me to the moon and more the natural tennessee is to spend more the global fund yogis and there you have to use your browser necessary expansions we already bread igor inputs and leslie protest you the cancer your channel effectively protest with old plans in moscow color go recommendation numbers 3 is 10 million numbers in economies way glowing you don't want your card in flow and url flow the income and expenses the calving budget through budget is to work parking were many people feel like folding budget is even though he has the you a bit suggest that you change through you want a lot budget of this chickens the the learns that helps keep it simple in a simple traces this is t still a nice way going nb controlling nice way glowing knowing you manage there you have to do a major a bit of the beak you often in thatcher fray recommendation number for completing journey they spend in arnhem with commitment to check all here tension quarter idea for what of the next perfect and min truck every penny you can simple idea what the pc' pepper donor come together or if you like i can download spending a dead spreadsheet the week savior it is very simple harpel toe an excel spreadsheet designed with purpose it free download and there is a link in the description below then I had a garden but my deesje number five is nipping the bud back online now I have to have color that is a bucket of income Camille and wedges Gillingham someone who will be empowered to make some changes the girl with me for middle what would be like if you were able to all your income or in other words i had no expenses there already fine and zeros the snowfall wants is thing you sent with your kids and corn oil in best oil that can be put in there someone for the nex-5t and 14 hours how much of nfc can you use your kimeli i would be a significant amount of money you should just think brain recommendation number sex this is the great and pink outside the box' the monsieur with your personal story but wait after bad guys mother pork royce duns with the laitman i did not prevent from being married and wooden awww man by professor locking must contain you won't you make and slammed and my new be challenging to be white and were determined to face life's challenge is what have they may be together have us leather yes we quiet small the finish my schooling and and there was also a full-time mother in singapore my and who weatherman etc to buy pearls you have to nemaattori in which comics people's saving 1 hour marie are to us in possible this is where we share the great if my biggest expence was rather fmri buddy we start to think boys republic loses when we get older and someone moving in with parents with the waif into small children and this point was after the bible option borsato time but we were determined to find a way to fool cycles likes people's so had to oil brainstorming my wife the BBC note the cursor church ring and she love to visit and care for elderly people save him from when in the elderly people there or in arcen who live in her home alone but he brings the point where can I assisted living and promised him and walked into a system care provider call when this weekend find someone there would be okay in the care provider game with the nekberghe into small chill you should never have anyone doing anything like this before I decided to take two mothers, in theory it is not acres of course this was washable before the Joline and anyway Glenn in there in the classroom white section to local newspaper who were surprised to see paths have that and Kohl's of people looking for loving care providers for the Cairns region billion more than one will be a rapper who with the first internship family Michel Nabertherm and in the film about who was new in elderly managers nine who are here three scraper from the strip company such a process and are now immediately since i was a barry k instrument the absolutely chill me you guys inside toe story home is the goal john their upper room and board we persisted full basement where films in refrigeration all utilities and my life was able to the shopping there is through and provide the not the care and they also peter siks to that per month additional the green office for and minimal when in love for the us complete guangzhou and sultry amical him only two in my wife's arms my i'm so my work this experience was a more photos on tags mother able to dry cycles so ark spencer's and even inc research then you have when you have to set it forward denpa one has to have brother first even the meteo another creative at work story and couple in sixty one very little c free time by a thousand glasgow and well it is in can was do you want that sylla bolhuis entire career day a creative and create aggressive client to do love them to reduce turkish patches bonnie lies and that person 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What Retirement Income Puts You In The Top 1%

what income does it take to be in the top 1% of all retirees you'd think that'd be a relatively simple project to research turns out it wasn't so stick around and benefit from the work that I did to uncover these hardto find numbers let's go for a walk and and talk about it and you know the first thing I want to observe is that most of us probably would not recognize could not tell by the lifestyle folks that are in the top 10% of all Rey income when I get to the numbers I I think you'll you'll say okay I think I would be able to recognize people that are in the top 1% I'll give you a hint it's a it's a much bigger number than than I thought it was going to be okay and and so why is that you know why wouldn't we recognize uh the folks that are in the top 10% and it's because like a lot of things in life you know if you look at Millionaires and millionaires Lifestyles you know 70% of millionaires in America or self-made and and most of them most of us uh got there um by being you know uh uh careful with our money and and and being good Savers as as much as uh being fortunate and and receiving a a good salary along the way okay so I'm going to start off with what these numbers look like for all Americans and this is from a large data set they say it's the largest population data set uh in the world and the organization is called ipums and this is for all Americans not just retire so um to be in the top well first let's start off with median and and this is household this is household income the median household income uh in the United States for for everybody all ages is is $70,000 to be in the top 25% you've got to make about $130,000 000 to be in the top 10% you're making a little over $200,000 the household income a little over 200,000 it's 212,000 and to be in the top 1% you're making over $500,000 a year now um and the number is 570,000 what was interesting is each of those groups from um 2021 to 2022 so this is a data set uh that they released the results of at the end of 2022 each of those groups got a raise between 2021 and 2022 unfortunately from the median and Below on an inflation adjusted basis folks that are at the median below uh are actually making less on an inflation adjusted basis folks that are above the median are making more in 20122 and we've heard this play out in the press okay so so those are the income levels now now let's talk about savings and there's a really interesting point I want to I want to share with you here okay to be in the um to be in the top 1% of Savers in the United States this is the top 1% if you're between 65 and 69 75 and 79 or over 80 it's to be in the top 1% you've got to have $2.7 million in what's called net worth the net worth is just take all of your assets all of your savings accounts the value if you own a house the value of your house and subtract from it the the the debt that you have on that essentially so you just take all of your assets and you subtract all your liabilities your car loan your your mortgage your credit card debt hopefully you don't have too many of the latter too uh and that's your net worth so um if you have a net worth of $2.7 million a household net worth uh in the United States you're in the top 1% what I want to point out is you know if you look at the income boy that income is really staggering right I mean the top 1% of income is 570,000 or higher and you know some people will say well you know that number seemed a little low I was expecting that top 1% of income to be higher and I I agree but that's like the last person that made it into the top 1% so there's plenty of people in that category that are making a lot more money but think about this you know the the lowest income in the top 1% is almost $600,000 right it's $570,000 yet to be the top 1% in savings you just need $2.7 million or more um and what that tells me is you know as a society as a country it's no surprise we're not saving enough money and so um it's not enough to make a great salary you've got to be able to to save it but to me that was just staggering that you know essentially that top 1% you know if they were the Savers they essentially have saved um what five years worth of income uh and most of us could not retire if we had just saved five years worth of income right so that just shows just the the importance of living below your means and and saving as much as you can okay let's keep going now I'm going to Break It Out by desile and again this is household and this is according to the Congressional research service so the the lower quintile so there's five groups the lower 1 the lower 20% of Americans are making under $22,000 a year then the next group up from that are making you know between that 22,000 and 40,000 the next group up to that is is making between 40,000 and 65,000 um so you can see that you know 80% of Americans households are making less than $65,000 a year now I haven't got to retirement that's coming up here really soon um let me get to the top quintile the top quintile households in America are a little over $110,000 let's call it $111,000 okay so now let's get to what I finally was able to find out so I've shared a lot of information here and I think many of you are listening to this this uh these numbers and saying you know what I'm doing okay you know it's hard to get that high high salary but if you're saving and if if you're uh spending less than you earn if you're saving that and then importantly if you're investing that remember it's not enough to just save you have to invest it you have to get compounding working for you so a lot of you I think are looking at the at least the savings number and saying yeah we're doing okay we're doing okay and I hope you are I hope you are okay so now getting on to the uh uh the the top income in retirement uh and before I get there if you're enjoying this video take a quick second and hit the like button it really does help the algorithm uh find other people that this this video uh and my videos can help okay so um I'm going to break this out the top 10% the top 5% and the top 1% so people people 65 to 69 now this is people that are working and not working top 10% is 200,000 top 5% is$ 260,000 top 1% is essentially $1 million okay so that's 65 to 69 and now for people 70 to 74 numbers come down a little bit top 10% is $170,000 top 5% uh is $26 is that right yeah 265,000 and the last number is a million dollar so retirees to be in the top 1% of all people 65 and older you need to be making a million dollars a year just to put that in perspective that rule of 25 if that's what the uh if that's what the income is then they had they'd have to have $25 million in savings by the the rule of 4% I hope you found this video helpful if you did I know you're going to like this video up here that talks about average income for retirees in America and this video down here that talks about five reasons to retire as soon as you can thanks for watching bye-bye

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The Challenges of Retirement In Australia

Researchers found that the average Australian is planning to retire at the age of 65 and it is expected that over the period of the next 5 years there will be approximately 673,000 workers planning to retire. The income needed to cover living expenses for a couple is around approximately $70,000pa, while for a single person around $50,000pa. And for majority of retirees, Age Pension is either the main or a significant source of retirement income. As I explained in my last video, our government has been working on a superannuation system and explaining it to Australians over many, many years, that now superannuation has become a major source of our savings. For more details, please watch my last week’s video: “What can I do with my super in retirement?” If you watched that video, you might remember when I mentioned that now our government has established Retirement Income Review that is concentrating on the retirement phase of superannuation. And today I will continue the real issue we have in Australia, that is the challenges for the government and us all when it comes to planning our retirement with the view to ensure security of our income and prosperity over the years and also longevity of our savings that is becoming a real challenge for the government and for each person that retires.

My name is Katherine Isbrandt from About Retirement. I am Certified Financial Planner and your are watching About Retirement TV, the only channel that is fully designed to provide you with all the information you need to be well prepared for your upcoming retirement or to improve your retirement financially, if you are already there. Our government has recognised the need to work on the retirement or a pension part of superannuation system, as the number of people retiring is greater than the number of people entering new workforce. This by default will introduce a necessity to have a system where we personally use our savings, primarily from saved superannuation contributions for the purpose of providing income during our retirement, as the government can no longer support such a big number of retirees. And let’s be honest, some people who retire now, have accumulated quite a nest egg in their superannuation, hence they can become self sufficient or only partially supported by Age Pension, while the full Age Pension payments are limited to those that are below the Income and Assets means testing.

But there is another major problem, there are too many people retiring and needing advice, than the number of financial planners or advisers who can support them with professional advice. And now we are hitting a real dilemma that worries me a lot. The government is now forcing super funds’ trustees to provide a meaningful guidance to their superannuation fund’s members as to their retirement choices and how to set them up. The problem is that superannuation rules are very complex, and that complexity does not help. Super funds are just simply not equipped and they do not have staff that is knowledgeable enough to provide that meaningful advice. I can only see on daily basis when speaking with many new clients, what mistakes are being made by super fund staff, when providing advice in the area they have no knowledge or understanding, which exposes members to huge financial risk and risks with the regulator such as Tax office. Also much of the research has been done to understand the pattern of retirement in Australia, and there is not one pattern that will prove that a particular strategy or a specific course of action will work for most people when retiring.

Planning is one thing, but life is often different. The CoreData shows that in many cases it is a retrenchment, health issues or necessity to care for another person that are often the triggers for retirement decision, and very often it is much earlier retirement, which means less savings that maybe a person has been planning for. And this is just one of the examples, when a proper professional advice can assist a great deal. In Australia we generally have two types of superannuation funds: ATO regulated such as SMSF or Self Managed Superannuation Funds and APRA regulated, which are all other types of superannuation funds such as retail, corporate, or industry super funds. A research was done to see the difference between the behaviour of members of those two types of supers and the research found that only half of all APRA regulate fund members aged over 65 took advantage of the favourable rules within the superannuation system for their age. In comparison to 7 out or 8 members of SMSF. therefore we can safely say that majority of SMSF members take advantage of all financial, tax and superannuation benefits available to you.

So why there is such a vast difference? It is because the majority of SMSF member receive professional financial planning advice and more than 50% of APRA funds members don’t. Similarly, to the above, majority of SMSF members will utilise the benefits of Transition to Retirement strategy for example, available to qualifying members, while only a very small number of APRA regulated members take advantage of this strategy. If you do not know what I am talking about, or you would like a refresher on TTR, watch this video: “Can I access my super and continue working – TTR explained” You see, if you were working with a financial planner, your adviser would let you know when to start this strategy, would set it up for you and assist you to take advantage of all benefits out of this strategy, as there are different reasons why it might or may not be suitable for you.

Rules are identical, regardless of the fund you are in. It is a matter of understanding those rules and at what point they become beneficial for you. So as I mentioned before, advised clients will benefit from each strategy as they progress in life and in their superannuation savings cycle. Unadvised members of super funds must know that such a strategy is even available to them in the first place, not to mention, they would need to know how to go about setting it up correctly to their maximum advantage. So the financial outcomes between advised and un-advised clients is quite astonishing. And it is often not the market returns that bring the biggest benefit, but the appropriate strategy being applied, that can be completely different for each person. And if anyone is trying to explain to me that this is due to high cost, I would mostly disagree. I am not trying to say that financial planning advice in inexpensive, but it is the case of understanding the benefit that you can gain before you make a decision of affordability of such a service. So going back to my previous point, our government is trying desperately now to find the solution for the advisory system in Australia, forcing almost all super funds to take over the role and providing such services.

The strangest thing is that in general, super funds don’t want to do this, as such a service will require spendings to implement appropriate support, train their staff, and take on the legal responsibility of advice. The compliance regime is enormous, as I mention before in Australia superannuation system is relatively safe and reliable, however, superannuation in pension stage lacks variety of income and security of it as well as longevity. This is the reason, why my plans consist of mixture of different income streams, because there is not one product that can satisfy all the needs for retirement.

But even taking into consideration everything that I’ve just mention, did you know that Australia is in the top 10 countries when comparing the quality of life in retirement. As a matter of fact, Australia is number 7, behind Norway, Switzerland, Iceland, Ireland, Luxembourg and Netherlands And we are ahead of Germany, Denmark and New Zealand, which are the other countries in top 10. But going back to the research, it is suggested based on the data that the complexity of the superannuation system has created a division between “haves”, so members that receive ongoing service and advice, and have-nots” those that have not received any advice, which are primarily members of APRA-regulated funds. I do hope you found this video of interest and a little bit of food for thoughts. If you believe that you are ready to receive a proper financial planning advice, just book a meeting with me through my website AboutRetirement.com.au On each page of my website there is a button: BOOK A MEETING that will take you to my personal calendar, where you can choose the date and time that suits you and when we meet, we can discuss your investment and your retirement options.

While you are on my webiste, sign up to the NEWSLETTER to be kept updated with all the changes that can impact your retirement. And if you enjoyed this video, please give it THUMBS UP and SUBSCRIBE to my channel not to miss my next video. And now please continue watching those previously mentioned videos: “What can I do with my super in retirement?” and “Can I access my super and continue working – TTR explained” both videos are of great value and lots of important information to improve your financial planning knowledge. I will speak with you in my next video, bye for now.

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How to Invest for Beginners

Right, so let's say
you want to get started with this investing thing. You might have a bit of money saved. It's probably not enough for a house, but you reckon I should probably
invest this in something. Maybe you've heard on the news about Tesla or Netflix or Amazon and how, if you'd invested 10 years ago in Tesla then you'd be a millionaire
by now or things like that. But if you're new to the game, this whole investment thing can seem like a really
complicated black box. Like, how do you even buy a stock? What even is a stock? Do you just go on tesla.com
and buy some Tesla, like, how does it work? (chuckles) And if you try and look into this, you get all these acronyms
being thrown around like Roth IRAs and 401Ks in America or like ISAs or LISAs in the UK.

And on top of that, there is the anxiety that we all have that I
know investing is risky and I don't want to
lose all that my money. So in light of all of that,
this is the ultimate guide on how to get started with investing. It is the video I wish I would have had five years ago when I
first started investing in stocks and shares. And we're gonna cover this by thinking about investing in
10 different bite size steps. So the first one is forgetting
about investing completely and just thinking what happens to my money
over time by default. And if you've studied economics, you will know that your money
loses its value over time.

Thanks to something called
inflation. (bubble pops) Inflation is generally around
about the 2%-2.5% mark. And so that means that every
year stuff costs about 2% more than it did the year before. For example, in 1970, in America a cup of coffee cost of 25 cents. But in 2019, that same cup
of coffee costs a $1 59. That is inflation in action. And so let's say you've
got a thousand pounds in your hand right now. And for the next 10 years, you just stash it under your mattress. And you never look at it again, in 10 years time your thousand pounds is not gonna be worth a
thousand pounds anymore because everything would have increased by 2%ish every year.

So the value of your
money will have fallen. And so if you put your thousand
pounds under your mattress for 10 years, you will
lose money over time. And this is obviously not good. Even if you put your money
in a savings account, like these days, a savings account will
give you like 0.2% interest which means your money
goes up by 0.2% every year. But because inflation is up by 2% you're still losing money over time. And again, this is not good. Okay, so that begs the question which is key point number two which is how do we stop our money from losing value over time? And the answer is that if we had a hypothetical savings account one that was let's say
an interest rate of 2.5% that would match roughly
the rate of inflation.

So inflation means
everything goes up by 2.5% in terms of price. But our money in our savings account also goes up by 2.5% each year. Therefore we're technically
not losing money over time. If you're watching this
and you have an issue with the word interest, don't
worry stick to it for now, investment is not the same as interest but we'll come back to that a bit later. But the point here is that we don't just want to not lose money which is what happens at our 2.5% rate. We actually want to make money.

And that brings us on
to question number three which is, well, how do
we actually make money? Now, let's go back to our
hypothetical savings account. If hypothetically, we could
have a savings account that was giving us a 10% interest rate this will never happen because
that's just way too high. But hypothetically if it did, that means that every
year we'd be making 10% of the value of the money
in our savings account. So for example, if I were
to put a hundred pounds in a savings account right now the next year it would be worth 110. And then the year after it will be 121 because it's 10% of then the 110, and then it would be 130 something. And this would very
quickly compound so that in 10 years time, my 100 pounds
will have become 259 pounds. And if we adjust for inflation that our money is still worth
206 pounds in 10 years time, this is pretty good. We have more than doubled our money, by just putting it in this hypothetical 10%
interest savings account.

And it really doesn't
seem like it would do that because 10% feels like
a small amount of money. But if you extrapolate 10% over 10 years you actually double your
money, which is pretty awesome. Sadly these hypothetical
10% saving accounts don't really exist, because
it's just way too high and real life is not that nice. These days, most savings
accounts in the UK and I imagine around the
rest of the world as well, offer less than a 1% savings rate, which means you're actually
still losing money over time. But we do have other options to try and get us to this magical
Nirvana of like, you know, this 10% saving thingy. And that is where investments come in. So point number four is
what is an investment? And the answer is that an investment is something that puts
money in your pocket. For example, let's say you buy a house for a hundred 1000 pounds and you want to rent it out to people. There are two ways, that's an investment. There are two ways you're
making money from it.

Firstly, let's say
you're charging some rent to the people living in your house. Let's say you're charging
them 830 pounds a month. That becomes 10,000 pounds a year. And so every year you're
making 10,000 pounds in rental income, which is 10% of what you originally paid for the house. That means that in 10 years time you'll have paid off the a
100,000 pounds that you've put in because you're making 10K a year. And beyond that every year
you're just making 10,000 pounds in pure profit. So that's pretty good. But secondly, it's an investment because the value of the house itself would probably rise over time. In general, there is a trend
in most developed countries that house prices tend to
rise over the longterm. And so your house will probably be worth more than a hundred thousand
pounds in 10 years time. And in fact in the UK,
historically in the past, some people have said that house prices have doubled every 10 years. So maybe your house is worth
close to 200,000 pounds.

And so you've made money
off of the rental income but you've also made money
off of the capital gains which is what we call it when an asset increases
in value over time. But the problem is that buying a house is a little bit annoying. You need to have quite
a large amount of money for a deposit. You need to get a mortgage. You need to actually have the house. You just sought out the rental management, rent it out to people,
all that kind of stuff. If only there were a way of investing without a, having a large
amount of money to start with and b, without having
to put that much effort into managing the assets as well. And that brings us on
to investing in shares. And for me, basically, a hundred percent of my investment portfolio
is entirely shares. I have a tiny percentage in
Bitcoin and I own this house but I don't consider
this house an investment. I'll talk about that in a different video.

Therefore number five is what are shares and how do they work? So buying shares probably as close as we're ever gonna get to this magical savings account that just returns some
amount of money each year. And the idea is that when you buy a share, you are buying a part ownership of the company that
you've got the share in. For example, let's say the Apple have a particularly profitable year because lots of people have well iPads as per my recommendations and because Apple are feeling kind, they are choosing to pay out a dividend to their shareholders. So for example they might say that they're gonna issue a
dividend of a million pounds, and that's gonna be split evenly amongst whoever owns shares in Apple, based on how many shares they own. So for example, if you
happen to own 1% of Apple you would get 1% of that
dividend that they've issued.

So 1% of a million pounds,
which is 10,000 pounds obviously no one watching this
actually owns 1% of Apple, unless Tim Cook, you're watching, I don't even know if you own that much because that would make you
an extremely rich person because Apple is a very valuable company but that's basically how
the dividend thing works. A company decides to issue a dividend as a way of returning
some of its profit back to the people who have
invested in the company. And therefore you make
money through dividends. The second way of making money from shares is sort of like with houses in that you get the
capital gains over time. So for example, let's say
you bought 10 shares in Apple in 2010, at the time those
shares were selling for $9 each. So yoU.S.pent $90 on
buying 10 shares in Apple. As of October, 2020, Apple
shares sell for $115. So your 10 shares are now
worth $1,150 just by the fact that you only paid $90
for them 10 years ago. Okay, so we've talked
about what a share is and how you make money from them.

And at this point you've
probably got a few questions like how much money
you need to get started or how risky is buying
shares in a company. And I promise we're gonna get to that. But point number six is how
the hell do you buy a share in the first place? And this is where it can
kind of get complicated because it's not as simple
as going on apple.com/buy and just buying a share in Apple.

It doesn't quite work like that. Instead you have to go through,
what's called a broker. And back in the day, a
stockbroker was a physical person usually a dude who you
would call on the phone and say "Hey, Bob, I
want to place an order for some shares in Apple." And then Bob would types
and stuff into his computer or a place like a paper order. And then you would own shares in Apple. Thankfully these days we don't
really have to talk to Bob because there's loads and loads
of online brokers instead. And so you make an account
on an online broker and then you can buy shares
in a company through that. A bit annoyingly, every different country has their own different brokers that operate in that country. Because to be an online
broker in a country you have to abide by like
a zillion different laws. And so in the UK the system
is different to the U.S.

Which is different to Canada
and Germany and so on. And the UK, for example, most banks do have their own online
brokerage type things. So with most bank accounts you can also open an investment account with them and then invest online. But usually the interface is a bit clunky. It's a bit old fashioned. And so you're usually better off going with an online broker. In the UK, the two that I use
are Charles Stanley Direct and Vanguard, but before
we get ahead of ourselves and make an account on
Vanguard or whatever, we need to understand a few more things.

And so question number seven is how the hell do I decide
which shares to buy? And the easy answer to that is that you actually
don't want to figure out which shares to buy. You do not want to buy individual shares. And I'm gonna tell you a
little bit more about that once I've had a haircut,
so see you shortly. All right? So new hair, I've got
my Invisalign braces on. So I'm gonna sound a little bit different but where were we? Oh yeah, we were talking
about why it's not a good idea generally speaking to
invest in individual stocks. And I'm gonna do a video
about this some other time, but essentially the issue with investing in individual stocks
is it's kind of risky. Like, yes, if you invest
in something like Apple, chances are it's gonna be
around 10 years from now. But historically there've
been quite a few companies that people were like, "Oh
my God, this is amazing. This is the thing to invest in." And then that company went bust. So you're automatically
exposing yourself to more risk if you're investing in individual stock, also in general, like it's easy to say, hey, Amazon grew 10X in the last 10 years.

Therefore it's gonna
continue to do the same for the next 10 years. But that's trying to predict the future. And the past is no real
indication of future performance. And so the advice that most people would give for beginners is that you should not
invest in individual stocks. You should invest in index funds. And this is what Graham Stephan, one of my favorite
YouTubers also says as well. He says, "The index funds
are the best, safest, and easiest longterm investment
strategy for most people." Which begs the question
point number eight, what the hell is an index fund? So there's basically two
bits to understand here there's the index bit and the fund bit, let's start with the fund bit. And a fund is basically where investors will pool their money, so multiple investors would
invest in the same fund. And then that fund would
have a fund manager. And the fund manager
decides which companies the fund is gonna invest in. For example, let's say
I were managing a fund and I called it Gringotts and
let's say a hundred people from my audience decided to
invest in my Gringotts fund.

I as the fund manager can
say, okay, the Gringotts fund now that we have a hundred people's money let's say it's a 100 million. So everyone's invested 1 million each I've now got a 100 million. I'm gonna put 20% of that
in Apple, 10% in Facebook, 10% in Amazon, 10% in
Tesla, 10% of Netflix 10% in Johnson and Johnson,
all of that sort of stuff. And so you, the investor
don't have to worry about this because you trust me and my fund Gringotts to manage your money. And as you know, the fund performs well, because the prices of these
stocks and shares increases you get the returns and I take
a 1% or 2% management fee. So I make a load of money because I'm earning 1% or
2% off of this a 100 million that I'm managing and you're not worrying about having to pick stocks yourself. You trust me as a seasoned
professional to do that for you. So that's what a fund is.

Now, the index bit refers
to a stock market index. And so a stock market index would for example, be the FTSE 100 which is the a hundred
biggest companies in the UK or the S&P 500, which is
the 500 biggest companies in the U.S. or the NASDAQ or the Dow. And these are all different
indices of the stock market. And if we use the S&P 500, for example, these are the components of the S&P 500. So we said, it's the 500
biggest companies in the U.S. So number one is Apple and
Apple makes up 6.5% of the S&P, Microsoft makes up 5.5,
Amazon makes it 4.7, Facebook has 2.2, Alphabet,
which is a Google makes 1.5 and 1.5 is about 3% of the total S&P 500. And essentially we've
got these 500 companies if you go all the way down… Oh, Ralph Lauren is 496, but chances are, you've not really heard of many of the other ones
at the bottom of the list but chances are, you've heard
of most of the companies towards the top of the list.

So the S&P 500 is an index
of the U.S. stock market. And if you look at the performance as a whole of the S&P 500,
you get a general idea of how the U.S. economy
is going as a whole. So this is currently what
the S&P 500 looks like and if we do a five year time horizon, in fact, let's go max. So you can see the S&P
500 started in 1980.

And since that time this is what the us stock
market has been doing. So as you can see, there
is a general trend upwards but for example in 2000,
there was a bit of a crash, in 2008 famously there
was a bit of a crash. And earlier this year, when
Corona was first starting to be a thing there was a bit of a crash but then the market basically immediately recovered after that. Okay, so we know what a fund is, i.e. a way of pooling money. And we know what the index is,
something like the S&P 500, when you combine those,
you get an index fund which is a fund that automatically invests in all of the companies in the index. And so with me, for example basically all of my
investments, all of my money is in the S&P 500, which effectively means that 6.5% of my investments
are in Apple, 5.5 in Microsoft, 4.7 in Amazon, 2.2 in
Facebook, 3% in Google, 1.5 in Berkshire Hathaway and so on. So why is this good? Well, it's good for a lot of reasons.

So firstly index funds are
really, really easy to invest in. A big problem that
beginners have to investing, it's like, well, how the hell do I know which company to invest in? How do I read a balance sheet? How do I do any of this stuff? If you invest in an index fund, you actually don't have to
worry about any of that. Secondly, index funds give you a decent amount of diversification. There are all sorts of
companies in the S&P 500. So you're not entirely reliant on the tech sector or the oil
sector or the clothing sector or anything to make
the bulk of your money. You are very nicely diversified across all these U.S. companies. Thirdly, index funds have very low fees. So because it's not a real
person who is deciding what to invest in and
doing all this research and trying to make loads of money is essentially a computer algorithm that automatically allocate your money based on the components of the index fund.

The fees for those are really low. And one of the main things
about investing for the longterm is that even a slight
increase in your fees is gonna massively impact
your financial upside. And so for example, an
index fund with a 0.1% fee is so much better for you than an actively managed fund where a fund manager
is charging you even 1% because the longterm
difference between 0.1% fees and a 1% fee is sort of
absolutely astronomical over the long term.

And finally, if you look historically and, you know technically
historical performance is not the same thing
as future performance, but if you look historically very few funds have managed to actually consistently beat the market i.e. outperform the index. And in fact, someone like
Warren Buffet famously says that if you gave him a
hundred thousand pounds and asked him to invest it right now he would just invest in an
index fund, like the S&P 500. And in fact, in 2008 Warren Buffet challenged the hedge fund industry to try and beat the market. He said that hedge funds
are a bit pointless because they charge way too high fees and they don't actually
get the sort of returns they claim to get. And so he set up this 10 year bet which this company called
Protege Partners LLC accepted, where Buffett said that he was gonna bet that the index fund outperformed
the actively managed fund.

And he ended up winning that bet and sort of gave lots of money for charity or something like that. But that just sort of goes to show that it's really hard to beat the market with an actively managed fund. Basically, no one can predict what the market is gonna do in the future. And therefore if you
hit your ride on index, i.e. you're gambling on the entire market, rather than thinking, you know what I've got some amazing insight that I'll know exactly
which 10 stocks to pick that are gonna beat the market.

You might as well hit your
ride with the whole market rather than individual stocks. Okay, so we've sorted out the problem of which stocks to invest in by completely circumventing the problem and instead, just
investing in index funds. The next big question people usually have about investing in stocks and
shares is the amount of risk. And that brings us to point number nine. And the argument usually
goes as follows that, "Hey, okay cool. This investing in stocks and shares stuff. It sounds kind of interesting, but my uncle Tom Cobley, invested lots of money
in the stock market. And he lost a lot of money. And my parents have told me that investing in the stock
market is a really risky thing and I shouldn't do it.

And I should instead invest in real estate because real estate is safe." That is usually the sort of thing, the sort of idea that people
have about investing in stocks. And naturally there is the anxiety of what if I lose all my money. So let's talk about that now. So if we take a step back, the only way to lose money in anything is if you buy a thing and then you sell it for less than you actually bought it. Like, let's say you bought
a house for 300,000 pounds, and then Brexit happens the next day and the house prices plummet. And now your house is only worth 250,000. At that point, if you
decide to sell your house, then yes you are losing money and you've lost 50,000 pounds.

Equally, the only way to
really lose money in stocks is if you buy a stock at a certain price and then you sell it for
less than that price. So for example, let's say
you bought shares in Apple on the 18th of February, 2020. And let's say you bought one share which time was $79 and 75 cents. And because this is your
first time in investing you keep on looking at the
price of the Apple stock because every time are you thinking, oh, have I made money, have I made money? And really annoyingly for you, you see that over the
next kind of few days a few weeks, Apple stock
is actually going down.

And then on the 18th of March,
2020, you decide screw it. I'm gonna sell my one share on Apple, because I don't want to lose all my money. And you sell it for a
measly price of $61.67. And so you technically lost $18 because you bought it at $79 in February, and you've sold it for $61 in March. Then you think, damn, I've
lost 20% of my investment. This stock market thing is BS. I'm never gonna invest in
the stock market again, and you call it a day. And this would be a very bad thing to do.

Because for example, if we
look at Apple stock price in March, it was $57.31 but if you just held
onto your one Apple share in that time, what is it today? It's the 8th of October. Apple is now trading at $114.96. So if you just held on for a few months, you would actually made a lot of money. You would have bought it at
$79 and within, I don't know eight months, it would now be worth $115.

That's a pretty good game. And so the real lesson here is that when you're investing
in stocks and shares, and also when you're
investing in real estate, these are longterm investments. Ideally, you shouldn't
be putting any money into stocks and shares that you need to access
within the next five years. And actually a lot of people
would extend that to 10 years. And it's exactly like
that with house prices, it's like if you buy a
house as an investment, and then the houses house prices go down it would be completely stupid of you to sell the house unless
you are absolutely desperate for the money, because
something major has happened.

And instead, if you
just held onto the house then you would have made
more money in the long run because in the longterm
house prices always go up and in the longterm basically the stock market always goes up and that's a bit of, it can
be a controversial statement. It is true, but I'm gonna make a video at some other point
explaining why it's true but for now take my word for
it that over the long term, the stock market always goes up. But having said that again,
this is a longterm thing. And so, for example, if
we look at the S&P 500 and look at how it was in
2008 at the financial crash right in 2007, it's $1,500
per bit of the S&P 500. And then the crash happens
and then by what is it? February, 2009, it's down to 735. So basically 50% of the
value has been wiped off of the S&P 500. Now, if you bought it in 2007
and you saw it, you know, get a crushing and crashing and crashing, and then you sold when it was $800.

Now, you've lost a lot of money because you bought high and you sold low. But if you just held on, it took let's see, to
June 2007 it's at 1500s, it takes about up until 2013. So it takes about five years for it to get back to its normal level. And even if you'd invested,
like just before the crash and then your investment plummeted by 50%, if you would just held on you'd have bought in
at the S&P 500 at 1500. And right now it would be 3,445. So since 2008, 2007, when he first invested
over the last 13 years the S&P 500 has more than doubled. So you would have more
than doubled your money, provided you did not panic
sell when the market crashed. Now, hypothetically could the
market crashed down to zero and therefore you will
actually lose all your money. Yes, it could, but if the us stock market crashed literally to zero
i.e. all top 500 companies, including Apple, Google,
Microsoft, Facebook, like literally every company
in the top, in the S&P 500, all of those got destroyed overnight.

And the stock market crashed to zero. The world would be in some
sort of mega apocalypse and you'd have a lot more
serious problems to worry about rather than the value of your portfolio, of stock market indices on Vanguard. In that scenario, in
that doomsday scenario money would stop meaning anything and you'd be using money to wipe your bum because money has no value because the stock market
is completely crashed. It's basically unfathomable
that the global economy could be so completely wrecked, such that every single
company goes down to zero. In my opinion, and again, you know, I'm not a financial advisor. This is technically not financial advice whatever that means, but in my opinion it's unrealistic to think that if I put my money in stocks and shares, I could lose all of it.

There's basically no way you're
ever gonna lose all of it provided you're diversified. If you invested in, I don't know, Myspace in 2000 and whatever it was, and then Myspace crushes and
then you've lost all your money because, you know, they have no money, but if you invest in the top
500 companies in the U.S. or the top 500 companies in the world, or the top 100 companies in the UK, it is so vanishingly unlikely that you will ever lose your money. That I don't think that is a risk that we should even be thinking about. So realistic, worst case scenario, yes, investing in the
stock market is risky in the short term, but if you're investing in the longterm, the market will always go up and you will always end up
making more money in the long run provided you don't have to take money out at inopportune times. Okay, so at this point,
we've established that investing in stocks is very good and investing in index funds is a relatively safe way of doing this.

The next question is usually
when should you get started? Like how old do you have to be? Is it ever too soon to start? Is it ever too late to start? And here the answer is pretty simple. And basically all investment advice agrees with me on this front. There's a very good website
called The Motley Fool @fool.com. and they have a
nice article explaining this. Basically, you should start
investing as soon as possible. It doesn't matter how old you are. It doesn't matter how young you are. The earlier you start
investing the better. There are three caveats though for like sensible financial advice. Firstly, you wanna make sure that all of your high interest
i.e. credit card debt is paid off, because when
it comes to compounding even though gains compound,
losses compound as well. And so if you've got like
a 6% credit card debt that's eating into your
bottom line every single month you want to pay that
off as soon as possible.

Point number two is that you want to make some
sort of emergency fund. And people usually say that
your emergency fund should have in cash basically three to
six months of living expenses so that if you lose your job or if you're hit with some kind of incredible medical emergency, and you're not in the UK
where medical care is free, or you're in the U.S.
or something like that, then you've got money to do that. And you don't have to take
money out of your investments.

And caveat number three is that you don't want to put
any money into stocks that you think you might need to use in the next three to five years. So let's say you're 24 and you've just landed your first job. And you're thinking of getting a mortgage and buying a house and you
need money for the deposit. Do not put that money into the S&P 500 or into any kind of stocks and shares because no one can time the market. And no one knows whether we might you know, there might be
a market crash tomorrow.

All we know is that in the longterm, the stock market goes up, but if you need to buy a house next year there is absolutely no guarantee that that money will still
be worth exactly the same or worth more this time next year. So it provided those
two conditions are met. Like firstly, you have no high
interest credit card debt. And secondly, you've already
got your emergency fund. And thirdly, you're not
planning to gonna have a major expense in the next few years. At that point, absolutely everyone should be investing something
into the stock market. In my opinion, whether you're
12 or 20 or 21 or 22 or 50, it doesn't matter.

And as they say on the market floor there is almost no way your future self will regret making the decision to invest. And as you know at this point, this is because of compounding. The more time you leave your
money in the stock market, the more it compounds. And there is a huge difference. There's like lots of interesting numbers about this on the internet
that people have calculated that if you start
investing at the age of 20, versus if you start investing
at the age of 25 or 30, it makes such a huge
difference to your bottom line. That basically, as soon
as you watch this video and hear about investing,
you should start investing provided those three conditions that we talked about are met. All right, so we're nearly there. Now, we're point 11 out
of 12 where we said, okay, you sold me on this idea
of investing in index funds. All of these three conditions are met. I don't have a high
interest credit card debt. I've got my emergency
fund, or I'm a student. And therefore my parents
are my emergency fund and I'm not planning to buy a house or a big thing in the next three years.

The next question is usually how much money do I need to
get started with investing? And I know a lot of
students watch my channel and I had a lot of comments
on Instagram saying, "I'm 14 years old and
I don't have any money. How do I get started with investing?" And the answer here is again, quite easy, basically start with whatever you can. For some of these websites
and some of these apps that you can use to invest
in stock market indices. You can start with as
little as $5 or 10 pounds, depending on the website. You might need to start with
a 100 pounds or a 1000 pounds. You can research this and it kind of depends on
which country you're in, but basically you want to start investing as soon as possible. And it doesn't matter if it's a tiny amount
of money to begin with. Firstly, it's useful to
invest small amounts of money because compounding is always good. But secondly and more importantly, the sooner you start investing the sooner it becomes a habit. And so for me, for example,
I started investing in 2015.

I knew absolutely nothing
about it before then, but I really wish I'd started
investing in like 2009 when I first had my first part time job because a, that would have encouraged good financial habits within me. I would have kept aside maybe 10% or 20% from the top line to
put into my investments. Secondly, it would have meant
that investing became a habit. And so I would have known about the fact that stock market indices exist. I would have done the research. I would have watched videos like this, although these weren't
really a thing in 2009. And what I'm really
annoyed about with myself is I started making
actual money in like 2012 when my first business
started to do very well. And between 2012 and 2015,
I did not invest any money just because I didn't know that you could. And I didn't know how and I always kinda thought that, "Huh, I'm making money now." It's just sort of sitting
in my bank account.

And I know that inflation is a thing. So I know my money's losing value but I just didn't think about investing and didn't realize how easy
it is and that it's a thing. And so I really wish I'd started investing my real money in 2012, but the only way I would've done that is if I had started investing from 2009, when I first started making, I don't know, six pounds an hour
during my part time job. So again, and I can't state
this emphatically enough. Like it doesn't matter if all you have is a
small amount to invest even if it's one pound, even if it's 10 P. The process of making the account and researching online
stockbrokers in your country and figuring out how to
actually do this stuff is like the most valuable thing that you could be doing with your time immediately after watching this video.

And finally, point number 12 is okay, I'm sold, I've got a 100 pounds here and I want to put it inside
a stock market index fund. How do I actually do that? And the answer here is you
want to find an online broker. So this will vary massively depending on which country you're in, because these online brokers as I said, have like zillions of laws
they have to comply with and financial regulations
and all this stuff. In the U.S. most people that I know use the Vanguard as well. And my favorite blogger Mr. Money Mustache recommends that as well. Although in the U.S. there are also other
services like Betterment, which I'd bet a few friends
who use that as well. Again, depending on
which country you're in, like literally all you have
to do is Google the phrase, best online broker, Germany, or best online broker, Pakistan, or best online broker, India,
whichever country you're in.

And you'll find something,
read some reviews. Basically the thing you're looking for is you want to be able
to invest in index funds and you want the fees to
be as low as possible. I think Charles Stanley
Direct the fee is 0.25% which was the lowest at the
time when I made my account and I think is still pretty competitive. So you want the fee to be
like a really, really, really small fraction of a percentage. Then once you've made your account and verified your identity and gone through all the hoops and stuff which sometimes takes a few days, and they send you a letter to the post to verify your address, like depending on what
the regulations are. Once you've done that then you can start just putting
money in here and there. And all the friends that I've
spoken to about this stuff over the last, like four years since I first started knowing
about investing in things, they've all started making accounts and sort of making these
investment counts for themselves.

For the first few weeks they all sort of compulsively check their phones to see what the stock market is doing. But then very quickly you realize that actually I'm investing
for the long term here. I actually don't give a toss what the stock market is
doing in the short term. I check my portfolio once every six months just cause sometimes I'm curious. I don't even bother looking at it. This is very much a set
it and forget it strategy, you're investing for the longterm. Your money will magically grow over time provided you don't touch it and think, "Oh crap, the stock
market's going down a bit. I'm gonna take my money, because I can't handle these losses." There's loads more to say
about investing in finance, but hopefully this was
a reasonably concise, not very concise.

This is gonna be a long video, but well, hopefully this was a
reasonable introduction to how to get started with
investing in index funds. If you have more questions
about exactly what to do or anything else about money. Do leave a comment in the
video description area thing. I'm still trying to think
of a name for this series. I was thinking I posted on Instagram. There were a few options: Money talks, was quite a popular one,
but that's already a film. One that I really liked was Penny Sitting. I think I might call this
series Penny Sitting, that was kind of cool. A lot of people said like,
financeshially, financially. 'cause my name's Alica, financially, a few different options. I mean the way you think, if you have any ideas for
what this entire series about money and stuff should be called…

And final piece of advice,
if you're in the UK, if you're in the UK and you're just getting
start with investing, basically go on Hargreaves Lansdown and make a Lifetime ISA. A Lifetime ISA is a very good deal. You can read more about it
at moneysavingexpert.com within the Lifetime ISA as of 2020, you can put up to 4,000
pounds a year into it. And then you can invest
that in the S&P 500, which is what I would do. If you have more than 4,000
pounds a year to invest you can then put another 16,000
into a stocks and shares ISA which I'd recommend doing
on a vanguardinvestor.co.uk And if you have more than 20,000
pounds to invest in a year and you're doing really well then just open a general
investment account with Vanguard. This is what I do, I think it works great. Loads more links in the video description to other resources and bloggers
and books and other videos that I would recommend Graham Stephan, has an amazing YouTube channel, Andrei Jikh does a good job
with YouTube channels as well, and Mr. Money Mustache
amazing, amazing blog J L Collins' amazing blog
with a Fantastic Stock series that you should definitely read.

There's so much to explore in this area, and it's a really fascinating topic but thank you so much
for watching this video. Hit the video here if
you want to learn about how I make the money
that I used to invest. It's my video about how
to make money online. Thank you so much for watching. Good luck with investing. Make sure you invest in a
stock market index fund. Hopefully I'll see you in the next video. Bye bye..

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401K to Gold IRA Rollover

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31 ways to improve Retirement Planning Part 2

Today's video is the continuation of our last week's discussion about ways to improve your retirement planning. Keep in mind that all those 
steps you can use at any point in your life   if you want to put in place some kind of financial plan. If for whatever reason you missed my last week's video part 1   of 31 ways to improve your 
retirement planning, please watch it right now,  maybe even before you commence this video and 
then please return right here to continue Part 2. This will be so much more logical for you.   My name is Katherine Isbrandt from About Retirement,
I am Certified Financial Planner, and you are watching About Retirement TV
just about the only place   that will provide you with honest and open ideas 
how to be well prepared for your retirement or  if you have already retired, how to improve 
your retirement income, assets, and lifestyle.

So last week we discussed, 15 ways to improve 
our retirement planning and today I want to share another 16 ideas that I have come up with. Obviously, there would be tons and tons more,
depending how detailed we want to become but I think this is a very good start for the new year   which I hope you are planning to make it as
one of the best years ever. 16. Be very sceptical of any investing advertised as tax schemes This is how many investors lost a lot of money over the years   Australians are very tax-driven and this 
is how politicians win the elections, they know what and how to promise to their voters. This is how many heavily advertised investment schemes were introduced over the years, where the only party making any profits were product providers with most investors never even checking 
if such schemes were even approved by ASIC   and ATO for specific tax ruling Fortunately, now there are less of those
schemes happening but   that's due to strict regulations that we currently 
have in Australia and a very watchful eye of ASIC.   But often even legitimate schemes might 
not necessarily be of any value for you.   If the main goal of the scheme is to reduce 
your tax with actually not providing you   when any return, either in a form of income, or 
capital growth, bottom line, is you are losing money   So always do your due diligence before you 
invest any of your savings into any of those tax driven schemes.

17. Understand Australian Superannuation tax and legal system This is a very big task and lots of information
to learn not to mention how to find the details that are exactly
applicable to your situation but if you can achieve this, you will be on your
way to utilise every single benefit legally and financially available to you. This is exactly the reason why wealthy families rely on a good professional advice and superb service   18. Include the cost of assisting your 
aging parents and helping your adult children in your budget and in your planning, this is what we call sandwich family.

Have you heard of the naming sandwich family yet? That mostly applies to people aged 50 plus,
but could be of any age really. A sandwich family is the one that 
on one hand needs to care for the elderly parents   while on the other are still looking after 
their teenage children or children that are;  adults but refuse to leave home to start their 
own life and rely on your financial assistance. My recommendation here is to find the best solution 
of care for your parents, there are lots of options   and some may not cost you all that much, but can 
be very beneficial for you and for your parents.   As far as your kids are concerned, of course, if you 
are happy for them to stay with you, do that , but treat them like adults. If they work, and they should, unless they're studying but even then a part-time work experience is really recommended  they should contribute their share to family expenses, to your bills, food, you can decide on 
their contribution value.   You are a parent, you will always be there for them, I am a mother, I would give anything to my son if there was a problem, but as I said they need to learn their independent 
life and you need to look after your needs as well.   19.

Don't withdraw from your retirement 
plan unless you really have to. Every single dollar withdrawn from your retirement plan as an extra above what you really need, will reduce longevity of your savings It is not only the actual value withdrawn, but also loss of all future income and capital growth that those funds could have earned over the years. So just to put it into context, if today, at the age of 60 for example, you withdraw $20,000 to buy a better car, because the one that you have although is it 
is in a good condition, well it bored you a little bit  and you need a change you have just depleted 
your future interest earned on that withdrawal by  $60,775 based on 7% compound interest return
over the period of 20 years   So bottom line is that 
should you kept that $20,000 in your pension fund, at the age of 80 you would have had additional 
$80,775 in your retirement fund. This amount of money can go a very long way 20. Plan for your long-term care   We have not been talking in detail about any 
expenses that you should consider in your old age,   when you might require additional medical or 
even personal assistance.

Whether it is provided at the Aged Care facility or at your home 
you cannot disregard those costs. If you need any assistance in this area, either for your 
parent, or for your partner check out my website article Aged Care Planning with Ease, but I will be 
devoting more time and more videos to this subject. and if the matter is urgent please just contact me 
immediately. 21. Rebalancing portfolio   This one strategy can assist your portfolio performance more than you could ever expect Rebalancing portfolio at the right time to its original asset allocation setup in your investment plan can be very financially rewarding. So you should implement doing this annually or when the opportune time of
market condition is presenting itself.

22. Check the performance of your investments
or your super at least annually I have been talking about 
this extensively in many of my videos.  Don't make rush decisions based on one year performance of your investment or your super or your pension fund. Even if that one year was disappointing. But annual checks are essential and if underperformance continues over a couple of years   then reassess if this is the right fund for you. Having said that, make sure that your expectations are met with the type of the portfolio, taking into account the investment risk.   And what I mean by that is if 
your portfolio has a conservative asset allocation   don't expect returns of a balance or growth fund 
or returns of the overall share portfolio   This is unfair comparison and you will end up being 
always very disappointed, So make sure you compare apples
with apples and not with oranges for more information watch my video 11 steps to check your superannuation statement. 23. Check fees and charges included
in your investment or your super.  Government has been on the hand for super and 
pension funds that have been overcharging members for their accounts for couple of years now for now, this new legislation applies to MySuper products so what we call default funds but that will be extended to
more superannuation products in coming years.

Please watch my video "Fees you pay in super" to have full clarity as to what type of fees most superannuation funds charge. 24. Review charges and cover for insurance in or outside of superannuation.  I have not really been discussing 
insurance in any great length on this channel   as this has never been requested but also as we 
progress in life the need for insurance reduces   But if you still have insurance you really need to understand the cover provided as opposed to the cover required cost payable as opposed to your affordability. If you require insurance should it be within super or outside? There are many things that need to be taken into consideration before you apply or cancel your insurance, so if insurance is what you need feel free to reach out so we can review what you have and what you need 25.

Have a realistic expectation for your retirement. Well what can I say unfortunately we love to believe in miracles   Well for example I cannot save today but I will make it out next year or the year after, well that never happens. or my money will last me 
forever because my super fund is the best  and has always been provided the best returns.
Well, good luck with this one. Nobody can predict  the market so please start being realistic with your calculations, with your budget that you set up  with the amount of money that you spend and 
how much you actually will need in the future   Once the money is gone it is gone and your 
retirement might take a completely different turn   26. Always include inflation in 
your retirement calculator   When using any calculators, please ensure that CPI (Consumer Price Index) is included.

This will ensure that whatever financial outcome the calculator gives you will be subject to inflation meaning a real value of money in the future. 27. Age Pension is a bonus, not certainty, don't rely on it, but do what you can to get the most out of it. This is my work’s bread and butter, on daily basis, I try to find ways how I can improve my clients Age Pension  Why? Well not because I want our government to pay for your lifestyle,   but because I know very well that this is a guaranteed portion of your income once you are eligible. The more you receive from 
the government the less of your own money you have to spend, hence you are protected with your savings for longer. But Age Pension should be a bonus, don't sacrifice all your savings, all your assets, just to get it It is still better to own and control your 
$2mil portfolio with no Age Pension then to give the 2mil to your kids just to
get Age Pension of $25K. That is just a ridiculous exchange in my book.  28.

Utilise every single benefit you can 
that is available to you from the government   There are many ways how you can benefit from our 
government's policies.  strategies that can reduce your tax, boost your superannuation savings, and support you financially for longer.  Watch my video "Improve your super and reduce tax" as well as "End of Financial Year Zero Risk 50% Return" Easy strategies and yet, so many don't do it.   29. Understand the importance of Estate Planning this is another area that is a huge topic to discuss, I have only scratched the surface with couple of videos  but they're still worth watching.

"Wills, are they really necessary?" and
"Super Death Nomination gone terribly wrong".  The second video will tell you exactly why Estate 
Planning is so very important but obviously, it is  not limited to creating a Will or providing Death
Benefit nomination to your superannuation trustee   The more complicated your life has been, the more 
you should pay attention to estate planning and employ specialists to assist you, if you wish your 
assets to be distributed to right beneficiaries in the right way.

30. Do not forget about Aged Care costs
in your retirement planning   I have mentioned Age Care before. We tend to live longer and longer, medical progress keeps us alive for much longer than we might anticipate. But what if you run out of money? What if you need to use services of Age Care facility but you don't have any savings to pay 
for it. This is a big drama for many,   this is why I stress greatly to save aggressively before you retire and spend modestly once you no longer
have a job related income There are many ways to 
assist you in reducing ongoing Aged Care fees,   so if this is your problem, please contact me,
but the fact remains that you do need to include Aged Care expenses
in your planning as well.

31. Always, always work with professionals – accountant, lawyer, financial planner, mortgage broker. Google is just not enough This has always been my motto, I save where I can on things that don't matter or are all of less importance. But I never try to cut down on expenses on any professional service that I need. Good advice, service and support are blessing. Not only you will have things done correctly from 
day one, so no fixing, updating, explaining.   It will be done for your best benefit. There is no trial
and error situation. A good financial planner will  help you to improve your income, capital growth, avoid costly mistakes improve asset security, peace of mind, very often can help you to have access to government benefits that otherwise, you may not be able to access.

So always use the best professional that really has your best interest in heart. So voila! This is the list of
31 ways to improve your retirement planning   As I said before this list could be extended 
to many many more points but some of them I have already discussed in my previous videos, hence the links and others we will discuss in more details in the future.  If there is a topic that you believe is really important and somehow i missed it.

Please let me know in the comments below the video, I would really love to hear your opinion and ideas on that topic as well So please don't be shy and let's have an open conversation.  Many people watching this channel are very 
likely in a similar situation to yours   So by answering your question this might help 
another person as well If you enjoy this video, please like it, share it,
and subscribe to my channel. So you know when my next video is arriving If you want to find more information just jump on my website AboutRetirement.com.au where you can find all my video,  lots of articles all related to the issue of retirement, investing,
Age Pension, Aged Care and lots more And now as usual, please continue watching those informative videos   Fist recommendation is previously mentioned  "Improve your super and reduce tax" to know how to benefit from those government provided strategies for super.

The second recommendation are videos about estate planning: "Wills, are they really necessary?" and the answer of course is: yes but listen to the reasons why. I will be speaking with you in the next video, see you soon. .

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Why This Investment System Can Help Retirees Worry Less About Their Retirement Plan

I want to share an investment system for retirees to hopefully assist you as you're thinking about and planning for your retirement we're also going to look at how to prepare your retirement for the multiple potential potential economic Seasons that we may be headed into so we want to look at the multiple seasons and then the Easy System that's going to help lower taxes and then lower risk as well now if I haven't met you yet I'm Dave zoller and we help people plan for and Implement these retirement strategies really for a select number of people at streamline Financial that's our retirement planning firm but because we can't help everyone we want to share this with you as well so if you like retirement specific videos about one per week be sure to subscribe so in order to create a proper investment plan in system we want to make sure that we build out the retirement income plan first because without the income plan it's much harder to design the right investment strategy it's kind of like without the income plan it's like you're guessing at well 60 40 portfolio sounds good or you know May maybe this amount in the conservative bucket sounds reasonable you already know and and you feel that as you get close to retirement that goal of just more money isn't the the end-all goal that we should really be aiming for for retirement it's more about sustainability and certainty and then really the certainty of income and possibly less risk than before the last 30 years uh the things that you did to be successful with the financial side are going to look different than the next 20 or 30 years now if you need help defining the the income plan a little bit then look at the DIY retirement course below this video now once you do Define your goals for retirement and then the income needed to achieve those goals then creating the investment system becomes a lot easier and within the investment plan we really know that we can only control three things in all three things we actually want to minimize through this investment system the first thing we can minimize or reduce is how much tax you pay when investing we had a a client who was not a client of streamline Financial but of a tax firm coming to the the CPA firm in March to pick up his tax return and he was completely surprised that he had sixty thousand dollars of extra income on his tax return that he had to pay tax on right away before April 15th and it was due to the capital gains being recognized and other distributions within his investment account and he said but I didn't sell anything and the account didn't even go up that much last year and I got to pay tax on it but he was already in the highest tax bracket paying about close to 37 percent on short-term capital gains and dividends and interest so that was an unpleasant surprise and we see it happen more often than it should but this can really be avoided and here's two ways we can control tax so that we don't have to have that happen and really just control tax and pay less of it is the goal and I'll keep this at a high level but it'll get the the point across number one is the kinds of Investments that you own some are maybe funds or ETFs or individual uh equities or things like that the funds and ETFs they could pass on capital gains and and distributions to you each year without you even doing anything without you selling or or buying but it happens within the fund a lot of times now we would use funds and ETFs that are considered tax efficient so that our clients they can decide when to recognize gains rather than letting the fund company decide now the second way is by using a strategy that's called tlh each year there's many many fluctuations or big fluctuations that happen in an investment account and the strategy that we call tlh that allows our clients that's tax loss harvesting it allows them to sell an investment that may be down for part of the year and then move it into a very similar investment right away so that the investment strategy stays the same and they can actually take a write-off on that loss on their taxes that year now there's some rules around this again we're going high level but it offsets uh you know for that one client who are not a client but who had the big sixty thousand dollars of income he could have been offsetting those capital gains by doing tlh or tax loss harvesting that strategy has really saved hundreds and thousands of of dollars for clients over a period of years so on to the next thing that we can control in our investment plan and that's cost this one's easier but many advisors they don't do it because it ends up paying them less now since we're certified financial planner professionals we do follow the fiduciary standard and we're obligated to do what's best for our clients so tell me this if you had two Investments and they had the exact same strategy the same Returns the same risk and the same tax efficiency would you rather want the one that costs 0.05 percent per year or the one that costs 12 times more at point six percent well I know that answer is obvious and we'd go with a lower cost funds if it was all the same low-cost funds and ETFs that's how we can really help reduce the cost or that's how you can help reduce the cost in your investment plan because every basis point or part of a percentage that's saved in cost it's added to your return each year and this adds up to a lot over time now the last thing that we want to minimize and control is risk and we already talked about the flaws of investing solely based on on risk tolerance and when it comes to risk a lot of people think that term risk tolerance you know how much risk can we on a scale of one to ten where are we on the the risk factor but there's another way to look at risk in your investment strategy and like King Solomon we believe that there's a season for everything or like the if it was the bird song There's a season for everything and we also believe that there's four different seasons in investing and depending on what season we're in some Investments perform better than others and the Four Seasons are pull it up right now it's higher than expected inflation which we might be feeling but there's also a season that can be lower than expected or deflation and then there's higher than expected economic growth or lower than expected economic growth and the goal is reduce the risk in investing by making sure that we're prepared for each and every one of those potential Seasons because there are individual asset classes that tend to do well during each one of those seasons and we don't know nobody knows what's really going to happen you know people would would speculate and say oh it's going to be this or this or whatever might happen but we don't know for sure that's why we want to make sure we just have the asset classes in the right spots so that the income plan doesn't get impacted so the investment system combined with the income system clients don't have to worry about the movements in the market because they know they've got enough to weather any potential season I hope this has been helpful for you so far as you're thinking about your retirement if it was please subscribe or like this video so that hopefully other people can be helped as well and then I'll see you in the next one take care thank you

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How to Have the Perfect Portfolio in Investment – John Bogle’s view

But now this brings us to the main point of 
our discussion with you which is to get your   advice for our viewers about what you consider 
to be the perfect portfolio now we know there's   no such thing as perfect but i suspect that TIFs 
will play some role in this what would you say to   the typical investor now today looking forward how 
should we be managing our wealth well let me um i   tried to cover this you'd be surprised at some of 
the what i've done in the asset allocation chapter   of my book a little bit because i've come to 
conclusion there's really not a very good answer   and i've concluded that regular rebalancing is not 
terrible but not necessary i've come to conclude   that it's 60%, 40% portfolio is probably the best 
option rather than going from 80 20 to 20 80 in a   target retirement plan uh maybe right and i may 
be wrong on that and i find it something very   individual uh and and you know and clearly i mean 
everybody knows this intuitively at the beginning   there are no easy answers to this so i'll come 
to exactly what i'm doing uh but what i was what   i did i got a letter from clearly a young man 
who was really worried about how he should be   investing and what his allocation should be and he 
said you know the dangerous risky world out there   and he didn't mention it but of course he's right 
you have potential nuclear war global warming much   more than just potential and racial division in 
the country uh right now uh threats to world trade   and division of wealth all over the world but 
most often very heavily in the us between the   haves and the have-nots all those things 
are worth worrying about but i said to him   you don't know and i don't know what's going to 
happen to any of them the market doesn't know   nobody knows so you just have to put them out of 
your mind and forget it what you want to think   about is how much risk you can afford and that's 
very much a personal thing and it has a little bit   to do with whether you're investing regularly 
and things like that and then i said to him if   it's helpful to you i'll tell you what i'm doing 
now i'm 88 years old and have an unusual kind of   planning my estate and i said i'm 50 bonds and 50 
stocks i don't happen to rebalance around that it   just seems to come out that way particularly in 
recent years and uh it's been higher than that   and been lower than that but right 
now i'm very comfortable at 50 50.   although i spend half my time worrying that i have 
too much in stocks and the other half of my time   worrying that i have too little in stock and i 
think that's the way most investors feel they   don't know what the right number is and when the 
market's going up they say god why don't i have   more stocks when it's going down so your own worst 
enemy in all this yes but having some stability   without automatically rebalancing i don't think 
you need to do that and and it's very clear   you know and anybody understanding economist 
certainly understands this that the more the   less you rebalance the more you're going to 
have because you're always selling the better   performing asset and you don't know whether it 
will do in the long run but i also look at it   as as very importantly uh and this is this is kind 
of an interesting thing i think the most important   thing you need to know about the performance 
of the stock market in the next 30 40 50 years   is what is the GDP of the united states going to 
do corporate profits are correlated at 96 percent   s p dividends are correlated at 96 percent with 
with the gdp of the united states the GDP doesn't   grow quite as fast but not a big difference 
6.7 compared to 7.5 or something like that   and then they'd be nominal and uh i think so 
what interests me is in peter lynch's book   something about wall street uh one up on 
wall street or something he says there's no   number that could interest him less than the gdp 
number is it going up or down and what that is is a statement that the short term is more 
important than the long term and i don't   believe this the short term is more important than 
long term and then you even get in freakonomics   those wise guys they did a nice interview with 
me i'm heard all of it yet but i will someday   um say pay no attention to the GDP well it's 
everything right but it's not everything today   and tomorrow right you know the gdp probably 
rose today about two three hundred and sixty   fifths of one percent or something whatever it 
is uh and uh we don't pay any attention to it   but it all comes down to for your you know the 
best portfolio is are you an investor or are you   a speculator and if you're going to keep changing 
things you were speculating because we can't know   if you're going to put commodities in there the 
ultimate speculation it has nothing going for it   no internal rate of return no dividend yield no 
earnings growth no interest coupon nothing except   the hope largely vain probably that you can sell 
to somebody else for more than you paid for it   how that could be even considered goals 
let's say an investment uh i do not know so   it's i'd like to take the mystery out of it and 
say that the perfect portfolio first i think for   a huge proportion over 90 percent certainly of 
the investors should be limited to marketable   securities they don't need the liquidity today but 
and we may have you know too much marketability   and that is too much sensitivity to prices as they 
change day by day but you want to get out of the   idea that you always have to do something and uh 
i have said in my books and you know something   happens and the federal reserve does something 
and the traders all at the beginning of the day i   think it's going to cause the market to go down so 
they sell and everybody else says it has nothing   to do with anything for you and when you hear news 
and your broker calls up and says do something   just tell them my rule is don't 
do something just stand there   and it's it's a lot of the rules that apply 
to the investment are not rules that apply to   ordinary life right and uh so don't do something 
just stand there so get a rough idea of what you   want to allocate your money to now i i do i'm 
really entirely indexed at my 50 50.

Uh although   oh my and i can't give you the proportions 
because i don't remember them but   my bonds that are in my retirement plan are 
bond index funds and the bonds that are in my   my uh personal account are municipal vanguard 
missile bond short intermediate and so i'm   reasonably comfortable with that so i think 
i'm too conservative for the average investor   so i'd say the perfect portfolio and it should 
be well let me just mention one other issue and   try a little bit differently uh blair academy i 
have a scholarship fund that i'm allowed to manage   and i don't i don't want to spend any time on 
and i don't so here is exactly what i've done   on the assumption that nobody will touch it for 
a long time and when i'm gone i mean maybe they   will maybe they won't but what i did this is 
probably ten years ago um we say put half of   it in Wellington Fund and have it balanced index 
fund the idea was not all on balance index fund   because there could be things that happen that a 
manager needs to adjust to neither of them have   an international component and that's fine with 
me that's i believe that's the better strategy so   that's and they would be together 90 of the fund 
and then against two contingencies um just in case   i put five percent in the emerging market index 
and i hope you're sitting down five percent in   gold really yeah in the event just a five percent 
hedge against some kind of catastrophe now   i wouldn't call that the perfect portfolio but 
i i mentioned only because that's one there's   distinctive meaning you cannot touch it and uh at 
least theoretically can't touch it it's designed   to be held through all extremes and so that's 
going to give you with the two balanced funds   uh roughly 62 percent in equities that's going to 
be with wellington fund more corporate bonds than   the index fund has i think the index is something 
that we should be very very careful about because   it has the one of a better expression too damn 
much in governments right i don't think any   individual would have a a bond account 70 in 
governments and 30 corps right maybe it should   be the reverse i think that makes more sense can 
i prove that no i'm sorry i can't so it's looking   at the long term looking at the numbers looking 
at cost above all there's no there's no ideal   portfolio perfect portfolio that ignores cost 
now you know i've seen these articles saying   well for example commodities no internal rate 
of return silly including gold except that's the   if nobody's gonna nobody's looking and we 
have something explosive that will help and   it probably shouldn't hurt you too much this 
portfolio actually had done rather well in the   last couple of years and it's fine in the long 
run and uh so you know and actually it may be   doing better than my own but i don't but i look at 
my performance because i'm so conservative right   uh i look at i look at the funds yeah but it's 
almost all indexed and i do have wellington fund   from those days with Mr Morgan and i wouldn't give 
that up as a sentimental matter but but i should

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401K to Gold IRA Rollover

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Retirement Speech: Insanely Easy 3 Step Structure

whether we have to prepare for it or if you have to improvise there's a very simple framework that we can follow when it comes to delivering a retirement speech let's get into it hey my name is radeep and i love learning about effective communications and sharing those learnings with you so that you can level up your communications game as well okay now the framework we're going to talk about very very simple the past present and future that's it we start by talking about when we first met them we felt at that time we then move on to talking about how that journey has been so far and what we feel about them now and then we move on to saying what we wish for them in the future that's it an example would flow something like this i remember the first project i worked with you on when you first joined to be honest we didn't get along very much in those early days but as we worked more closely i got to know you more not just as a colleague but as a friend and from not wanting to work with you from that first project to looking forward to having you on every project the only thing i'm going to miss more than your work ethic is your wacky sense of humor i remember you telling me how you always wanted to travel every country in the world now i hope you get to achieve that and take another great adventure off from your bucket list that's it whether we have to prepare or improvise this framework can work in almost any situation and if you want to be a little more interesting we can make this format a little unique for example we can get a few colleagues together and create a fun skit for that person or we can create some sort of video to showcase the memories or the journey that that person has had and that's about it a very quick and short way to help you give a damn speech and if you want an in-depth explanation along with a much longer sample speech we've written an entire article on this which is linked below and go check it out on franticallyspeaking.com and if you're somebody who's very nervous about speaking in front of people and want some advice on calming those knows you can check out this video right here

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Retirement Planning Home

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