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Why You Shouldn’t Buy Physical Gold And Silver

– And what I found out was
that the gold and metal shop that I bought this bar from,
they knew what this was. They knew it was worth less,
but because I was in there asking questions, trying to
learn, trying to get educated by people who I thought were
experts that were on my side, well, they basically took advantage of me. Hey, welcome back, it's Nolan Matthias. And today I'm going to tell
you about the stupidest and probably the coolest
investment I ever made. But before we get into
it, do me that favor, hit that subscribe button,
hit that notification button and please hit that like button so more people like you can see this video.

Okay, so let's get into it. What is the stupidest
investment that I've ever made? And quite frankly, also the
coolest investment I ever made. Well, it's this. It's buying physical gold and silver. This is honestly one
of the coolest things, being able to sit here and hold basically in this pile alone,
$5,000 worth of silver, and having a little bit of
gold kicking around as well. This is really cool. And this is an investment that
started for me back in 2014 as silver prices were starting
to come down as the fear from the financial crisis
was coming out of the market and as there was starting to become more and more deals on buying
physical silver and gold. And this was nothing that I ever expected that I would invest in myself,
but it came about as a result of an investment newsletter
that I was subscribed to that was all based around value investing.

And value investing is the type of investing that Warren Buffet does. So finding companies that are worth a lot that are undervalued
and investing in those. And that investment strategy
is where the similarities to Warren Buffet ended
because they also got into the piece about
having precious metals as a hedge against inflation
and currency devaluation and also holding it physically rather than in certificates or in ETFs, so that if anything ever
happened in a country that you lived in and
you wanted to bug out to a different country,
much like the Jewish people had to do in Nazi Germany
during the World War II, well, physical gold and silver was
the best means of doing that. Now physical gold may
have been a good means of being able to transport
money over borders, which by the way, I'm not recommending, but physical silver certainly isn't.

You know, this is about $5,000 worth of physical silver and
it is heavy as hell. I think there's about 160 ounces here. So about 10 pounds. I wouldn't want to be
carrying this on an airplane to go to Europe or some
other country right now. But it was interesting
because that value investing newsletter got me hooked on what's called stacking in the gold and silver world. And stacking is exactly
what it sounds like.

It's taking physical gold and silver and collecting as much as you can of it over a certain amount of years, and basically creating a
hedge against inflation and currency devaluation as a
result of having physical metal. And this is something
that is just absolutely unnecessary as far as I'm concerned. It's something that I did for a while. It was fun, but there are far better ways for me to invest in silver and gold.

And that is by using my BMO Investorline or my Questrade account in
order to purchase mining companies, or if I really, really want to, certificates in physical gold and silver. But you know, it was interesting because this investment was
definitely an investment I learned a lot about because one, you learn how the system works. Obviously, people who are
buying gold are paying less for it than the people
who are selling gold because typically you
have to sell to dealers and they're obviously
getting a better deal from you than you're getting from them.

The other thing I realized
was that there's a lot to know about buying physical gold and silver, and it's really easy to get screwed. And I'll use this bar as
an example because this is the very first bar of
silver that I ever bought. It's a 10 ounce NTR metals bar. I bought it from the exact same company that I bought this bar from, which is a sunshine 10 ounce silver bar. I paid about $2 difference between this bar and this bar. This one I think I paid about $245 for, this one about $247 for,
and again, bought them from the exact same gold and silver shop. And I paid pretty much the same price. And what was interesting
was a few years later when I went to sell this
bar, the NTR bar, back to that same golden silver
shop, they basically told me that it was worth 15% less than this one.

So in today's terms, this
bar is worth about $330. This one is worth $280. So there's about a 15% or a $50 difference between these two bars even though they're supposed to be
exactly the same thing. And what I found out was
that the gold and metal shop that I bought this bar from
they knew what this was. They knew it was worth less,
but because I was in there asking questions, trying to
learn, trying to get educated by people who I thought were
experts that were on my side, well, they basically took advantage of me.

And they had these two bars
sitting beside each other, and instead of picking up this
one, they picked up this one, handed it to me and
charged me significantly more than what it was worth. And what I realized was
that when you're dealing in gold and silver, the
margins are so freaking thin that the companies that
do business in this realm are basically incentivized
to screw you if they can. And I've heard lots of stories now of people buying fake
gold and silver thinking that what they were getting was real and ultimately getting stuff
that absolutely was not. So this is definitely a situation
where it's buyer beware.

Now as an alternative, I
could have bought the exact same amount of silver
that I own right here. I could have bought it in
my BMO Investorline account in a certificate, or I
could have been an ETF and I could have been a 100% certain that the silver I was buying
was real because an expert on the other side was
taking care of making sure that it was real and that
I wasn't gonna lose 15% of my investment just
because I was an idiot. The other thing that I
realized about this product was I have to physically
store this in a bank safety deposit box, or
I have to take the risk of storing it at home,
having extra insurance and risking having a fire
or it getting stolen. And that all sucks. And that all adds to the cost
of owning this investment.

And at the end of the day,
there was a whole bunch of reasons why they suggested
physical silver or gold. First was that it was cool. The second was that if you
ever needed to leave a country and go to a different country
with it, you could basically hide it and smuggle it
into another country. Again, I don't endorse that,
but that was a big reason. And in 2020, that reason is nowhere close to as valid as it was in
2014 because in today's day and age, if I wanted to
go to a different country and take over $10,000 with
me, which is the amount that you legally have to declare, by the way, I don't suggest doing that, but let's say it was 1945
Nazi, Germany, and I needed to get out of the country
with a bunch of money, well, I'm not doing it with a
bunch of gold coins anymore.

I'm probably taking a USB
drive that has Bitcoin or some other cryptocurrency on it. So, you know, all the reasons
for holding this stuff basically don't make any sense. And the only reason that
somebody really becomes a stacker in today's day and age, in my opinion, is if they are conspiracy
theorists, if they think that this is better than
cash or better than holding an investment in a online
investment portfolio. And therefore, you know, they think that the world one day will come to an end and this is what's going
to be able to save them. And you know what? I don't think that this is
what's going to save somebody from basically not having any money or having any sort of
ability to buy things if the economy goes to, you
know, hell in a hand basket.

So, you know, this was a fun investment for basically seven years. It was an interesting
investment for seven years. It's one that I definitely
wouldn't make again. All of this stuff, all this
gold and silver is going to be gone by the time
that you watch this video except for this bar, this NTR bar. I might keep this just as
a reminder to myself of why you shouldn't invest in things
that you don't understand. And, you know, for the most part, my time with this was nice. It's cool. It's nice to show to people. It was nice to cut out single
bars and give them to families when they have their
first child and just say, hey, here you go, this is
a little present from me. But this stuff, it's all got to go. Now, in comparison to this you'll also see that there's another
pile of stuff over here. This is all things that my grandparents and my parents collected.

This all has sentimental value. This isn't going anywhere. That's going straight back
in the safety deposit box because this sort of thing is really cool. And where I would spend a little bit of money going forward in coins and precious metals is in
things that got discontinued. So things like old Canadian
money, $20 bills, $10 bills, things like pennies, things like nickels when they eventually stop making those. I think they're all cool investments. And it's cool to have things
that have sentimental value. Things like this. This is four three pence coins
that were given to my mum, when no, sorry, they were given to my grandmother when my mum was born. One of these goes back to 1916. There's a whole bunch of silver dollars that my grandfather collected. There's a whole bunch of
Montreal silver coins. You know real nickel
nickels and series of coins. Like these are all wrapped up. I've never opened them. I don't even know what
they are but they appear to be some sort of a
Canadian series of coins. Like penny, nickel,
quarter, all that stuff.

So things like this that
have sentimental value, coins, stuff like that, I don't think anything like this should ever be sold. There's probably just as much value if not more value here
as there is in this pile but this sort of thing,
gold bar, silver bars, this is an unnecessary investment. It's like I said, one of
the stupidest investments I've ever made and one that
I'm glad to be divesting myself of, and ultimately I get
a little bit of return from. So, if you found this video
interesting, if you found my story about my stupidest
investment I ever made interesting, do me that favor,
hit that subscribe button, hit that notification bell,
please hit that like button so more people like you can see this video and we'll see you on the very next one. Cheers..

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Retirement Planning During Bear Markets – Especially if It’s Your First One In Retirement

bear markets can feel a lot different when you're retired and you're no longer earning income from work especially if this is your first bear Market since you stopped working when you were younger you know you had time on your side you know you may have even seen drops in the market as an opportunity because it gave you additional time and you got to purchase more shares well things were on sale so to speak but now most likely that's not the case the relationship between our money and our accounts now are of money going out versus money going in to put it simply and plus you may have noticed that there's this psychological component now around money and not wanting to mess things up because the decisions we make really carried much more weight now when we're close to or in retirement and it's really that's not only psychological or emotional it's true because planning the distributions is much more complex than the the planning around around saving and putting money into the investment accounts what led to our investment success the last 30 years is a lot different than what's going to lead to success the next 20 or 30 years or at last that's at least what we've been seeing at streamline Financial since 1998 since we've been around so I want to share how to endure through bad markets if you're close to retirement or you're already retired and then what you can do to actually take advantage of of this even if you're already retired and you're no longer saving money and we're going to do that because we know a universal law of physics that can't be disproven and we can actually apply it to our retirement and make it a little bit better if you're thinking Dave what the heck are you talking about here's a brief explanation so Newton's third law of motion is that every action there's an equal and opposite reaction right you've heard that before so the way that I see it is there's a positive to every negative and the same thing there's a negative to every positive it's the law of polarity so I want to share what the positive is to take advantage of during bad markets and by the way if I haven't met you yet I'm Dave zoller and Tim and Luke and I and Sean we run streamline Financial it's a retirement planning firm and we've been around like I had said since 98 so we've seen clients really go through it all the.com bust the financial crisis and then covet and then all the things in between all those uh you know those mini panics that we've had so we created this channel to share what's working and what has worked for them and so that you can hopefully glean some wisdom from them and then apply it to your your own life so the first thing we need to be aware of is that the previous 30 years there were four bear Market Corrections so that's a drop of 20 or more and then the 30 years before that there was a total of five bear Market Corrections so the main takeaway is we need to expect these bear markets to happen during our retirement during that next 20 30 years right the second thing is we don't want to make a change solely on an emotion right and it's not not just making a drastic change like selling everything and putting everything under the mattress right it's we were just talking to someone yesterday and emotions can cause us not to take an action when we know doing so is actually the Smart Financial thing to do for instance during March of 2020 when it wasn't easy to rebalance your accounts it was very difficult to do but if you did follow through and and do the correct rebalancing system or strategy if you were looking back now it could have made a lot of sense the third thing is update your income plan because that helps guide us and make really good planning decisions around our investment plan so it's really start with the income plan you've heard that before and that helps us make the investment decisions versus the other way around and updating your income plan during bad markets that can also give you some confidence as well as you're looking at where we are today and then looking at over the next few years and and seeing that things maybe aren't as bad as it might seem at least when you've got those two things of the unknown and then the known updating the plan is the known and you can get a little bit better picture on what the future might look like for you now to the two things that maybe could give us an advantage during a time like this this is back to the law of polarity so the possible things that we might be able to use here are well first before I say it as always this is not specific advice to you so we're not looking at your your plan together so before you do anything just talk to a financial professional but idea number one to think about is tax loss harvesting that could be a way to write off some of the losses while still keeping your investment strategy intact and I talk about this concept a lot more in other videos so I'm not going to go into details on it today but just keep that in mind the one thing to to really pay attention to though when we're we're talking about the law or talking about tax loss harvesting is that wash sale rule right so look for the other videos or talk to that Financial professional before thinking about doing that the second thing that could be a possible opportunity for really the first time in a very long time is that ability or option to lock in higher yields in that conservative bucket as you know the the bucket strategy you've seen that before where we've got the possible three buckets and having that conservative bucket here is a great way to plan out and prepare for for bad markets and now at the time of this recording some of those historically conservative asset classes are paying a higher interest a higher yield than what we've seen really over the last decade which could be a silver lining during this period of time so those are just two things possible things to look at which maybe could be taken advantage of by you for for your benefit so those are just two things to think about during this period of time that we're in right now if that short video was helpful please like this and then share it with others if you think it could help them too and if you'd like to talk more about your plan feel free to reach out to me in the in the description below or go to our website streamlinedplanning.com for get you click on the get started button we don't always have space available but you'll hear back from me either way so I hope that was helpful and then I'll see you in the next video

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Vanguard Group founder on how to manage your 401 (k) plan

>>> WELCOME BACK TO WALL STREET. HERE'S MORE OF MARIA'S INTERVIEW WITH INVESTING LEGEND VANGUARD FOUNDER JACK BOGLE. MARIA: LOOK AT HOW MANY INDEX FUNDS THERE ARE. 5,000 INDEX FUNDS TODAY VERSUS THE NUMB OR F STOCK LOWER, 3,385 STOCKS. WHAT DOES THAT TELL US? >> IT TELLS US THAT PEOPLE ARE CRAZY, MARIA. WE DON'T NEED 5,000 INDEX FUNDS OR 6,000. THE WHOLE IDEA OF INDEX FUNDS WAS SIMPLIFY, SIMPLIFY, SIMPLIFY, RIGHT OUT OF RALPH WALL DO EMERSON. SEMP FIE SIMP FIE SIMPLIIE SIMPLIFY EVERYTHING. WE'VE NOW COMPLICATED IT BY GIVING PEOPLE MANY CHOICES AND BUILDING A SYSTEM WHERE THEY CAN TRADE THOSE CHOICES IN THE GLOAT GROWTH AND OUT OF VALUE AND SO ON. SO THERE'S TOO MUCH TRADING GOING ON, WHICH IS THE INVESTOR'S ENEMY FINALLY. THE ANSWER IS TO BUY AND HOLD THE STOCK MARKET VERY WELL EXEMPLIFIED BY THE 500, AND HOLD IT FOREVER.

AND THAT'S THE WINNING STRATEGY. ANY OTHER STRATEGY INVOLVES CHANGING THINGS. AND OVER AN INVESTMENT LIFETIME YOU COULD PROBABLY HAVE 40 CHANGES, 50 CHANGES. THERE'S IN WAY THAT CAN BE A WINNING STRATEGY. MARIA: YOU MAKE A REALLY GOOD POINT. WHAT ABOUT THE IDEA THAT PEOPLE WANT TO CASH OUT SOMETIMES. I MEAN, WHAT ARE YOUR MOST IMPORTANT ISSUES IN TERMS OF SELLING? YOU SAY HOLD ON FOR A LONG TIME. BUT WHAT IS A LONG TIME? WHEN CAN YOU ACTUALLY GET THOSE RETURNS AND WHAT DO YOU LOOK FOR AS A RUN TO SELL, JACK? >> THAT'S A GREAT QUESTION.

I GUESS MY FAIR TIME PERIOD IS THE SAME AS WARREN BUFFET'S TIME PERIOD, FOREVER. YOU KNOW FB FOR YOU KNOW,FB FOR YOU KNOW, F FOR YOU KNOW, FOROR YOU KNOW, FOR YOUR WHOLE LIFE. THERE WILL BE OPPORTUNITIES ALONG THE WAY. WE'VE SEEN THEM IN THE LAST 25 YEARS. TO GET OUT AND GET BACK IN. MARIA: VANGUARD IS CHANGING. THE RETIREMENT PLAN.

NOT HAVING THE FLAGSHIP S&P 500 FUND IN THE 401(k). WHY IS THAT. WHAT IS YOUR REACTION TO THE FACT THAT VANGUARD IS DROPPING 12 FUNDS FROM THE EMPLOYEE 401(k) RETIREMENT PLAN? IT WILL NOW OFFER 15 FUNDS, DOWN FROM 27. WHY? >> WELL, THE ANSWER IS THAT COMPANIES ALL OVER THE COUNTRY, AND I PRESUME VANGUARD, ALTHOUGH I DON'T RUN THIS PLACE ANYMORE, THERE HAVE BEEN TOO MANY CHOICES IN RETIREMENT PLANS. YOU COULD RUN A RETIREMENT PLAN WITH THREE OR FOUR CHOICES WITH ABSTOCK INDEX FUND, A BOND INDEX FUND, A BALANCED INDUCKS FUND AND THAT COULD BE IT AND INVESTORS CAN MAKE THE CHOICES EASILY. AN ASSET ALLOCATION ISSUE. AND BY GIVING THEM QUITE SO MANY ISSUES AT VANGUARD, NOT IN THE INDUSTRY GENERALLY, WE'VE CONFUSED INVESTORS. FOR VANGUARD IN PARTICULAR, THIS IS NOT GOING TO SURPRISE YOU, I THINK IT'S TOO BAD NOT TO HAVE THE 500 AS AN OPTION.

BUT IT'S PRETTY MUCH INDIFFERENT FROM AN INVESTMENT STANDPOINT BECAUSE OUR CREW MEMBERS, AS WE CALL THEM HERE AND BOGLE HIMSELF, JUST GO INTO THE TOTAL STOCK MARKET FUND WHICH IS 85% OF THE S&P 500 ANY WAY. I LIKE THE S&P 500 BUT I'M PERFECTLY SATISFIED WITH THE VANGUARD TOTAL STOCK MARKET INDEX FUND. A LITTLE BROADER. MARIA: WHAT DO PEOPLE NEED TO KNOW ABOUT THEIR 401(k) PLAN. I FEEL LIKE PEOPLE PUT THEIR MONEY IN THE 401(k) AND THEY DON'T NECESSARILY KNOW WHAT THE PLAN IS INVESTED IN. IS THERE ANY ADVICE YOU WANT TO GIVE US IN TERMS OF MANAGING THEIR 401(k) PLAN? >> WELL, THE LESS YOU MANAGE YOUR 401(k) PLAN THE BETTER. MAKE SOME CHOICES, ASSET ALLOCATE — ALLOCATE YOUR ASSETS, TO SOME DEGREE BASED ON YOUR AGE, AND YOU CAN DO THAT OF COURSE THROUGH THESE POPULAR TARGET DATE RETIREMENT PLANS IN WHICH VANGUARD IS SO TOTALLY DOMINANT IT'S ALMOST NOT WORTH TALKING ABOUT, AND GRADUALLY BUILD UP A BOND POSITION OVER A PERIOD OF TIME.

BUT THE OTHER OPTION IS EVEN SIMPLER AND THAT IS BUY THE BALANCED INDEX FUND, YOU'LL BE 60% IN STOCKS AND 40% IN BONDS FOR THE REST OF YOUR LIFE AND THAT MAY EVEN BE A BETTER STRATEGY. ONLY TIME WILL TELL. MARIA: IT'S SO IMPORTANT, JACK, JUST THIS WEEK WE LEARNED THAT THE SOCIAL SECURITY FUND IS GOING TO BE TAPPING INTO ITS FUND FOR THE FIRST TIME IN 36 YEARS. PEOPLE NEED TO UNDERSTAND SOCIAL SECURITY MAY NOT BE THERE FOR YOU WHEN YOU RETIRED. THE 0 NOWS THE O NOWS THE ONUOWS THE ONUSWS THE ONUS IS ON INDIVIDUAL TO MAKE SURE THEY HAVE A 401(k) AND SAVINGS IN THE STOCK MARKET, CORRECT? >> THAT'S CORRECT BTS.

I WOULDN'T WRITE OFF SOCIAL SECURITY QUITE SO SOON. I DON'T THINK THE NATIONAL POLICY OF THE UNITED STATES OF AMERICA, I BELIEVE THAT POLICY PRECLUDES A SIGNIFICANT REDUCTION IN SOCIAL SECURITY. AND TO ME IT'S KIND OF SAD THAT WE COULD FIX WIT SUCH TINY LITTLE CHANGES, CHANGE THE RETIREMENT AGE A LITTLE BIT, MAKE THE SOCIAL SECURITY MINIMUM.

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Passive Income Ideas to build wealth | 2022

Hi, I'm Samarth from Wint Wealth. Imagine if you can make 1.2 lacs per year, apart from your regular source of income, why is this extra income required? I have a dream of owning a house. Someone might have a dream of owning a big car. Someone might want to send their children to a big university for higher education. Or someone might want to go on a world tour.

And it is not necessary that your regular source of income, is enough to help you achieve all of that. That is where the potential solution comes in. It's called passive income, but what is passive income? Passive income is any income which you generate by putting in lesser effort than your regular job or business. Hear this out carefully, I said lesser effort, had it been no effort then probably everyone would have been a crorepati. Would you believe that Warren buffet who is one of the world's best investor ever makes $4.3 billion per year, just through passive income wherein he has invested his money only in five stocks.

Today, we'll be talking about all avenues that you can probably explore easily to generate some additional passive income. First stream about which we'll talk is equity. Everyone wants to put their money into the stock market. But is it actually passive income? The answer is no, this is where dividend stocks or dividend mutual funds come in. Everyone knows what dividends are. But let me explain it to you in a very simple way. Let’s say you bought some shares in a company.

Now this company would be earning some profit through its business. Company has two options. Either it can reinvest that profit in the business to generate higher income, or it can distribute a part of its profit among its shareholders. When such profit is distributed among the shareholders, we call it Dividend. The stocks which pay dividends more than the industry or have dividend yield higher than the industry average, are called dividend stocks. Dividend mutual funds invest only in stocks which qualify as dividend stocks. Typically dividend stocks pay a dividend at least once or twice in a year.

That is the reason we have put them in the list of passive income. Where you will generate at least one income stream in a year. If you want to know which stocks actually perform very well as dividend stocks, we will be showing the chart on the screen right now. You can select some of these stocks as a part of your portfolio and help create a regular stream of income for yourself There are multiple other options through which you can participate in the equity market, but we aren’t focussing on them right now. And the reason for that is, all of them or probably the majority of them will qualify under active investment. We are only talking about passive investment and that is why we are only focusing on stocks which are dividend stocks or dividend mutual funds. Now we'll be talking about the second option, which you can explore, that is debt. You can have a lot of options under debt. You can invest in bonds. You can invest in bonds. That bond can be issued by governments. It can be issued by state governments. It can be issued by public sector undertakings, or they might be corporate bonds issued by private companies also.

Aside from bonds, you can put your money in fixed deposits. You can go to a bank, get a fixed deposit done. You will keep getting regular income, or you can put your money in post office saving scheme, Kisan Vikas Patra, et cetera, There a lot of schemes opened by the government where you can get a regular stream of income. Having said that, today, we will classify all these options as high risk, medium risk or low risk. Firstly, we will discuss about low risk. Low risk instruments include government bonds and fixed deposit. As of today, government bond of India 10 year benchmark is stating at around 7.50% which in itself for 10 years is a good rate, considering that it is the highest rating, which can be available to anyone, i.e. sovereign rating. Apart from that, you can go to any of the banks and open a fixed deposit and ensure that you get a regular stream of income monthly, quarterly or yearly or at maturity, depending on the option you choose.

Second, we'll talk about the medium risk options. Under medium risk options, we have corporate bonds. These bonds are issued by different companies. They can be issued by public sector, undertakings or private companies can also issue these bonds. And their risk is completely dependent on the entity, which is issuing it. If a triple rated entity is issuing it, then the risk factor is very low.

But if an entity, which is rated lower than triple a is issuing it, then the risk factor increases accordingly. By the way, if you want to explore corporate bonds then you can visit www.wintwealth.com where you can explore investment in corporate bonds wherein you can easily generate 9 to 11% fixed returns for short to medium term that is 12 months to 24 months. Another option which can explore under medium risk category under debt segment is money market funds. Money market funds are typically those mutual funds, which invests its corpus in short term instruments available in the market like treasury bills or commercial papers. Moving to the third category that is the high risk category. To generate fixed returns you can explore P2P lending. Having said that it's a high risk category and you should only invest your money when you are comfortable taking an exposure on any P2P platform. Third category. If we are talking about investments and not including Real Estate, then it will not be fair. Slowly, everyone is moving to an access based system rather than owning something. What I’m trying to say will be clear to you through this example: Everyone wished to have their own their own vehicle, their own car, but not everyone wants to invest that lump money upfront.

What do they end up doing? They enjoy the car ride by renting Ola or Uber. By the way, If you want to know more about renting a cab versus owning a car, please click on the link above and watch this video. Similarly, there has been a shift in renting out spaces rather than owning them. Smart Real estate investments can help you ensure a regular inflow of money through a income stream. Let’s say you decided that you want to invest in real estate. What options do you have? You can buy a flat or a house and rent it out for regular income. You can buy a land and lease out to any business for generating income. Or you can invest in funds which themselves invest in real estate. We'll talk about these in detail later in the video If you want to buy a flat or a house, you can probably choose a flat in a commercial area. For example, In Bangalore there are a lot of IT hubs. You can probably buy a flat near to one of the IT hubs and rent it out.

Because you are buying the house near a IT hub, then definitely there will be a lot of demand. If there will be demand, rent will also be better. You can expect in Bangalore, rental yield of around 3.5 to 3.6% yearly. I know this is very less, but if you conservatively assume that you flat or real estate’s value increase by 4-4.5% on an yearly basis, which is very conservative then also you're making a healthy income of, overall healthy income of, approximately 7.5-8% with a very solid asset being a part of your investment.

But real estate investment is not as easy as it sounds. Before selecting any property there are certain things which you need to take care of. Location of the property, Valuation of the Property, is that area providing good rental yield and more than that is there a demand for rented properties in that area. But if you don't have so much of time or you don't want to take the risk of investing your money directly in real estate, you can explore REITS i.e. real estate investment trust. In simple word, when you don't have the expertise or you don’t want to invest your time in selecting stocks then what you do? You invest in a good mutual fund. Similarly when you don’t have the time or the amount to invest in a real estate i.e.

A flat or a house or a land, you can invest your money in REITS. What REITS are? They're essentially mutual fund, which invest the pooled money into real estate properties. Whatever income is generated from these real estate properties, a part of it, in fact a majority part of it, is distributed among the unit holders as dividends. That is why it's a very simple way of taking exposure on real estate. Another option to take exposure in real estate is INvITs. Similar to REITS, here investment takes place in real estate only. Only difference is investment happens in infrastructure projects like roads. Here as well, whatever income these INvITs earn, majority part of it is distributed among the unit holders as dividend. Now that you've talked about the options where you can put your money to generate some passive income. It is also necessary to know that how much money do you need to invest in which stream, so that you have a balanced portfolio and a good inflow of regular income. Your portfolio composition will depend on a few factors.

Some of them are: your age, your risk appetite, your financial independence, and your goals. If you are around 30 years old, or you do not invest too actively, so I'm assuming you must be having some surplus funds. Let's assume that you’ve around 15 Lacs of surplus funds. If you invest these 15 Lacs of funds in these passive income options, so basis our calculation, we can assume that you will be able to generate around 8% per annum safely in these options, which translates to 1.2 lacs per year. If you have additional rental income from any of the investments which you might have done before, then this number might increase.

If you are in your early twenties or mid-twenties, our advice would be that you should be aggressive with your passive income investment. By that we mean, a major portion of the amount you will be investing in passive income options, should be invested in dividend stocks or dividend mutual funds, i.e. equity side. If you in your mid-thirties or early forties, then you can have a good balance of dividend mutual funds and dividend stocks, plus debt. Under debt as well, probably corporate debt more, because it'll help you generate returns closer to nine to 10% and you should aspire to save enough that you can probably get one real estate, which will help you get more income later.

But if you are in early fifties or probably closer to retirement, or if you have already retired then you should focus only on options wherein your capital is protected to a great extent. And it also helps you generate some additional income. Before we end, passive income doesn’t mean you invest your money and sleep. For every single penny that you invest, our advice is monitor them, not too actively as you do with your regular job or regular business or regular equity investments.

But our advice is any investment that you do, you should keep an eye on it. Passive income will help you generate a huge amount of income flows over the ears. And please do consider it as a very active part of your portfolio. By the way, if the recent market down trend has you buried, then you can watch this video. In this video we have tried to give out some tips wherein even during a market down trend, you can keep your money safe in the stock market and probably end up generating some more money.

Until we meet next time, happy Winting!.

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How To Retire At 30 Living Off Investments

in order to live off of
your investments completely. And I know that the title of this video may sound crazy about retiring by 30, and there are a lot of people
out there selling a pipe dream of you can retire by 30
as long as you invest in this course, or go buy real estate and while that may work for some people I'm not here to sell you guys a course or to pitch you on any
kind of product like that. What we're going to
simply talk about here is how much money you need to have invested in order to live off of your investments and essentially not have
to work to earn your money.

And believe it or not, there's
actually countless people out there who have in fact
retired as early as 30 years old, by following this exact strategy
that I'm going to outline. So if this idea of retiring early and not having to work for your money is something that interests you. What I want to ask you
guys to do is go ahead and drop a like on this
video just show your support. I really do appreciate
that as it helps out with the algorithm and allows this video to get shared with more people. But what we're going to look
at in particular in this video is something called the 4% rule, and that essentially
shows you just how much money you need to have set aside, in order to live
off of your investments. Now you can in fact live off of different types of investments like real estate or the stock market for
example or a business that's providing income for you. But what we're going to use in this video as an example is a passive
stock market investment, and we'll show you exactly
how much money you need to have invested in order
to live off of that income.

So the goal here with this
strategy is to simply invest your money and have a large
amount of money invested and then you would
essentially be living off of the interest income or
the growth of that money without touching the principle. And as I'm sure you guys can imagine if you're not touching the principle or your initial investment, then your money could
foreseeably last forever. Now, the sooner you're able to retire is all based on how much
money you're able to save up and how little money you are
spending each and every month, and there's actually a
whole movement of people that are following this
exact strategy, and it's something out there called FIRE, and FIRE stands for financial
independence retire early. And there's a lot of
people who are doing blogs and videos and all kinds of
stuff about this concept, and there are countless
examples out there, of people who have retired
as early as 30 or even less.

By following these strategies. Alright guys so there's
basically three steps you have to follow in order to do this, and as I'm sure you can imagine, step number one is to be frugal or to spend as little money as possible, because ultimately what
you're looking to do is save and invest enough
money that the interest or the dividends, or
whatever the growth is pays for your monthly living expenses.

And as I'm sure you guys can guess if your monthly expenses
are $6,000 versus $3,000, you're going to need a
lot more money invested to cover those expenses. So being frugal and saving
as much money as possible is actually going to serve
two different purposes here. Well, number one, the
less that you're living on the more of your paycheck
you're able to save up, and the more of your paycheck
you're able to save up, the more you're able to
contribute to that freedom fund, which will eventually be paying for all of your living expenses. And then second of all by spending as little money as possible
every single month, you actually don't need
to save up as much money to potentially live off of the interest or the growth of your money.

And we're going to go over
those exact numbers right now. Alright guys so step number two
that you have to follow here is going to be a tough one, but that is going to be saving 50 to 70% of your take home income and again, if you're looking to
retire by 30 years old, let's say you want to work from 20 to 30, and then not work for
the rest of your life, you're going to have to take
some drastic actions here. And that is why you need to live off of a microscopic amount of money. And that's why step number
one is so important, by cutting down as much as possible on those monthly expenses. So people who are trying to do this, you're not going to see
them driving brand new cars, you're not going to see
them going on vacations, they're probably going to be,
you know, eating canned beans and doing campfires in the
backyard as summer entertainment. Not that there's anything wrong with that, but they are literally spending
as little money as possible, because they're focusing
on the long term picture of what they are trying to do.

So people who are following
this FIRE movement are often aiming to save 30
times their annual expenses, and that will allow them to
withdraw about 4% per year without basically touching that principle and that is where that
4% rule comes into play. And that is basically where you're able to draw from an account about 4% per year, and over a long period of
time based on the growth of that account and those investments, it shouldn't be chipping
away at the principle which should in theory
give you unlimited money. So what you're aiming
to do here is to lower your monthly expenses as much as possible. Figure out what it costs
you to live per year, multiply that by 30, and then
save up that amount of money by saving 50 to 70% of your
paycheck every single week or month, or however often
you are getting paid. Alright so now the question
you guys have been waiting for, just how much money do
you need to have saved up and invested to live off of that money following the 4% rule. Well if your annual expenses
are $20,000 per year, they would recommend having 30 times that amount of money saved and
invested, so $600,000.

If your annual expenses were $35,000, that number becomes 1.05 million. If you're somebody
spending $50,000 per year on your living expenses
you would need to have $1.5 million saved and invested,
and for the final figure here, if you spent $100,000 per
year on cars and housing and food and all of that,
you would need to have about $3 million to successfully
follow this strategy. So I'm sure this goes without saying guys, the best way to follow the strategy and to reach that retirement as quickly as possible is going to be
to keep your monthly expenses as low as possible. And just to put it in
perspective for you guys, every additional $100
that you spend per month, if you follow this is
an additional $36,000 you need to have set
aside in that freedom fund to support that $100 of monthly spending. So if you're serious
about this and you want to retire at 30, or even younger, you are spending literally as little money as humanly possible. Alright so the final step
to following this strategy is going to be passively
investing in the stock market. So most people following this strategy are actually following
the Warren Buffett style of passively investing in index funds.

And if you're not familiar,
index funds are basically a way for you to have diversified
exposure to the stock market. Where you're not essentially
picking what stocks are going to outperform,
you're just passively owning the entire market. So people following this strategy are not out there trying
to beat the market, they are not stock
traders or stock pickers they simply passively invest
in these low fee index funds, one of the most popular ones being VOO or the vanguard 500 fund. And essentially what you are doing, is buying a small piece of the 500 largest publicly traded companies out there, and all the different
dividends those companies pay are all collectively put together, and then you earn a quarterly
dividend from that ETF. And over the last hundred
years or so the stock market, on average, has returned
about eight to 10% per year. So if you were only drawing
4% from that account, based on historical data, you should never be
touching that principle over a long period of time.

And that is how you would
be able to live off of 30 times your annual income, if you save that money and invest it. Now that being said that
is the perfect segue into the sponsor for this
video which is Webull. So if you guys are
interested in getting started with investing in the stock market, this is a totally commission
free broker out there, meaning you're not paying
any fees to please trades with them and you can
purchase the Vanguard 500 ETF that we're talking about in this video right on that Webull platform, and not only that, they're
willing to give you up to two completely free stocks just for opening up an account with them. Number one, if you open the account, you're going to get a free
stock worth up to $250, and then when you fund the account, you'll get an additional
stock worth up to 1000.

So if you do the math there, that is two completely free stocks worth up to $1,250. Now I am affiliated with Webull, so I do earn a commission in the process if you use my link, but
if you guys are interested in grabbing two completely free stocks that is going to be down
in the description below. So finally, the last
thing I want to do here is to put all of this together, and go through a real
example of how you could in fact follow this strategy and even retire by 30. Now again, this is going to
require some very drastic saving because essentially you're trying to work for about 10 years of your life and then not have to work
for the rest of your life. So most people will never
be able to accomplish this, because of the amount of
sacrifice that is required, with that being said, let's go ahead and run
through the numbers now. So let's say you're earning
a salary of $75,000 per year from your job, and ideally,
you don't have any, you know school loans,
student loans, medical bills, or anything like that.

So you haven't gotten
sucked into the consumerism and you don't have like a brand new car so your expenses are as low as possible. And I know this sounds like
you know theoretical situation, but this was actually
about the same situation I was in, when I graduated
college I was 20 years old, now I was making about $68,000, so a little bit less, but I had no debts, I had no car payment,
and so I was somebody who could have potentially
followed this strategy. So after you pay your
taxes, your take home pay is going to be around $56,250. Now we know already in
order to pull this off, you need to save 50 to
70% of that take home pay in order to actually build up enough money to live off of that income. So we're going to assume
you are saving 70% of that take home pay. So you would need to live off of 30% of that post tax income, which
amounts to just over $16,000, or around $1400 per month. Now, is that possible? It absolutely is.

Is it easy? Absolutely not, you're certainly not going to be going out to the
bar and buying beers or going out to dinner,
you're probably going to be living in a tiny apartment driving an old car and eating at home for breakfast, lunch, and dinner. But if that type of
sacrifice is worth it to you for the long term picture, it is something you may
be willing to do yourself. So each year you would
be saving and investing a staggering amount of money, which is 70% of your take home pay
or just over a $39,000. And that is how you would
be able to pull this off, and assuming you kept that
cost of living the same at around $16,000, just over 16,000.

Your freedom number, or 30
times your annual expenses, would be just over $506,000. So, how long would it take
you to save up that money? Let's go ahead and answer that now. Well if you took that
$39,375 per year of money that you are saving and
invested in the stock market, earning 8% return, and
as we said, historically, it's an eight to 10% so we're going to go on the conservative side, well in 10 years at 8%
return career you would have $570,408.40, meaning you could then, if you kept those living
expenses the same, following that 4% rule, not have to work for your
money past that point. And just to circle back
guys what this really comes down to is the level
of sacrifice involved. Are you really willing to live
off of about $1400 per month, or do you want to have vacations and going out to get dinner
and things like that? So it's not people who are doing this that are out there traveling and dining it's people that are living
as frugal as possible and finding enjoyment
in other areas of life other than just, you know,
spending money on dining and things like that.

Now, is this a strategy I
would personally follow? Probably not because I
am one of those people that enjoys traveling, I enjoy dining, and I do spend a little bit
more than the average person, so my freedom number would be
multiple millions of dollars, but instead I follow the
strategy of earning as much as possible and saving a
lot of that earned money, and then eventually allowing
that to supplement my income by having that interest
or the growth of my money paying for a lot of
those things that I want. And believe it or not,
guys, there are honestly countless people out
there that have followed this exact strategy and
retired at 30 or less. One of the most well known people being Mr. Money Mustache, he has a whole blog where he documented this whole journey of becoming financially
independent and retiring early with both him and his wife.

So I'm going to link up his blog down in the description below
as well as a couple of other stories about
people who have followed this exact strategy and
retired at 30 or less. So that's going to wrap
up this video guys, thanks so much for watching. If you're new to this channel, make sure you subscribe and
hit that bell for notifications so you don't miss future videos, and I hope to see you in the next one..

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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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5 Best Fidelity Funds to Buy & Hold Forever

today we're going to talk about the five best fidelity funds to buy and hold forever hi if you're new to the channel my name is tay from financial tortoise where we learn to grow our wealth slow and steady in order to guide our conversation i'm going to use the three fund portfolio strategy to frame the fidelity funds i'm going to recommend in this video the three fund portfolio is one of the most popular do-it-yourself investment strategies and as the name implies it's made up of three simple funds most often an equities fund an international fund and a bond fund so all the funds i'm going to recommend today will fit into at least one of these slots the first fidelity fund you want to buy and hold forever is fidelity's u.s bond index fund fxnax it tracks the bloomberg barclays u.s aggregate bond index which is composed of investment-grade government bonds corporate bonds and mortgage-backed securities it holds approximately 8 400 bonds the top issuers are the u.s treasury or issuers of mortgage-backed securities like fannie mae and freddie mac it has an expense ratio of 0.025 percent which means if you have 10 000 invested in fidelity us bond index fund you're essentially paying 2 dollars and 50 cents for fidelity to manage this fund for you the fund started in 1990 and since then its average annual total return has been 5.33 percent so what are bonds and why do you need them in the simplest term bonds or loans when you buy bonds you're essentially loaning money to someone in this case to a company or a government agency and they're a very important addition to a well-constructed investment portfolio because of how different they are from stocks a good analogy i like to use to frame stocks versus bonds is this think of stocks as your core wealth building engine without it you aren't really going anywhere and bonds are like your brakes without it you could drive yourself off the road when you have bonds in your portfolio it helps to smooth out your investment ride because though they have lower returns they have less volatility during times of market crash where your stock investments can dip by 20 to 30 percent your bond investments will hold steady and ensure your right is so rocky so in order to help you smooth out your investment right you want to start adding them to your portfolio as you get closer to retirement age and if you're invested in fidelity consider fidelity u.s bond index fund as your core bond holding in your portfolio the second fidelity fund you want to buy and hold forever is fidelity total international index fund ftihx the fund tracks the msci all-country world index excluding the united states it represents approximately 5 000 international companies the top companies in this fund are made up of companies like taiwan semiconductor nestle and asml holdings it has an expense ratio of 0.06 percent which means that if you have 10 000 invested in ftihx you're essentially paying six dollars for fidelity to manage this fund for you the fund started in 2016 and since then its average annual total returns has been 5.99 what the fidelity total international index fund will do for you is provide you exposure to the international market outside the united states exposure to different countries sectors and even currencies and we can look at what happened to the japanese stock market as a lesson on why we might want to hold an international fund at the end of 1989 the japanese stock market's capitalized value was considered the largest in the world the nikkei 225 index the index of 225 largest publicly owned companies in japan reached an all-time high of close to 40 000.

Sadly 22 years later the nikkei was under 8 500 and to this day has yet to reach its all-time high again but satur is a japanese investor who failed to invest in international stocks outside of japan the us-based companies are currently the world leader in market capitalization and revenue but who can confidently say that will stay like that in the future it would be unfortunate but the same thing could happen to the u.s stock investors i personally still have strong confidence the u.s economy and u.s based companies as a whole but i also have to continuously check my assumptions financial writer larry swegel had a saying never treat the highly likely as certain and the highly unlikely as impossible as you get more comfortable with the international market you can start adding them to your portfolio and the fidelity total international index fund is a great option to represent your international holdings the third fidelity fund you want to buy and hold forever is fidelity zero total market index fund fzrox the fund tracks fidelity's in-house fidelity u.s total investable market index it represents approximately 2 700 u.s based companies the top holdings in this fund are apple microsoft and amazon it has an expense ratio of zero percent yes you heard me right zero dollars to invest in fidelity zero total market index fund thus the zero in its name the fund started in 2018 and since then its average annual total returns has been 11.82 the fidelity zero total market index fund is a total market index fund which means it tracks the total u.s stock market so this will be a great option as your core equities holding in your three fund portfolio however there are a couple things i do want to note with this fund especially in comparison to the two other equities options i'll cover here in a bit one is the fact that the index it is tracking is fidelity's in-house index fidelity u.s total investment market index this necessarily isn't a bad thing but there are actually more than 2 700 publicly traded companies in the united states than what this fund represents what this fund has done is exclude really small companies from its index in a big scheme of things this doesn't make that much of a difference in performance since the representation is based on market capitalization so the excluded companies would only represent maybe one percent or even less than that of the total fund but this is still something to note the total market here isn't quite the total market a second item to note with the fidelity zero total market index fund is the fact that you can't transfer your shares to another firm without selling your holdings and when you sell your holdings you have to pay taxes on your capital gains the fidelity zero total market index fund was designed with zero percent expense ratio in order to gain more customers so fidelity doesn't want you to move your money to a different firm and this limitation creates that barrier paying zero percent is nice but you won't understand that free comes with some strings attached but if you're planning to stay with fidelity for life fidelity zero total market index fund is a great equities fund to hold the fourth fidelity fund you want to buy and hold forever is fidelity total market index fund fskax the fund tracks the dow jones u.s total stock market index it represents approximately 4 000 u.s based companies the top holdings in the fund are apple microsoft and amazon essentially the same as fidelity zero total market index fund it has an expense ratio of 0.015 percent which means that if you had 10 000 invested in fidelity total market index fund you're essentially paying 1.50 for fidelity to manage this fund for you the fund started in 1997 and since then its average and annual total return has been 8.29 it's fidelity's original total market index fund prior to the introduction of fidelity zero total market index fund and fidelity total market index fund does exactly what his name implies invest in the total u.s stock market essentially every u.s based companies out there when it comes to investing in the stock market the key principle you want to abide by is diversification many people tend to think the only way to make money in the market is to beat the market by either selecting good stocks or good actively managed mutual funds unless you're a professional investor with hundreds of analysts working for you around the clock analysts who are constantly interviewing and researching companies and industries we can't win in the stock picking or fun picking game the odds are just stacked too high against the individual investor so the best strategy to beat wall street is to just track the market and at the lowest cost and fidelity total market index fund is a great fun to hold as your core equity is holding in your portfolio if you want more flexibility from the fidelity zero total market index fund the fifth fidelity fund you want to buy and hold forever is fidelity 500 index fund the fund tracks the s p 500 index which represents the 500 largest publicly traded companies in the united states at the time of this video there are exactly 508 publicly traded companies in this fund the top holdings in this fund are apple microsoft and amazon essentially the same as fidelity zero total market index fund and fidelity total market index fund not a surprise given the company representation is based on market capitalization and these big companies represent a good percentage of the market as a whole it has an expense ratio of 0.015 percent same as fidelity total market index fund so if you have ten thousand dollars invested in fidelity 500 index fund you're essentially paying dollar fifty for fidelity to manage the fund for you the fund is the oldest of the bunch it started in 1988 and since then its average annual total returns has been 10.66 percent when most people talk about the stock market they're most often referring to the standard and poor 500 not the total market index and the reason is because it's so much older it was created in 1926 when it began tracking 90 stocks and in 1957 the list expanded to 500 and for the past century it has been the go-to index to represent the stock market when you turn on any financial news reporters are always discussing how the s p 500 is up 50 points or down 100 points it essentially represents the 500 largest u.s corporations weighed by the value of the market capitalization and because it's weighted by market cap though there are approximately 4 000 publicly traded companies in the united states total these 500 stocks represent about 80 to 85 percent of market value of all u.s stocks and the weight within the index automatically adjusts based upon the changing stock prices to this day the s p 500 remains a standard to which professional mutual fund managers and investment firms compare their returns against so if you want your equities holding to match the performance the largest u.s stocks since they're essentially what moves the market hold fidelity 500 index fund as your core equities holding but i do want to say this whether you choose the fidelity 500 index fund the fidelity total market index fund or the fidelity zero total market index fund as your core equities holding you really can't go wrong with any one of them they're all great funds you just want to understand exactly what you're buying that's it guys i know i normally advocate for vanguard funds but sometimes you may not have the ability to choose the investment firm that you want because maybe your employer doesn't offer it that was the case for me and therefore most of my 401k is actually invested in fidelity fidelity is a great investment firm if you're looking to invest with them pick any of the five that i mentioned here and you can't go wrong if you'd like to learn more about the three fund portfolio and why you might want to consider it as your strategy check out my video here thank you guys for watching until next time all the best

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How is Wealth Management Different at Fragasso?

Our financial advisors are not the sole 
source of guidance for their clients, rather   the firm participates and provides multiple 
experts to support the advisor and the client. The commitment to team collaboration is ingrained 
in our culture and process. This structure helps   to mitigate any type of competition among our 
advisors and more importantly it motivates all   team members to assist for the benefit 
of our clients and prospective clients. As we evaluate their unique situations each 
prospective client with five hundred thousand   dollars of investable assets or above receives 
a complementary individualized financial plan. Once an advisor has gathered the pertinent 
information our advisors and financial planning   analyst teams draft an individualized plan. It is 
then presented at our Friday morning analytical   meetings. Every advisor, analyst, portfolio manager,
department manager and leaders are in attendance. You receive the best thinking of all of our 
professionals on a strictly confidential basis. The   group examining your plan collectively represents 
over 350 years of financial industry experience.

Because we truly operate as a coordinated team 
and our advisors are not competing with one   another, we have open collaborative discussions 
resulting in a comprehensive evaluation and   recommendations from the perspective of all areas 
of expertise focused on your unique circumstances. Over the years we have meticulously refined 
and improved our client experience. This process   always begins with a focus on the unique needs,
goals and challenges for each client.

We do not   view the client experience as a single event 
or something that is haphazard. It encompasses   every aspect of the client relationship beginning 
with the initial discovery meeting through the   delivery of the financial analysis, followed by 
individualized investment management strategies   and the ongoing financial reviews for years to 
come. Every step of the client experience has a   singular focus that is helping clients pursue 
their goals. These unwavering steps throughout   our clients financial journey allow our team to 
continually understand and address our clients   financial and emotional needs. We are majority 
owned by our employees through an employee stock   ownership plan, an ESOP, thus our personnel have 
a stake in your favorable financial outcomes.   Employees contribute ideas, feel empowered and are 
invested in the success of the firm. Our uniquely   structured firm is comprised of a collaborative 
management team consisting of the executive   managers and department managers.

Fragasso has a 
low staff turnover which translates to a higher   level of expertise. You receive elevated client 
service across each position within the firm, consistent long-term client advisor
relationships versus an advisor retiring. The ESOP ownership argues against the 
firm being bought or closed entirely. A unique part of our client experience is 
that our financial advisors welcome the   opportunity to collaborate with your other 
professional advisors such as your attorney, accountant and banker. The coordinated effort 
between key advisors results in your affairs   being arranged in true harmony rather than in 
a vacuum. For example, your Investment Portfolio   can impact your tax planning strategy and we 
can proactively address tax loss harvesting. A change in beneficiary impacts your estate 
plan from a legal and financial perspective..

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Mastering the FIRE Method: The Ultimate Guide to Early Retirement & Financial Independence

at some point of time you would have thought of retiring early or maybe you're thinking of it now and truth be told retirement is not about abandoning work there are very few who would say I won't work any further but what we yearn for is the freedom to operate to live life in the way we want and that brings us to the five moment now fire stands for financial Independence retirement it's a very catchy acronym and to put it in a nutshell it's a program that's designed around saving aggressively investing in high return instruments like equities and disciplined withdrawals which put together ensures you have enough money to cover your living expenses for the rest of your life and therefore retire early in this video I shall be explaining the concept in Greater details we look at the implementation steps some calculations and why fire needs to be a deliberate part of your financial life this might be a short video but it's a very powerful concept so let's begin the concept of fire was popularized in a book titled your money or your life it was built around self-sufficiency control over one's time moderate consumption and of course living life outside the nine to five for instance this guy Pete atney who is better known as Mr Money Mustache applied the fire principles which allowed him to retire from his job as a software engineer at the age of 30.

He's 48 now and he continues to live comfortably of his Investments after so many years and it's not just Pete there are writers bloggers people traveling the world software developers and even YouTubers who are using these principles to lead a more open life and have attached some articles and videos in the description to that effect some of these stories are really inspirational and it proves the fact that a little bit of planning on the financial side can have a profound impact on other aspects of one's life and in a very positive way now there are three parts one needs to address when implementing a fire strategy the first step is savings and the hardcore fire disciple is expected to save anywhere from 50 to 70 percent of one's monthly income this is of course easier said than done and probably where a lot of people make up their mind that this is not their cup of tea but from what I have read and what I've experienced the saving need not be always defined as a percentage and we can also work with absolute numbers which we'll see when I come to the calculations part now when we hear the word saving our first reaction or response is on reducing our expenses however money can also be saved by upping one's income which is what I suggest and it does make sense right I mean there is a limit to what one can save but income generation has a much longer Runway and in our case it can include taking a part-time job doing some consultancy work asking for a pay hike changing jobs for a better salary reskilling oneself or of course starting a side hustle which can be a mix of active and passive work in fact I have a friend in Bangalore who works as a data scientist from Monday to Friday and then on the weekends he takes classes on an edtech platform and also does some consultancy work to put it in numbers what was earlier a monthly saving of 50 000 Rupees is now easily over 2 lakhs a month and this guy has absolutely changed his life around by leveraging what he knows so he's on fire metaphorically speaking and the the fire strategy encourages us to find creative and better ways of increasing our savings rate the Second Step under the fire strategy is to spend wisely notice I didn't say don't spend I said spend wisely which means you need to identify what is an essential expense and what can be tagged as discretionary now people who practice Fire have a ton of helpful advice for us these include driving a good used car instead of a new one renting versus buying a house cooking at home rather than eating out track your daily expenses cancel unnecessary subscriptions Etc from what I've read these small steps can reduce your monthly expenses by up to 30 percent which if you choose to look at it differently is like getting a 30 incremented salary so you don't have to be stinky when it comes to your expenses but try to be a bit more rational about it and the third and final pillar in the fire system is the investment part now on a basic level the system requires advisors to invest as much money as you can and as early as possible so it's the principle of compounding at work here and this table here is a handy guide to how well your Corpus expands when you give it the necessary capital and a decent amount of time to grow now the fire method keeps this investing part ridiculously simple one you invest some money every month or as we call it you set up an sip a systematic investment plan and secondly this money is invested in a low cost Index Fund or ETF which in our case is either the nifty 50 or maybe a slightly broader Nifty 500 Index so essentially the focus here is to participate in the equity markets rather than actively trying to beat it which by my Reckoning should Fetchers and analyze return of 12 to 13 percent again the idea here is to maximize the returns which is why equities have been suggested but if that makes you a little uncomfortable then you can also settle for a mix of different asset classes which is something I explained in my video on asset allocation a few weeks back yet another investment you can make which is encouraged under the fire movement is on account of passive income dividends from stocks interest from your fixed deposits income from your blog your podcast YouTube channel monetization rental income are just some ways of making an Roi from physical or virtual assets now notice I have put this part under Investments and not income because passive income does require a lot of upfront work but once you do the hard work and you do it well one can expect a continuous stream of income over the next few years which will not only support your early retirement Ambitions but will also act as a safety net in fact there is something called an fi Ratio or the financial Independence ratio which largely means if your passive income is greater than your expenses then you're making some great progress on the path to financial Independence so to sum it up remember fire has three simple principles that you need to work on which is save more spend less and invest wisely if you're getting good value from this video then please do give this video a thumbs up and if you aren't a subscriber yet then do consider becoming one as I can then serve you videos as soon as they are released and also share with you some investing strategies tips and stories that are continually Post in the community section the original fire formula is based on the four percent rule which is the amount of saving you can safely withdraw every year without worrying that your money will run out for example let's say you are 29 years old and your monthly expenses are around 50 000 rupees if you want to retire at 40 then you have 11 years to accumulate a retirement fund so here's the math if household inflation is likely to grow by eight percent per annum then the 50 000 you spend now will rise to 1 lakh 16 000 rupees by the time you're 40.

So annually this comes to 14 lakh rupees and per the four percent rule it's 14 multiplied by 25 which means you need to accumulate a couples of three and a half crores to safely navigate through your retirement years or at least that's what the fire formula says now in my view there are some gaps with this four percent rule that I think we should all be aware of firstly this rule is okay for someone who has factored 25 maybe 30 years of retirement but if the retirement Horizon goes higher let's say 50 years for example then this formula starts getting a bit shaky and I've pinned a research study by Vanguard on this in the video's description secondly the four percent rule is a United States origination of the 1990s and has been tested on a historical basis when the yields on equities and Bonds were sufficiently high now we are not Americans and what works there will most likely not work for us which means there's an asset allocation and a market performance risk which needs to be accounted for and finally because each of us have our own preferences income goals saving patterns Etc I always felt it's important to have a customized fire implementation plan rather than picking something off the shelf which is why I created my own fire calculator which gives a clearer picture of how much I need to accumulate when can I idly retire how much withdrawals can I do on a monthly basis and at what point and in what circumstances my retirement money can run out so this obviously starts with the inputs and you need to type in your current age the age at which you want to retire and of course your life expectancy which I hope is strong and long then comes your current portfolio of Investments and this includes your mutual funds fds ppf EPF gold and other stuff and as a best practice kindly exclude the cost of the house where you will be staying post your retirement if you're still working then input the monthly savings and the annual increase you foresee input the expected returns from your investment the capital gain tax that can remain at 10 percent and finally have a view on how much will your expenses be in the first year of retirement and the expected household inflation rate and once we have these numbers keyed in as I have shown in this example the resulting output should clearly tell us three things one the amount of investment Corpus we need at the time of retirement which in this illustration is 2.2 crores at the age of 40.

Secondly we now have Clarity on how much can be spent on an early basis which starts from 12 lakhs so that's one lakh per month and it increases by eight percent every year and thirdly we get to know how sound or unsound this entire construct is like in this case our calculation shows that I'll run out of my money by the time I am 64 years old which is another way of saying that I need to rework my fire math which can include an increase in the monthly savings and the growth rate I can also consider extending my retirement age to a higher number let's say 45 years and finally I I can be a little careful with my expenses and instead of spending a lack of rupees maybe I can make do with 90 000. so there are many permutations and combinations you can look at but my suggestion is try to be a little conservative in your estimates especially when it comes to return on investment the inflation rate and the post retirement monthly expenses now for your benefit I have enclosed the link of this worksheet in the video's description it's a downloadable sheet all the formulas are open so feel free to change the numbers improve the formula if required add your own customization if it helps you but have a clear idea on when and where you need to be on the path to financial Independence so when I first heard and read about fire I was not a big fan of it I mean saving 50 to 7 20 percent of one salary is almost next to Impossible and I would have shut sharp had I not realized that as a method fire is quite flexible and can be used in many different ways so the calculator is one way and you can make a customized version of it but then there are more strategies there are more variants of the fire strategy and if you are interested then do read up on lean fire fat fire Coast fire and a few more of these in related articles that I've Linked In the video's description the point is and I myself realized a very late in life that many of us don't know when to retire how much is needed to retire which is why we continue working in a role or occupation that we don't enjoy much and that's where I think fire as a strategy might be the solution and it's just three things right increase your income and savings lower your expenses and get your Investments right so read up more about this concept in the Articles and websites I've added in the description and I sincerely hope you practice some sort of fire going forward if you found this video useful then do press the like button do subscribe to my channel share this video and I'll see you three days from now until then foreign

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Retirement Planning Home

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Warren Buffett: Why Most People Should Invest In S&P 500 Index

why have you advised your wife to invest in index funds after your death rather than berkshire hathaway i believe munger has cancelled his offspring to quote not be so dumb as to sell she she won't be she won't be selling any berkshire to buy the index funds all all of my berkshire every single share will go to philanthropy so that i don't even regard myself as owning berkshire you know basically it's it's committed and i've i so far about 40 percent has already been distributed so the question is somebody who is not an investment professional will be i hope reasonably elderly by the time that the uh estate gets settled and what is the best investment meaning one that there would be less worry of any kind connected with and less people coming around and saying why don't you sell this and do something else and all those things she's going to have more money than she needs and the big thing then you want is money not to be a problem and there will be no way that if she holds the s p of virtually no way absent something happened with weapons of mass destruction but virtually no way that she will shall have all the money that she possibly can use to have a little liquid money so that if stocks are down tremendously at some point they close the stock exchange for a while anything like that she'll still feel that she's got plenty of money and the object is not to maximize it doesn't make any difference whether the amount she gets doubles or triples or anything of the sort the important thing is that she never worries about money the rest of her life and i had an aunt katie here in omaha charlie knew well and worked for her husband as did i and she worked very hard all her life and had lived in a house she paid i think i don't know eight thousand dollars for 45th and hickory all her life and uh because she was in berkshire uh she ended up she lived in 97.

she ended up with you know a few hundred million and she would write me a letter every four or five months and she said dear warren you know i hate to bother you but am i going to run out of money and and i would i would write her back and i'd say dear katie it's a good question because if you live 986 years you're going to run out of money and and then about four or five months later she'd write me the same winner again and i i have seen there's no way in the world if you've got plenty of money that it should become a a minus in your life and there will be people if you've got a lot of money that come around with various suggestions for you sometimes well-meaning sometimes not so well-meaning so if you've got something that's certain to deliver you know it was all in berkshire they'd say well if warren was alive today you know he would be telling him to do this i i just don't want anybody to go through that and the s p will be a i think actually what i'm suggesting is what but a very high percentage of people should do something like that and i don't think they will have us i think there's a chance they won't have as much peace of mind if they own one stock and they've got neighbors and friends and relatives that are trying to do some like i say sometimes well-intentioned sometimes otherwise to do something else and so i think it's a policy that'll get a good result and it's likely to stick charlie well as becky said the wonders are different i i want them to hold the berkshire well i want to hold the berkshire too no i bet i mean i i i don't like them i recognize the logic of the fact that that s p algorithm is very hard to beat in a diversified portfolio of big companies it's all but impossible for most people but you know it's i'm just more comfortable with the berkshire well it's the family business yeah yeah but but it uh i've just i've seen too many people as they get older particularly being susceptible just having to listen to the arguments of people coming well if you're going to protect your heirs from the stupidity of others you may have some good system but i'm not much interested in that subject [Laughter] okay you

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401K to Gold IRA Rollover

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