Good morning our Trusted Advisor Advocated NICER 837PC Citizens and Sheriffs on call to protect us from Financial Elder Abusers when Vulnerable. Do you have a Forgery Proof Permission Ledger Arbiter Interdiction Living Trust, Schedule A Counterfeit Free LLC.
If we take your advice about investing, will we lose a million dollars, like we did when we took your advice about the Estate Plan Trust? That National Institute of Estate Planners and Notary Index Crime Enforcement Regulatory bravely caveated Failes?
But seriouse people are waiting for stock crash, bigger than in 1929 ( over 90% lower!) 10% from 48 000 DJIA, give us after years DJIA only 4 800 and > 42 000 will be vanish............ fiu, fiu, frrrr
I owned rental properties for 13 years. Dealing with people left me stressed out and in debt. I signed a deal and got rid of them all in January 2020. I paid it off and retired last year by my retirement fund investments. I will take the stock market over real estate any day. The stock market never destroyed my property or threatened to kill me like the people in real estate did.
100% I just got rid of a rental property and probably won't go back. If you really want exposure to real estate get a REIT and you have max liquidity, low stress, and dividends
It’s not for everyone. But it is a good way to start. The big guys have managers and remove the headaches. When I get to 20 units at least then I will pay for management.
In 1980 i purchased a 2 family house in Endicott, NY. 10k down. Put 40k in improvements. The purchase price was $45k. Sold in 2005 for $45k. Had to pay capital gains taxes. When IBM corporation left Endicott it became difficult to rent. I share this story only to point out that not all real estate goes up.
I think it's best to buy real estate in a growing market. Business's are moving in and growing. The property will look expensive, and keep on getting more expensive.
Real estate is great, but you cannot do it forever as you get old and the hassle factor becomes too much. I was a landlord for 48 years until age 69 and switched to Dividend paying stocks. Both were wise decisions I must say
I think the process is to make money and purchase property when you’re young, then switch to shares later in life. Because the average Joe can’t get leverage on stocks it makes sense to leverage property.
@@leonhenry4861 You going to pay that huge capital gains when you sell all those properties. And if you know nothing about stocks, starting at old age isn’t advisable. You should’ve been messing with stocks for a few decades before retirement time.
@Poleeze1 well I invest in countries that don't have cgt. If most people can't pick up 1 book to read about their future, how is that my fault. You can buy etf now at such cheap rates it's not hard
Keep going bud I started at 41... was in 7K debt and living in my overdraft. I'm now debt free have a 15K emergency fund. 20K saving pot and just surpassed ~$100K. Diversification is powerful... I am almost 43 now!
@ I lost a lot chasing individual stocks and I feel pretty stupid for not understanding how investing works. I have a double major in economics but hell I’ve been struggling to make sense of the market. Well done on profits!
Keep it simple, practice proper portfolio diversification, take some risk but don't try to shoot the lights out. I’m invested in ETFs, REITs, and Individual bluechip company stocks and use a CFA. On average, she takes 10% of earnings, but using *Lina Dineikiene's* system makes it much more hands-off. I conservatively follow her recommendations and market entry and exit points, and tbh this makes it fairly simple for me... I am convinced it's not just hard work but smart work:-)
Bought a flat in London in 1998 for £100k sold it last year for £700k. Around 27% per year. In your video I don’t think the comparisons are equal. If you buy the right property, not an average one, you can make excellent profits.
Some people say i will prefer investing in gold or in real estate or in stocks I think that we should build a tremendous wealth and put in all three baskets it will be beneficial ❤
Stocks and real estate are consistent winners. One big difference for me and RE is the tangible nature of the asset. There are certain RE assets that you can use yourself and enjoy while also making money passively (e.g. beach home short term rental). Can't really enjoy stocks all that much 😂 but the returns are solid if you're patient and disciplined
It's a small point but perhaps worth pointing out that on a genuine "apples to apples" comparison basis you should have left the initial cash value stand as $10,000 as ALL of those subsequent dollar amounts will share the characteristic of a lost dollar value of 75% when compared with 1980... or, alternatively, reduce all of the other expressed values by 75% to represent a "real" value comparison. Just saying.
The problem with that is you only know what was high or low in the past and can not reliably predict it for the future. You can of course speculate why prices could go up or down, but in the end thats nothing more than gambling.
@@lj14683your sentiment is true about any investment. However, gold has never been an investment, it has always been a hedge against inflation. Thats why you dont hear anyone saying go all in on gold. Its a store of value. So as the dollar decreases, you still retain the amount you put in gold.
@@notyetjpHe is talking about net worth, he probably owes 2M but he is leveraging those assets. Given how much real estate inflated since 2012, it’s definitely possible. I grew my net worth 1.2 mil in under 1.5 years.
You pick Peak gold price of 1980 instead of when we went off gold standard 1971 of 35 usd per ounce. You could of also pick year 2000 when gold was 260 ounce which in both situations gold has outperformed both real estate and stocks.
Doesn't really matter when he started, the fact is a S&P fund still massively blows any of the other investments away even gold if you were alive and making money to invest in 1970's.
@@Eraserlips Ok, lets use 1971 prices since that is better for you, gold was worth roughly $40 an once so $1000 would get you 24 ounces. So, if you had invested $1,000 in gold in 1971, it would be worth about $60K today. If you had invested the same amount in an S&P 500 fund, it would be worth approximately $150K today with compounded interest, and after paying long term capital gains tax of 15%, you would keep around $130,000. Again, you gold guys refuses to think. It's your money, invest in gold and be happy with your small yearly gain, while the S&P average does several times more and also compounds which gold does not. But that's on you if you think gold is a better investment.
Gold and silver has had a 30+ % annual increase this year alone. So 2% might be average before this. But you need to add in all those years where they’re way more than this.
2% is not even close to the average... He picked the absolute peak number from 1980 for gold and the absolute bottom for stocks. Extremely dishonest IMHO. Stocks still beat gold on average, but it's more like 3% spread on average long term, not 8-10%.
@nathanrathbun2619 I said part of the process. Gold holds what you have creating a good base to continue moving higher is it is protecting your wealth, not taking away from it.
He was rounding for easy numbers, and he started at 1980, not 1982. The point still remains that the difference between your 80k and the 1.2 million is pretty wide. Is this really the cross you want to die on?
Timing is super important in purchasing any asset. Picking some random year like 1980, which I suspect wasnt actually random will skew any result. The goal is to buy low and sell high. If you were buying gold in 1980 you were making the wrong choice, that was a peak. Instead if you bought gold around 2000 ($300) and sold at the peak in 2009 (1800) thats 600%... or if you held until 2024 at $2700/oz thats a 9x return. Same for buying a house or a stock. The trick is finding the thing that is ripe for buying right now.
In this same vein in 1980 intereat rates were crazy high, so property values wer super low. So that price gain is falsely amplified as well especially as it is bei g comoared to current pricing which (imho) is due to have a huge correction. So you are comparing a peak in gold to a building market. In housing you are comparing a bottom to a peak. I think you know this and intentionally selected 1980 for this very purpose. In reality most peoples lives move in waves. They arent aitting there with $10k and deciding house or gold. They need a house and decide rent or buy. Then as they have extra money they start allocating extra money to various assets...
How exactly do you "time" this stuff? That's been tried forever by supposed experts but no one knows when the peaks and valleys are until they're past. Too risky. Diversification and buy and hold are better in the long run.
It needs to be repeated: your personal home IS NOT an investment. Its a life choice. It should NEVER be compared to investments. It gives you and your family memories and emotional rewards and stability. Set it aside. Dont include it in your “investments”. Thanks for highlighting how (investment) real estate is mainly about cash flow and tax benefits. Stocks are mainly about asset appreciation. Its like a sedan vs a pickup. You should have BOTH to utilize their main attributes.
AGREED!!! I always tell people that their house is NOT an investment and they completely lose their shit 😅. It’s actually quite funny to witness how emotional people are about the topic. I feel like a wrecking ball just destroying their dreams. Instead, I will gently say “YOUR HOUSE IS NOT THE INVESTMENT YOU THINK IT IS”
@@yellowtrain3161 yeah, i see social media types perpetuating it saying “well its the biggest investment you’ll ever make!” or “buying a home is a bad investment cuz you should have bought Nvidia instead !” i just roll my eyes.
If it’s not producing you any “cash flow” and you’re paying all the interest, property taxes, insurance, maintenance, and HOA fees out of your own pocket, then it sure as hell is not an “investment”.
@@yellowtrain3161 They think of it as an investment because they calculate the potential profits from a sale as: Sale proceeds = sale price - commission - mortgage payoff Profit = sale proceeds - nominal purchase price Instead of Profit = sale proceeds - cost of ownership, where cost of ownership = down payment + principal + interest + property taxes + insurance + maintenance I always tell them that a big chunk of their “profit” came out of their own pocket-at best they’re getting their cost of ownership back with a small “profit” albeit in devalued dollars
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If I put 50k deposit on a house that's currently worth 200k, in ten years it might be worth 400k. If I put it in the SNP 500 it will be worth about 110K
For the 110k you didn't have to do anything but receive dividends and watch it grow. For the house you still had to pay solicitors fees,the loan plus interest, pay rates and insurance and once you sell it pay capital gains.
@@ryanclarke2161 Correct, but property still makes far more money. Just putting money into an SNP500 won't make you rich. If you have a lot to start with as a child, then it's a good idea. I speak to people that are looking forward to their million dollar retirement fund in 30 years time. The problem is in 30 years, a million will be worth practically nothing, it will last just a few years before you run out of money.
Would love to figure out how to get from $1+M to $10M… they say the first $100k is the toughest. $1M snuck up on me and I’m on my way to $2M… but would really like to hit $10M in the next 5 years.
Next 5 years? Sounds like that Warren Buffett line it's foolish to risk something you need for something you don't (and is just a want). Good luck though finding some magical low risk opportunity if one some day appears (can occasionally happen)
@@davidglad have heard that it’s not complicated… I have to either Risk more, work more or wait more. I have planted seeds a while ago that seem like they may grow. I say 5 years from now but those seeds were planted 5 years ago (at least)… and I’m always aggressive and unrealistic about my timelines. However, I have been right in the past when I was less confident and had less of a safety net. Thanks for your input though! Cheers 👍
Thank you for the content!! All we need is the right advice on how to invest in crypto and we will be set for life, I’ve made huge figures from trading regardless of the market conditions😊
Real estate is a great investment, but you can probably cut your rent income in half to account for taxes, insurance, maintenance, cap expenses, tenant turnover. etc. So when figuring gains, need to account for all of these. Seems to be generally about 50% of rents received. And if you have a mortgage payment also, the expenses could be around 80% of rents received, leaving very little profits during your purchasing phase.
Some years it IS that bad, but other years it is better. It a hard business to be in, which is why I am going to start buying reits rather than more properties. I’m keeping a few of my best properties. I also own dividend paying stocks.
I think the calculation about Gold is not correct: If someone plan to invest in Gold, they will not buy at the top in 1980, but spread out across 3-4 years, so the average is $200/once and not $800. This results in x4 of what you show = 120K and not 30K. Also, what about new tech investments, for example: BTC. Just 1% over 3-4 years would become 99% of you entire portfolio.
Precious metals suck as investments. Over a long period of time they go up little in value compared to real estate and stocks, you can't leverage them for more wealth, and you pay enormous amounts in taxes when you sell them, as they're considered collectibles. I know, I've done it. Will never invest much in that asset class again.
After my father’s recent passing, I inherited a sizable sum to start investing for my family. Being a novice at 48, I’d prefer to follow the guidance of experienced investors instead of trying to time the market myself. Can people really make profits through social trading? I’ve seen someone here claim they made seven figures.
It’s certainly possible, but it’s generally executed by skilled professionals with extensive expertise. Diligence is crucial. My portfolio has grown over 200% since I started working with a fiduciary who manages all aspects, including risk management, entry and exit points, and technical analysis.
But that is just one period of fast growth, he is showing the average growth since 1980 which includes long periods when prices were stagnant or even short periods of decrease. Of course, if you compare prices just before the fastest growth and just after it, you get different result.
Factor in the interest you are paying to the bank in 30 years, property taxes, insurance, inflation, closing costs and maintenance and repairs. You also still have to be able to sell the house. You sell the house just to buy another house that's valued at the same price you are selling it at. Add up all the numbers correctly and you will see how lousy investment owning a house really is. The stock market is where you want to be and just rent.
Dividends aren't profit! Why does everyone get this wrong. The dividend is paid out of the share price. It's a reallocation of capital. No new capital is being created
Interesting. Why does share price go up then? Because if its reallocation and you spend your dividends, the NAV should consistently be going down isn’t it?
Thanks., great video. The US dollar (cash) does go down in value due to inflation. But the $10k remains $10k. Inflation affects all asset classes you mentioned.
Stocks for me. Seeing how much my portfolio has gone up in recent years, I prefer stocks. I don't care for rentals. I live on my west coast so I'm very aware that our home tripled in value.
Great to compare thanks... the only comment I have is that if you're depreciating cash because of inflation, should you do that to the rest as well? Then again, it's probably better not to over complicate the example.
Toby I'm interested in investing in all 3 you've mentioned in this video. But I was planning to do this in 2025 after the US election. Economic conditions seem rather unstable & current valuations of these assets seem rather murky. Same time I agree that it is a good idea for an investor to diversify their asset allocation.
Timing is important with real estate. I bought a small 2 bedroom house in January of ‘12 for $135,000 in the Chicago suburbs when the market was basically bottoming out. Collected rent for 10 years mostly trouble free, though oddly enough the problem for me was never my tenants but one of the next door neighbors who didn’t like having a rental next to him. Sold it in ‘21 for $10,000 over list at $235,000. Conversely, I bought the house I currently live in for $370,000 in 2006 at the top of the market, and I’d be lucky to get $420,000 after 18 years of living here
Great content! I agree on diversifying, but there is little argument for better r/r in RE invest over stock index returns when you factor in effective use of leverage. Low risk in locking in 5% returns via treasuries and then using low margin rates for "Return Stacking" and combine with 10%+ avg returns of low cost index funds. Can get creative by mixing in any number of other market instruments w/ low beta correlations. You mentioned avoiding dividend taxes w/ retirement accounts, or why not just avoid dividends entirely? Can create "tax drag" on taxable account performance. No real reason to sell or ever create taxable events at all and the long-term average market returns more than pay for the margin costs, even with occassional down years. Down years roughly correlated across markets anyway, just stocks are marked to market. No overheard, no tenant risks or liabilities should make stocks the obvious investment priority for anyone willing to learn how to manage what are arguably much lower risks. RE investing could then even be a significantly better r/r when you can borrow against your own stock portfolio and be your own bank.
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Good morning our Trusted Advisor Advocated NICER 837PC Citizens and Sheriffs on call to protect us from Financial Elder Abusers when Vulnerable. Do you have a Forgery Proof Permission Ledger Arbiter Interdiction Living Trust, Schedule A Counterfeit Free LLC.
If we take your advice about investing, will we lose a million dollars, like we did when we took your advice about the Estate Plan Trust? That National Institute of Estate Planners and Notary Index Crime Enforcement Regulatory bravely caveated Failes?
Great content teacher! Keep it up. Totally black n white content
Thanks for the info, while we are on the subject of truth how long have you known the Estate Plan Trust and LLC failed.
But seriouse people are waiting for stock crash, bigger than in 1929 ( over 90% lower!)
10% from 48 000 DJIA, give us after years DJIA only 4 800 and > 42 000 will be vanish............ fiu, fiu, frrrr
I owned rental properties for 13 years. Dealing with people left me stressed out and in debt. I signed a deal and got rid of them all in January 2020. I paid it off and retired last year by my retirement fund investments. I will take the stock market over real estate any day. The stock market never destroyed my property or threatened to kill me like the people in real estate did.
I agree with you 100%
Damn I guess I did the right choise to never buy houses for rental what a headache
100% I just got rid of a rental property and probably won't go back. If you really want exposure to real estate get a REIT and you have max liquidity, low stress, and dividends
It’s not for everyone. But it is a good way to start. The big guys have managers and remove the headaches. When I get to 20 units at least then I will pay for management.
But would you have retired as well without what you made cashing out your rentals (plus their appreciation)?
.. I’m guessing not 🤔
I'm not even in the states nor I'm a US citizen, but I find your videos so informative. Big thanks.
In 1980 i purchased a 2 family house in Endicott, NY. 10k down. Put 40k in improvements. The purchase price was $45k. Sold in 2005 for $45k. Had to pay capital gains taxes. When IBM corporation left Endicott it became difficult to rent. I share this story only to point out that not all real estate goes up.
That’s why he took the national average. You could say the same about office space post-COVID, Damian’s way down
Also the area has a lot to do... But the goodies are very expensive!
I think it's best to buy real estate in a growing market. Business's are moving in and growing. The property will look expensive, and keep on getting more expensive.
You just sold it at the wrong time
1980. What a crap year 😅. Everyone complaining about interest rates today!?
Real estate is great, but you cannot do it forever as you get old and the hassle factor becomes too much. I was a landlord for 48 years until age 69 and switched to Dividend paying stocks. Both were wise decisions I must say
I think the process is to make money and purchase property when you’re young, then switch to shares later in life. Because the average Joe can’t get leverage on stocks it makes sense to leverage property.
@@leonhenry4861 You going to pay that huge capital gains when you sell all those properties. And if you know nothing about stocks, starting at old age isn’t advisable. You should’ve been messing with stocks for a few decades before retirement time.
@Poleeze1 well I invest in countries that don't have cgt. If most people can't pick up 1 book to read about their future, how is that my fault. You can buy etf now at such cheap rates it's not hard
@ Well, most countrues do have CGT and the exceptions don’t make the rules. It has nothing to do with picking up a book.
Real Estate is NOT passive....Agreed
Watching in my 40s... And only just starting investing I feel so behind!
Buy S&P index through a Roth investment to do even better through tax free gains
Better late than never! You're doing great compared to the average citizen
Keep going bud I started at 41... was in 7K debt and living in my overdraft. I'm now debt free have a 15K emergency fund. 20K saving pot and just surpassed ~$100K. Diversification is powerful... I am almost 43 now!
@ I lost a lot chasing individual stocks and I feel pretty stupid for not understanding how investing works. I have a double major in economics but hell I’ve been struggling to make sense of the market. Well done on profits!
Keep it simple, practice proper portfolio diversification, take some risk but don't try to shoot the lights out. I’m invested in ETFs, REITs, and Individual bluechip company stocks and use a CFA. On average, she takes 10% of earnings, but using *Lina Dineikiene's* system makes it much more hands-off. I conservatively follow her recommendations and market entry and exit points, and tbh this makes it fairly simple for me... I am convinced it's not just hard work but smart work:-)
FINALLY! Someone that has gold as a percentage of their overall saving rather than saying its all i should have or its dumb! I subscribed!
out of all the finance chanels that I am subscribed, this chanel is EASILY in the top 3. Great content!
It's a good channel but I only follow 2
Your support means a lot =)
@foodhead4677 which two finance channels do you follow? I'm trying to learn aswell, thank you and God bless.
Bought a flat in London in 1998 for £100k sold it last year for £700k. Around 27% per year. In your video I don’t think the comparisons are equal. If you buy the right property, not an average one, you can make excellent profits.
Some people say i will prefer investing in gold or in real estate or in stocks I think that we should build a tremendous wealth and put in all three baskets it will be beneficial ❤
This is a GREAT EYE opener video, need to watch this a few times to take it all in ,thank you !!!!
Stocks and real estate are consistent winners. One big difference for me and RE is the tangible nature of the asset. There are certain RE assets that you can use yourself and enjoy while also making money passively (e.g. beach home short term rental). Can't really enjoy stocks all that much 😂 but the returns are solid if you're patient and disciplined
Free Book
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Thanks Toby. Valuable information. What to do with CD money when interest rates come down?
Very important data. Very informative. Thank you
... the gold investment only went up 195% from $10,000 not 295%.
Tobi keep it up!!! Great content!!!
I got your book but not started yet
It's a small point but perhaps worth pointing out that on a genuine "apples to apples" comparison basis you should have left the initial cash value stand as $10,000 as ALL of those subsequent dollar amounts will share the characteristic of a lost dollar value of 75% when compared with 1980... or, alternatively, reduce all of the other expressed values by 75% to represent a "real" value comparison. Just saying.
Thought about this but didn't have the actual words to put it
Great point!
That was really helpful Toby. Thank you so much!
The key is buy low, sell high. We’ve had real estate that doubled in five years, and right now I’m enjoying the doubling of my metals.
The problem with that is you only know what was high or low in the past and can not reliably predict it for the future.
You can of course speculate why prices could go up or down, but in the end thats nothing more than gambling.
@@lj14683your sentiment is true about any investment. However, gold has never been an investment, it has always been a hedge against inflation. Thats why you dont hear anyone saying go all in on gold. Its a store of value. So as the dollar decreases, you still retain the amount you put in gold.
Na because gold will never get low as 2020 again@@lj14683
And who is going to be the “ silly one “ buying high when You want to sell it??
The affluent don’t choose, they take both. More income sources, the better😊
Great overall comparison to put prospective. I loved it. Keep going.
I'm a total real estate guy. In 2010 I had a negative $250K net worth. By 2022 had a 2 million net worth. All Real Estate.
You live in Mars 😂
Your "Investment manager" must be telling you that. 800% in 12yrs. You really need to look closer at those "books"....
@@notyetjpHe is talking about net worth, he probably owes 2M but he is leveraging those assets. Given how much real estate inflated since 2012, it’s definitely possible. I grew my net worth 1.2 mil in under 1.5 years.
@@chrissithlord4760 Thank you my friend.
@chrissithlord4760 except that NET worth should be exactly that... NET of mortgages held.
You pick Peak gold price of 1980 instead of when we went off gold standard 1971 of 35 usd per ounce. You could of also pick year 2000 when gold was 260 ounce which in both situations gold has outperformed both real estate and stocks.
Thank you. This is exactly what I needed to hear today, in my journey.
1980 - 800 was an astronomical high for gold, as was 50 silver. Should have used a lot lower value. Try using 1978 gold and silver.
Indeed, he has picked a peak gold as a starting point, he should have started at 1971 when the dollar became FIAT.
Doesn't really matter when he started, the fact is a S&P fund still massively blows any of the other investments away even gold if you were alive and making money to invest in 1970's.
It does matter if you want to be accurate and not biased. And gains in gold may not be taxed either, depending on YOU. 😮
@@Eraserlips Ok, lets use 1971 prices since that is better for you, gold was worth roughly $40 an once so $1000 would get you 24 ounces. So, if you had invested $1,000 in gold in 1971, it would be worth about $60K today. If you had invested the same amount in an S&P 500 fund, it would be worth approximately $150K today with compounded interest, and after paying long term capital gains tax of 15%, you would keep around $130,000. Again, you gold guys refuses to think. It's your money, invest in gold and be happy with your small yearly gain, while the S&P average does several times more and also compounds which gold does not. But that's on you if you think gold is a better investment.
At least that’s an honest assessment. My problem is that I am a short term investor.
Excellent...I just shared with 5 family members. Thank you
Gold and silver has had a 30+ % annual increase this year alone. So 2% might be average before this. But you need to add in all those years where they’re way more than this.
2% is not even close to the average... He picked the absolute peak number from 1980 for gold and the absolute bottom for stocks. Extremely dishonest IMHO. Stocks still beat gold on average, but it's more like 3% spread on average long term, not 8-10%.
We said good by to our families gold, stocks, and real estate when our parents hired an Estate Planner instead of Inheritance Administrator.
Why is that? Curious on what went wrong as we are busy setting up our family trusts at the moment.
Gold does not build wealth. It holds wealth generationally.
Isn't that part of building wealth?
@香料國境 the word building means to construct something, or to create, to increase, so gold does not build wealth because it does not create more.
@nathanrathbun2619 I said part of the process. Gold holds what you have creating a good base to continue moving higher is it is protecting your wealth, not taking away from it.
Free book. Always enjoy your content Toby.
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in 1982 gold was $300 so for $10,000 you get around 33oz. Gold is now $2,650 not $2,500 and you know it. That 33oz would be worth around $87,000 now
*_1982_* wasn't his starting point (and you know it).
That's only a 8x return though
He was rounding for easy numbers, and he started at 1980, not 1982. The point still remains that the difference between your 80k and the 1.2 million is pretty wide. Is this really the cross you want to die on?
Free book, thank you for your wisdom
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Timing is super important in purchasing any asset. Picking some random year like 1980, which I suspect wasnt actually random will skew any result. The goal is to buy low and sell high. If you were buying gold in 1980 you were making the wrong choice, that was a peak. Instead if you bought gold around 2000 ($300) and sold at the peak in 2009 (1800) thats 600%... or if you held until 2024 at $2700/oz thats a 9x return. Same for buying a house or a stock. The trick is finding the thing that is ripe for buying right now.
In this same vein in 1980 intereat rates were crazy high, so property values wer super low. So that price gain is falsely amplified as well especially as it is bei g comoared to current pricing which (imho) is due to have a huge correction. So you are comparing a peak in gold to a building market. In housing you are comparing a bottom to a peak.
I think you know this and intentionally selected 1980 for this very purpose. In reality most peoples lives move in waves. They arent aitting there with $10k and deciding house or gold. They need a house and decide rent or buy. Then as they have extra money they start allocating extra money to various assets...
@@adowdell He was very disingenuous about choosing 1980, a previous all time high for gold.
How exactly do you "time" this stuff? That's been tried forever by supposed experts but no one knows when the peaks and valleys are until they're past. Too risky. Diversification and buy and hold are better in the long run.
These videos are very helpful to learn
It needs to be repeated: your personal home IS NOT an investment. Its a life choice. It should NEVER be compared to investments. It gives you and your family memories and emotional rewards and stability. Set it aside. Dont include it in your “investments”.
Thanks for highlighting how (investment) real estate is mainly about cash flow and tax benefits. Stocks are mainly about asset appreciation. Its like a sedan vs a pickup. You should have BOTH to utilize their main attributes.
AGREED!!! I always tell people that their house is NOT an investment and they completely lose their shit 😅. It’s actually quite funny to witness how emotional people are about the topic. I feel like a wrecking ball just destroying their dreams. Instead, I will gently say “YOUR HOUSE IS NOT THE INVESTMENT YOU THINK IT IS”
@@yellowtrain3161 yeah, i see social media types perpetuating it saying “well its the biggest investment you’ll ever make!” or “buying a home is a bad investment cuz you should have bought Nvidia instead !” i just roll my eyes.
If it’s not producing you any “cash flow” and you’re paying all the interest, property taxes, insurance, maintenance, and HOA fees out of your own pocket, then it sure as hell is not an “investment”.
@@TheLethargicAge ugh…..THANK YOU!!! Finally, another one who understood the assignment!!!
@@yellowtrain3161 They think of it as an investment because they calculate the potential profits from a sale as:
Sale proceeds = sale price - commission - mortgage payoff
Profit = sale proceeds - nominal purchase price
Instead of Profit = sale proceeds - cost of ownership, where cost of ownership = down payment + principal + interest + property taxes + insurance + maintenance
I always tell them that a big chunk of their “profit” came out of their own pocket-at best they’re getting their cost of ownership back with a small “profit” albeit in devalued dollars
Free book! Great video
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If I put 50k deposit on a house that's currently worth 200k, in ten years it might be worth 400k. If I put it in the SNP 500 it will be worth about 110K
I'll take "will" over "might" any day 😉
For the 110k you didn't have to do anything but receive dividends and watch it grow.
For the house you still had to pay solicitors fees,the loan plus interest, pay rates and insurance and once you sell it pay capital gains.
You just don't get it at all
@slabbygabby I really do get it, I'm a multi millionaire
@@ryanclarke2161 Correct, but property still makes far more money. Just putting money into an SNP500 won't make you rich. If you have a lot to start with as a child, then it's a good idea. I speak to people that are looking forward to their million dollar retirement fund in 30 years time. The problem is in 30 years, a million will be worth practically nothing, it will last just a few years before you run out of money.
I love the way you teach! Thank you for the amazing insight.
Would love to figure out how to get from $1+M to $10M… they say the first $100k is the toughest. $1M snuck up on me and I’m on my way to $2M… but would really like to hit $10M in the next 5 years.
Good luck
Next 5 years? Sounds like that Warren Buffett line it's foolish to risk something you need for something you don't (and is just a want). Good luck though finding some magical low risk opportunity if one some day appears (can occasionally happen)
@@davidglad have heard that it’s not complicated… I have to either Risk more, work more or wait more.
I have planted seeds a while ago that seem like they may grow.
I say 5 years from now but those seeds were planted 5 years ago (at least)… and I’m always aggressive and unrealistic about my timelines. However, I have been right in the past when I was less confident and had less of a safety net.
Thanks for your input though! Cheers 👍
To constantly do 5 x every 5 years sounds far to risky. If you find out a way it would be magical.
FREE BOOK.
Thank you for the educative information
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@@TobyMathis How do we get our money back on the Estate Plan Trust National Institute of Certified Estate Planners says failed?
Thank you for the content!! All we need is the right advice on how to invest in crypto and we will be set for life, I’ve made huge figures from trading regardless of the market conditions😊
I'm waiting for NICER Cyber Air Coins Notary Index Crime Enforcement Regulatory puts their client's needs ahead of their own.
Real estate is a great investment, but you can probably cut your rent income in half to account for taxes, insurance, maintenance, cap expenses, tenant turnover. etc. So when figuring gains, need to account for all of these. Seems to be generally about 50% of rents received. And if you have a mortgage payment also, the expenses could be around 80% of rents received, leaving very little profits during your purchasing phase.
lol that’s a crazy assumption. Not realistic. A wise landlord would factor these in before purchasing, but not at those percentages.😂
Some years it IS that bad, but other years it is better. It a hard business to be in, which is why I am going to start buying reits rather than more properties. I’m keeping a few of my best properties. I also own dividend paying stocks.
Free Book. Thanks for all you do for us!!!
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Your time frame selection is really bad. That was best time for dollar
Free book - thanks for the great clear content, best videos on tax savvy investing I have found
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I think the calculation about Gold is not correct: If someone plan to invest in Gold, they will not buy at the top in 1980, but spread out across 3-4 years, so the average is $200/once and not $800. This results in x4 of what you show = 120K and not 30K. Also, what about new tech investments, for example: BTC. Just 1% over 3-4 years would become 99% of you entire portfolio.
Bitcoin is worthless hype and a pump and dump.
Didn't see this before, but I made similar remarks. I like him, but this isn't the first time he misrepresented Gold.
Precious metals suck as investments. Over a long period of time they go up little in value compared to real estate and stocks, you can't leverage them for more wealth, and you pay enormous amounts in taxes when you sell them, as they're considered collectibles. I know, I've done it. Will never invest much in that asset class again.
free book. thanx!
Hello, here's your link to get the Free Infinity Book inf.link/ade409.
After my father’s recent passing, I inherited a sizable sum to start investing for my family. Being a novice at 48, I’d prefer to follow the guidance of experienced investors instead of trying to time the market myself. Can people really make profits through social trading? I’ve seen someone here claim they made seven figures.
It’s certainly possible, but it’s generally executed by skilled professionals with extensive expertise. Diligence is crucial. My portfolio has grown over 200% since I started working with a fiduciary who manages all aspects, including risk management, entry and exit points, and technical analysis.
Free Book, great learning!
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im sorry but the house thing isnt right; just 5 years ago, a house was 150k. now, this same house is closing in on 400k.
But that is just one period of fast growth, he is showing the average growth since 1980 which includes long periods when prices were stagnant or even short periods of decrease. Of course, if you compare prices just before the fastest growth and just after it, you get different result.
That's because something weird is going on. It has nowhere to go but down so whatever you have you better sell it.
@@69mjar i intend to die here but ya, if this was an investment, it would feel like a game of musical chairs.
Factor in the interest you are paying to the bank in 30 years, property taxes, insurance, inflation, closing costs and maintenance and repairs. You also still have to be able to sell the house. You sell the house just to buy another house that's valued at the same price you are selling it at. Add up all the numbers correctly and you will see how lousy investment owning a house really is. The stock market is where you want to be and just rent.
@@holysmokesturbo2649 I would agree but I do not plan to move ever again. I love where I am.
Free book. Your channel is informative and helpful. Thank you!
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Dividends aren't profit! Why does everyone get this wrong. The dividend is paid out of the share price. It's a reallocation of capital. No new capital is being created
Interesting. Why does share price go up then? Because if its reallocation and you spend your dividends, the NAV should consistently be going down isn’t it?
But if dividends are not paid from the profit, what is the Payout ratio which show how much of the prfit in % the company spend for dividends
Thanks., great video.
The US dollar (cash) does go down in value due to inflation. But the $10k remains $10k.
Inflation affects all asset classes you mentioned.
Should have done 1970 would have shown the true return potential for asset like gold and why people hold it. Gold was $35 an oz in 1971
Out here in South Africa Johannesburg enjoying your content. Keep it up!
Im from Norway,but find your videos very informative
Free book, thank you sir
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Very well done.
FREE BOOK. very informative advice--TYVM
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Great video. Thank you!
Great!!! I learned a lot!!!
Love from India , solid concepts
Free book, thank you, great videos!
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Received with thanks
Great job comparing everything
Thanks for the information! Learning so much with these videos
Glad you like them!
Thank you
Free book.
Amazing content. Ty.
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Free book. Than you for sharing your knowledge
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Free book. Appreciate you sharing your knowledge!
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Free book. I appreciate your analysis.
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Free Book… Thank you for your advice.
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Great video, Toby.
Thanks!
Toby.. love the video. Its 2024.. so please do an update video including BTC.. thanks Mike
Free book. Thanks!
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Great info💜
Free book. Love your content, BTW.
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Free book please. So glad I found you 🙌🏼
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Free book, enjoyed this message. Thank you.
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Free book. Great and thank you!
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Free book. Thanks, Toby.
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Stocks for me. Seeing how much my portfolio has gone up in recent years, I prefer stocks. I don't care for rentals. I live on my west coast so I'm very aware that our home tripled in value.
Free book. Thank you for posting this video.
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Free book. Thank you!
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Free Book. Thanks!
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I'm so glad you made this video!
Free book.
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Free book ...thank you!
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Free Book sounds good. Thanks.
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Free book. Enjoyed the video
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Great to compare thanks... the only comment I have is that if you're depreciating cash because of inflation, should you do that to the rest as well? Then again, it's probably better not to over complicate the example.
Free Book. Thank you
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Toby I'm interested in investing in all 3 you've mentioned in this video. But I was planning to do this in 2025 after the US election. Economic conditions seem rather unstable & current valuations of these assets seem rather murky. Same time I agree that it is a good idea for an investor to diversify their asset allocation.
In other words, you’re trying to time your entry?
Timing is important with real estate. I bought a small 2 bedroom house in January of ‘12 for $135,000 in the Chicago suburbs when the market was basically bottoming out. Collected rent for 10 years mostly trouble free, though oddly enough the problem for me was never my tenants but one of the next door neighbors who didn’t like having a rental next to him. Sold it in ‘21 for $10,000 over list at $235,000. Conversely, I bought the house I currently live in for $370,000 in 2006 at the top of the market, and I’d be lucky to get $420,000 after 18 years of living here
Free book. Great content!
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❤️❤️love your channel
Free book
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Great content! I agree on diversifying, but there is little argument for better r/r in RE invest over stock index returns when you factor in effective use of leverage. Low risk in locking in 5% returns via treasuries and then using low margin rates for "Return Stacking" and combine with 10%+ avg returns of low cost index funds. Can get creative by mixing in any number of other market instruments w/ low beta correlations.
You mentioned avoiding dividend taxes w/ retirement accounts, or why not just avoid dividends entirely? Can create "tax drag" on taxable account performance. No real reason to sell or ever create taxable events at all and the long-term average market returns more than pay for the margin costs, even with occassional down years. Down years roughly correlated across markets anyway, just stocks are marked to market.
No overheard, no tenant risks or liabilities should make stocks the obvious investment priority for anyone willing to learn how to manage what are arguably much lower risks. RE investing could then even be a significantly better r/r when you can borrow against your own stock portfolio and be your own bank.
Free book pls great info👍
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Free book. Thanks.
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