Stock Market vs Real Estate: Where Should Your Wealth be Allocated?
Вставка
- Опубліковано 14 лис 2023
- When it comes to wealth, is someone that has most of their wealth in the stock market better than someone with most of their wealth in real estate? Is the stock market a better investment than real estate?
Jump start your journey with our FREE financial resources: moneyguy.com/resources/
Reach your goals faster with our products: learn.moneyguy.com/
Subscribe on UA-cam for early access and go beyond the podcast: ua-cam.com/users/MoneyGuySho...
Connect with us on social media for more content: moneyguy.com/link-in-bio/
Take the relationship to the next level and become a client: moneyguy.com/work-with-us/
Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.
I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024
Stocks + Real Estate!
That’s how you do it.
Combination of both options is worth considering to reduce risk in your portfolio!
Solid logic bud
It is fantastic! In 2018, we made investments through our fiduciary financial advisor after selling our business share. Although the returns vary annually, we have made over 10.5% YTD.
I am 24 and have a little over $40,000 in savings. I currently have it in a High Yields Savings with 4.3% APR. I have gambled a bit in stocks in the past but never have “invested” my question is if you were me as in my age with the amount of money I have with how the market is right now. What would you do? I have thoughts about pulling it out and putting it in Microsoft/Apple or maybe an ETF like SPY/VOO, would that be a bad choice? Very new here any advice is greatly appreciated!
VOO and chill! Seriously, people here don’t beat the market for years and years. They aren’t able to give you good advice. It takes a gargantuan amount of work to beat something like VOO consistently (over the years, not just in few years that’s luck). Mind you, I’m not denying that small investors can regularly beat the market, they can, but it requires an insane amount of studying, due diligence, nerves, character, discipline and even then, it’s extremely hard and even then you’re beating it by some small margins, which only matters if you can compound it it for years.
What’s a VOO?
I'd much rather be 100% stocks than 100% real estate. You can still be very flexible, even with 100% stocks. Roth, tax-deferred, taxable. International, domestic. Large-cap, mid-cap, small-cap. Real estate, tech, helathcare, energy. It's also easy to buy $100 of stock, but not $100 of real estate.
Principal residence is a must though. Should have both. Mortgage debt is also the lowest of all debts.
@@AnimeBeefRandoms I agree both is ideal. But I'd rather rent my whole life and have a huge net worth of stocks than own multiple properties and rely on rents to fund my retirement.
Yeah I'm not knocking real estate but if it's between the two I'm going with stocks. Historically Stocks have out performed real estate but who knows going into the future. Both will make you wealthy with cashflow (dividends/rental income), both can appreciate substantially. Principal residence, btw, just to be a devil's advocate, you could always rent. Principal residence and now you're stuck if you can't sell it or who knows if it appreciates or not. I've been lucky my house appreciated but others live where maybe it depreciated.
With stocks there are so many ways to get wealthy also. Options, futures, stock lending, dividends, ETFs, shorting, retirement accounts are amazing and so are HSA's.
3:00 Brian says "boiling point" instead of "bowling point" and Bo smiles and glances at Rebie. I'm guessing they've had a conversation about his pronunciation?
Personally, I think "bowling point" has a certain amount of southern charm
Stock and real estate are both good, although real estate is more involved. Real estate is more illiquid, requires a lot of baby sitting and has demands on auxiliary capital for taxes, insurance, marketing, etc. With that being said, depreciation is a strong advantage.
I do both, i invest in sp500 and i currently have 3 rentals. My goal is to have 5-10 rentals, and then just ride it out until retirement while buying stocks and letting the principal pay down and appreciation grow.
I agree!
Real Estate + Stocks (do the S&P500 too!
I have 4-Rentals but, they are now in excess of $500,000 each!
But, I didn’t buy them for that!
How are you doing it
I like stocks more because they are much more passive than real estate
Stocks all the way for me but yes it’s best to own a 2 unit live in basement and rent the top floors and if you have a family home Goodluck but stocks pay growing dividends and appreciate and are diversified and they don’t bother you with late night calls that something is broken
In your net worth what blend works for stocks vs real estate?
Im the first one in here watching
Nothing is better than free and clear real estate purchased in growth locations. Do not rent to tenants with bad credit history and you will survive.
🥇💸🤑✅️
There isn’t liquidity in the stock market if the money in comparison is inside a retirement account
Unless you're retired
I don't agree with Brian. It looks good on paper? What does he mean by that? That you have a MASSIVE liability? That you can't sell it if you need the money for some reason? Where it may not appreciate? Tax write offs of a property yes because it's a business write off. If the area is for some reason becoming less livable through maybe increasing crime or whatever other reason. With stocks I don't have to worry about overhead. With dividends my taxes are at capital gains bracket rather than with rental income that is at the income tax bracket. With stocks it is true passive income unlike real estate. I want to purchase real estate but only to have a different asset class, but stocks I think are the better choice.
I think if someone put more of their time to real estate, they'll get higher return than sp500. But I am not really interested in the real estate business. For me, I'd rather buy sp500 and use my time to do other thing.
@@truongle2381 statistically that's incorrect
You can get leverage in stocks through derivatives. Not something I'd recommend for everyone, but the sophisticated investor probably does better with stocks then real estate.
Exactly
For “the sophisticated gambler…cough cough I mean investor” 😂
@@edhcb9359 for the unsophisticated investor maybe, some of us are not in the rookie leagues anymore lil bro!
Crazy renters, closing costs, maintenance, property management fees, vacancies, insurance, a loan, interest on the loan, taxes. Did I mention crazy renters? No thank you!
It’s called Diversity!
Own Both!
If the Stock Market is Down pull what money you can (Rents) from Real Estate! Let the Stock Market Recover!
Get the idea?!!
You are the best mathematical communicator I have ever seen, but still not completely breaking out of the silent and secretive mind adopted in mathametical exercise. It is vital to go completely naked and reveal the full process of the mind in approach and execution. Reveal the principles, the traps, and direction of travel out loud. The problem with maths is that it never reveal the fears, the concerns, is a silent work where you only see the tip of the iceberg. To fully transmit maths means having the full picture, the 'without the number' aspect.
Real estate! You can get rent and appreciation.
Stocks get dividends and capital gains. Your point?
And you can be paying someone else’s rent who refuses to pay on a property you own that is declining in value(very common).
@@deshwitat357hedge7and no late night calls that the toilet is broken or scammers destroying your rental or not paying