1. Emergency fund: 3-6 months expenses into a HYSA 2. To invest for retirement, get your 401K match (if available). Then Roth IRA max ($7k). Then max 401k. If no 401k, just max Roth IRA 3. Toss extra money into your brokerage account. Here you can buy low-cost index funds of the S&P 500 and Total Market. MOST IMPORTANT! IF THE MARKET DROPS/CRASHES/RECEDES, DO NOT PANIC SELL YOUR INDEX FUNDS. If anything, buy more shares. Debt makes things more complicated and if you have any, do your research on when and how much to pay off (It's often best to pay off ASAP)
Whenever stocks start to drop, I don't think "OMG, I'm losing money, panic sell!" Instead, I think, "Everything is on sale! Nice! I'll buy it if I like it."
@@sparkymularkey6970 that's so accurate. This is irresponsible but I kind of gave myself a little advance from my emergency fund to put in my investment accounts because I saw a big "sale"
@@sparkymularkey6970 I was freaking out at the start of the pandemic. I thought for sure that the stock market would tank for years. Came very close to taking everything out. Then somehow it started going up again a month later. Now whenever I have concerns I just think back on that and am able to calm down.
If you invest in index funds, make sure they have a low expense ratio. Sometimes it’s abbreviated to ER. You will see things like 2% or 1%. That is a VERY HIGH expense ratio. That means, if you make 7% in a given year, the fund takes 1% of the total, not 1% of the profit, so you only made 6%. They took 1/7 of your gains! A good expense ratio is less than 0.1%. There are plenty of low cost index funds out there. Don’t give away all your gains.
This! @WheezyWaiter should have been more concrete on this aspect of choosing funds. Also mentioning retirement (tax deferred) accounts, or Roth IRA...... Useful video, but 10 minutes to say "invest in index funds" was pretty low content density.
@@bigfaceworm True, but I'm far more concerned about the advice to "find an investment firm, and take their advice." That's how people end up walking into a Northwestern Mutual and walking away with whole life insurance instead of a brokerage account.
What a journey man. I started watching you in 2009. I was a 19 year old university student watching you try and do handstands and punch eagles. Now I’m 34 married with 2 kids nodding along to your excellent intro to the stock market 😂
A couple month's back I saw your 20 dollar rule and put it into a 20 percent rule for me. Its been super helpful. Thank you. I was able to afford an unplanned vet visit when my cat got sick.
@@Giovannatch I searched in Bing (because I had Edge open) and I think it's an AI summary thing, but it said, "The “20 Dollar Rule” by WheezyWaiter is a simple money-saving trick. The idea is to avoid spending money on items that cost $20 or less unless you absolutely need them. This rule helps curb impulse purchases and encourages more mindful spending habits."
Congratulations! That is such an empowering moment the first time you can just cover a surprise expense like that. Keep it up and I hope your cat is doing well!
I LOVE LOVE LOVE the fact you gave the answer right off the bat. So many UA-camrs use a clickbait title and drone on and on with filler material before they give the answer til the very end. Thank you.
I'm 32 years old and just starting to invest for the first time. I’ve been hearing mixed opinions, and I’m starting to wonder: does asset allocation even matter this early on? Especially with ETFs and index funds tracking the broad market, I've heard they can include underperforming stocks that might drag down overall returns. Am I overthinking this, or should I be more selective?
I’m nearing retirement myself, and I had similar concerns. I started investing later than most, and just relying on ETF compounding wasn’t cutting it for me either. After working with a financial advisor, I managed to restructure my investments and am now on track to retire with around $5 million. If I hadn’t sought advice, I doubt I’d be as confident in my plan right now.
I’m in a similar boat, trying to figure out the best approach for my portfolio. How did you find your advisor? I feel like I need that kind of guidance too
I usually steer clear of recommending specific people because financial needs are so personal. But I can say that working with Emily Ava Milligan has made a world of difference for me. I noticed her strategies are tailored to fit personal goals and make sense for different needs. It might be worth exploring to see if her approach resonates with you.
Kind of a general rule of thumb is to not worry about asset allocation until your monthly gains start outpacing your monthly contributions. For many people, this starts somewhere roughly around $100K in savings. Until then, just stick with a basic S&P500 or Total Stock Market index fund. Hope this helps. :D
I dated a girl that got me investing in some indexes. One of them was an index with a bunch of "defense fund" companies. Boeing, Lockheed, etc. Well... it was in the days when Kim Jong Un was shooting off rockets every other day. The stock went WAY up. I cashed out... and using my best Ralph Wiggum voice said "I'm a war profiteer!"
Yeah, as a homeowner, I do enjoy owning, but I think it's generally a mistake to view your property primarily as an investment instead of primarily as a place to live. When you own your home, there will eventually be expensive things needing to be done just for the sake of general maintenance, let alone if you decide to remodel something, and there's really no way of predicting what the housing market in your area will be doing in the future. I love my house, and I love making improvements to it, but only because I'm planning to stay in it for the foreseeable future and I want to enjoy the place I live in. If I were constantly worried about my home value, it would be that much more stressful, I think.
@@thatjillgirl I see my house primarily as a place to live and stay rent-free. What it is holding in worth is none of my interest. The difference starts already when building it, when I'm building a house for myself you can bet it will be built better than other houses being built just to create revenue. Of course nobody will ever pay me for the extra expenses I had on my house, but that's none of my interest.
Thanks for the good advice. One for U.K. people doing this - you can invest in index funds via a stocks and shares ISA and then you don’t pay tax on the return - otherwise you may have to. You can also invest into index funds through your pension. This might be a good idea because a lot of U.K. pensions go into investments that don’t tend to grow as much, so this can cost you a lot of money over time
Wish they taught some of this at school. Just turned 30 and my money was doing nothing rotting in the bank 🤦♂️🤦♂️ it’s almost like they don’t want us to grow our money..
You are 100% correct 🙏 I retired in my 40's following this exact mechanism and now live exclusively on Franked Dividends in low-cost countries. I never picked individual stocks myself (because I too am an Idiot 😀) and stuck to a handful of ETF's & LIC's And yes, build a 6-month Emergency Bucket first. Good advice and yours is the best video I have ever seen explaining this concept in a fun way 👍 #FinancialIndependenceRetireEarly
Can you talk a little more about living off of Franked Dividens? I'm very new to investing and it's the first time I heard that. Google tells me it's something to do with tax advantage? How does one get into that? Also heard good tax things about ETFs. Any recommended? Ultimitately I want to live off my investments in 10/15 years.
@@seiramnomad dividends are profits by a corporation paid out to shareholders (people invested in the corporation). If the dividends are paid out after the company has paid taxes on them, the dividends are "franked". This usually comes in the form of franking credits which are tax offsets. the disambiguation between franked/partially franked/unfranked doesn't matter though once you account for it. if you want to know more just look for dividend investing, usually those stocks have lower growth though so it just balances it out. I would also recommend not taking financial advice from youtube comments, speak to a financial advisor. The internet is full of scams especially when talking about finance.
@@seiramnomad Hi Seiram! Sorry for the late reply and I’d be happy to explain a bit more about franked dividends and living off them. 😊 Franked Dividends Explained: FRANKED dividends are a uniquely Australian benefit (I could be wrong but I can definitely say it's not available in the USA) , which may not be applicable everywhere (so this is a heads-up in case you’re outside Australia). In Australia, companies that pay franked dividends have already paid corporate tax on their profits before distributing them to shareholders. Because of this, shareholders receive a “franking credit,” which represents the tax the company has already paid. When you receive franked dividends, you get to “claim back” the tax that’s already been paid. So, if you’re an investor living off dividends, franked dividends get paid out to you at tax return time. Suddenly I love Tax Returns 🤣 How it Works in Practice: In my case, I invested primarily in ETFs and LICs (Listed Investment Companies) that focus on Australian stocks known for paying reliable franked dividends. Over time, I built up a sizeable portfolio and now live off the income those dividends provide. Since I retired early and live in lower-cost countries, the income from these dividends comfortably covers my expenses, and the tax efficiency (thanks to franking credits) makes a huge difference. Living Off Investments More Broadly: Now, if you’re not based in Australia or don’t have access to franked dividends, don’t worry! You can still work toward financial independence through smart investing. ETFs (Exchange-Traded Funds) are a great way to build wealth over time like WheezyWaiter says, and they tend to be tax-efficient in most countries. Depending on where you live, ETFs can provide tax advantages like reduced capital gains taxes, or in some cases, low to no taxes on dividends (depending on local tax laws). The general idea is to invest in broad-based, low-cost ETFs that track indices like the S&P 500 or other global markets. These are diversified, meaning you don’t need to pick individual stocks, which reduces risk and complexity (I’m not a stock picker either-just an ETF fan). Over time, with consistent investing and reinvesting of dividends, your portfolio can grow significantly un til you can eventually retire and live exclusively off dividends. Recommendations for ETFs: It's a tough one because I don't know which country you're in. If you're in Oz then what's been working well for me is a mix of VAS, SOL, BKI, AFI, and ARG. I cover it a little bit on my HunterTalks YT channel. If you're outside of Oz then I've heard these are are some well-regarded, globally available ETFs that could be a good starting point for building a solid portfolio: • Vanguard Total World Stock ETF (VT): Gives exposure to global stocks. • Vanguard S&P 500 ETF (VOO): Focuses on the top 500 companies in the U.S. • iShares MSCI Emerging Markets ETF (EEM): Provides exposure to emerging markets. These ETFs cover a broad range of stocks, so they help spread your risk while offering the potential for both growth and dividend income over time. But I've never tried these myself, only going off hearsay. A Path to Living Off Investments: As you mentioned, you’re aiming to live off your investments in 10-15 years. That’s definitely achievable with the right strategy. The key is consistency-keep investing regularly, reinvest dividends, and if possible, increase your investment contributions over time as your income grows. Also, building an emergency fund (like WheezyWaiter mentioned earlier) is super important to ensure you won’t need to dip into your investments during unexpected events. If you’re based in a country with favourable tax treatment for dividends (like Australia or some European countries), you might explore dividend-focused ETFs that provide higher income streams. If you’re elsewhere, focus on broad, tax-efficient ETFs that still allow your wealth to grow with compounding over time. Hope that helps and feel free to ask any more questions! 🙌 Hunter Talks
@@seiramnomad Hi Seiram! Thanks for your interest, and I’d be happy to explain a bit more about franked dividends and living off them. 😊 Franked Dividends Explained: FRANKED dividends are a uniquely Australian benefit (I could be wrong but I can definitely say it's definitely not available in the USA) , which may not be applicable everywhere (so this is a heads-up in case you’re outside Australia). In Australia, companies that pay franked dividends have already paid corporate tax on their profits before distributing them to shareholders. Because of this, shareholders receive a “franking credit,” which represents the tax the company has already paid. When you receive franked dividends, you get to “claim back” the tax that’s already been paid. So, if you’re an investor living off dividends, franked dividends get paid out to you at tax return time. Suddenly I love Tax Returns 🤣 How it Works in Practice: In my case, I invested primarily in ETFs and LICs (Listed Investment Companies) that focus on Australian stocks known for paying reliable franked dividends. Over time, I built up a sizeable portfolio and now live off the income those dividends provide. Since I retired early and live in lower-cost countries, the income from these dividends comfortably covers my expenses, and the tax efficiency (thanks to franking credits) makes a huge difference. Living Off Investments More Broadly: Now, if you’re not based in Australia or don’t have access to franked dividends, don’t worry! You can still work toward financial independence through smart investing. ETFs (Exchange-Traded Funds) are a great way to build wealth over time like WheezyWaiter says, and they tend to be tax-efficient in most countries. Depending on where you live, ETFs can provide tax advantages like reduced capital gains taxes, or in some cases, low to no taxes on dividends (depending on local tax laws). The general idea is to invest in broad-based, low-cost ETFs that track indices like the S&P 500 or other global markets. These are diversified, meaning you don’t need to pick individual stocks, which reduces risk and complexity (I’m not a stock picker either-just an ETF fan). Over time, with consistent investing and reinvesting of dividends, your portfolio can grow significantly un til you can eventually retire and live exclusively off dividends. Recommendations for ETFs: It's a tough one because I don't know which country you're in. If you're in Oz then what's been working well for me is a mix of VAS, SOL, BKI, AFI, and ARG. I cover it a little bit on my YT channel. If you're outside of Oz then I've heard these are are some well-regarded, globally available ETFs that could be a good starting point for building a solid portfolio: • Vanguard Total World Stock ETF (VT): Gives exposure to global stocks. • Vanguard S&P 500 ETF (VOO): Focuses on the top 500 companies in the U.S. • iShares MSCI Emerging Markets ETF (EEM): Provides exposure to emerging markets. These ETFs cover a broad range of stocks, so they help spread your risk while offering the potential for both growth and dividend income over time. But I've never tried these myself, only going off hearsay. A Path to Living Off Investments: As you mentioned, you’re aiming to live off your investments in 10-15 years. That’s definitely achievable with the right strategy. The key is consistency-keep investing regularly, reinvest dividends, and if possible, increase your investment contributions over time as your income grows. Also, building an emergency fund (like WheezyWaiter mentioned earlier) is super important to ensure you won’t need to dip into your investments during unexpected events. If you’re based in a country with favourable tax treatment for dividends (like Australia or some European countries), you might explore dividend-focused ETFs that provide higher income streams. If you’re elsewhere, focus on broad, tax-efficient ETFs that still allow your wealth to grow with compounding over time. Hope that helps and feel free to ask any more questions! 🙌 Hunter Talks
I had a dream last night that you lived in a large house with a long room of tomato bean bag chairs. It was weird. Keep up the awesome content and my dream may come true. Also, choose funds with lower expense ratios to keep more of your moneys in the long run.
80% equities 20% cash. I plan to take advantage of the current market situation as leading indicators predict a bullish S&P 500 by 2025, my concern is how to properly allocate a large stock/bond portfolio for maximum potential returns.
Agreed, investing with the help of an advisor did the trick for me in barely 5 years. I worked hard everyday as a teacher for 32 years and my salary was over 100k, enough to get me invested. I'm semi-retd today with nearly $1m, and only work 7.5 hours weekly.
how to put my money to work has been my daily thought, did my research and most suggestions pointed at the stock market, the thing is i'm an absolute noob at investing... mind sharing info of this professional guiding you please?
Annette Louise Connors is the licensed advisor I use. Just google the name and you'd find basic info. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
thanks for putting this out, curiously inputted Annette Louise Connors on the web, spotted her consulting page and was able to schedule a call session, she actually shows a great deal of expertise.
Automatic deposit from each paycheck into a low-cost index fund = not being a Wal Mart greeter in your 70's This was the life work and message of John Bogle. Bonus: If your work matches 401k contributions- also do that at the amount they match
👏👏I really liked this video…..PLEASE MAKE MORE LIKE IT!! I’ve always been ‘scared’ to invest i suppose because I feel intimidated by it all. This was great. 👍 I’m going to look into index funds
This was pretty good advice! I think the simplest, non-controversial way to invest is to meet the full company match in your 401k (if you have that option), and make sure the funds are allocated, not just sitting in the account like a savings. Then, if you still have money to invest open a Roth IRA (tax exempt account) with your Vanguard app (fidelity is good too) and within that Roth buy TDFs (target date funds). TDFs will buy index funds, and as you get older, automatically buy more bonds which make your portfolio safer and safer, the closer you get to retirement age and pull something like 4% per year to live on. And that's it. Automate your investing, and only look at it occasionally. Good investing is really this boring and automatic
As a fellow index fund, low stress Investor, I too wish I knew earlier and enjoy watching the continued growth. Thanks for spreading the good word to the people. I'm mostly no fee funds only as well. Fidelity has some good ones!
what you said at the start of the video is so real, a lot of people hold themselves back because they have an image of an "investor" and they don't think they fit into that mold. they think it might be too complicated for them, or they don't have enough money to start, but it's so important, thanks for making this
Such good advice. Something else to keep in mind (if you are young): if you contribute just $1,000 a year between the ages 20-25 and get 10% return each year, you would have >$80,000 by age 50 even though you only put in $6,000. That's the value of time and patience. (it grows to over $1.4 million by age 80, but you probably shouldn't wait that long...) If you work, you can invest some of your income into a Roth IRA, which means you only pay taxes on the $6,000 and not all the gains over the years, although you will have to wait until retirement to access the funds without paying a fee.
Wheezy, while totally a logical approach to follow, index funds are based on the endless growth of giant companies. Is that the kind of system we want to rely on and uphold? Don't a lot of our bigger problems start with endless greed of big companies?
that's a generational battle. in the meantime, what else are you supposed to do with your savings to keep up with inflation? go on, tell the class, we all love a genius.
endless growth is an inherent problem of capitalism that no individual consumer can solve. people buy things every day from companies and you're supporting the system even if you do not invest in the stock market. right now we are on a website that uses an immense amount of energy and resources. if people don't invest, they do nothing to change the system, all that does is keep them poor. if you want to completely divest yourself from supporting large corporations i'd suggest off-grid living.
@@amazeedayzee agreed. until humanity figures out an alternative to capitalism (besides any of the other failed systems) then complaining about it doesn't do anything for anyone. i think anyone who wants to opt out, either by burying their savings in a cigar box or hiding it under their mattress or even off-grid living (still gotta pay your property taxes) should go ahead and do so, but know also that you're not solving any problem except your own selfish one, and in that case, might as well just participate in capitalism anyway.
Of note, you don't have to have big savings today to start investing. You can set up an automatic withdrawal from your checking every month to buy more index or mutual funds, and over time that REALLY adds up.
I've been thinking about getting started investing for the past couple of years now. For the first tiime in my life, I have a rainy day fund and stable income, and I started feeling nervous that I'm wasting money by not investing in ETFs or index funds (which, I kinda am!). This was the push I needed to make my first purchase in shares. Thanks Craig!
When I told my colleagues I doubled my money with just index funds they told me I was lying. It's funny how jealous people can get when it comes to money.
Investing in an index fund is absolutely the plan... as soon as I have ANY savings whatsoever. That's priority #2. Priority number 1 is debt management. God I hate my younger self 😂
I don’t know the exact quote, but Maya Angelou said something like “you do the best you can, until you know better, and when you know better, you do better”. Have some compassion with your younger self :)
I'm conflicted with the idea of index funds. I feel like I can't be mad at companies when they only focus on profit for shareholders and mistreat employees or customers meanwhile being invested in an index fund that is solely focused on proft. Investing in a singular company at least means you believe in the company and if they do things unethically you can divest. With index funds the contract is literally just stock owner wants profit and company has to produce profit. You have no exact knowledge of the companies you're invested in and have no input to how they operate.
this was one of the reasons I closed out my IRA and moved my money out and into a HYSA. I didn't want my savings gambled on by rich dudes based on "vibes" or to accidentally get an index funds with positions in companies I despised
I heard "bedrolls across America" in a video a few weeks ago. I had to search online a bit to figure out the band because it was stuck in my head. Only to realize today the person who sang the song from 2012ish comes into a Wheezy Waiter video and mentions he's in the band. The world just got smaller, I swear. Holy shirt!
It’s funny. I’m learning about index fund investing at the moment, now I’m in a position where I can lock some money away for a while. I’ve been reading and watching lots of stuff by Qualified Finance People, but hearing how it’s worked out for a Normal Person (you know what I mean!) is reassuring me more about my decision!
Don't forget that diversify also means there are other options for investing. Art, collectibles, real estate... there is tons of options, figure out what you feel comfortable with^^
The tech industry has been driving a lot of growth lately. But honestly, turning $10,000 into $1 million sounds like a long shot. It's not just about picking the right stocks but also timing and having the patience to ride out the market's ups and downs.
It's not as simple as putting money into a few stocks and watching it grow. There's a lot of research, discipline, and risk management involved. You have to be in it for the long haul, and not everyone has the stomach for that.
Thanks dad! 😆 Honestly I wish my parents taught me about investing, they came from a time where houses were affordable and their assets easily snowballed. What they did "help" me with was insurance, they signed me up for all kinds of whole life insurance which is crazy expensive and not worth it, so I'm trying to fix that now 😕
Great video! An often overlooked bit of advice: Dollar Cost Average aka DCA. It's almost always safer to invest the same amount at regular intervals, rather than dump a lump sum. Got $1000 to invest? Don't dump $1000 into the index, invest $100/day for 10 days. Or invest $5 or $50 per paycheck, doing it regularly. The math works out to buy fewer stocks when they're expensive and more stocks when they're cheaper, since you're investing the same dollar amount each time. This means the average amount you pay - your dollar cost average - averages downwards. For example, buying 1 stock today at $1 and 1 stock tomorrow when it rockets to $10 = $11 for 2 stocks, or $5.50 each. But investing $5.50 today and $5.50 tomorrow (the same amount at regular intervals) gets you 5.5 stocks today and 0.55 stocks tomorrow = $11 for 6.05 stocks, or $1.82 per stock. The same amount spent but a lower average cost. This helps you ride out the ups and downs of the market more safely. *_Time in_** the market is safer than **_timing_** the market.*
Started doing the whole financial literacy thing since the end of last year. Net worth is steadily growing. Fool proof. (I'm leaving out the part in 2021 where I lost a big chunk of money to crypto. We're not talking about that anymore. Don't be like me. I've since recovered that loss though. But don't do this.)
Wow I used to watch you when I was a teenager and now the algorithm sent me here when I'm in my 30s holy crap! well I guess I have a lot of content to catch up on!
ETFs are kind of fun to me because you can go pretty nerdy with if you want. And I think the fee is usually lower, the thing is, you don't actually have a say in the companies you invest in. To me it's kind of cool to be able to ask a question by buying a stock in a company. Also, some economists say it doesn't really matter if you save earlier as you don't actually have that great an income and as you get older you can save more, but usually self-help people say the same as you about the 20 dollar rule, it builds the habit.
I think the decision between having money in the bank or in an index is pretty easy, considering how bank rates have gone down. Hint: They are using your money to make the money you didn't use your money to make. And they don't share, while cutting costs making you switch to online banking and using card over cash. (I am German and we love our cash, but now banks are closing down ATMs everywhere here too.)
I'm glad things are going well with you money wise. One of my long-time concerns with for lack of a better word, "Original" UA-camrs is that they weren't going to cash in on their initial adsense, brand deals, and like from being full-time content creators and have money decades later. It seems that you are in a comfortable place and that Rhett and Link, Ian and Anthony, Shaycarl, Ray William Johson, and many others are doing at the least, OK. I know that this isn't universally the case and some original UA-camrs have been forced to go into more traditional industries and face economic woes like most of us, but statistically, I suppose that was inevitable.
The average growth is 10%, but some years see much more than that. Even with all the ups and downs and average is a 10% increase. You won’t get rich from indexes, but you can get wealthy.
I work at a financial office (not an advisor). a lot of this video is good basic advice, with one exception: don't assume the s&p will just keep going up forever. each country has their own version of the s&p. these indexes reflect how well that country's economy is doing compared to other global economies. Japan's, for instance, has been going down for the last 20 years.
How to become a millionaire... 1) Save at least 10% of every dollar you bring in. 2) Invest this money in an ETF like VOO or VFIAX on Vanguard. The important thing is to keep your expenses as low as possible. 3) Use time and regular investments to build your snowball. 4) If you do this making $15/hr from the age of 22 (and never getting a raise) until 65 you will have over $2.5 million saved for your retirement. Obviously benefitting from company 401k matches and such will accelerate this process.
My 401k (conservative, S&P500 type investments) from a former job doubled in just four years! I believe it was 2016-2020. Good thing, too, because I don’t trust them to pay out any pension whenever I’m old-enough and ready to retire.
What is truly sad is how many people love to scream from the mountain tops that the easiest way to create wealth that you could involve yourself in with the least amount of time or energy input on your part is, according to them, a scam. Somehow starting your own business or going your own way, in their eyes, is different than just investing in part of someone else that chose to go their own way at some point and started a business that you now own part of.
I often wonder how much the growth of these indices is purely down to people just shoving their savings in because the indices always seem to grow thus causing increased demand for the shares of the businesses listed, rather than growth down to business being well run. It's a self fulfilling prophecy. Invest in index, receive dividends, invest dividends in index causing increased demand, index grows and repeat.
Having realized that I nuked my 401k when I got laid off and could not find decent work for several years, now that I'm back on my feet, I just dumped a bunch of cash into nvidia... Here's hoping I didn't completely miss that train (though I do wish I had bought nvidia instead of my motorcycle back in '21, lol) Oh, also I opened a Roth IRA. Really bummed my employer doesn't offer a 401k, even un-matched...
@@wheezywaiter Yeah, I've started moving money in to start picking up indexes as well. It was just one of those moments where I said to myself "holy crap, I forgot about retirement!" and jumped on the IRA, and then saw that nvidia was splitting, so I decided to grab a bunch looking for the post-split rise. And then start picking up some more of the safer bets. The only real downside so far is that I did this all before I took a trip to Colorado for a Miata meet up, and my motorcycle insurance came due for the year right as I was leaving, so I had to put my hotel on a credit card instead of paying cash, lol Though, being 47, I'm already pretty screwed, lol
I'm always surprised when some people say they don't invest or their idea of "investing" is by having a bank savings account. It's a missed opportunity to not invest in ETF's etc.
What he said is the best thing you can do with you non-emergency saving. I think it has the best return relative to the risk. I assumed it's common knowledge and was surprised that it isn't.
The issue is that inflation exist, so if you put your money away... ok it becomes more but the issue here is that if it's not enough money inflation will catch up.
hey wheezy, i just wanted to say that every time i see a banana i think of the same thing every time. ''bananas bananas, they're sitting on my fridge. bananas bananas, they look just like a bridge. bananas bananas, you can throw them on the floor. bananas bananas, you can not throw them on the floor.. or you can eat them.." been watching for 15 years
God I wish I'd known this like, 10 years ago. I could have even started with a £1 a week and built up from there and still be in a better position I am now!
The other solid advice, at least in Germany but I suppose the situation is the same elsewhere. Don't invest in pension funds. Unless you really can't be trusted to manage your own funds. Pension funds cost a lot more in fees than normal funds. And you pay them every year you are alive! Put your money index funds. Towards the end of your life, pull them slowly into less volatile investments because you need access to it soon. Then, when you are in need of a pension, take the money and go to a pension insurance company. They calculate ice cold. They take the current average life expectancy and make you and offer assuming you die at whatever, 65 years when you are male. You are at that point maybe 50. So you have an information benefit over the pension provider. They don't, they will take that bet. But you can say, man I had cancer three times I'm overweight and have a heart condition. I don't think I will get that old. So you can take that money and keep it. Inherit it to your children or go on a cruise.
You know…. I haven’t seen a clone in quite a while.. I’m starting to think that.. maybe.. This is a UA-cam Clone and the real WheezyWaiter is out there just living his normal life with his family.
Yeah man you gotta do more research... you didn't mention how fees and taxes will destroy your investment returns. In America the detaxed Roth IRA n 401k are super, super important to understand.
I just saw the trailer for Haunt Season and shouted "WHEEZY!!!" 😂 Can't wait to see that! Also, totally going to talk to a financial planner and take your advice. ✍🏻 Indexes ✍🏻 . ✍🏻
I once increased my money 30,000-fold in one month. The story just stops being so impressive when I tell people that it was 3ct until I got a 6 months worth of stundent aid.
Check out Rocket Money for free: RocketMoney.com/wheezywaiter #rocketmoney #personalfinance
there are so many scams in this comment section, you need to delete some of these comments
at this point wheezywaiter is just a dad advice channel
Probably the best use of my skills
What a great progression right?
Humor & advice? I'll watch more than just skits.
It's why I enjoy it
Dad advice for adults by adult-y-er adults.
1. Emergency fund: 3-6 months expenses into a HYSA
2. To invest for retirement, get your 401K match (if available). Then Roth IRA max ($7k). Then max 401k. If no 401k, just max Roth IRA
3. Toss extra money into your brokerage account. Here you can buy low-cost index funds of the S&P 500 and Total Market.
MOST IMPORTANT! IF THE MARKET DROPS/CRASHES/RECEDES, DO NOT PANIC SELL YOUR INDEX FUNDS. If anything, buy more shares.
Debt makes things more complicated and if you have any, do your research on when and how much to pay off (It's often best to pay off ASAP)
This is the way. HSA is a good one also. But that's for the real pros with not a lot of health concerns
Whenever stocks start to drop, I don't think "OMG, I'm losing money, panic sell!" Instead, I think, "Everything is on sale! Nice! I'll buy it if I like it."
@@sparkymularkey6970 that's so accurate. This is irresponsible but I kind of gave myself a little advance from my emergency fund to put in my investment accounts because I saw a big "sale"
@@sparkymularkey6970 I was freaking out at the start of the pandemic. I thought for sure that the stock market would tank for years. Came very close to taking everything out. Then somehow it started going up again a month later. Now whenever I have concerns I just think back on that and am able to calm down.
That's because you are too young to know what a real recession is like @@sparkymularkey6970
Bro out here completely taking every dollar away from Dave Ramsey with this one simple video.
If you invest in index funds, make sure they have a low expense ratio. Sometimes it’s abbreviated to ER. You will see things like 2% or 1%. That is a VERY HIGH expense ratio. That means, if you make 7% in a given year, the fund takes 1% of the total, not 1% of the profit, so you only made 6%. They took 1/7 of your gains! A good expense ratio is less than 0.1%. There are plenty of low cost index funds out there. Don’t give away all your gains.
This! @WheezyWaiter should have been more concrete on this aspect of choosing funds. Also mentioning retirement (tax deferred) accounts, or Roth IRA......
Useful video, but 10 minutes to say "invest in index funds" was pretty low content density.
@@bigfacewormI mean, it was a commercial, so the expectations were pretty low :(
Give us some funds that are good please. Noob here!
@@Keliiyamashita VTI or VSTAX. Pretty much the same. Both are low overhead total market indexes.
@@bigfaceworm True, but I'm far more concerned about the advice to "find an investment firm, and take their advice." That's how people end up walking into a Northwestern Mutual and walking away with whole life insurance instead of a brokerage account.
What a journey man. I started watching you in 2009. I was a 19 year old university student watching you try and do handstands and punch eagles. Now I’m 34 married with 2 kids nodding along to your excellent intro to the stock market 😂
A couple month's back I saw your 20 dollar rule and put it into a 20 percent rule for me. Its been super helpful. Thank you. I was able to afford an unplanned vet visit when my cat got sick.
I hope your cat is doing well, I'm glad that you had enough money in that situation.
Could you elaborate on the 20 dollar rule?
@@Giovannatch I searched in Bing (because I had Edge open) and I think it's an AI summary thing, but it said, "The “20 Dollar Rule” by WheezyWaiter is a simple money-saving trick. The idea is to avoid spending money on items that cost $20 or less unless you absolutely need them. This rule helps curb impulse purchases and encourages more mindful spending habits."
@@Giovannatch it's in the description
Congratulations! That is such an empowering moment the first time you can just cover a surprise expense like that. Keep it up and I hope your cat is doing well!
I LOVE LOVE LOVE the fact you gave the answer right off the bat. So many UA-camrs use a clickbait title and drone on and on with filler material before they give the answer til the very end. Thank you.
I'm 32 years old and just starting to invest for the first time. I’ve been hearing mixed opinions, and I’m starting to wonder: does asset allocation even matter this early on? Especially with ETFs and index funds tracking the broad market, I've heard they can include underperforming stocks that might drag down overall returns. Am I overthinking this, or should I be more selective?
I’m nearing retirement myself, and I had similar concerns. I started investing later than most, and just relying on ETF compounding wasn’t cutting it for me either. After working with a financial advisor, I managed to restructure my investments and am now on track to retire with around $5 million. If I hadn’t sought advice, I doubt I’d be as confident in my plan right now.
I’m in a similar boat, trying to figure out the best approach for my portfolio. How did you find your advisor? I feel like I need that kind of guidance too
I usually steer clear of recommending specific people because financial needs are so personal. But I can say that working with Emily Ava Milligan has made a world of difference for me. I noticed her strategies are tailored to fit personal goals and make sense for different needs. It might be worth exploring to see if her approach resonates with you.
Thanks for that. I did a quick search and found her page. I was able to email so I sent over a few questions to get more info. Appreciate you sharing
Kind of a general rule of thumb is to not worry about asset allocation until your monthly gains start outpacing your monthly contributions. For many people, this starts somewhere roughly around $100K in savings. Until then, just stick with a basic S&P500 or Total Stock Market index fund. Hope this helps. :D
But can you do it again in a one month challenge?
I know you are joking but the only way to consistently build wealth is the boring over time method works. 60% of the time it works every time.
@@ThePuttercross 84.6% of all statistics is made up on the spot. I found through (my own) rigorous research.
I went to the casino every day for a month
@@Dyrnwyn now THIS is a great video idea for @WheezyWaiter 🙌🏼🙌🏼
I dated a girl that got me investing in some indexes. One of them was an index with a bunch of "defense fund" companies. Boeing, Lockheed, etc. Well... it was in the days when Kim Jong Un was shooting off rockets every other day. The stock went WAY up. I cashed out... and using my best Ralph Wiggum voice said "I'm a war profiteer!"
It's embarrassing to brag about that
I opened a roth IRA like 3 years ago when i was 26. Biggest advantage i have is time. Just consistently putting money away and i believe ill be fine.
It would be great if you made a video about the reality of home ownership. The thought of buying a house is simoltanously exciting and frightening.
He did one some 4 or 5 years ago. "Why do people like to own houses" or something.
Yeah, as a homeowner, I do enjoy owning, but I think it's generally a mistake to view your property primarily as an investment instead of primarily as a place to live. When you own your home, there will eventually be expensive things needing to be done just for the sake of general maintenance, let alone if you decide to remodel something, and there's really no way of predicting what the housing market in your area will be doing in the future. I love my house, and I love making improvements to it, but only because I'm planning to stay in it for the foreseeable future and I want to enjoy the place I live in. If I were constantly worried about my home value, it would be that much more stressful, I think.
@@thatjillgirl I see my house primarily as a place to live and stay rent-free. What it is holding in worth is none of my interest.
The difference starts already when building it, when I'm building a house for myself you can bet it will be built better than other houses being built just to create revenue.
Of course nobody will ever pay me for the extra expenses I had on my house, but that's none of my interest.
I already knew that! But it still took me 10 years to go from knowing it to actually investing…
Thanks for the good advice. One for U.K. people doing this - you can invest in index funds via a stocks and shares ISA and then you don’t pay tax on the return - otherwise you may have to. You can also invest into index funds through your pension. This might be a good idea because a lot of U.K. pensions go into investments that don’t tend to grow as much, so this can cost you a lot of money over time
Wish they taught some of this at school. Just turned 30 and my money was doing nothing rotting in the bank 🤦♂️🤦♂️ it’s almost like they don’t want us to grow our money..
You are 100% correct 🙏 I retired in my 40's following this exact mechanism and now live exclusively on Franked Dividends in low-cost countries. I never picked individual stocks myself (because I too am an Idiot 😀) and stuck to a handful of ETF's & LIC's And yes, build a 6-month Emergency Bucket first. Good advice and yours is the best video I have ever seen explaining this concept in a fun way 👍 #FinancialIndependenceRetireEarly
Can you talk a little more about living off of Franked Dividens? I'm very new to investing and it's the first time I heard that. Google tells me it's something to do with tax advantage? How does one get into that? Also heard good tax things about ETFs. Any recommended? Ultimitately I want to live off my investments in 10/15 years.
@@seiramnomad dividends are profits by a corporation paid out to shareholders (people invested in the corporation). If the dividends are paid out after the company has paid taxes on them, the dividends are "franked". This usually comes in the form of franking credits which are tax offsets. the disambiguation between franked/partially franked/unfranked doesn't matter though once you account for it.
if you want to know more just look for dividend investing, usually those stocks have lower growth though so it just balances it out. I would also recommend not taking financial advice from youtube comments, speak to a financial advisor. The internet is full of scams especially when talking about finance.
@@seiramnomad Hi Seiram! Sorry for the late reply and I’d be happy to explain a bit more about franked dividends and living off them. 😊
Franked Dividends Explained:
FRANKED dividends are a uniquely Australian benefit (I could be wrong but I can definitely say it's not available in the USA) , which may not be applicable everywhere (so this is a heads-up in case you’re outside Australia). In Australia, companies that pay franked dividends have already paid corporate tax on their profits before distributing them to shareholders. Because of this, shareholders receive a “franking credit,” which represents the tax the company has already paid.
When you receive franked dividends, you get to “claim back” the tax that’s already been paid. So, if you’re an investor living off dividends, franked dividends get paid out to you at tax return time. Suddenly I love Tax Returns 🤣
How it Works in Practice:
In my case, I invested primarily in ETFs and LICs (Listed Investment Companies) that focus on Australian stocks known for paying reliable franked dividends. Over time, I built up a sizeable portfolio and now live off the income those dividends provide. Since I retired early and live in lower-cost countries, the income from these dividends comfortably covers my expenses, and the tax efficiency (thanks to franking credits) makes a huge difference.
Living Off Investments More Broadly:
Now, if you’re not based in Australia or don’t have access to franked dividends, don’t worry! You can still work toward financial independence through smart investing. ETFs (Exchange-Traded Funds) are a great way to build wealth over time like WheezyWaiter says, and they tend to be tax-efficient in most countries. Depending on where you live, ETFs can provide tax advantages like reduced capital gains taxes, or in some cases, low to no taxes on dividends (depending on local tax laws).
The general idea is to invest in broad-based, low-cost ETFs that track indices like the S&P 500 or other global markets. These are diversified, meaning you don’t need to pick individual stocks, which reduces risk and complexity (I’m not a stock picker either-just an ETF fan). Over time, with consistent investing and reinvesting of dividends, your portfolio can grow significantly un til you can eventually retire and live exclusively off dividends.
Recommendations for ETFs:
It's a tough one because I don't know which country you're in. If you're in Oz then what's been working well for me is a mix of VAS, SOL, BKI, AFI, and ARG. I cover it a little bit on my HunterTalks YT channel.
If you're outside of Oz then I've heard these are are some well-regarded, globally available ETFs that could be a good starting point for building a solid portfolio:
• Vanguard Total World Stock ETF (VT): Gives exposure to global stocks.
• Vanguard S&P 500 ETF (VOO): Focuses on the top 500 companies in the U.S.
• iShares MSCI Emerging Markets ETF (EEM): Provides exposure to emerging markets.
These ETFs cover a broad range of stocks, so they help spread your risk while offering the potential for both growth and dividend income over time. But I've never tried these myself, only going off hearsay.
A Path to Living Off Investments:
As you mentioned, you’re aiming to live off your investments in 10-15 years. That’s definitely achievable with the right strategy. The key is consistency-keep investing regularly, reinvest dividends, and if possible, increase your investment contributions over time as your income grows. Also, building an emergency fund (like WheezyWaiter mentioned earlier) is super important to ensure you won’t need to dip into your investments during unexpected events.
If you’re based in a country with favourable tax treatment for dividends (like Australia or some European countries), you might explore dividend-focused ETFs that provide higher income streams. If you’re elsewhere, focus on broad, tax-efficient ETFs that still allow your wealth to grow with compounding over time.
Hope that helps and feel free to ask any more questions! 🙌
Hunter Talks
@@seiramnomad Hi Seiram! Thanks for your interest, and I’d be happy to explain a bit more about franked dividends and living off them. 😊
Franked Dividends Explained:
FRANKED dividends are a uniquely Australian benefit (I could be wrong but I can definitely say it's definitely not available in the USA) , which may not be applicable everywhere (so this is a heads-up in case you’re outside Australia). In Australia, companies that pay franked dividends have already paid corporate tax on their profits before distributing them to shareholders. Because of this, shareholders receive a “franking credit,” which represents the tax the company has already paid.
When you receive franked dividends, you get to “claim back” the tax that’s already been paid. So, if you’re an investor living off dividends, franked dividends get paid out to you at tax return time. Suddenly I love Tax Returns 🤣
How it Works in Practice:
In my case, I invested primarily in ETFs and LICs (Listed Investment Companies) that focus on Australian stocks known for paying reliable franked dividends. Over time, I built up a sizeable portfolio and now live off the income those dividends provide. Since I retired early and live in lower-cost countries, the income from these dividends comfortably covers my expenses, and the tax efficiency (thanks to franking credits) makes a huge difference.
Living Off Investments More Broadly:
Now, if you’re not based in Australia or don’t have access to franked dividends, don’t worry! You can still work toward financial independence through smart investing. ETFs (Exchange-Traded Funds) are a great way to build wealth over time like WheezyWaiter says, and they tend to be tax-efficient in most countries. Depending on where you live, ETFs can provide tax advantages like reduced capital gains taxes, or in some cases, low to no taxes on dividends (depending on local tax laws).
The general idea is to invest in broad-based, low-cost ETFs that track indices like the S&P 500 or other global markets. These are diversified, meaning you don’t need to pick individual stocks, which reduces risk and complexity (I’m not a stock picker either-just an ETF fan). Over time, with consistent investing and reinvesting of dividends, your portfolio can grow significantly un til you can eventually retire and live exclusively off dividends.
Recommendations for ETFs:
It's a tough one because I don't know which country you're in. If you're in Oz then what's been working well for me is a mix of VAS, SOL, BKI, AFI, and ARG. I cover it a little bit on my YT channel.
If you're outside of Oz then I've heard these are are some well-regarded, globally available ETFs that could be a good starting point for building a solid portfolio:
• Vanguard Total World Stock ETF (VT): Gives exposure to global stocks.
• Vanguard S&P 500 ETF (VOO): Focuses on the top 500 companies in the U.S.
• iShares MSCI Emerging Markets ETF (EEM): Provides exposure to emerging markets.
These ETFs cover a broad range of stocks, so they help spread your risk while offering the potential for both growth and dividend income over time. But I've never tried these myself, only going off hearsay.
A Path to Living Off Investments:
As you mentioned, you’re aiming to live off your investments in 10-15 years. That’s definitely achievable with the right strategy. The key is consistency-keep investing regularly, reinvest dividends, and if possible, increase your investment contributions over time as your income grows. Also, building an emergency fund (like WheezyWaiter mentioned earlier) is super important to ensure you won’t need to dip into your investments during unexpected events.
If you’re based in a country with favourable tax treatment for dividends (like Australia or some European countries), you might explore dividend-focused ETFs that provide higher income streams. If you’re elsewhere, focus on broad, tax-efficient ETFs that still allow your wealth to grow with compounding over time.
Hope that helps and feel free to ask any more questions! 🙌
Hunter Talks
I had a dream last night that you lived in a large house with a long room of tomato bean bag chairs. It was weird. Keep up the awesome content and my dream may come true.
Also, choose funds with lower expense ratios to keep more of your moneys in the long run.
"I love limits SO MUCH, but only up to a set point." This killed me!!!! Hahahaha!
Started investing in index funds at 12 with any money I made mowing lawns or babysitting. I retired at 45. It all works.
Thank you for kindly and patiently explaining what stocks are and not shaming people for lack of knowledge 😭❤️ this was so helpful and encouraging
80% equities 20% cash. I plan to take advantage of the current market situation as leading indicators predict a bullish S&P 500 by 2025, my concern is how to properly allocate a large stock/bond portfolio for maximum potential returns.
I don’t see a problem fully invested into stocks as long as you know what you're doing, whereas it's best to consider advisory services
Agreed, investing with the help of an advisor did the trick for me in barely 5 years. I worked hard everyday as a teacher for 32 years and my salary was over 100k, enough to get me invested. I'm semi-retd today with nearly $1m, and only work 7.5 hours weekly.
how to put my money to work has been my daily thought, did my research and most suggestions pointed at the stock market, the thing is i'm an absolute noob at investing... mind sharing info of this professional guiding you please?
Annette Louise Connors is the licensed advisor I use. Just google the name and you'd find basic info. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
thanks for putting this out, curiously inputted Annette Louise Connors on the web, spotted her consulting page and was able to schedule a call session, she actually shows a great deal of expertise.
S&P 500, buy the entire market. Lookup VOO, set up a deposit to it biweekly or monthly, set it, forget it, check back in a decade
I love the Cheap Trick memorabilia in the background of the Driftless Pony Club photo. Cheap Trick rocks!
Automatic deposit from each paycheck into a low-cost index fund = not being a Wal Mart greeter in your 70's
This was the life work and message of John Bogle. Bonus: If your work matches 401k contributions- also do that at the amount they match
Match is absolutely the lowest you should ever invest if you're not starving.
👏👏I really liked this video…..PLEASE MAKE MORE LIKE IT!!
I’ve always been ‘scared’ to invest i suppose because I feel intimidated by it all. This was great. 👍 I’m going to look into index funds
I suggest Romain Faure's channel
This was pretty good advice! I think the simplest, non-controversial way to invest is to meet the full company match in your 401k (if you have that option), and make sure the funds are allocated, not just sitting in the account like a savings. Then, if you still have money to invest open a Roth IRA (tax exempt account) with your Vanguard app (fidelity is good too) and within that Roth buy TDFs (target date funds). TDFs will buy index funds, and as you get older, automatically buy more bonds which make your portfolio safer and safer, the closer you get to retirement age and pull something like 4% per year to live on. And that's it. Automate your investing, and only look at it occasionally. Good investing is really this boring and automatic
As a fellow index fund, low stress Investor, I too wish I knew earlier and enjoy watching the continued growth.
Thanks for spreading the good word to the people. I'm mostly no fee funds only as well. Fidelity has some good ones!
what you said at the start of the video is so real, a lot of people hold themselves back because they have an image of an "investor" and they don't think they fit into that mold. they think it might be too complicated for them, or they don't have enough money to start, but it's so important, thanks for making this
Such good advice. Something else to keep in mind (if you are young): if you contribute just $1,000 a year between the ages 20-25 and get 10% return each year, you would have >$80,000 by age 50 even though you only put in $6,000. That's the value of time and patience. (it grows to over $1.4 million by age 80, but you probably shouldn't wait that long...)
If you work, you can invest some of your income into a Roth IRA, which means you only pay taxes on the $6,000 and not all the gains over the years, although you will have to wait until retirement to access the funds without paying a fee.
Wheezy, while totally a logical approach to follow, index funds are based on the endless growth of giant companies. Is that the kind of system we want to rely on and uphold? Don't a lot of our bigger problems start with endless greed of big companies?
that's a generational battle. in the meantime, what else are you supposed to do with your savings to keep up with inflation? go on, tell the class, we all love a genius.
endless growth is an inherent problem of capitalism that no individual consumer can solve. people buy things every day from companies and you're supporting the system even if you do not invest in the stock market. right now we are on a website that uses an immense amount of energy and resources. if people don't invest, they do nothing to change the system, all that does is keep them poor. if you want to completely divest yourself from supporting large corporations i'd suggest off-grid living.
@@amazeedayzee agreed. until humanity figures out an alternative to capitalism (besides any of the other failed systems) then complaining about it doesn't do anything for anyone. i think anyone who wants to opt out, either by burying their savings in a cigar box or hiding it under their mattress or even off-grid living (still gotta pay your property taxes) should go ahead and do so, but know also that you're not solving any problem except your own selfish one, and in that case, might as well just participate in capitalism anyway.
Of note, you don't have to have big savings today to start investing. You can set up an automatic withdrawal from your checking every month to buy more index or mutual funds, and over time that REALLY adds up.
I've been thinking about getting started investing for the past couple of years now. For the first tiime in my life, I have a rainy day fund and stable income, and I started feeling nervous that I'm wasting money by not investing in ETFs or index funds (which, I kinda am!). This was the push I needed to make my first purchase in shares. Thanks Craig!
When I told my colleagues I doubled my money with just index funds they told me I was lying. It's funny how jealous people can get when it comes to money.
This is somewhat unrelated, but I listened to some songs by Violet Palms and I'm in love! Congrats on the new (?) band.
I just wanted to say that I love your vibes Mr wheezy, I’ve been a fan of your channel for years now, thanks for being you
Investing in an index fund is absolutely the plan... as soon as I have ANY savings whatsoever. That's priority #2. Priority number 1 is debt management. God I hate my younger self 😂
I don’t know the exact quote, but Maya Angelou said something like “you do the best you can, until you know better, and when you know better, you do better”. Have some compassion with your younger self :)
I'm conflicted with the idea of index funds. I feel like I can't be mad at companies when they only focus on profit for shareholders and mistreat employees or customers meanwhile being invested in an index fund that is solely focused on proft. Investing in a singular company at least means you believe in the company and if they do things unethically you can divest. With index funds the contract is literally just stock owner wants profit and company has to produce profit. You have no exact knowledge of the companies you're invested in and have no input to how they operate.
Yes
this was one of the reasons I closed out my IRA and moved my money out and into a HYSA. I didn't want my savings gambled on by rich dudes based on "vibes" or to accidentally get an index funds with positions in companies I despised
While not a perfect solution, there are robo investors, like Betterment, that have an option for socially responsible investing.
@@KelciDComicswhat is an HYSA?
All public company owning is already unethical, so it’s all a lose lose anyways.
Bro's thumbnail looks like Michael Stevens from Vsauce
I heard "bedrolls across America" in a video a few weeks ago. I had to search online a bit to figure out the band because it was stuck in my head. Only to realize today the person who sang the song from 2012ish comes into a Wheezy Waiter video and mentions he's in the band. The world just got smaller, I swear. Holy shirt!
It’s funny. I’m learning about index fund investing at the moment, now I’m in a position where I can lock some money away for a while. I’ve been reading and watching lots of stuff by Qualified Finance People, but hearing how it’s worked out for a Normal Person (you know what I mean!) is reassuring me more about my decision!
Don't forget that diversify also means there are other options for investing. Art, collectibles, real estate... there is tons of options, figure out what you feel comfortable with^^
It's astounding how much you look like Vsauce. Especially your thumbnail haha.
The tech industry has been driving a lot of growth lately.
But honestly, turning $10,000 into $1 million sounds like a long shot. It's not just about picking the right stocks but also timing and having the patience to ride out the market's ups and downs.
It's not as simple as putting money into a few stocks and watching it grow. There's a lot of research, discipline, and risk management involved. You have to be in it for the long haul, and not everyone has the stomach for that.
Dollar cost averaging.
Thanks dad! 😆
Honestly I wish my parents taught me about investing, they came from a time where houses were affordable and their assets easily snowballed. What they did "help" me with was insurance, they signed me up for all kinds of whole life insurance which is crazy expensive and not worth it, so I'm trying to fix that now 😕
It is sad this video is not getting viewed as much - the advice is solid.
Great video! An often overlooked bit of advice: Dollar Cost Average aka DCA. It's almost always safer to invest the same amount at regular intervals, rather than dump a lump sum. Got $1000 to invest? Don't dump $1000 into the index, invest $100/day for 10 days. Or invest $5 or $50 per paycheck, doing it regularly. The math works out to buy fewer stocks when they're expensive and more stocks when they're cheaper, since you're investing the same dollar amount each time. This means the average amount you pay - your dollar cost average - averages downwards.
For example, buying 1 stock today at $1 and 1 stock tomorrow when it rockets to $10 = $11 for 2 stocks, or $5.50 each. But investing $5.50 today and $5.50 tomorrow (the same amount at regular intervals) gets you 5.5 stocks today and 0.55 stocks tomorrow = $11 for 6.05 stocks, or $1.82 per stock. The same amount spent but a lower average cost. This helps you ride out the ups and downs of the market more safely.
*_Time in_** the market is safer than **_timing_** the market.*
This is the most down-to-earth explanation of long-term investment I've ever witnessed.
Started doing the whole financial literacy thing since the end of last year. Net worth is steadily growing. Fool proof. (I'm leaving out the part in 2021 where I lost a big chunk of money to crypto. We're not talking about that anymore. Don't be like me. I've since recovered that loss though. But don't do this.)
Welcome back VSauce
Wow I used to watch you when I was a teenager and now the algorithm sent me here when I'm in my 30s holy crap! well I guess I have a lot of content to catch up on!
ETFs are kind of fun to me because you can go pretty nerdy with if you want. And I think the fee is usually lower, the thing is, you don't actually have a say in the companies you invest in. To me it's kind of cool to be able to ask a question by buying a stock in a company.
Also, some economists say it doesn't really matter if you save earlier as you don't actually have that great an income and as you get older you can save more, but usually self-help people say the same as you about the 20 dollar rule, it builds the habit.
The Money Guys, Caleb Hammer... and now Wheezy Waiter??! We are blessed 😊
I think the decision between having money in the bank or in an index is pretty easy, considering how bank rates have gone down. Hint: They are using your money to make the money you didn't use your money to make. And they don't share, while cutting costs making you switch to online banking and using card over cash. (I am German and we love our cash, but now banks are closing down ATMs everywhere here too.)
I'm glad things are going well with you money wise. One of my long-time concerns with for lack of a better word, "Original" UA-camrs is that they weren't going to cash in on their initial adsense, brand deals, and like from being full-time content creators and have money decades later. It seems that you are in a comfortable place and that Rhett and Link, Ian and Anthony, Shaycarl, Ray William Johson, and many others are doing at the least, OK. I know that this isn't universally the case and some original UA-camrs have been forced to go into more traditional industries and face economic woes like most of us, but statistically, I suppose that was inevitable.
The average growth is 10%, but some years see much more than that. Even with all the ups and downs and average is a 10% increase. You won’t get rich from indexes, but you can get wealthy.
I work at a financial office (not an advisor). a lot of this video is good basic advice, with one exception: don't assume the s&p will just keep going up forever. each country has their own version of the s&p. these indexes reflect how well that country's economy is doing compared to other global economies. Japan's, for instance, has been going down for the last 20 years.
Your disclaimer was pure gold!😂
How to become a millionaire...
1) Save at least 10% of every dollar you bring in.
2) Invest this money in an ETF like VOO or VFIAX on Vanguard. The important thing is to keep your expenses as low as possible.
3) Use time and regular investments to build your snowball.
4) If you do this making $15/hr from the age of 22 (and never getting a raise) until 65 you will have over $2.5 million saved for your retirement.
Obviously benefitting from company 401k matches and such will accelerate this process.
401k isn't the only type of tax-advantaged account. There's also IRAs.
My 401k (conservative, S&P500 type investments) from a former job doubled in just four years! I believe it was 2016-2020. Good thing, too, because I don’t trust them to pay out any pension whenever I’m old-enough and ready to retire.
The Nasdaq is an exchange. Nasdaq composite and Nasdaq-100 are indices.
Wheezy waiter getting into that finance RPM
i hope he doesn't get too seduced
now when i think about you WheezyWaiter is the Vsauce version of life tips, even appearance is uncanny :D
Same here. I kept hearing Warren Buffet advice to put money in a low cost index fund like Vanguard and I wish I acted sooner.
I thought I recognized the channel name… this dudes been posting since the beginning of UA-cam.
Funny that I published a video about ETFs today as well ;) The moon is probably in the funds phase.
What is truly sad is how many people love to scream from the mountain tops that the easiest way to create wealth that you could involve yourself in with the least amount of time or energy input on your part is, according to them, a scam.
Somehow starting your own business or going your own way, in their eyes, is different than just investing in part of someone else that chose to go their own way at some point and started a business that you now own part of.
During the early part of the Pandemic (April 2020) I bought some index funds and that chunk has almost doubled in value during the last 4.5 years..
Thanks for talking about this; it's among the best life advice anyone can get. As to whether they follow it or not, well that's their problem. 😆
I often wonder how much the growth of these indices is purely down to people just shoving their savings in because the indices always seem to grow thus causing increased demand for the shares of the businesses listed, rather than growth down to business being well run. It's a self fulfilling prophecy. Invest in index, receive dividends, invest dividends in index causing increased demand, index grows and repeat.
I think this would only be true in the short term. Companies would still have to be profitable. This seems very much more true for gold or crypto.
I can confirm this is sound advice. Don’t invest in individual stocks. ETFs/indexed funds are a great way to do it.
Having realized that I nuked my 401k when I got laid off and could not find decent work for several years, now that I'm back on my feet, I just dumped a bunch of cash into nvidia... Here's hoping I didn't completely miss that train (though I do wish I had bought nvidia instead of my motorcycle back in '21, lol)
Oh, also I opened a Roth IRA. Really bummed my employer doesn't offer a 401k, even un-matched...
Well I think Nvidia might continue to grow but a safer bet would be… an index fund.
Sorry to hear about the lay off.
@@wheezywaiter Yeah, I've started moving money in to start picking up indexes as well. It was just one of those moments where I said to myself "holy crap, I forgot about retirement!" and jumped on the IRA, and then saw that nvidia was splitting, so I decided to grab a bunch looking for the post-split rise. And then start picking up some more of the safer bets.
The only real downside so far is that I did this all before I took a trip to Colorado for a Miata meet up, and my motorcycle insurance came due for the year right as I was leaving, so I had to put my hotel on a credit card instead of paying cash, lol
Though, being 47, I'm already pretty screwed, lol
'Trading Places' was about commodity trading. 🙃
Instructions unclear. I went bankrupt before the video ended.
I'm always surprised when some people say they don't invest or their idea of "investing" is by having a bank savings account. It's a missed opportunity to not invest in ETF's etc.
Thoughts on the ethicality (if that’s a word) of the stock market, if you wanna participate in that… etc
The camera shake in the later half of the video made my head hurt.
2-3 ETF is all you really need for long term growth. I use the boggle heads theory to maximized my 401k.
What he said is the best thing you can do with you non-emergency saving. I think it has the best return relative to the risk. I assumed it's common knowledge and was surprised that it isn't.
The issue is that inflation exist, so if you put your money away... ok it becomes more but the issue here is that if it's not enough money inflation will catch up.
The City Picture in the back ground is triggering my OCD. lol
Thanks for the advice, Mr. Weezy❤
Thanks for the helpful-not-advice, helps a lot!
hey wheezy, i just wanted to say that every time i see a banana i think of the same thing every time.
''bananas bananas,
they're sitting on my fridge.
bananas bananas,
they look just like a bridge.
bananas bananas,
you can throw them on the floor.
bananas bananas,
you can not throw them on the floor.. or you can eat them.."
been watching for 15 years
Im like thiiiiiis close to making enough money to actually start saving it.. and i will absolutely put it into index funds when it happens.
God I wish I'd known this like, 10 years ago. I could have even started with a £1 a week and built up from there and still be in a better position I am now!
Already knew this but great info for someone just starting out.
When’s the new Driftless pony club album coming out?
The other solid advice, at least in Germany but I suppose the situation is the same elsewhere.
Don't invest in pension funds. Unless you really can't be trusted to manage your own funds.
Pension funds cost a lot more in fees than normal funds. And you pay them every year you are alive!
Put your money index funds. Towards the end of your life, pull them slowly into less volatile investments because you need access to it soon.
Then, when you are in need of a pension, take the money and go to a pension insurance company. They calculate ice cold. They take the current average life expectancy and make you and offer assuming you die at whatever, 65 years when you are male.
You are at that point maybe 50. So you have an information benefit over the pension provider. They don't, they will take that bet. But you can say, man I had cancer three times I'm overweight and have a heart condition. I don't think I will get that old. So you can take that money and keep it. Inherit it to your children or go on a cruise.
Love this practical video.
You know…. I haven’t seen a clone in quite a while.. I’m starting to think that.. maybe.. This is a UA-cam Clone and the real WheezyWaiter is out there just living his normal life with his family.
VSAUCE! Michael here.
Yeah man you gotta do more research... you didn't mention how fees and taxes will destroy your investment returns. In America the detaxed Roth IRA n 401k are super, super important to understand.
Thank you for the sane advice.
I just saw the trailer for Haunt Season and shouted "WHEEZY!!!" 😂 Can't wait to see that!
Also, totally going to talk to a financial planner and take your advice. ✍🏻 Indexes ✍🏻 . ✍🏻
I once increased my money 30,000-fold in one month. The story just stops being so impressive when I tell people that it was 3ct until I got a 6 months worth of stundent aid.
i genuinely thought vsauce was gonna tell me how to double my money for sec
thumbnail had me thinking this was a VSauce alt account
I've invested for years, very informative video i think it clears a lot of things up for anyone confused about stocks!
"Investing in family being the most important" love that, cheers!
Hey Craig! Is DPC still making music? I remember you mentioned working on a new album a few years ago. Any updates?
Thanks Michael from Vsauce