3 types of investments to Own | Step by Step

So today I’m going to give 3 types of investment you should make in your lifetime to make sure you have passive income, Financial independence, and also less risk. ✅2 FREE AUDIOBOOKS✅
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1. Stock Market ( equity investing ): Because it’s the easiest way to get your money to work at age 18 and when you get your first job ( the other investment options will get harder)

– Now there are two things I want to talk about when it comes to investing in the stock market
– Risk tolerance (can you sleep at night) and the second do want to be Passive investor or true Active investor like Warren Buffet

Risk Tolerance (can you sleep at night)
– The common advice is to take a lot of risks when your young and take less risk when you’re older ( I’m young but I like to keep my risk moderate)
– For example in 2008 the stock market fell nearly 50% in one day
– If that scares you then you want to make sure you have good investments and a better strategy.

Passive and Active Investor:
– A passive investor is someone that wants a piece of the pie without all the risk, all the company analyzing, and book and courses. ( most likely you’ll be doing index fund investing )
– True Active investor: is picking individual companies and considers themselves an owner when buying. So to buy a company they have to analyze in and out and see the health, management, and future prospect of the company.
– One is easy and passive, the other takes a lot of work

Tip: if you buy these investments like you buy clothes, by how they look and the brand, you will lose money. When you buy an investing you literally have to understand the business, as if you are actually real owner because you are.

Step by Step:
– I use Acorns to invest my money in a passive, moderate risk portfolio. I put money inside every week. ( I recommend you put 10% of paycheck weekly) during good times and bad times ( that way you buy more investments for a cheaper price when prices are low, to average out the price)
– This method of investing is called Dollar Cost average, and it only works if you keep investing consistently for a lot amount of time
– A $100 weekly investing for 25 years at an 8% return turns into $410k ( and as you get older, you can switch to a more conservative portfolio in the ap also)

Stock Book: https://amzn.to/34dIO2E

2. Real Estate: ( great quote, buy real estate because they are not making any more of it)

– The only problem is that at a young age you can easily get outpriced out of this investment opportunity
– So the idea is to start saving early for a 20% down payment for the investment property you want

However:
– The reason you want to invest in Rental Property for example
– Is that when the stock market crashes and it will in our lifetime
– You can also collect rent, you’ll get long term appreciation, and usually some good tax breaks ( but don’t count on those)

Step by Step:
– Say you want to buy a house and it’s 200k and you want to put down 20% of down payments. ( that’s around 40k, you’ll have to save $770 a week for a year or $385 for two years)
– When you buy the property the idea is to make sure that the mortgage, Insurance, property taxes, and maintenance, can be covered by the rent plus give you some extra money in profit
– Enough to make the 40k you invested worth your time ( at a 7% return you’ll need $2800 a year in profit)

Great Book on it: https://amzn.to/3h9Cj4z

Tip: you don’t need a real estate license to invest into real estate, but if you want to work in real estate and sell properties and get experience then you do.

3. Cash Reserve

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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