@@Jesusislord930 True, but you don't live in the past. Don't forget about all the companies which stock price crashed. That's just gambling as you don't know for sure how those companies will do in the future.
I don't agree with Ramsey's assessment of the value of a stock. There is nothing except the perceived price/value which causes the stock price to go up. Nothing is linking it to the profit of the company except what people feel its valued as. As long as people think its valuable, then it will go up.
@@mek86 same thing can be said about real estate. Go to a ghost town in northern Japan, you can find many houses worth nothing. It is all supply and demand like stock.
I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio dwindle away is such an eye -sore.
There are many other interesting stocks in many industries that you might follow. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares or ETFs you want to acquire.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?
MICHELE KATHERINE SINGH is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
It's best to seek an advisor right now, unless you're canny yourself. As a business owner in both the service industry and eBay reseller of all product categories, I can tell you we’re in a deep recession and everyone is running out of money.
I agree, that's the more reason I prefer my day to day investment decisions being guided by a invst-advisor, seeing that their entire skill set is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using a invst-coach for over 2years+ and I've netted over $900K.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
She goes by 'Linda Aretha Reeves ''. I choose to delegate my excesses to her because of her great expertise. I suggest you look her up. To be honest, almost didn't buy the idea of letting someone handle growing my finance, but so glad I did!!
Thank you for sharing, I must say, Linda appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive.
Overall, 51% of traders think this year would favor stocks, mutual funds, and other equity-based investments, despite Treasury yields and other safer cash-like investments paying big. I’m looking for opportunities in the market that could fetch me $1m ahead of retirement by 2025
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
Laila artine kassardjian' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
I've been watching the housing market closely, Prices have been skyrocketing for years. It's going to be tough for first-time buyers to enter the market." how can one diversify $280k reserve .
I agree, It's not just the prices, but also the increasing interest rates that are making it more difficult for people to afford homes. With a good FA you can make up your portfolio.
The housing market has always had its ups and downs, but it's true that this time feels different. Having a portfolio manager will save you a lot in the market , My portfolio currently has 200% increase last couple of months with the help of my advisor.
in times like these, it's crucial to be cautious and not rush into the market , Who is this your FA , my portfolio needs urgent attention , been a lot of lose.
I just Googled her name and her website came up right away. It looks interesting so far. I'm going to send a mail to her and let you know how it goes.Thanks for sharing truly!
I'm in my 50s and I'm more interested in investments that could set me up for retirement , I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
MEGHAN MAUREEN KRISTENSEN is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
I retired at 45. Had I never owned real estate I could have retired at 39. Real estate has always been the worst part of my portfolio. Hidden costs, maintenance, and headaches galore.
@@angelaperagine9041 Hey angela im 23 and thinking about getting a rental can you clarrify . Also do you think buying a good reit is better than the actual property
Mrs Joyce Albert unique strength lies in her realistic approach, which sets her apart from other brokers that often set unattainable targets and fall short in delivery.
Smaller, speculative stocks have endured a historically weak stretch. Investors are betting that a turnaround is finally in the works. I’ve lost about $320k within a few months, how do i take advantage of the market turnaround?
@@maryshea9781 Having an investment adviser is the best way to go about the stock market right now, especially for near-retirees, I've been in touch with a coach for a while now mostly and I made over $800K within a short time
@@maryshea9781 renowned for her proficiency and expertise in the financial market, *KRISTIN GAIL CUNNINGHAM* my financial advisor, holds a broad understanding of portfolio diversification and is recognized as an authority in this domain.
@@maryshea9781 *KRISTIN GAIL CUNNINGHAM* is quite popular on Bloomberg I doubt if there is anyone who is serious about stock trading that doesn't know her. She has helped me quite a few times in growing my portfolio and it was blissful without any setbacks. she is a tough person in an industry that demands clairvoyance
I believe that you should have both. I try to keep an average of 70% Real Estate and 30% Mutual Funds or ETF's. One thing that Dave didn't touch on, here, is liquidity. If you absolutely and unexpectedly need cash now (more than your emergency fund), then Mutual Funds and ETF's are a lot quicker to liquidate and less expensive too. It could take months to sell a house. I had 1 rental that took me 4 months to sell. During that 4 months, I didn't have a renter and I had to keep paying the mortgage on it. Also, properties are very expensive to maintain. I usually budget 20% to 30% of a property's revenues to go towards repairs or upkeep. I hope this helps.
🤨 💭 Hmmm, I completely disagree and I’d rather take Buffet’s advice(Don’t buy Real Estate). If I chose the right stock/real estate, most likely I’d get 10-25% growth yearly and I can re-invest those profits. While in real estate, there are hidden costs, maintenance costs, headaches, taxes, tenants headaches, realtor fees, etc…
you’re over leveraged though. Your portfolio should consist of at-least 4 sectors: stocks, bonds, real estate, and cash with no more than 30% of your portfolio in one sector. I’d the real estate market crashed you’re gonna be fucked since you have 70% of your portfolio in it
@@BlakeApocalypseyou would be doing yourself a massive service if only 60% of your port was in stocks and real estate and the other 40 was in cash and bonds. Also when buying rentals the home price for the most part is irrelevant as you will be holding these properties for a long time and profiting off the rents
Look into REITS if you want exposure to real estate. Even if it's non-qualified divs you get 90-100% of all rent into your pockets with no corporate tax.
The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400,000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.
The market is volatile at this time, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
I agree. Based on personal experience working with an investment advisor, I currently have $385k in a well-diversified portfolio that has experienced exponential growth. It’s not only about having money to invest in stocks ,but you also need to be knowledgeable,persistent,and have strong hands to back it up.
I’m new to all this, heard it's a good time to buy and basically I've just got cash sitting duck in the bank and I’d really love to put it to good use seeing how inflation is at an all time-high, who is this coach that guides you, mind I look them up .
The whole point of wealth for me is freedom. My magic number in my mind is 5 million needed at 65 to not worry about anything. Am i better off investing a good portion of my income into stocks or real estate to achieve this goal?
Money advice is subjective, what works for you may not work for someone else, but it's always better to plan. I'm quite lucky exposed to personal finance at an early age, started job 19, bought first home 28, got laid-off work 36 amid covid-outbreak, and at once I consulted an advisor to handle growing my finance. As of today, I'm only 25% short of my $1m goal after subsequent investments.
bravo! i'm 46, inherited money from a childless relative and traveled overseas, got married to a lady almost my age, but the only issue is how to preserve and grow my wealth in view of retirement, can your advisor be of help please?
Of course.....I work with "Heather Ann Christensen" as my licensed advisor. Simply look up the name. You would discover the information you need to schedule an appointment.
Thanks for sharing. I curiously searched for full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks.
investing requires good experience and knowledge to carry out a good and successful trade, I have lost a lot trying to trade all by myself May I ask which investments are good?
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
I work at the Home Depot. They hold 20% of my earnings for six months then use the money for employee stock at .85% at the lowest price during that particular day. In 2 years I already own 54 shares and they’re quarterly dividend is $1:50 a share which is reinvested.
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying it's ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in-depth market knowledge.
@@MichaelRoy-gd3mk It all depends on how long you're willing to hold for, stocks might likely tank further, but making serious gains in this downtrend wouldn't be a problem if you're a pro.
The reason I decided to work closely with a brokerage adviser ever since the market got really tensed and the pressure became so much(I should be retiring in 17months) so I've had a brokerage adviser guide me through the chaos, its been 9months and counting and I've made approx. 650K net from all of my holdings.
@@angelahowie1451 My financial advisor, *MARTHA ALONSO HARA* , is a highly qualified and experienced professional in the financial market. She possesses a broad understanding of portfolio diversification and is recognized as an expert in this field.
@@bighands69 yes, your stocks will start leaking and youll get a call from your stock manager saying they need to organise a plumber and you'll be out of pocket $300. Much the same amount of work.
You'll likely make more money in real estate but there is way more risk and potential for problems. My shares of VTSAX won't ever pay rent late. My shares of VOO won't ever have to be evicted. My shares of WasteManagement won't ever try to sue me. My shares of AT&T won't ever purposefully damage my property.
Taghazout Moon You don’t even need to own a home and you can live and sleep anywhere you want. Just be debt free. I’ve met too many people that just rent for years off dividends. Also live in RVs,boat,tent,etc..with a steady paycheck from investments and live anywhere in the world today.. People over 60 with Roth 401k/IRA living off $500-$6k/mo. tax free dividends and interest. You can have your dividends/interest set to reinvest compounding while only taking what you need controlling your annual income which allows you to pay little to no taxes and healthcare with zero premiums buy staying below subsidy cliff. Expatriates,early retired/FIRE,and world travelers are good at this.
@@blackworldtraveler3711 I still have a desire to own a house debt free even though I travel as a single mom. Quarantined in Morocco now. Considering selling my house in America to become debt free and buy a place in cash here or in Europe. There's a feeling of tranquility only a paid off home can give you, even if you travel and don't stay there full-time.
I've been keeping a substantial amount of my savings in cash. It feels safe, but I wonder if it's the right approach for retirement. I want to invest roughly *$400,000* in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stocks?.
your cash is losing value due to inflation. It might not be the best way to grow your retirement fund You don't have to put all your savings in the market either. It's about finding the right balance between safety and growth. Consider consulting a financial advisor to create a retirement plan that aligns with your goals
When you hold cash, you miss out on potential investment opportunities in the stock market, bonds, or other assets that could yield higher returns over the long term. Having an advisor assisted me in saving up to $3 million for retirement.
If you invest that in the S&P index, like SPY, and it performs at 15% for the next three years, which is common after a 2 year bear. You will make over 200K. If you hold cash, at 5% inflation, you lose 57K during same period. So we are talking about a very probable quarter million dollar difference in the two paths.
I have done both. Getting paid rent was extremely time consuming, going through all the things tenants always complained about (nonsense most times) was extremely time consuming, keeping up with property maintenance was also extremely time consuming. I own stocks, it only takes me a few minutes to check their performance. I don't think I would ever do real estate again. I know people whose houses were completely destroyed by tenants and ended up spending thousands to get them fixed, others have had great luck and always collect rents from great tenants.
@@SG-zh5xd From your comment I can only assume you are not very familiar with this kind of business. I started with cheap apartments and then sold them and started buying houses in really good neighborhoods, houses were in great shape. That didn't make difference, the issues as you can read in my original post "nonsense most times." Again, some were really good tenants but I have no patient to be dealing with the baby ones.
I think everyone who owns a rental property will eventually face the issue of bad tenants destroying stuff but keep in mind that this is temporary :). Overall... real estate is a good investment its the time consumption that is the issue here but overall i believe its a nice way to make money if the properties are in good locations and you can at least rent them long term and earn money as your main salary. You know... rent can be your forever salary until you die :D. The issue is that you have to maintain it.
@@realkingbrandon Yes, there are many translations. I have the Septuagint and can read Greek, but have no facility in Hebrew to enable me to get to the original.
I like the stock option over real estate personally. With real estate you have to deal with a lot of factors like finding a property, fixing it up, Contractor’s, tenants, inspection’s, etc. where as with stocks if I believe in a company I can buy shares, hold for long term or short the position & make money. Options can allow me to make money if the stock goes up or down & the only person I have to deal with is myself. Less hassle. Can do it all right off my phone if I want.
I always say educate yourself in both of them, find which one is going to fit your lifestyle best. I personally am a real estate investor I found it fit my interests more and have found great success in it. Any of the content I put out is based off my experiences makes it easier.
Real estate is great for some, but when people put all of their money into a single asset, its a problem. Love my dividend stocks and boring index funds and also have some REITs that pay me monthly. I never want to deal with tenants.
XOM was $45.47 when this video was posted. It closed today at $57.86 and has paid $3.48 since this video was posted. Jason in Oklahoma missed out on a 34% return for not understanding how stocks work.
Everyone's in the comments complaining about the work of being a landlord. Guys, that's built into the price of rent. You can hire a property manager to cover that for you if you want, labor is labor, you can still calculate the profit of a rental property _after_ you pay someone else to run it as part of the investment calculation. You can use REITs if you want it to be easier as well, and of course the REITs will be hiring property managers / being property managers on your behalf.
We have owned rental homes for years and have been selling in recent years. The types of renters and respect for properties has changed greatly over the 25 years we have had them. It’s no longer worth it. We have not done commercial property so that might be a way to reduce headaches! If your handy and want to fix up property, sell them when complete!
@@leetjohnson it don’t change an income for you there’s millions of houses. And people don’t do it cuz they are scared they don’t do it cuz it’s expensive to start.
I like REITs too. I have mine enrolled in the DRIP, so all the dividends just keep buying more. MFA is a a good one right now. They are undervalued because they stopped their dividend for a while in 2020. But they have made a couple payments to common stock holders in 2021 and they should be back on track soon. The requirement to pay out 90% of their income to be considered a REIT is awesome.
this subject always makes for a good debate. I invest my retirement money into the stock market, but I've always been intrigued by real estate AS an investment/future income option. Problem is, RE takes a LOT more time and expertise to avoid the potential pit falls. It's like a second job, from what I've learned from others who do the "rental property" thing. Hard to get honest answers from people because they want to feel smart and few rarely admit their failures when it comes to investments. I have a cousin that does very well with rentals. He's pretty much retired and that's because he's done well with smaller single family rental properties, but it comes with a lot of headaches. Ideally, you'd have BOTH (real estate/rentals AND stocks/bonds) but personally, I haven't found the guts to dive into buying rentals because I'm afraid I don't have enough knowledge/expertise and don't want to fail. I know you have to get into the game to truly learn it, but the EFT's, MF"s, etc are just so easy, convenient and low maintenance. I'm running out of time to make the real estate option viable (don't want to wait until I'm retired), so I may pull the trigger on a rental just to get my feet wet.
If you put time and effort into finding the best property and maintaining it, you will have more earning potential then if you put no time and effort into the stock market and just pick some general indexes on a whim. I agree.
I think this depends on which stock you own and also the property in question. If you have a large stream of dividends you could get more recurring income than rent, and reinvest them to increase that income in a short amount of time. An expensive house, or a house in a desirable location, could get you a lot of rent or appreciate at a higher rate. I think there are too many factors to consider. With investing it also depends which stock you bought. If you're good at spotting opportunities you could pick one that suddenly takes off.
The stock market is a win win no matter what the climate is. Where else can you make money when something is loss money or making money. You can literally make money on a stock when its falling and when its going up. You just have to put in the work on researching what you're investing in. Thanks for the information Dave Ramsey!
Quick answer: Buy what is oversold or on-sale at the time. Real estate is not on-sale right now. I trade stocks to increase capital. I will use that capital to buy real estate for long term residual income.
It's a very true. It's the great debate, which best = Real Estate or Stocks??? Real Estate can get you a much better return but it take your TIME. The best part about stocks is that it is "set and forget".
Real Estate is the key to our EDM. We paid cash for every property and experienced all three of the income Dave suggested. We are north of 20% IRR on all our properties.
I've done well in the stock market. I cannot see me wanting to deal with property problems, bad tenants, and all the other issues when I can sit back and watch my portfolio grow.
Seeing as most people still go to banks for investing with next-to-none rate of return because it's what they understand and are comfortable with, then this isn't really a good advice. Anything can be learned, most things can be taught, it's all about being receptive to new information and seek what might be better for you. Adapt and improve, comfort zones aren't necessarily optimal.
I’ve done well with real estate. But my strategy has always been a conservative long-term approach. But like others have been mentioned invest in what you know and feel comfortable with.
Great info. Assets are worth more in the future than they are today. Stocks aren't gambling if you invest in good quality companies. If you want to speculate on companies that have no track record and no profits, then that's a risky play.
Glad Dave doubled down on the stock market not being a casino. Too many people think it is but it’s absolutely not. It’s definitely good to diversify between stocks and real estate. Some people have a favorite or better understanding between the two which is fine. To each their own.
I mean owning a house or various houses is good, but I believe that 4% price a year increase is gonna end up really soon. Nobody is buying houses with these interest rates. Your house price will get stagnant during recession periods because the market is correcting itself while in the stock market, you can make fortunes allocating capital during the same periods.
Since the day this guy called in to today (Feb 19, 2022) the S&P 500 (including dividends) has returned 46%. Stocks WAY out perform real estate. Take this from a guy who used to own millions in real estate and have dozens of renters and today has no real estate and stock in more than 8,000 companies (thanks to ETFs).
I think he was referring to an instance like the cruise lines or airlines where they fell to 20% of their pre-COVID value; even though they still have all of their assets. They lost earnings while the lock down was in place but the overall value of their company is not in line with what it's currently trading for; which is why it will rocket back once this situation is over.
The caller has a good point. Many stocks right now appear very speculative, in that they would have to make huge financial returns to get to what we currently consider reasonable price to earnings ratios. If we pick three companies, and two are duds (with limited downside), but one goes to the moon, the gamble pays off.
I watch a lot of the business channels. One thing I don't feel that is talked about very much is creating income. Yes, it is great to have stocks increase in value and thereby increase a person's wealth. But my thinking is that at some point it has to turn into income. Otherwise it is just paper money. And to create income you have to sell the stock, take a tax bite and then reinvest it into bonds, CDs or dividend stocks. I have done the stock market for decades now, and the best success I have had is to invest in solid stocks that have an increasing solid dividend. I let the dividends re-invest and thereby the income increases 2 ways every year: 1.)I have more stock, and 2.) the dividend goes up. Yes, this is a long term strategy, but it works. It's just that the TV channels never talk about it.
Really great Advice from Dave!!!! I wish Dave would write a real estate investing book lol. The problem today is that real estate is crazy expensive and the stock market is very high. I am leaning towards keeping money in cash for the time being and waiting for the market to come down.....Problem is I have no idea when the market will decline lol. Are people out there getting good deals with real estate these days????
Being a landlord has its perks, you live for free, and you're able to save more of your income (as in your normal job), you have someone else pay your mortgage, HOWEVER...... you will get text messages saying our sink is clogged, or other miscellaneous repairs, and you have to get it repaired in a certain amount of days. In my opinion, i wouldn't do rental property without the knowledge of being able to do your own repairs. sometimes repairmen are in a union and when you have a plumber come in it cost $130 an hour during business hours, and if its an emergency and its not during business hours, they charge more. that's why you learn to do the repairs yourself and do a good job. And when it comes to eviction, rerenting, you have to set up appointments and listen to other peoples bs of not paying rent. Question is...... are you willing to do all of this. Then there are stocks. Stocks is by far the most laziest way to accumulate wealth. You do your homework or with anything to get good at, read, read, read, understand some math, question everything that you don't understand till the point you're sick of it. and do it again. You don't have to listen to your tennant not being not being able to pay rent. You get to make the decisions. Its more easy with the click of a button.
I love Dave at the beginning thinking hard like: “I’m wondering if my money is more effective in...” “Don’t say gold. Don’t say gold. Anything but gold. Don’t say gold.” “Real estate” “Phew”
Not really. You can't depreciate stocks, most investors can't leverage stocks without massive risk and you also can't refinance your stocks to increase monthly cashflow, that is often tax free due to depreciation. Most people are unaware of the hidden long term benefits of real estate, especially the debt fearing viewers of this channel.
@@leetjohnson Have you tried to hire a contractor recently? At least with stocks you don't have to make deals with the devil! I don't have the time or desire to depend on others. With stocks I alone control my destiny. I like real estate, I bought at the right time and my theoretical property value has tripled, but it was hard, and there is a ton of opportunity costs. It was a foreclosure, so I spent some money on it. With stocks the risks are higher, but you can sell quickly if you're paying attention. How many people have already doubled their investments since the start of 2024? Depreciation of real-estate comes back to haunt you when you decide to sell, and you still have to pay taxes for services you don't need and insurance that will fight you when you need them most. With stocks, yes you will pay more in taxes, but only when you sell, and only if it's not in a Roth. Closing costs are a scam, 6% brokerage fees are a rip off, it's all a bunch of nonsense, subsidized by the tax payers. Why should you be able to deduct expenses, or depreciation? Are we trying to juice the market? The introduction of VRBO's and AirBNB's are enough to juice the market. it's time to stop the tax payer subsidy of the real-estate market. It's the main reason the cost of living is so expensive now. What's the point of raising interest rates and hurting all businesses, when all you really need to do to make housing more affordable is reduce the tax deductions and actually CUT interest rates???
I like real estate more because it pays out monthly rent, the tax write offs, and appreciation, and like Dave mentions the control to find a better deal/value than the stock market. Plus I prefer owning a physical asset that you can touch. The stock market is way easier though, no upkeep, and you can buy and sell within minutes.
It is estimated 2 million single family home (more than half still have mortgages) are being rented out by the former residents. In my state, there is 120 day eviction moratorium, so on month 5, $10K is needed two more months to get the eviction paperwork and then get in the queue for service and forcible. 7 to 8 months of mortgage payments with no income.
All investments have risk though, gotta be willing to accept the risk factor and control the controllables. The stock market would have tanked as well if the fed didn't save it.
I have rentals where nobody is paying, can’t evict, even when I can, they will get 90 more days. Meanwhile, house needs maintenance and property tax bills are due. It is going to cost a small fortune to sell between commissions, legal, capital gains tax, depreciation recapture tax, etc.
This is the advice and opinion id prefer to hear more!!!. Talking to people, who mess up their lives in various ways, is cool but alot of the listeners know better. Give everyone else thats passed the debt phase and tell us something else to make us grow beyond that.
The rent isn't the net income. There are taxes, repairs, vacancy without rent, and perhaps management fees and HOA dues to consider. Possibly other things I'm not thinking of right now, too.
Both have their pros and cons. I personally like stocks for the simplicity and less headaches, plus you can borrow against them at lower interest rates than a heloc or mortgage for property.
For everyone who thinks you cant make money in real estate, enjoy lighting your money on fire at the end of every month and having your rent go up every year too so you can light more money on fire every year. I'll keep enjoying my equity going up. Also, its not either or. You should diversify and have real estate and stocks. No millionaires are renters fyi and they have huge stock portfolios as well.
Real Estate most of the time will make you more money. That said, if you know stocks well, stocks can easily outperform real estate. That said, overall if you're willing to put up with the hassle of real estate, you can leverage more on a huge real estate loan. I personally prefer stocks due to zero hassles.
Real estate is expensive and highly illiquid. Investing in real estate, even when borrowing cash, requires a large upfront investment. Getting your money out of a real estate investment through resale is much more difficult than the point and click ease of buying and selling stocks. Most importantly invest in the one you know better or you can take the risk of doing both. With my experience as a nurse and I want to retire before 39, I think doing both is the best if your financially bouyant enough.
Exactly, even Real estate has high transaction costs. A seller can expect to pay significant closing cost, which can take as much as 6% to 10% off the top of the sale price. That’s a hefty cut compared with stocks, especially now that most brokers charge no fees for stock trades.
It’s difficult to diversify your investments with real estate. Location matters when investing in real estate. Sales may slump in one area, while values explode in another.
@@charlottewick2456 well I made a lot of researches and got mentored by Mr Chris Vandernaald and it's really been paying off. Secrets you just have to invest in something know about.
@@timgallon8771 Diversifying the purchase of real estate properties by location and type (a mix of residential and commercial, for example) requires much deeper pockets than the average investor has.
@@confirmhandle You're not losing money in stocks over decades. The historical average is 8-10%. Yes you lose money in small dips, but you're not losing it long term.
they literally are both the opposite! 2 of the THE MOST PREDICTABLE investments in the long term. Just don't throw darts at a dartboard, thats a given, it ain't rocket science
2:50 depreciation thing is not just a write off. When you sell the house, depreciation is recaptured. You gotta do 1031 exchange to avoid depreciation tax (or any kind of capital gain tax).
I appreciate Dave’s take on this. He’s obviously an expert on Real Estate and all the work that goes into it. Kinda confusing since Dave always says to never go into debt buying rentals, which i agree with, and he making this guy lean towards real estate when the caller obviously has no clue how the stock market works. Personally, buying and holding individual stock long term is not recommended. (Warren Buffet and Mark Cuban agree with me). Dont get me wrong, its better than putting your money in a savings account, but if you know what your doing in the stock market you can make steady income. This would have been impossible without youtube or twitter, but anyone can learn how to make money today on stocks.
Get life-changing financial advice anytime, anywhere. Subscribe today: th-cam.com/users/TheDaveRamseyShow
Dave, should I open a roth ira ?
Amazon is over 3000 and Tesla over 1500. You could have bought 10 houses if you invested in them 5 years ago
@@Jesusislord930 True, but you don't live in the past. Don't forget about all the companies which stock price crashed. That's just gambling as you don't know for sure how those companies will do in the future.
I don't agree with Ramsey's assessment of the value of a stock. There is nothing except the perceived price/value which causes the stock price to go up. Nothing is linking it to the profit of the company except what people feel its valued as. As long as people think its valuable, then it will go up.
@@mek86 same thing can be said about real estate. Go to a ghost town in northern Japan, you can find many houses worth nothing. It is all supply and demand like stock.
I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio dwindle away is such an eye -sore.
There are many other interesting stocks in many industries that you might follow. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares or ETFs you want to acquire.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?
MICHELE KATHERINE SINGH is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
My needs are kind of unique and complex. I'll contact her nonetheless, and I hope I'm able to make something out of it.
As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
It's best to seek an advisor right now, unless you're canny yourself. As a business owner in both the service industry and eBay reseller of all product categories, I can tell you we’re in a deep recession and everyone is running out of money.
I agree, that's the more reason I prefer my day to day investment decisions being guided by a invst-advisor, seeing that their entire skill set is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using a invst-coach for over 2years+ and I've netted over $900K.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
She goes by 'Linda Aretha Reeves ''. I choose to delegate my excesses to her because of her great expertise. I suggest you look her up. To be honest, almost didn't buy the idea of letting someone handle growing my finance, but so glad I did!!
Thank you for sharing, I must say, Linda appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive.
Overall, 51% of traders think this year would favor stocks, mutual funds, and other equity-based investments, despite Treasury yields and other safer cash-like investments paying big. I’m looking for opportunities in the market that could fetch me $1m ahead of retirement by 2025
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
Mind if I ask you to recommend this particular coach you using their service?
Laila artine kassardjian' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
A stock never calls you about a broken toilet at 1 in the morning
Maybe have a property manager?
@@JDrocks4ever A "property manager" (AKA employee) Which will considerably cut into your profits.
A stock will never stay in your place without paying rent! LOL
@Your President you can't beat real estate for saving on taxes
neither do my houses
I've been watching the housing market closely, Prices have been skyrocketing for years. It's going to be tough for first-time buyers to enter the market." how can one diversify $280k reserve .
I agree, It's not just the prices, but also the increasing interest rates that are making it more difficult for people to afford homes. With a good FA you can make up your portfolio.
The housing market has always had its ups and downs, but it's true that this time feels different. Having a portfolio manager will save you a lot in the market , My portfolio currently has 200% increase last couple of months with the help of my advisor.
in times like these, it's crucial to be cautious and not rush into the market , Who is this your FA , my portfolio needs urgent attention , been a lot of lose.
Her name is “Vivian Carol Gioia” can't divulge much. Most likely, the internet should have her basic info, you can research if you like
I just Googled her name and her website came up right away. It looks interesting so far. I'm going to send a mail to her and let you know how it goes.Thanks for sharing truly!
I'm in my 50s and I'm more interested in investments that could set me up for retirement , I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
MEGHAN MAUREEN KRISTENSEN is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
@@SheilaAnnerego Does this fiduciary work off of a % fee or a fixed fee?
Caller: stocks or real estate?
Dave: sell the car
And every month take the payment savings and invest in a growth stock mutual fund?
“What were you thinking?”
YOU’RE WRONG
DONT BE STAGNANT
THAT'S STUPID
I retired at 45. Had I never owned real estate I could have retired at 39. Real estate has always been the worst part of my portfolio. Hidden costs, maintenance, and headaches galore.
Mitchell are stocks what allowed you to retire at 45 ? Trading ?
@@angelaperagine9041 Hey angela im 23 and thinking about getting a rental can you clarrify . Also do you think buying a good reit is better than the actual property
@@angelaperagine9041 why is that? I own a rental property no regrets so far
Exactly
It’s not even close. Most people that own stock make $0 in monthly income. While I’m approaching $10k/month in rental income. 0 is never better
Hey I want to start investing but don't know where to begin. Any advice or contacts for help?
It is wise to seek professional guidance when building a strong financial portfolio due to its complexity
Talking to a financial advisor like Joyce Albert to reshape your portfolio is a smart move 😊
Mrs Joyce Albert unique strength lies in her realistic approach, which sets her apart from other brokers that often set unattainable targets and fall short in delivery.
You guys know her too? Her Success story is everywhere
If a person is direct and proficient in their work, others will sure consistently vouch for them. I love her transparency
Smaller, speculative stocks have endured a historically weak stretch. Investors are betting that a turnaround is finally in the works. I’ve lost about $320k within a few months, how do i take advantage of the market turnaround?
@@maryshea9781 Having an investment adviser is the best way to go about the stock market right now, especially for near-retirees, I've been in touch with a coach for a while now mostly and I made over $800K within a short time
@@maryshea9781 renowned for her proficiency and expertise in the financial market, *KRISTIN GAIL CUNNINGHAM* my financial advisor, holds a broad understanding of portfolio diversification and is recognized as an authority in this domain.
@@maryshea9781 *KRISTIN GAIL CUNNINGHAM* is quite popular on Bloomberg I doubt if there is anyone who is serious about stock trading that doesn't know her. She has helped me quite a few times in growing my portfolio and it was blissful without any setbacks. she is a tough person in an industry that demands clairvoyance
I believe that you should have both. I try to keep an average of 70% Real Estate and 30% Mutual Funds or ETF's. One thing that Dave didn't touch on, here, is liquidity. If you absolutely and unexpectedly need cash now (more than your emergency fund), then Mutual Funds and ETF's are a lot quicker to liquidate and less expensive too. It could take months to sell a house. I had 1 rental that took me 4 months to sell. During that 4 months, I didn't have a renter and I had to keep paying the mortgage on it. Also, properties are very expensive to maintain. I usually budget 20% to 30% of a property's revenues to go towards repairs or upkeep. I hope this helps.
Tell me more...
🤨 💭
Hmmm, I completely disagree and I’d rather take Buffet’s advice(Don’t buy Real Estate). If I chose the right stock/real estate, most likely I’d get 10-25% growth yearly and I can re-invest those profits. While in real estate, there are hidden costs, maintenance costs, headaches, taxes, tenants headaches, realtor fees, etc…
you’re over leveraged though. Your portfolio should consist of at-least 4 sectors: stocks, bonds, real estate, and cash with no more than 30% of your portfolio in one sector. I’d the real estate market crashed you’re gonna be fucked since you have 70% of your portfolio in it
@@u2-tv899what is the secret to be a good stockholders?
@@BlakeApocalypseyou would be doing yourself a massive service if only 60% of your port was in stocks and real estate and the other 40 was in cash and bonds.
Also when buying rentals the home price for the most part is irrelevant as you will be holding these properties for a long time and profiting off the rents
For someone like me who doesn’t have enough cash for real estate, stocks are perfect.
Look into REITS if you want exposure to real estate. Even if it's non-qualified divs you get 90-100% of all rent into your pockets with no corporate tax.
Lol can you save up 10K?
Kevin Chong which reit specifically?
@@anonymoususer4376 whats REITS?
You’re better off saving for a house and investing in index funds
The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400,000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.
The market is volatile at this time, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
I agree. Based on personal experience working with an investment advisor, I currently have $385k in a well-diversified portfolio that has experienced exponential growth. It’s not only about having money to invest in stocks ,but you also need to be knowledgeable,persistent,and have strong hands to back it up.
I’m new to all this, heard it's a good time to buy and basically I've just got cash sitting duck in the bank and I’d really love to put it to good use seeing how inflation is at an all time-high, who is this coach that guides you, mind I look them up .
Sure, the investment-advisor that guides me is..
MARY TERESE SINGH
The whole point of wealth for me is freedom. My magic number in my mind is 5 million needed at 65 to not worry about anything. Am i better off investing a good portion of my income into stocks or real estate to achieve this goal?
Money advice is subjective, what works for you may not work for someone else, but it's always better to plan. I'm quite lucky exposed to personal finance at an early age, started job 19, bought first home 28, got laid-off work 36 amid covid-outbreak, and at once I consulted an advisor to handle growing my finance. As of today, I'm only 25% short of my $1m goal after subsequent investments.
bravo! i'm 46, inherited money from a childless relative and traveled overseas, got married to a lady almost my age, but the only issue is how to preserve and grow my wealth in view of retirement, can your advisor be of help please?
Of course.....I work with "Heather Ann Christensen" as my licensed advisor. Simply look up the name. You would discover the information you need to schedule an appointment.
Thanks for sharing. I curiously searched for full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks.
I am a finance student and Dave just went over easily like a whole month of material in this video
investing requires good experience and knowledge to carry out a good and successful trade, I have lost a lot trying to trade all by myself May I ask which investments are good?
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
how do I get in touch with this consultant that assist?
Jenny Pamogas Canaya, that's whom i work with look her up and thank me later
Thanks for the info . Found her website and it really impressive
I work at the Home Depot. They hold 20% of my earnings for six months then use the money for employee stock at .85% at the lowest price during that particular day. In 2 years I already own 54 shares and they’re quarterly dividend is $1:50 a share which is reinvested.
I've done both, for many years. Stock market, no question.
@Life Content please explain how that works?
Do both
Tyler Kirby when the money appreciates you refinance it using the equity you’ve built into it. Pretty self explanatory.
Dan Hall it’s not self explanatory if someone is asking a question!
Depends if know capital growth areas. Pls note Stocks can drop to NOTHING. That don’t happen with real estate
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying it's ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in-depth market knowledge.
@@MichaelRoy-gd3mk It all depends on how long you're willing to hold for, stocks might likely tank further, but making serious gains in this downtrend wouldn't be a problem if you're a pro.
The reason I decided to work closely with a brokerage adviser ever since the market got really tensed and the pressure became so much(I should be retiring in 17months) so I've had a brokerage adviser guide me through the chaos, its been 9months and counting and I've made approx. 650K net from all of my holdings.
@@rhondaeggers110 Hi, please who is the expert assisting you and how do I reach out to them?
@@angelahowie1451 My financial advisor, *MARTHA ALONSO HARA* , is a highly qualified and experienced professional in the financial market. She possesses a broad understanding of portfolio diversification and is recognized as an expert in this field.
Depends on your work ethic and willingness to deal with ppl. Stocks win if you don't want the job of a landlord.
Yes or dealing with squatters
Investing in stocks is just as much work as property.
That's what property managers are for. You mean the job of being a re investor. Which is more of a job by far than being a stock investor.
@@bighands69 yes, your stocks will start leaking and youll get a call from your stock manager saying they need to organise a plumber and you'll be out of pocket $300. Much the same amount of work.
Late payments, damage, property tax increases, and now with evictions on hold, tenants basically don't have to pay and can't be evicted.
Dave, my customers used to always tell me "You sound like Dave Ramsey." Now that I actually know who you are...wow...what a compliment!
You'll likely make more money in real estate but there is way more risk and potential for problems.
My shares of VTSAX won't ever pay rent late.
My shares of VOO won't ever have to be evicted.
My shares of WasteManagement won't ever try to sue me.
My shares of AT&T won't ever purposefully damage my property.
Yes but you also can't live and sleep in your stocks. If you have at least your primary residence paid off, you are safe. People always need a home.
Taghazout Moon
You don’t even need to own a home and you can live and sleep anywhere you want.
Just be debt free.
I’ve met too many people that just rent for years off dividends.
Also live in RVs,boat,tent,etc..with a steady paycheck from investments and live anywhere in the world today..
People over 60 with Roth 401k/IRA living off $500-$6k/mo. tax free dividends and interest.
You can have your dividends/interest set to reinvest compounding while only taking what you need controlling your annual income which allows you to pay little to no taxes and healthcare with zero premiums buy staying below subsidy cliff.
Expatriates,early retired/FIRE,and world travelers are good at this.
Comment hit it on the nail. Real estate comes with ALOT of headaches
Great Answer.
@@blackworldtraveler3711 I still have a desire to own a house debt free even though I travel as a single mom. Quarantined in Morocco now. Considering selling my house in America to become debt free and buy a place in cash here or in Europe. There's a feeling of tranquility only a paid off home can give you, even if you travel and don't stay there full-time.
Invest in what you understand. I invest more in real estate than stocks.
That's good advice.
Definitely a great idea. Real estate is easier for most to understand.
How so? How do you invest in realestate i mean
@@tylergable2445 on youtube
Tyler Gable Robert Kayosaki
I've been keeping a substantial amount of my savings in cash. It feels safe, but I wonder if it's the right approach for retirement. I want to invest roughly *$400,000* in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stocks?.
your cash is losing value due to inflation. It might not be the best way to grow your retirement fund You don't have to put all your savings in the market either. It's about finding the right balance between safety and growth. Consider consulting a financial advisor to create a retirement plan that aligns with your goals
When you hold cash, you miss out on potential investment opportunities in the stock market, bonds, or other assets that could yield higher returns over the long term. Having an advisor assisted me in saving up to $3 million for retirement.
’Vivian Louise Dehoff’. is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
If you invest that in the S&P index, like SPY, and it performs at 15% for the next three years, which is common after a 2 year bear. You will make over 200K. If you hold cash, at 5% inflation, you lose 57K during same period. So we are talking about a very probable quarter million dollar difference in the two paths.
Microsoft Has only made me $ since buying in 2016.
This is why I love Dave. He shares information and knowledge like a good father.
Wrong, misguided information
@@BC-fu3tg disagree
@@HeyEveryoneHi I agree
@@Stoneface_ you agreeing with him or me
facts
I have done both. Getting paid rent was extremely time consuming, going through all the things tenants always complained about (nonsense most times) was extremely time consuming, keeping up with property maintenance was also extremely time consuming. I own stocks, it only takes me a few minutes to check their performance. I don't think I would ever do real estate again.
I know people whose houses were completely destroyed by tenants and ended up spending thousands to get them fixed, others have had great luck and always collect rents from great tenants.
you must gut the rental to where it will keep phone calls low folks buy dumps do little work then wonder why they get so many phone calls .!
@@SG-zh5xd From your comment I can only assume you are not very familiar with this kind of business. I started with cheap apartments and then sold them and started buying houses in really good neighborhoods, houses were in great shape. That didn't make difference, the issues as you can read in my original post "nonsense most times." Again, some were really good tenants but I have no patient to be dealing with the baby ones.
@@ironvoice5079 yea I own SFH's in good locations .I know lots of folks who own in bad location and are doing well .
That's a risk you should be willing to take
I think everyone who owns a rental property will eventually face the issue of bad tenants destroying stuff but keep in mind that this is temporary :). Overall... real estate is a good investment its the time consumption that is the issue here but overall i believe its a nice way to make money if the properties are in good locations and you can at least rent them long term and earn money as your main salary.
You know... rent can be your forever salary until you die :D. The issue is that you have to maintain it.
Ecclesiastes 11:2: “Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land”.
@rishi pael buy fishing stonks
“Give a portion to seven, and also to eight; for thou knowest not what evil shall be upon the earth.” Ecclesiastes 11:2
@@realkingbrandon Yes, there are many translations. I have the Septuagint and can read Greek, but have no facility in Hebrew to enable me to get to the original.
Exactly! I love this scripture!
I like the stock option over real estate personally. With real estate you have to deal with a lot of factors like finding a property, fixing it up, Contractor’s, tenants, inspection’s, etc. where as with stocks if I believe in a company I can buy shares, hold for long term or short the position & make money. Options can allow me to make money if the stock goes up or down & the only person I have to deal with is myself. Less hassle. Can do it all right off my phone if I want.
Jason Clay ...good advice. Any particular stocks you would recommend ?
You are 100% right on that. If they only knew
Yup. Real estate is way less passive and more like a job.
@@ShawnGS300 Livongo, Crowdstrike, Teladoc, DocuSign. Apple, Mastercard, Tesla, Tradedesk, Appian, Fastly, Shopify....have fun :)
@@ShawnGS300 TSLA, AMZN
Oh, its the stock market. All this time I've been buying Stonks.
Stonks only go up😂
@@alextogo8367 its true, stonks only go up
Wsb member?
and buying the dip lol
I don't do the single stock thing, too much mental energy. Instead I invest in index funds, which truly reward the buy and hold mentality
I agree but I hold only individual stocks. Very risky though 😁
I always say educate yourself in both of them, find which one is going to fit your lifestyle best. I personally am a real estate investor I found it fit my interests more and have found great success in it. Any of the content I put out is based off my experiences makes it easier.
Stock Estate
REIT
Thats for lazy people
Real stock
Real Exchange
Real estate is great for some, but when people put all of their money into a single asset, its a problem. Love my dividend stocks and boring index funds and also have some REITs that pay me monthly. I never want to deal with tenants.
Which ones?
I’m SOOOOOOO happy ur videos are straight and to the point! I don’t have to spend half an hour trying to learn something. Thank you 🙏🏻
XOM was $45.47 when this video was posted. It closed today at $57.86 and has paid $3.48 since this video was posted. Jason in Oklahoma missed out on a 34% return for not understanding how stocks work.
Everyone's in the comments complaining about the work of being a landlord. Guys, that's built into the price of rent. You can hire a property manager to cover that for you if you want, labor is labor, you can still calculate the profit of a rental property _after_ you pay someone else to run it as part of the investment calculation. You can use REITs if you want it to be easier as well, and of course the REITs will be hiring property managers / being property managers on your behalf.
Was a landlord and enjoyed it, but he's right...mutual funds don't call at 2am with problems!
@Dra O Yea, if your property manager isn't part of the problem I guess
If you're young and not lazy, buy a cheap house and fix it up. The money you save in rent is passive income.
"not lazy" lol. People undervalue their time. I make 75+/hr when I work so I need to value my time at that rate when considering fixing up something.
We have owned rental homes for years and have been selling in recent years. The types of renters and respect for properties has changed greatly over the 25 years we have had them. It’s no longer worth it. We have not done commercial property so that might be a way to reduce headaches! If your handy and want to fix up property, sell them when complete!
Buy REITs. It's more liquid than actual real estate, there's cash flow and a lot less hassle.
And Lots less return
@@leetjohnson less control is the whole point dont need to control bad tenants fix all the problems within the building etc that’s what he aaid
@@leetjohnson it don’t change an income for you there’s millions of houses. And people don’t do it cuz they are scared they don’t do it cuz it’s expensive to start.
I like REITs too. I have mine enrolled in the DRIP, so all the dividends just keep buying more. MFA is a a good one right now. They are undervalued because they stopped their dividend for a while in 2020. But they have made a couple payments to common stock holders in 2021 and they should be back on track soon. The requirement to pay out 90% of their income to be considered a REIT is awesome.
this subject always makes for a good debate. I invest my retirement money into the stock market, but I've always been intrigued by real estate AS an investment/future income option. Problem is, RE takes a LOT more time and expertise to avoid the potential pit falls. It's like a second job, from what I've learned from others who do the "rental property" thing. Hard to get honest answers from people because they want to feel smart and few rarely admit their failures when it comes to investments. I have a cousin that does very well with rentals. He's pretty much retired and that's because he's done well with smaller single family rental properties, but it comes with a lot of headaches. Ideally, you'd have BOTH (real estate/rentals AND stocks/bonds) but personally, I haven't found the guts to dive into buying rentals because I'm afraid I don't have enough knowledge/expertise and don't want to fail. I know you have to get into the game to truly learn it, but the EFT's, MF"s, etc are just so easy, convenient and low maintenance. I'm running out of time to make the real estate option viable (don't want to wait until I'm retired), so I may pull the trigger on a rental just to get my feet wet.
If you put time and effort into finding the best property and maintaining it, you will have more earning potential then if you put no time and effort into the stock market and just pick some general indexes on a whim. I agree.
Thx Dave. Been thinking on this lately
Do both. Invest in index funds and REITS. If you don’t want the hassle of being a landlord, REITS are the way to go.
I think when you are starting out its tough to do both, since you dont have the capital
Reits are taxed at a higher rate if I remember correctly
$O holder here
REITs are stocks
@@hacker3191000 yeah but real estate stock
I think this depends on which stock you own and also the property in question. If you have a large stream of dividends you could get more recurring income than rent, and reinvest them to increase that income in a short amount of time. An expensive house, or a house in a desirable location, could get you a lot of rent or appreciate at a higher rate. I think there are too many factors to consider. With investing it also depends which stock you bought. If you're good at spotting opportunities you could pick one that suddenly takes off.
The stock market is a win win no matter what the climate is. Where else can you make money when something is loss money or making money. You can literally make money on a stock when its falling and when its going up. You just have to put in the work on researching what you're investing in. Thanks for the information Dave Ramsey!
Love this one Dave thank you
I achieve 30%+ cash-on-cash return on rental real estate consistently. 😁
Never owned a stock.
Out of which state is this? In my area property tax completely hoses the cash flow.
Quick answer: Buy what is oversold or on-sale at the time. Real estate is not on-sale right now. I trade stocks to increase capital. I will use that capital to buy real estate for long term residual income.
Gangsta. On the same mission. Open to other things but that’s the time I’m on too
Yep, exactly
you think all time highs in the S&P is a on-sale?
It's a very true. It's the great debate, which best = Real Estate or Stocks??? Real Estate can get you a much better return but it take your TIME. The best part about stocks is that it is "set and forget".
Great topic. Thank you.
I like mix of both TBH. Love the liquidity of stocks/options but having rental props where the tenant pays your mortgage is also really good.
Real Estate is the key to our EDM. We paid cash for every property and experienced all three of the income Dave suggested. We are north of 20% IRR on all our properties.
Invest in REITs. Offers real estate exposure while investing in the stock market. Plus the quarterly or monthly dividends aren’t a bad kick back.
@@user-be1jx7ty7n I might be dumb but I looked at 0 realty and I don’t see any fees at all
Diversify into both!
90% real estate 10% stocks
I would say along with what Patrick said, with that 10% invest it into index funds.
If your scared of society failing, then buy a cow
Simple. Can’t understand why people feel they have to choose one or the other lol
What’s that mean?
lots of knowledge dropped in this video. Thanks Dave!
Dave has a great understanding of real estate and stock market fundamentals, great advice
He has an elementary understanding. It’s laughable people say this.
I've done well in the stock market. I cannot see me wanting to deal with property problems, bad tenants, and all the other issues when I can sit back and watch my portfolio grow.
Me too!
If you are in the right market regulatory region and screen the tenents well and you probably are not going to have many problems.
You have no cash flow with stocks. No passive income.
Great job Angela
@@MichaelP-ke1tm ignorant
Rule of thumb. Go with what you understand and are comfortable with.
Seeing as most people still go to banks for investing with next-to-none rate of return because it's what they understand and are comfortable with, then this isn't really a good advice. Anything can be learned, most things can be taught, it's all about being receptive to new information and seek what might be better for you. Adapt and improve, comfort zones aren't necessarily optimal.
That's horrible advice.
How about just learn and get comfortable with them instead of running away.
@@hedgehog_fox Okay, you're right. Put your money in what you don't understand and are not comfortable with.....
@@nickblooruk LOL!!!!!!!!!!!!!!!!!!!!
Its worth whatever someone is willing to pay for it
my home is worth what I Don't pay to rent it.
Like every other asset imaginable
The willingness someone will pay for it is price. Things can be undervalued or overvalued by people
Same as the house
I’ve done well with real estate.
But my strategy has always been a conservative long-term approach.
But like others have been mentioned invest in what you know and feel comfortable with.
Great info. Assets are worth more in the future than they are today. Stocks aren't gambling if you invest in good quality companies. If you want to speculate on companies that have no track record and no profits, then that's a risky play.
That was insanely helpful mr. Ramsey!
Glad Dave doubled down on the stock market not being a casino. Too many people think it is but it’s absolutely not. It’s definitely good to diversify between stocks and real estate. Some people have a favorite or better understanding between the two which is fine. To each their own.
I mean owning a house or various houses is good, but I believe that 4% price a year increase is gonna end up really soon. Nobody is buying houses with these interest rates. Your house price will get stagnant during recession periods because the market is correcting itself while in the stock market, you can make fortunes allocating capital during the same periods.
Since the day this guy called in to today (Feb 19, 2022) the S&P 500 (including dividends) has returned 46%. Stocks WAY out perform real estate. Take this from a guy who used to own millions in real estate and have dozens of renters and today has no real estate and stock in more than 8,000 companies (thanks to ETFs).
I think he was referring to an instance like the cruise lines or airlines where they fell to 20% of their pre-COVID value; even though they still have all of their assets. They lost earnings while the lock down was in place but the overall value of their company is not in line with what it's currently trading for; which is why it will rocket back once this situation is over.
Yup, and I'm buying like crazy
The caller has a good point. Many stocks right now appear very speculative, in that they would have to make huge financial returns to get to what we currently consider reasonable price to earnings ratios. If we pick three companies, and two are duds (with limited downside), but one goes to the moon, the gamble pays off.
I watch a lot of the business channels. One thing I don't feel that is talked about very much is creating income. Yes, it is great to have stocks increase in value and thereby increase a person's wealth. But my thinking is that at some point it has to turn into income. Otherwise it is just paper money. And to create income you have to sell the stock, take a tax bite and then reinvest it into bonds, CDs or dividend stocks. I have done the stock market for decades now, and the best success I have had is to invest in solid stocks that have an increasing solid dividend. I let the dividends re-invest and thereby the income increases 2 ways every year: 1.)I have more stock, and 2.) the dividend goes up. Yes, this is a long term strategy, but it works. It's just that the TV channels never talk about it.
Pretty spot on with pros/cons. Thankfully he left the politics out of it. Good work Ramsey.
Really great Advice from Dave!!!! I wish Dave would write a real estate investing book lol. The problem today is that real estate is crazy expensive and the stock market is very high. I am leaning towards keeping money in cash for the time being and waiting for the market to come down.....Problem is I have no idea when the market will decline lol. Are people out there getting good deals with real estate these days????
Watching this was very informative for the misguided of stocks vs. real estate
Thanks for the summary
Dividend growth investing!
Finally just dave
Being a landlord has its perks, you live for free, and you're able to save more of your income (as in your normal job), you have someone else pay your mortgage, HOWEVER...... you will get text messages saying our sink is clogged, or other miscellaneous repairs, and you have to get it repaired in a certain amount of days. In my opinion, i wouldn't do rental property without the knowledge of being able to do your own repairs. sometimes repairmen are in a union and when you have a plumber come in it cost $130 an hour during business hours, and if its an emergency and its not during business hours, they charge more. that's why you learn to do the repairs yourself and do a good job. And when it comes to eviction, rerenting, you have to set up appointments and listen to other peoples bs of not paying rent. Question is...... are you willing to do all of this.
Then there are stocks. Stocks is by far the most laziest way to accumulate wealth. You do your homework or with anything to get good at, read, read, read, understand some math, question everything that you don't understand till the point you're sick of it. and do it again. You don't have to listen to your tennant not being not being able to pay rent. You get to make the decisions. Its more easy with the click of a button.
sir that doesnt sound like living for free lol
I love Dave at the beginning thinking hard like:
“I’m wondering if my money is more effective in...”
“Don’t say gold. Don’t say gold. Anything but gold. Don’t say gold.”
“Real estate”
“Phew”
Real state and stocks are about the same monetary-wise. The big difference is that stock prices are quoted every second.
Not really. You can't depreciate stocks, most investors can't leverage stocks without massive risk and you also can't refinance your stocks to increase monthly cashflow, that is often tax free due to depreciation. Most people are unaware of the hidden long term benefits of real estate, especially the debt fearing viewers of this channel.
@@leetjohnson Have you tried to hire a contractor recently? At least with stocks you don't have to make deals with the devil! I don't have the time or desire to depend on others. With stocks I alone control my destiny. I like real estate, I bought at the right time and my theoretical property value has tripled, but it was hard, and there is a ton of opportunity costs. It was a foreclosure, so I spent some money on it. With stocks the risks are higher, but you can sell quickly if you're paying attention. How many people have already doubled their investments since the start of 2024? Depreciation of real-estate comes back to haunt you when you decide to sell, and you still have to pay taxes for services you don't need and insurance that will fight you when you need them most. With stocks, yes you will pay more in taxes, but only when you sell, and only if it's not in a Roth. Closing costs are a scam, 6% brokerage fees are a rip off, it's all a bunch of nonsense, subsidized by the tax payers. Why should you be able to deduct expenses, or depreciation? Are we trying to juice the market? The introduction of VRBO's and AirBNB's are enough to juice the market. it's time to stop the tax payer subsidy of the real-estate market. It's the main reason the cost of living is so expensive now. What's the point of raising interest rates and hurting all businesses, when all you really need to do to make housing more affordable is reduce the tax deductions and actually CUT interest rates???
I like real estate more because it pays out monthly rent, the tax write offs, and appreciation, and like Dave mentions the control to find a better deal/value than the stock market. Plus I prefer owning a physical asset that you can touch. The stock market is way easier though, no upkeep, and you can buy and sell within minutes.
It is estimated 2 million single family home (more than half still have mortgages) are being rented out by the former residents.
In my state, there is 120 day eviction moratorium, so on month 5, $10K is needed
two more months to get the eviction paperwork and then get in the queue for service and forcible.
7 to 8 months of mortgage payments with no income.
All investments have risk though, gotta be willing to accept the risk factor and control the controllables. The stock market would have tanked as well if the fed didn't save it.
I have rentals where nobody is paying, can’t evict, even when I can, they will get 90 more days. Meanwhile, house needs maintenance and property tax bills are due. It is going to cost a small fortune to sell between commissions, legal, capital gains tax, depreciation recapture tax, etc.
This is the advice and opinion id prefer to hear more!!!. Talking to people, who mess up their lives in various ways, is cool but alot of the listeners know better. Give everyone else thats passed the debt phase and tell us something else to make us grow beyond that.
The rent isn't the net income. There are taxes, repairs, vacancy without rent, and perhaps management fees and HOA dues to consider. Possibly other things I'm not thinking of right now, too.
Both have their pros and cons. I personally like stocks for the simplicity and less headaches, plus you can borrow against them at lower interest rates than a heloc or mortgage for property.
This is so good
Good insight Dave
You outperform in real estate because of leverage (if you borrow money) combined with appreciation. Paying in cash eliminates this advantage.
I've done both. No question, real estate makes the most. You can lose a bundle of principal with stocks. Real estate almost never loses it's value.
I guess you live in an alternate reality where the 2008 housing crisis never happened.
You haven’t done stocks
@@elka-bs8590 Wow, BS is right in your name. Stay off the internet newbie. You have no idea what you're doing.
@@lw3269 You can invest in stocks with much less money though.
Love Dave heart good info and good advice
Much appreciated.
For everyone who thinks you cant make money in real estate, enjoy lighting your money on fire at the end of every month and having your rent go up every year too so you can light more money on fire every year. I'll keep enjoying my equity going up. Also, its not either or. You should diversify and have real estate and stocks. No millionaires are renters fyi and they have huge stock portfolios as well.
Real Estate most of the time will make you more money. That said, if you know stocks well, stocks can easily outperform real estate. That said, overall if you're willing to put up with the hassle of real estate, you can leverage more on a huge real estate loan. I personally prefer stocks due to zero hassles.
Stocks can make you the money faster to buy real estate.
Perfect. Thank you so much for such a detailed answer. and busting the myth of buying stock (good companies) is similar to playing casino.
it is not. if you know what you are doing, then it is not a pure luck buy stocks. casino - if you play poker, it needs skills. slot machine, pure luck
Good discussion 👍
Real estate is expensive and highly illiquid. Investing in real estate, even when borrowing cash, requires a large upfront investment. Getting your money out of a real estate investment through resale is much more difficult than the point and click ease of buying and selling stocks. Most importantly invest in the one you know better or you can take the risk of doing both. With my experience as a nurse and I want to retire before 39, I think doing both is the best if your financially bouyant enough.
Exactly, even Real estate has high transaction costs. A seller can expect to pay significant closing cost, which can take as much as 6% to 10% off the top of the sale price. That’s a hefty cut compared with stocks, especially now that most brokers charge no fees for stock trades.
It’s difficult to diversify your investments with real estate. Location matters when investing in real estate. Sales may slump in one area, while values explode in another.
@Victoria Lomba wow you must be a very hard working woman, how do you combine both with you being a nurse?
@@charlottewick2456 well I made a lot of researches and got mentored by Mr Chris Vandernaald and it's really been paying off. Secrets you just have to invest in something know about.
@@timgallon8771 Diversifying the purchase of real estate properties by location and type (a mix of residential and commercial, for example) requires much deeper pockets than the average investor has.
Do both! They’re both unpredictable!
Haha yes. lose money in both ! :)
@@confirmhandle You're not losing money in stocks over decades. The historical average is 8-10%. Yes you lose money in small dips, but you're not losing it long term.
You can always live in a house you can live in a stock
But the stock market is the best . It depends on what stock market you investing in . There's buy and hold and active trading .
they literally are both the opposite! 2 of the THE MOST PREDICTABLE investments in the long term. Just don't throw darts at a dartboard, thats a given, it ain't rocket science
This channel is amazing. I like it a lot and I learned a lot
If you want real estate without hassle, can buy REITs. A great REIT I recommend with good diversity is VNQ.
Hey, I'm actually considering buying REITs. I'll check that one out. What you think about the REIT summary index fund?
Trading at the same price it did 5 years ago. Exciting.
I invest in both! Dividend stocks and cash flow properties!
2:50 depreciation thing is not just a write off. When you sell the house, depreciation is recaptured.
You gotta do 1031 exchange to avoid depreciation tax (or any kind of capital gain tax).
The headaches with rentals is not worth it! Been there done that!😥
@A W My friend even have headaches with the property manager... and they were highly rated. Come to find out it's a common problem
Especially now, when you cannot evict them!
I appreciate Dave’s take on this. He’s obviously an expert on Real Estate and all the work that goes into it. Kinda confusing since Dave always says to never go into debt buying rentals, which i agree with, and he making this guy lean towards real estate when the caller obviously has no clue how the stock market works.
Personally, buying and holding individual stock long term is not recommended. (Warren Buffet and Mark Cuban agree with me). Dont get me wrong, its better than putting your money in a savings account, but if you know what your doing in the stock market you can make steady income. This would have been impossible without youtube or twitter, but anyone can learn how to make money today on stocks.