This sounds like a great setup for a Netflix series about a disgraced former detective who is also really into finance, tracking down a mysterious serial killer whose victims have no connection whatsoever... or do they?!
Tarantino needs to see this video! after those 12 millennials establish contact in social media. they decide to spend together couple of days in a rbn Vila on alaska wilderness. nick a financial advisor and the one start it all will pay anyone can not afford. everything is going ok then jony say for fun "what if we ask 12milions for not just kill our self???"
Yep. Also, there's actually lots of other competitors to SPY, because the barrier to entry (filing a bunch of papers and being a registered market participant) is pretty easily overcome by basically any even moderately-sized financial institution.
Much of what was said here was grossly misleading and exaggerated. If you go over his claims and fact check them you will see. SPY for example was not the first means for investors to invest in the S&P 500. Vanguard offered the first S&P500 fund to retail investors and I believe that it was Wells Fargo that had an S$P fund before that which was for institutional investors. Also, when the term of SPY’s trust ends the money will not simply disappear from the market, the remaining investors will have already traded their SPY shares for shares in other index funds or receive a check which they can use however they want. This video is little more than classic clickbait.
Here's the problem though, if the people running SPY start doing things that look like they thing it's going to close soon then well people are going to sell en mass and the value will drop and then they won't have assets to transfer to an SPY 2.
@@aoe4_kachow A fair chunk of it (~13%) is in technology, but IT is not even the largest GICS category in the index (that would be financials, at ~14%), which actually means that tech is underrepresented compared to the market as a whole (~30% in CRSP US Total or ~22% in MSCI World). But of course it's risky. It's supposed to be roughly representative of the stock market, and the stock market goes up and down all the time. If you want risk-free investment, buy treasuries (or put your money in a money market account, which amounts to the same thing with extra FDIC insurance).
over the 20 years of my existence i have realised maybe boring is not that bad. only things that can last a very long time are boring and more probably than not the hipster thing might just die tomorrow or it might become the next big thing. but my heart is tiny and fragile so boring... is actually good
There are three long term risks: 1) The line as a whole stops going up, at which point the fundamental assumption of the modern US economy is busted and everything we know about money is now meaningless 2) Those 11 randos die, triggering a sell-off which busts SPY's value in particular and the fundamental assumption of the modern US economy in general and renders everything we know about money meaningless 3) People figure out the next sentence, which breaks the fundamental assumption of the modern US economy and renders everything we know about money meaningless So, there are risks (and there are many more risks in the short term), but they are the kind of risks where, if they come up, it no longer matters because you're now playing an entirely different game.
It’s really not “dumb” it’s just kind of outdated. I mean the Rule against Perpetuities was implemented in 1682. Congress could make an entity similar to a REIT but, with stock indexes but haven’t.
@@coleball6001 "It’s really not “dumb” it’s just kind of outdated." So it's dumb then. If I kicked you in the balls and said "well it wasn't that I kicked hard, your balls are just weak" would you accept it and not kick me back afterwards?
@@ovencake523 It only happened last year. Also LegalEagle when it comes to potentially political topics like this, LegalEagle's opinions should be taken are a large grain of salt, as he has clear biases and in affects how he interprets the law. Often in ways that are thrown out by the courts. I stopped watching him years ago.
@@Kitt_the_Katt Note where I said "I stopped watching him years ago" I expect me to go back and pull up the videos that turned me off? And then when I point out the opinions that were off base and you will likely claim that is 20/20 hindsight.
Disney took a stand against Ron DeSantis' anti-LGBTQ+ legislation. The petty asshat Ron tried to retaliate by seizing control of the land occupied by Disney World citing some old law. Disney's legal team responded by exploiting a loophole that made it so that they would continue to control the land until the death of the last descendant of King Charles III.
Listen I’m very anti-mega corporation and do not like when a company finds a loophole to avoid laws, but de santis is actually the worst and I’m all for Disney slapping him in his face out of spite
Long story short, when Walt Disney bought the land that would become Disney World, he originally wanted to create the Experimental Prototype City of Tomorrow, or EPCOT. There were a lot of interestings things about his planned city, ranging from nice conveniences like a mostly-carless city with free public transit, to the juuuuuuust a little disturbing part where Walt Disney would be the sole autocrat of his city and would have banned elections for residents of the city on the grounds of "Walt knows best." And for some reason, Florida politicians at the time were enamoured with the idea of EPCOT, and either were not informed or just didn't care that Walt was going to make his own autonomous dictatorship in the heart of Florida. Walt was, afterall, one of the most famous Americans to ever live, and his reputation as the "Great American Storyteller" and "Uncle Walt" were enough to win over Florida politicians who admired him as a man (and probably also wanted the immense tourism money that Walt Disney World still fuels to this day). Funny enough, the public perception of him as a "Great Storyteller" was the exact reason he wanted to make EPCOT, he hated being thought of as a cartoonist and wanted to be remembered like an industrialist like Henry Ford, his role model. He thought he knew best because he made people happy at his theme parks and in the movie theaters, but it doesn't take a genius to point out that living in a city is very different from visiting a themepark He was given access to the "Reedy Creek Improvement District" which, among many other things, gave Walt immense and unprecedented powers to realize his vision, and even allowed Disney to build their own nuclear reactor if they ever wanted to. It gives Disney unprecedented levels of control for their own urban planning and development in the region, and naturally they would never want to give up that kind of power. Fortunately for the world, and unfortunately for Walt, he died long before ground was broken on the site, and Walt's original dream for EPCOT was abandoned and they just opted to name a themepark EPCOT rather than making it a (dys)functional city. But the permissions granted by the Reedy Creek Improvement District still remain, and although Ron DeSantis (a man who I would rather not mention again) tried to basically tear this down, to my limited knowledge it seems like this is still an active battle in Florida politics. Personally I have no stake in this, between a governor I despise and an international multimedia conglomerate I also despise, it's just been very fun to watch from the sidelines.
Sam misrepresented or misunderstood several basic things about how the stock market work. This fund wouldn't just burn all the money in it and disappear if these people died, the fund would just be liquidated to the owners who could just turn around and put that money back into a different fund. Just one example that stuck out to me.
I don't think he misunderstood that at all. Spontaneously selling that much of the market at once would be very bad for stock prices, plus it would trigger a taxable event for lots of people, which they may or may not want. So its not like they just lose everything outright, but its definitely not good either.
@@danielfay8963 it wouldn't happen like that. Remember there's a 21 year heads-up. Within those 21 years most investors would naturally sell their SPY shares. Any who still have SPY at the end of 21 years will seamlessly have their shares moved to the second incarnation of SPY. Even if that triggers a taxable event (something that could easily be written out as an exception by the IRS), that's not a big deal. There would be no reason for the masses to suddenly sell their shares.
If i sell shares in my brokerage account and then buy the share right back its not taxable. Its only taxable if the money from the sale leave my brokerage account and enters my bank account. I could be wrong but I think thats how it works. Can any CPA's verify lol?
My outlook on money changed when I realized someone making $300,000 can retire broke & someone making $80,000 can retire a multi-millionaire. With the current market movement, you have $60k to invest. Where are you investing it?
I believe a healthy portfolio has 3 things, at the bare minimum: Exposure to ETFs for increased diversification, Exposure to assets that generate cash flow like dividend stocks, Exposure to market-leading tech.
Bitcoin through 2025, then high yield ETFs through the bear market 26’-27’ that's my plan. Remember to always work with a financial advisor when starting out to avoid being exit liquidity.
I’m working towards financial freedom with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 50% SCHD, 25% SCHG, and 25% VOO, thanks to my CFA. This strategy has helped me earn $36,000 a year in dividends. Back in 2014, I only earned $21 in dividends.
Finding financial advisors like Sophie Lynn Carrabus who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Realising that someone earning $450,000 can retire broke and someone earning $1 million can retire a multimillionaire altered my perspective on money. Given the state of the market, you have $100,000 to invest. Where are you spending it?
At a minimum, I think a healthy portfolio should include three things: exposure to market-leading technology, cash flow-generating assets like dividend stocks, and ETFs for greater diversification.
Bitcoin through 2025, then high yield ETFs through the bear market 26’-27’ that's my plan. Remember to always work with a financial advisor when starting out to avoid being exit liquidity.
I agree. Exactly why I now work with one. A lot of folks downplay the role of advisors until being burnt by their emotions, no offense. I remember some years back, during the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, “Annette Christine Conte” turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
“Dissolved” doesn’t mean the investors lose their money. The word “dissolved” means the fund will distribute its assets back to the investors (usually as cash, but could be stock as well), reducing the investors interest in the trust down to 0%. There’s no loss in value!! The better term is “winding down operations”. The word “dissolved” sounds scary but means the same thing, it is (1) winding down operations (which includes distributing assets back to investors), and then (2) filing a termination of company registration due it fully being distributed back to investors.
@@EdinoRemeridothere are no original investors. If I understand the rationale, these 11 aren’t holding all of these resources. The owners of SPY shares own the funds investments. If the fund is dissolved, the fund holders each get their share of that pile of money. There’s a lot of speculation here that would be a big deal liquidating all of the holdings of 500 biggest stocks but that assumes it happens simultaneously. In order to match the index they’re already trading in and out of these all of the time. A singular simultaneous “sell all” fire sale would be a big deal but 1) saying we’re no longer accepting investors happens all the time and 2) selling a steady stream of shares to the folks in SPY2 down the hall to handle the demand created when SPY1 stopped accepting money without causing other shocks. As for capital gains and other tax stuff, taxes are man made laws that can be tweaked. A LOT of Americans are exposed to SPY and the like through retirement and pension accounts. We’ve bailed out huge banks and investment firms. All it takes is a wave of a pen to say “if you sell SPY and reinvest in SPY2 within 7 days, you don’t owe capital gains on the sale until you sell SPY2”. That’s it. You “sell” $50k of SPY to SPY2 and instead of paying taxes on the $4k of capital gains you should have you get a pass. A couple of years later you sell SPY2 for $60k now you owe the $10k appreciation plus the $4k net from the SPY days. I also don’t think this will be a singular SPY2. There’s a TON of ETS, each firm will compete to offer its own SPY replacement fund competing on fees and switchover/tax ease.
Poorly researched and fundamentally misrepresents how ETFs work, just because a fund gets dissolved doesn't mean the people who owned shares of it looses everything. If the fund is dissolved the assets would be distributed to the shareholders.
@@avengemybreath3084 Yeah, I was thinking the same thing. The issue there is that it's subject to the whims of the shareholders then, who may want to manipulate it. A non-profit may be better, but then they are restricted on the use of the money. A non-profit with an ownership stake in a for profit (like OpenAI) sounds appealing, but as we've seen, when you have a for-profit bohemeth in the mix, it can overwhelm the will of the non-profit.
I used to work down the street from the American Stock Exchange and used to walk by occasionally on my lunch break. There's a plaque that talks about its history; IIRC it was an exchange for the old-fashioned definition of "stocks" - actual "stocks" of grain, vegetables, fruits, meats, etc. Basically what we'd call a commodities exchange nowadays.
I got out of the real estate investing market about a year ago. I think it's time to get into the stock market but what's the best strategy to invest around 200K in this current market?
Having an investment advisor is the best approach to the stock market right now. I was going solo without much success until my wife introduced me to an advisor. I've achieved over 80% capital growth this year, excluding dividends.
*Marissa Lynn Babula* 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..
For those curious, most newer funds choose Delaware as opposed to New York for their trusts as Delaware has allowed perpetual trusts unless it holds "real property" then it's limited to 110 years which itself can be avoided (IIRC) through some weird "successor trust" thing, but that's another point altogether.
The entirety of our modern economy is largely based on nothing. The mega rich simply invent new rules for the market when its not going their way. Remember the Gamestop incident?
I thought you said it expires 21 years after the last one dies? So even if they were all killed in an unlikely plane crash, the SEC would have 21 years to figure it out?
I agree, working with a financial specialist has been the game-changer for me since 2020 pandemic. Helped with invaluable insights and tailored strategies that aligned perfectly with my goals and risk tolerance. As of today, I'm just about 10% shy of my $1m goal.
Annette Louise Connors is the licensed advisor I use. Just google the name and you'd find necessary deets. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
excellent share, curiously inputted Annette Louise Connors on the internet, spotted her consulting page ranked top and was able to schedule a call session. Ive seen commentaries about advisors but not one looks this phenomenal
I'm kind of disappointed you didnt explain what would actually happen if they died. You say they are "propping up the US economy" but if I don't know much about how the economy works, this means nothing to me. So what happens if they die? We can't buy stuff anymore? The value of the dollar drops drastically?
When the last trustee dies, that starts a 21 year clock and when that expires, nobody can trade or sell any more shares of the trust and all the value is paid out as cash to whoever owns any shares. The trust advisors can also decide to simply make a new trust with new babies insuring it.
What will happen: before the deadline, SPY will simply “dissolve” and “re-emerge” as SPY2, only the time will be instant. So the trading and the markets will just act as if nothing has changed, because nothing has changed. They don’t even have to change the name to SPY2, it’ll just be the same. The 11 people are named for legal reasons, not for a fundamental economical reason.
As a note if you care, i'd highly recommend adding some reverb cancelling materials in your room (google rockwool) and also check the sibilance of your recording. The "S" sounds are very harsh, and can be managed in your EQ settings. I know that nobody likes unsolicited advice, but here we are. Great video.
Acoustic foam is likely cheaper and sufficient for getting the reverb out. I’ve used a cardboard box with bass traps and random height foam to record clean audio in a pinch.
can i be the 12th rando edit: this mf changed the title i only clicked on the video because of the title and because i got here 3 minutes after the video went up
4:18 IIRC it was "until the last descendant of Charles III *who was alive when the document was approved* dies", because otherwise it could go on forever as long as Charles III still had descendants and would still violate the Rule Against Perpetuities.
Well, let’s be clear. The ability in to invest in the indices has existed since 1982 through futures, specifically S&P futures. Because of the Standard and Poor’s accuracy in the evaluations of companies, S&P futures became a preferred choice of investments for many investors. While the full S&P futures are expensive requiring capital, research and knowledge (which should be a requisite in purchasing any long-term investment) the ability to invest was nevertheless present (the SPY etf began the in January of 1993). You are correct in that the SPDR Trust Unit has an expiration date, what was overlooked is the Trust Unit can be re-issued for an additional 100 years. This is not some clandestine behind closed doors scheme devised to steal fortunes from widows and orphans or the unsuspecting public. You mentioned the American Stock Exchange (aka The Curb), it was acquired by the Euronext and operates as NYSE American. The graphic quality of your video is appealing, good work.
They have zero power and realistically no importance. They’re just an end around to a legal barrier just like the trust tied to the heirs of King Charles. He had no say in that choice nor any power. Same with his heirs. They can’t show up and say “Me granddad was ‘erry, where’s me mouse ears, bhruv!” It’s just an arbitrary deadline because you can’t have things like this say “forever and ever”.
It's important to note that, when the trust expires, what would ultimately happen is the Trustee would be responsible for winding down the trust, liquidating the assets, and passing on the proceeds to the shareholders. So it's not like $500 Billion goes up in smoke after these 11 kids die. And since the S&P 500 is commonly tracked by Index Funds, it wouldn't be difficult to re-balance the market over a period of years to avoid any sudden shocks to the market from literal hundreds of billions being cycled in and out.
Stocks extended their year-to-date rally following the CPI report, with the S&P 500 last up 0.8% in afternoon trading. but I don't know if stocks will quickly rebound, continue to pull back or move sideways for a few weeks, or if conditions will rapidly deteriorate.I am under pressure to grow my reserve of $250k.
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
This is why I've entrusted a fiduciary with my investmnt decisions. Many underestimate advisors until emotions lead to losses. My advisor crafted a tailored strategy aligning with my long-term goals, guiding entry and exit points for the equities I focus on. This has grown my portfolio to over $850k. My personal best so far
“'Annette Marie Holt” 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.
So what are really the best strategies to make our portfolio recession proof. my wife is already panicking, so many questions! will the rate cut next month lead to inflation? I'm very worried about my $1million stock portfolio losing value. It lost 20 % today alone
@@purplebliss6875 I agree with you. I started out with investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash. I invested the money using an analyst, and in seven months, I raked in almost $673,000
@@Andreallln i'm blown away! mind sharing more info please? i am a young adult living in Miami where i've encountered several millionaires, and my goal is to become one as well
SPY as the first ETF has this unique structure but the termination date , which is set to almost 100 years later, can always be extended. The modern ETFs are almost all open-ended, for example SPLG , which is almost an equivalent of SPY (same index,managed by the same company) . This is an interesting but badly researched piece 😂
I feel investors should focus on under-the-radar stocks, considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered. I don't know where to go here out of devastation.
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
Keeping money in the bank is like paying banks and the Govemment. Here's how it works: The bank gives out your money as loan, and charge interest obviously higher than inflation rate, and then give you, the depositor, interest lower than inflation rate. That means net loss for you. That is why I prefer to invest, and on average, my advisor makes returns that always beats inflation!
Exactly how was this creation superior to an S&P 500 index fund? If I understood this video correctly, this group purchased each of the stocks in the S&P 500, put them in a trust, and allowed people to buy shares in that trust. On the other hand, an S&P 500 index fund purchases each of the stocks listed in the S&P 500 and allows people to buy shares of the index fund. If the S&P 500 goes up 5%, the shares in the index fund and the trust go up 5%. If the S&P 500 falls 5%, the shares in the index fund and the trust go down 5%. Of course, you don't need to understand the Rule Against Perpetuities to run an index fund. Every law student who doesn't plan to practice trusts and estates law learns the Rule Against Perpetuities for the Bar Exam and then promptly forgets everything but the phrase, "A life in being plus 21 years."
Maybe you misunderstood something. SPY is an index fund. Specifically SPY was the first index fund to exist. So the answer to your question of "how is this superior to an index fund?" is: it isn't, unless you count the fact that index funds wouldn't have been invented yet if it didn't exist.
I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement, I'm 55.
Those sound like great picks! consider financial advisory so you don’t keep switching it up, top 3 payers for the month were $OHI, $KMI, and $EDP... not bad for 350k
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 14.3%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an advisor.
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
3:51 You cite to New York's rule against perpetuities and claim that "Trusts expire 21 years after the death of any number of named people as long as you can prove those people existed when you created it." I have no idea if that's true or not, but the section that you show in the video is certainly not the source where you would find such a rule. The rule against perpetuities, which is the general section which this excerpt is found, is traditionally for property (in the legal sense, as in land, real estate) or other private property. It exists to prevent dying landowners from putting restraints on the alienation of property, and thereby causing valuable, important land to go idle, by making strange or outlandish requirements for the use of land. The rule against perpetuities has nothing to do with the formation or dissolution of a trust, except in perhaps if the only asset a trust held was a piece of land and said trust in and of itself violated the rule against perpetuities. But in general, this section does not mean trusts necessarily must expire 21 years after the death of anybody. Again, perhaps that is a true fact of New York Estate law, I'm not really familiar with it, but the section highlighted and displayed in the video does not substantiate or prove that. But that's just my opinion as a common man, I'm not claiming any special knowledge in the area and in no circumstances should this comment be construed as being legal advice or a substitute for professional legal review.
4:18 You should probably do better research. That's not how the CFTOD works now. DeSantis won round 1 legally and it was on appeal until the case was settled (which suggests it's probably favourably for DeSantis). Disregarding that and assuming we live in a world where those proceedings were still ongoing, there's other problems with your statement. You stated at 4:02 that you need to point out specific people that are currently alive. "The Last Descendent of Charles III" is (presumably) someone not alive right now, with the obvious idea of creating an effectively-perpetual contract violating the rule of perpetuities you brought up... Which is why it said the last surviving descendent THAT'S CURRENTLY ALIVE. Which is largely immaterial because apparently Florida abolished life + 21 years in favour of just 90 years so all Disney did was LOWER their potential term in the off chance the entire royal family kicks the bucket because Disney lawyers are good at stalling and wasting money (you could more cynically phrase this as getting themselves a paycheque), not good at real lawyering (as evidenced by them trying to argue a Disney+ trial forces a spouse's estate into binding arbitration).
De Santis started all this hissy fit because of his anti-gay law and wasted Tax payer money. Disney is a stock holder corporation and how this waste their money is not answerable to the citizens of anywhere.
from wikipedia 'On February 9 and 10, 2023, the Florida State House and Senate, respectively, passed bills in a special session allowing the special tax district to remain, as well as leaving the ability for Disney to issue tax-exempt bonds and approve development plans without scrutiny from certain local regulators in place'
@@catprog You may want to CONTINUE reading that page, where the literal next sentence is 'Disney would no longer be able to appoint the five members of the tax district's board, which would instead be appointed by the Governor and confirmed by the Florida State Senate'. Which sounds considerably not autocratic. Please remember that Disney's starting position as mentioned in the video was effectively a corporate dictatorship (which isn't a completely accurate description of how RCID was run but was very close to the truth).
@@AgaresOaks Wouldn't the starting position before they did the ploy that the goverment would have complete control? (i.e the ploy was after the goverment took control)
@@catprog no, the status quo before the Charles III stunt was Disney had near complete control over the area for the last 50 years. You may have heard this as the factoid that Disney can technically build a nuclear reactor if they wanted. At least prior to the newest reorganization.
For anyone wondering, the King Charles III thing does have a limiter. The House of Windsor has a lot of members and it would be unwise to allow someone to legally tie their US corporation to a British monarchy, so instead, the rule is that when King Charles III’s last descendant, as of when the thing was written (so probably a kid of Harry and Megan) dies, that is when the perpetuity ends.
Scott Frost wasn't fired when he was (costing the $7 5M extra) because of his big loss. They fired him then because they wanted to eliminate any chance of his team beating Oklahoma and making it so the fans wouldn't let them fire him after beating their historic rival. They thought the risk of Frost appearing to redeem himself and having to keep him longer was a worse option than just paying the $7.5M.
I expect the annual correction's video to include that ploy by Disney to use King Charles' descendants to retain power of Reedy Creek as having failed, when this video implied it succeeded.
Vanguard were already doing ETFs in 1976, this should have had a mention. Vanguard S&P 500 start. August 31, 1976 August 31, 1976: Vanguard introduces the first retail index mutual fund, the Vanguard First Index Investment Trust, which tracks the S&P 500, allowing individual investors for the first time to buy into the broad market with a single purchase.
I presume the SPY won't simply vanish, it will be liquidated. Also, why did they create a trust? Why not create an LLC (or some other type of company, IDK I don't speak legalese) that tracks the S&P500 and sell shares of that company?
Isn't there some sort of privacy law protecting the medical information of people? Being alive or not is probably medical information. In any case... you probably can't call a hospital or something like the IRS (or whatever government agency can declare someone legally dead) to ask if a random person is alive. So how do they intend to prove someone is alive or not when that person has not agreed to share that information?
5:40 and that congress didn’t pass a law that explicitly states that the expiry provisions of the act that the trust is based upon don’t apply to SPY and exempts it from the expiry that way.
This was really poorly researched and fundamentally misrepresents how ETFs work, just because a fund gets dissolved doesn't mean the "value goes to 0" or anything like that. Really disappointing - is all of your work this quality?
Yeah I think we need a full video about that little Disney fact you threw at us. I mean I don't doubt it but I'd love to know the details on how that happened.
i don't quite understand, people don't lose their money when its dissolved right? it just stops tracking and everything gets sold and the people that invested in it get their share am i wrong? all value being wiped out and dissapearing sounds extremely shitty
This sounds like a potential plot for a movie. “We have captured the eleven. Transfer 500 million into this account or they will all be executed.”
i think if you had all eleven of them you'd have the leverage to ask for a lot more than 500 million but this would be awesome
@@JadeParadox I thought it was billion
Sure…a _movie_ plot…that’s what all these photos and plans on my wall are referring to.
@@silverXnoise how many photos do you have? I have 32. My plans are on my desk though.
@@philadelphia0collins *fbi gently knocks down your door*
This sounds like a great setup for a Netflix series about a disgraced former detective who is also really into finance, tracking down a mysterious serial killer whose victims have no connection whatsoever... or do they?!
Anyone got Keanu's number?
Tarantino needs to see this video!
after those 12 millennials establish contact in social media. they decide to spend together couple of days in a rbn Vila on alaska wilderness. nick a financial advisor and the one start it all
will pay anyone can not afford. everything is going ok then jony say for fun "what if we ask 12milions for not just kill our self???"
Wouldn't 21 years after the death of the last trustee long enough to allow to transfer to a SPY 2 without massive financial/economic chaos?
Yep. Also, there's actually lots of other competitors to SPY, because the barrier to entry (filing a bunch of papers and being a registered market participant) is pretty easily overcome by basically any even moderately-sized financial institution.
Much of what was said here was grossly misleading and exaggerated. If you go over his claims and fact check them you will see. SPY for example was not the first means for investors to invest in the S&P 500. Vanguard offered the first S&P500 fund to retail investors and I believe that it was Wells Fargo that had an S$P fund before that which was for institutional investors. Also, when the term of SPY’s trust ends the money will not simply disappear from the market, the remaining investors will have already traded their SPY shares for shares in other index funds or receive a check which they can use however they want. This video is little more than classic clickbait.
@@noyopacific Classic ben tbh.
@@noyopacificyou missed asterisk #1 ;)
Here's the problem though, if the people running SPY start doing things that look like they thing it's going to close soon then well people are going to sell en mass and the value will drop and then they won't have assets to transfer to an SPY 2.
0:26 important to note that SPY is not "risk-free" - more like risk average for equities. It's certainly boring though
It’s extremely not risk free, especially since so much is in tech stocks
There's even many more less risky/diversified ETFs out there for equities. VTI for example.
@@aoe4_kachow A fair chunk of it (~13%) is in technology, but IT is not even the largest GICS category in the index (that would be financials, at ~14%), which actually means that tech is underrepresented compared to the market as a whole (~30% in CRSP US Total or ~22% in MSCI World).
But of course it's risky. It's supposed to be roughly representative of the stock market, and the stock market goes up and down all the time. If you want risk-free investment, buy treasuries (or put your money in a money market account, which amounts to the same thing with extra FDIC insurance).
over the 20 years of my existence i have realised maybe boring is not that bad. only things that can last a very long time are boring and more probably than not the hipster thing might just die tomorrow or it might become the next big thing. but my heart is tiny and fragile so boring... is actually good
There are three long term risks:
1) The line as a whole stops going up, at which point the fundamental assumption of the modern US economy is busted and everything we know about money is now meaningless
2) Those 11 randos die, triggering a sell-off which busts SPY's value in particular and the fundamental assumption of the modern US economy in general and renders everything we know about money meaningless
3) People figure out the next sentence, which breaks the fundamental assumption of the modern US economy and renders everything we know about money meaningless
So, there are risks (and there are many more risks in the short term), but they are the kind of risks where, if they come up, it no longer matters because you're now playing an entirely different game.
original title: why this investment fund depends on 11 randos staying alive
NOO WHAT THE TITLE CHANGED
"11 randos staying alive" was comedy gold
well that’s extremely dumb but I guess that’s standard for the stock market
It’s really not “dumb” it’s just kind of outdated. I mean the Rule against Perpetuities was implemented in 1682. Congress could make an entity similar to a REIT but, with stock indexes but haven’t.
'Dumb but works' is generally what props up the global economy imo.
@@coleball6001 outdated to the point of being dumb is still dumb
Humans are extremely dumb. This has been proven over and over again.
@@coleball6001 "It’s really not “dumb” it’s just kind of outdated." So it's dumb then. If I kicked you in the balls and said "well it wasn't that I kicked hard, your balls are just weak" would you accept it and not kick me back afterwards?
Sam found a way to sneak "SPY Kids" into a video. *slow clap*
I can only imagine the look on Amy's face when she realised Sam had not only made that joke, but that he intended to use it...😂🇦🇺👍
"Video written by Ben Doyle"
Did someone say Spy Kids??
Sneaking stuff and kids...... video. This sounds bad
Wtf are you guys talking about.
We need a video on the Disney overthrowing the Floridian government part of your video at 4:06
LegalEagle i think made a video on that year(s) ago if anyones curious
It didn't work. The legislature passed a law invalidating the agreement that the Disney run board passed as their last act.
@@ovencake523 It only happened last year. Also LegalEagle when it comes to potentially political topics like this, LegalEagle's opinions should be taken are a large grain of salt, as he has clear biases and in affects how he interprets the law. Often in ways that are thrown out by the courts. I stopped watching him years ago.
@@Teampegleg name one he's missed. Please
@@Kitt_the_Katt Note where I said "I stopped watching him years ago" I expect me to go back and pull up the videos that turned me off? And then when I point out the opinions that were off base and you will likely claim that is 20/20 hindsight.
Wait, hold on. Disney did what now to florida?
Disney took a stand against Ron DeSantis' anti-LGBTQ+ legislation. The petty asshat Ron tried to retaliate by seizing control of the land occupied by Disney World citing some old law. Disney's legal team responded by exploiting a loophole that made it so that they would continue to control the land until the death of the last descendant of King Charles III.
Listen I’m very anti-mega corporation and do not like when a company finds a loophole to avoid laws, but de santis is actually the worst and I’m all for Disney slapping him in his face out of spite
They should make a video going into more detail on this.
Touched it inappropriately.
Long story short, when Walt Disney bought the land that would become Disney World, he originally wanted to create the Experimental Prototype City of Tomorrow, or EPCOT. There were a lot of interestings things about his planned city, ranging from nice conveniences like a mostly-carless city with free public transit, to the juuuuuuust a little disturbing part where Walt Disney would be the sole autocrat of his city and would have banned elections for residents of the city on the grounds of "Walt knows best."
And for some reason, Florida politicians at the time were enamoured with the idea of EPCOT, and either were not informed or just didn't care that Walt was going to make his own autonomous dictatorship in the heart of Florida. Walt was, afterall, one of the most famous Americans to ever live, and his reputation as the "Great American Storyteller" and "Uncle Walt" were enough to win over Florida politicians who admired him as a man (and probably also wanted the immense tourism money that Walt Disney World still fuels to this day).
Funny enough, the public perception of him as a "Great Storyteller" was the exact reason he wanted to make EPCOT, he hated being thought of as a cartoonist and wanted to be remembered like an industrialist like Henry Ford, his role model. He thought he knew best because he made people happy at his theme parks and in the movie theaters, but it doesn't take a genius to point out that living in a city is very different from visiting a themepark
He was given access to the "Reedy Creek Improvement District" which, among many other things, gave Walt immense and unprecedented powers to realize his vision, and even allowed Disney to build their own nuclear reactor if they ever wanted to. It gives Disney unprecedented levels of control for their own urban planning and development in the region, and naturally they would never want to give up that kind of power.
Fortunately for the world, and unfortunately for Walt, he died long before ground was broken on the site, and Walt's original dream for EPCOT was abandoned and they just opted to name a themepark EPCOT rather than making it a (dys)functional city. But the permissions granted by the Reedy Creek Improvement District still remain, and although Ron DeSantis (a man who I would rather not mention again) tried to basically tear this down, to my limited knowledge it seems like this is still an active battle in Florida politics. Personally I have no stake in this, between a governor I despise and an international multimedia conglomerate I also despise, it's just been very fun to watch from the sidelines.
Sam misrepresented or misunderstood several basic things about how the stock market work. This fund wouldn't just burn all the money in it and disappear if these people died, the fund would just be liquidated to the owners who could just turn around and put that money back into a different fund. Just one example that stuck out to me.
I don't think he misunderstood that at all. Spontaneously selling that much of the market at once would be very bad for stock prices, plus it would trigger a taxable event for lots of people, which they may or may not want. So its not like they just lose everything outright, but its definitely not good either.
@@danielfay8963 it wouldn't happen like that. Remember there's a 21 year heads-up. Within those 21 years most investors would naturally sell their SPY shares. Any who still have SPY at the end of 21 years will seamlessly have their shares moved to the second incarnation of SPY. Even if that triggers a taxable event (something that could easily be written out as an exception by the IRS), that's not a big deal. There would be no reason for the masses to suddenly sell their shares.
If i sell shares in my brokerage account and then buy the share right back its not taxable. Its only taxable if the money from the sale leave my brokerage account and enters my bank account. I could be wrong but I think thats how it works. Can any CPA's verify lol?
@@mitchellhall847 [̲̅$̲̅(̲̅ ͡ಠ_ಠ)̲̅$̲̅] Oh goodness, you need to learn about taxable events and "wash sales."
It's taxable when you realize the gain or loss, which is selling the share... idk though
5:58 jokes on you i dont have a SSN
Joke was on me. My name is Greg. I think they specifically made this video for me.
My outlook on money changed when I realized someone making $300,000 can retire broke & someone making $80,000 can retire a multi-millionaire. With the current market movement, you have $60k to invest. Where are you investing it?
I believe a healthy portfolio has 3 things, at the bare minimum: Exposure to ETFs for increased diversification, Exposure to assets that generate cash flow like dividend stocks, Exposure to market-leading tech.
Bitcoin through 2025, then high yield ETFs through the bear market 26’-27’ that's my plan. Remember to always work with a financial advisor when starting out to avoid being exit liquidity.
I’m working towards financial freedom with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 50% SCHD, 25% SCHG, and 25% VOO, thanks to my CFA. This strategy has helped me earn $36,000 a year in dividends. Back in 2014, I only earned $21 in dividends.
@@PatrickLloyd- Who is this person guiding you and how can i reach he/she?
Finding financial advisors like Sophie Lynn Carrabus who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Realising that someone earning $450,000 can retire broke and someone earning $1 million can retire a multimillionaire altered my perspective on money. Given the state of the market, you have $100,000 to invest. Where are you spending it?
At a minimum, I think a healthy portfolio should include three things: exposure to market-leading technology, cash flow-generating assets like dividend stocks, and ETFs for greater diversification.
Bitcoin through 2025, then high yield ETFs through the bear market 26’-27’ that's my plan. Remember to always work with a financial advisor when starting out to avoid being exit liquidity.
I agree. Exactly why I now work with one. A lot of folks downplay the role of advisors until being burnt by their emotions, no offense. I remember some years back, during the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m
This is exactly how i wish to get my finances coordinated ahead of retirement. Can I get access to your advisor?
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, “Annette Christine Conte” turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
5:36 The real life 'Spy Kids' existing just to hold up the stock market
E
“Dissolved” doesn’t mean the investors lose their money. The word “dissolved” means the fund will distribute its assets back to the investors (usually as cash, but could be stock as well), reducing the investors interest in the trust down to 0%. There’s no loss in value!!
The better term is “winding down operations”. The word “dissolved” sounds scary but means the same thing, it is (1) winding down operations (which includes distributing assets back to investors), and then (2) filing a termination of company registration due it fully being distributed back to investors.
Ok, but if the original investors are dead, who gets the money?
@@EdinoRemeridothere are no original investors. If I understand the rationale, these 11 aren’t holding all of these resources. The owners of SPY shares own the funds investments. If the fund is dissolved, the fund holders each get their share of that pile of money. There’s a lot of speculation here that would be a big deal liquidating all of the holdings of 500 biggest stocks but that assumes it happens simultaneously. In order to match the index they’re already trading in and out of these all of the time. A singular simultaneous “sell all” fire sale would be a big deal but 1) saying we’re no longer accepting investors happens all the time and 2) selling a steady stream of shares to the folks in SPY2 down the hall to handle the demand created when SPY1 stopped accepting money without causing other shocks.
As for capital gains and other tax stuff, taxes are man made laws that can be tweaked. A LOT of Americans are exposed to SPY and the like through retirement and pension accounts. We’ve bailed out huge banks and investment firms. All it takes is a wave of a pen to say “if you sell SPY and reinvest in SPY2 within 7 days, you don’t owe capital gains on the sale until you sell SPY2”. That’s it. You “sell” $50k of SPY to SPY2 and instead of paying taxes on the $4k of capital gains you should have you get a pass. A couple of years later you sell SPY2 for $60k now you owe the $10k appreciation plus the $4k net from the SPY days.
I also don’t think this will be a singular SPY2. There’s a TON of ETS, each firm will compete to offer its own SPY replacement fund competing on fees and switchover/tax ease.
Poorly researched and fundamentally misrepresents how ETFs work, just because a fund gets dissolved doesn't mean the people who owned shares of it looses everything. If the fund is dissolved the assets would be distributed to the shareholders.
Yeah, that being said it would still throw the market into chaos. You dont need to eat a shit sandwich to know its a shit sandwich.
You seem to vastly underestimate how much panic such an event would cause.
This is entertainment first education second, you wouldn’t go to subway for a quick sandwich and complain that it isn’t a 5 star meal would you?
So he simplified a topic and you got confused still... well done champ
@@comradechrist4965it literally wouldn’t. There’s a ton of SPY alternatives like VOO
As a lawyer, as soon as you said "why?" I said RULE AGAINST PERPETUITIES!
It’s weird you couldn’t create a corporate entity or investment vehicle.
@@avengemybreath3084 Yeah, I was thinking the same thing. The issue there is that it's subject to the whims of the shareholders then, who may want to manipulate it. A non-profit may be better, but then they are restricted on the use of the money. A non-profit with an ownership stake in a for profit (like OpenAI) sounds appealing, but as we've seen, when you have a for-profit bohemeth in the mix, it can overwhelm the will of the non-profit.
I used to work down the street from the American Stock Exchange and used to walk by occasionally on my lunch break. There's a plaque that talks about its history; IIRC it was an exchange for the old-fashioned definition of "stocks" - actual "stocks" of grain, vegetables, fruits, meats, etc. Basically what we'd call a commodities exchange nowadays.
The horcruxes of capitalism. Should be the plot of an ethically dubious Harry Potter reboot 😂
Eh, they have 20 years after the death of the last one to make a new trust with new people.
I got out of the real estate investing market about a year ago. I think it's time to get into the stock market but what's the best strategy to invest around 200K in this current market?
It's wise to seek expert assistance when beginning your financial portfolio. market is volatile, so professional guidance is so important..
Having an investment advisor is the best approach to the stock market right now. I was going solo without much success until my wife introduced me to an advisor. I've achieved over 80% capital growth this year, excluding dividends.
Hey friend, How can I work with your Fiduciary?
*Marissa Lynn Babula* 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..
Searched the web and saw her profile and accreditations, someone with great experience I must say, thanks!
For those curious, most newer funds choose Delaware as opposed to New York for their trusts as Delaware has allowed perpetual trusts unless it holds "real property" then it's limited to 110 years which itself can be avoided (IIRC) through some weird "successor trust" thing, but that's another point altogether.
So they're like, Highlanders of the stock market??
There can be only 11
"These 11 Babies lives are essentially tied to the performance of the entire US Economy's Stock Market."
This legit sounds like an SCP Entry.
so youre telling me these 11 guys are the... SPY kids?
Here I was expecting "depend" to mean "John didn't wash his hands at the mall bathroom. Stocks are down by 2%!"
This seems like it should be illegal but alright fuckin' cool
Why?
The entirety of our modern economy is largely based on nothing. The mega rich simply invent new rules for the market when its not going their way. Remember the Gamestop incident?
This is literally the result of dumb laws.
@@Anti-Taxxer which ones?
@@Zileas01Eh, its one of those weird things where there havent really been problems with doing it this way so why rock the boat
I thought you said it expires 21 years after the last one dies? So even if they were all killed in an unlikely plane crash, the SEC would have 21 years to figure it out?
Moving from single stocks to ETFs, tired of the circus. Thoughts on your best possible strategies to diversify a 6-figure portfolio please.
The current market gives opportunities to maximize returns, but in order to execute such strategy, you must be a skilled practitioner
I agree, working with a financial specialist has been the game-changer for me since 2020 pandemic. Helped with invaluable insights and tailored strategies that aligned perfectly with my goals and risk tolerance. As of today, I'm just about 10% shy of my $1m goal.
@@beautifulpeopleonearth this is quite encouraging for newbies like myself, i'm in dire need of portfolio management... think your advisor can help?
Annette Louise Connors is the licensed advisor I use. Just google the name and you'd find necessary deets. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
excellent share, curiously inputted Annette Louise Connors on the internet, spotted her consulting page ranked top and was able to schedule a call session. Ive seen commentaries about advisors but not one looks this phenomenal
I'm kind of disappointed you didnt explain what would actually happen if they died. You say they are "propping up the US economy" but if I don't know much about how the economy works, this means nothing to me. So what happens if they die? We can't buy stuff anymore? The value of the dollar drops drastically?
Clickbait, nothing like that will happen
When the last trustee dies, that starts a 21 year clock and when that expires, nobody can trade or sell any more shares of the trust and all the value is paid out as cash to whoever owns any shares.
The trust advisors can also decide to simply make a new trust with new babies insuring it.
What will happen: before the deadline, SPY will simply “dissolve” and “re-emerge” as SPY2, only the time will be instant. So the trading and the markets will just act as if nothing has changed, because nothing has changed. They don’t even have to change the name to SPY2, it’ll just be the same. The 11 people are named for legal reasons, not for a fundamental economical reason.
He does say it in the video. The trust would be dissolved and spy would cease to exist.
I cannot believe I had to wait until 5:36 to hear a joke about SPY Kids
The fact that they live such unassuming lives is absolutely hilarious
2:08 I like a good asterisk. Nice
I prefer Obelix but Asterix is also fine😅
As a note if you care, i'd highly recommend adding some reverb cancelling materials in your room (google rockwool) and also check the sibilance of your recording. The "S" sounds are very harsh, and can be managed in your EQ settings. I know that nobody likes unsolicited advice, but here we are. Great video.
Acoustic foam is likely cheaper and sufficient for getting the reverb out. I’ve used a cardboard box with bass traps and random height foam to record clean audio in a pinch.
can i be the 12th rando
edit: this mf changed the title
i only clicked on the video because of the title
and because i got here 3 minutes after the video went up
Sure. Now you've got a target on your back. You've played yourself
Nahh...It's probs more fun to claim to be a descendent of King Charles....which given his slut years in the 80s/90s, could indeed be a possibility.
@@TheFireGiver they can do my job for me? cool!
referring to them as spy kids is an amazing bit of writing
Glad you got the phrase "Spy Kids" in there
Absolutely phenomenal stock footage usage at 2:22 , bravo 👏
4:18 IIRC it was "until the last descendant of Charles III *who was alive when the document was approved* dies", because otherwise it could go on forever as long as Charles III still had descendants and would still violate the Rule Against Perpetuities.
Well, let’s be clear. The ability in to invest in the indices has existed since 1982 through futures, specifically S&P futures. Because of the Standard and Poor’s accuracy in the evaluations of companies, S&P futures became a preferred choice of investments for many investors. While the full S&P futures are expensive requiring capital, research and knowledge (which should be a requisite in purchasing any long-term investment) the ability to invest was nevertheless present (the SPY etf began the in January of 1993). You are correct in that the SPDR Trust Unit has an expiration date, what was overlooked is the Trust Unit can be re-issued for an additional 100 years. This is not some clandestine behind closed doors scheme devised to steal fortunes from widows and orphans or the unsuspecting public. You mentioned the American Stock Exchange (aka The Curb), it was acquired by the Euronext and operates as NYSE American. The graphic quality of your video is appealing, good work.
Well that's terrifying. I wonder if all eleven of these people know that they are randomly some of the most important people in the world.
They might.
They have zero power and realistically no importance. They’re just an end around to a legal barrier just like the trust tied to the heirs of King Charles. He had no say in that choice nor any power. Same with his heirs. They can’t show up and say “Me granddad was ‘erry, where’s me mouse ears, bhruv!” It’s just an arbitrary deadline because you can’t have things like this say “forever and ever”.
It's important to note that, when the trust expires, what would ultimately happen is the Trustee would be responsible for winding down the trust, liquidating the assets, and passing on the proceeds to the shareholders. So it's not like $500 Billion goes up in smoke after these 11 kids die. And since the S&P 500 is commonly tracked by Index Funds, it wouldn't be difficult to re-balance the market over a period of years to avoid any sudden shocks to the market from literal hundreds of billions being cycled in and out.
Stocks extended their year-to-date rally following the CPI report, with the S&P 500 last up 0.8% in afternoon trading. but I don't know if stocks will quickly rebound, continue to pull back or move sideways for a few weeks, or if conditions will rapidly deteriorate.I am under pressure to grow my reserve of $250k.
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
This is why I've entrusted a fiduciary with my investmnt decisions. Many underestimate advisors until emotions lead to losses. My advisor crafted a tailored strategy aligning with my long-term goals, guiding entry and exit points for the equities I focus on. This has grown my portfolio to over $850k. My personal best so far
Please will you be kind enough to share the details of the person that helped you?
“'Annette Marie Holt” 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 looked up her full name online and found her page. I emailed and made an appointment to talk with her; hopefully, she gets back to me.
I did not come here to relive the horrors of 1L property class. 3:27
So what are really the best strategies to make our portfolio recession proof. my wife is already panicking, so many questions! will the rate cut next month lead to inflation? I'm very worried about my $1million stock portfolio losing value. It lost 20 % today alone
If you need advice on short-term investments, consider speaking with a financial advisor. They have a lot more knowledge and expertise in this area.
@@purplebliss6875 I agree with you. I started out with investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash. I invested the money using an analyst, and in seven months, I raked in almost $673,000
@@Andreallln i'm blown away! mind sharing more info please? i am a young adult living in Miami where i've encountered several millionaires, and my goal is to become one as well
@@Andreallln I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
SPY as the first ETF has this unique structure but the termination date , which is set to almost 100 years later, can always be extended. The modern ETFs are almost all open-ended, for example SPLG , which is almost an equivalent of SPY (same index,managed by the same company) . This is an interesting but badly researched piece 😂
Not to mention they can just transfer the stock instead of liquidating the fund.
I feel investors should focus on under-the-radar stocks, considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered. I don't know where to go here out of devastation.
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
Keeping money in the bank is like paying banks and the Govemment. Here's how it works: The bank gives out your money as loan, and charge interest obviously higher than inflation rate, and then give you, the depositor, interest lower than inflation rate. That means net loss for you. That is why I prefer to invest, and on average, my advisor makes returns that always beats inflation!
Being heavily liquid, I'd rather not reinvent the wheel. Since this strategy works for you, how can I contact your advisor?
Stacy Lynn Staples by name. Please do your own research to see if he is suitable with your goals
Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.
"Only nearly dead people should be allowed to do that" I laughed hard
This is a pretty rough one. I imagine a lot of this will show up in the next corrections video
Exactly how was this creation superior to an S&P 500 index fund? If I understood this video correctly, this group purchased each of the stocks in the S&P 500, put them in a trust, and allowed people to buy shares in that trust. On the other hand, an S&P 500 index fund purchases each of the stocks listed in the S&P 500 and allows people to buy shares of the index fund. If the S&P 500 goes up 5%, the shares in the index fund and the trust go up 5%. If the S&P 500 falls 5%, the shares in the index fund and the trust go down 5%. Of course, you don't need to understand the Rule Against Perpetuities to run an index fund. Every law student who doesn't plan to practice trusts and estates law learns the Rule Against Perpetuities for the Bar Exam and then promptly forgets everything but the phrase, "A life in being plus 21 years."
Maybe you misunderstood something. SPY is an index fund. Specifically SPY was the first index fund to exist. So the answer to your question of "how is this superior to an index fund?" is: it isn't, unless you count the fact that index funds wouldn't have been invented yet if it didn't exist.
I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement, I'm 55.
Those sound like great picks! consider financial advisory so you don’t keep switching it up, top 3 payers for the month were $OHI, $KMI, and $EDP... not bad for 350k
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 14.3%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an advisor.
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Wow, her track record looks really good from what I found online. I'll take a chance and see how it goes. Thanks for the info
My name is Greg and man this week’s incogni ad hit different
4:17 forgot to mention that they fumble the name of the country, so that part, appear to have zero weight now.
Missed opportunity on a Spy Kids 2 joke
the king charles clause actually got nullified by the courts! but the joke was really funny ❤
this seems sarcastic but its actually genuine
3:51 You cite to New York's rule against perpetuities and claim that "Trusts expire 21 years after the death of any number of named people as long as you can prove those people existed when you created it." I have no idea if that's true or not, but the section that you show in the video is certainly not the source where you would find such a rule. The rule against perpetuities, which is the general section which this excerpt is found, is traditionally for property (in the legal sense, as in land, real estate) or other private property. It exists to prevent dying landowners from putting restraints on the alienation of property, and thereby causing valuable, important land to go idle, by making strange or outlandish requirements for the use of land. The rule against perpetuities has nothing to do with the formation or dissolution of a trust, except in perhaps if the only asset a trust held was a piece of land and said trust in and of itself violated the rule against perpetuities. But in general, this section does not mean trusts necessarily must expire 21 years after the death of anybody. Again, perhaps that is a true fact of New York Estate law, I'm not really familiar with it, but the section highlighted and displayed in the video does not substantiate or prove that.
But that's just my opinion as a common man, I'm not claiming any special knowledge in the area and in no circumstances should this comment be construed as being legal advice or a substitute for professional legal review.
This video legitimately made me go "WHAT!?" several times.
4:18 You should probably do better research. That's not how the CFTOD works now. DeSantis won round 1 legally and it was on appeal until the case was settled (which suggests it's probably favourably for DeSantis).
Disregarding that and assuming we live in a world where those proceedings were still ongoing, there's other problems with your statement. You stated at 4:02 that you need to point out specific people that are currently alive. "The Last Descendent of Charles III" is (presumably) someone not alive right now, with the obvious idea of creating an effectively-perpetual contract violating the rule of perpetuities you brought up... Which is why it said the last surviving descendent THAT'S CURRENTLY ALIVE. Which is largely immaterial because apparently Florida abolished life + 21 years in favour of just 90 years so all Disney did was LOWER their potential term in the off chance the entire royal family kicks the bucket because Disney lawyers are good at stalling and wasting money (you could more cynically phrase this as getting themselves a paycheque), not good at real lawyering (as evidenced by them trying to argue a Disney+ trial forces a spouse's estate into binding arbitration).
De Santis started all this hissy fit because of his anti-gay law and wasted Tax payer money. Disney is a stock holder corporation and how this waste their money is not answerable to the citizens of anywhere.
from wikipedia 'On February 9 and 10, 2023, the Florida State House and Senate, respectively, passed bills in a special session allowing the special tax district to remain, as well as leaving the ability for Disney to issue tax-exempt bonds and approve development plans without scrutiny from certain local regulators in place'
@@catprog You may want to CONTINUE reading that page, where the literal next sentence is 'Disney would no longer be able to appoint the five members of the tax district's board, which would instead be appointed by the Governor and confirmed by the Florida State Senate'. Which sounds considerably not autocratic. Please remember that Disney's starting position as mentioned in the video was effectively a corporate dictatorship (which isn't a completely accurate description of how RCID was run but was very close to the truth).
@@AgaresOaks Wouldn't the starting position before they did the ploy that the goverment would have complete control? (i.e the ploy was after the goverment took control)
@@catprog no, the status quo before the Charles III stunt was Disney had near complete control over the area for the last 50 years. You may have heard this as the factoid that Disney can technically build a nuclear reactor if they wanted. At least prior to the newest reorganization.
VOO similar S&P Index fund has 1.24 Trillion dollars in assets and a .03% Expense Ratio, SPY is .09% Expense ratio
For anyone wondering, the King Charles III thing does have a limiter. The House of Windsor has a lot of members and it would be unwise to allow someone to legally tie their US corporation to a British monarchy, so instead, the rule is that when King Charles III’s last descendant, as of when the thing was written (so probably a kid of Harry and Megan) dies, that is when the perpetuity ends.
Calling them the Spy kids is an absolute win!
All I got from this is there is a chance I am a Spy Kid. Child me would have loved this.
Scott Frost wasn't fired when he was (costing the $7 5M extra) because of his big loss. They fired him then because they wanted to eliminate any chance of his team beating Oklahoma and making it so the fans wouldn't let them fire him after beating their historic rival. They thought the risk of Frost appearing to redeem himself and having to keep him longer was a worse option than just paying the $7.5M.
i'm not gonna lie, I had no idea that's how the SPY etf was structured lol
I expect the annual correction's video to include that ploy by Disney to use King Charles' descendants to retain power of Reedy Creek as having failed, when this video implied it succeeded.
"The Spy Kids" I'm obsessed
Can we talk about the extremely large Maryland seen when the map of babies is used 😂
I love how Google and TH-cam started throwing investment and bank ads at me after I watched this the first time thru.
Sounds like a job for Amy to find the others, and then turn it into trivia or challenges for Jet Lagged!
Vanguard were already doing ETFs in 1976, this should have had a mention.
Vanguard S&P 500 start.
August 31, 1976
August 31, 1976: Vanguard introduces the first retail index mutual fund, the Vanguard First Index Investment Trust, which tracks the S&P 500, allowing individual investors for the first time to buy into the broad market with a single purchase.
Really on topic as always. HAI somehow keeps reading my mind
I presume the SPY won't simply vanish, it will be liquidated.
Also, why did they create a trust? Why not create an LLC (or some other type of company, IDK I don't speak legalese) that tracks the S&P500 and sell shares of that company?
Yeah. When ETFs disappear, their assets are liquidated and given to the shareholders.
Isn't there some sort of privacy law protecting the medical information of people? Being alive or not is probably medical information. In any case... you probably can't call a hospital or something like the IRS (or whatever government agency can declare someone legally dead) to ask if a random person is alive. So how do they intend to prove someone is alive or not when that person has not agreed to share that information?
3:35 - …legal systems to prevent dead people from deciding how the economy should work. Only nearly dead people get to do that. 😂😂😂
so wait if they are hunted down and killed do you think the last remaining will get protection or will they dump and run?
This sounds like the start of a spy movie… imagine Jason Bourne or James Bond tasked with keeping those 11 random people alive hahaha
Watch as the ETF starts slowly going down today. I own some of it. I should probably sell it.
I'm going to sell it.
we LOVE starting RUNS ON THE STOCK MARKET and inducing PANIC about how YOUR MONEY ISNT SAFE AND YOU SHOULD TAKE IT OUT NOW
ATH is never a bad time to sell lol
When a trust expires the assets, simply get distributed. They don't just stop existing
5:40 and that congress didn’t pass a law that explicitly states that the expiry provisions of the act that the trust is based upon don’t apply to SPY and exempts it from the expiry that way.
Hearing Sam explain the rule against perpetuities made my lawyer heart happy.
Hearing Sam absolutely butcher almost every fact about the stock market made my investment manager ears bleed.
I wonder if the government would intervene if all 11 were randomly by chance all about to board the same flight 😂
It must be surreal for the mineworkers in Johannesburg who dig gold up from under one city only for it to be reburied under another city.
5:07 What happened to Maryland's borders?
Chesapeake bay who?
The film makers took some liberties with the Spy Kids movies.
4:12 source? Would love to read/watch more abt this
So what I'm hearing is that the Spy Kids are real and the Spy Kids movies were actually autobiographical pieces about these folks?
This was really poorly researched and fundamentally misrepresents how ETFs work, just because a fund gets dissolved doesn't mean the "value goes to 0" or anything like that. Really disappointing - is all of your work this quality?
This guy has proven time and time again to be financially illiterate.
Loopholes in US law are always a delightful topic!
This video has so much incorrect information in it
and what is that information
I mean, for one: funds that track the S&P500 have existed since at least the 70s they just weren't nessisarily exchange traded.
they could make a movie on this but instead its someone hunting the random people
Yeah I think we need a full video about that little Disney fact you threw at us. I mean I don't doubt it but I'd love to know the details on how that happened.
I think we need an explanation video about the Disneyland government and the last relative of King Charles
Pretty sure Disney and Florida settled and blocked the weird Charles III thing
if it would work it would technically turn Disneyworld in a actual kingdom.
If I get picked next can I get a heads up so I can do my best to tank the economy?
And yet the housing crisis is so bad at this point, that Sam now records his videos from inside a giant metal bucket.
i don't quite understand, people don't lose their money when its dissolved right? it just stops tracking and everything gets sold and the people that invested in it get their share
am i wrong? all value being wiped out and dissapearing sounds extremely shitty
Do the 11 on the trust get any sort of financial benefit?
I really hope they have a group chat called "spy kids"
Ah I see.
From the creators of the Fast & Furious franchise ..... 2 Big 2 Fail. This time it's deadly times 11.
Why is the audio on this video so bad?
4:17 this agreement has been null and void since the settlement in March 2024. Come on Sam!