Learn Colors with Mack Truck 3D and Watercolor for Kids Children
For more infomation >> Gemma all'Isola dei Famosi 2018 con Giorgio? L'indiscrezione del magazine Mio | M.C.G.S - Duration: 3:32. 
For more infomation >> Al Bano racconta la crisi con la Lecciso: "Ecco in cosa ha sbagliato Loredana" | K.N.B.T - Duration: 3:37. 
For more infomation >> 5 ways to effectively treat skin at home for pink skin is not flawless - Duration: 3:15. 
For more infomation >> 김돈규 안연홍 결혼x김돈규 근황 - Duration: 5:11. 
For more infomation >> 映画『ノーゲーム・ノーライフ ゼロ』9月16日よりMX4Dシアターでの上映が決定！ 入場者プレゼントは応援イラスト集＋SS小説 | アニメ - Duration: 1:40. 
For more infomation >> Guardians of the Galaxy 2
For more infomation >> 김희애 이미연 차이점 (부제)여자들의 로망 결격사유-여배우(50대 이상) 결혼 생활 - Duration: 23:41. 
For more infomation >> A CASA DO MEDO | HUMBERTO - Duration: 7:44. 
For more infomation >> Undertaker Return in Summer Slam 2017 | Undertaker Back in Action ?? - Duration: 1:55. 
For more infomation >> Castillo de Acher (Trail) / Thunder (Imagine Dragons) - Duration: 3:05. 
For more infomation >> 어쌔신크리드 오리진 개발자 Q&A- 'Combat Breakdown' cc한글자막 - Duration: 4:58. 
For more infomation >> '택시운전사' 김사복 아들 추정男 "父 폄훼행위 두고보지 않을 것" | 연예뉴스 24/7 - Duration: 11:47. 
what is up my fellow youtubers welcome back to MK chip money and life TV today
I'm gonna be sharing with you my simple strategy for picking investments because
we're talking about 401k investing this is the third part of the series and I'm
going to be sharing with you my strategy for picking good mutual funds when I was
younger I was always interested in the fact of how do some people go from very
humble beginnings or very basic beginnings and accumulate wealth over
time all throughout the course of my life I've read and learned several
things I knew one of the pieces of that puzzle was knowing how to pick good
investment I don't know if you're like me but I read dozens of books on
investing in fact there are hundreds of books hundreds of articles on the
subject of investing but what I found is that most of the material gives you no
process for figuring out how to actually select good investment in this video I'm
sharing my five simple techniques that I use before I choose an investment this
is my investment process now remember if you've been following this series the
whole purpose of this series is to 1 so you can learn about how to invest in
your 401k but also so you can improve the rate of return you're getting on
your 401k investment any questions you have on this stuff our about this
process please leave them in the comment section down below and I will make sure
to respond just be thinking of questions as you're watching this video ok so
let's dive in this process
my first criteria when selecting an investment is do I understand it do I
understand what I'm investing in a successful investor once told me that
Mike if you're going to invest you should really know what you're investing
in you said do you understand it don't just go into real estate just because it
sounds good don't just take mutual funds because
they sound good but when you're going to invest is do you understand the
investment that really stuck out to me because then I knew that I was not going
to invest in something unless I took the time to understand it I didn't have to
know all about it right at that moment but I had to be willing to do the
research are say okay if I if I want to learn this it sounds interesting to me I
need to spend some time do some research before I invest my hard-earned money
into that investment so why do I understand it what I mean is or if since
we're talking about the strategy for picking mutual funds here is do you know
what that mutual fund is made up of do you know their long-term average rate of
return you know do what are their expense fees and ratios and things like
that does you know does that does that stuff make sense so that's what I mean
by do I understand it
now this seems like a very obvious criteria if you've never done investing
before or trying to select good mutual funds you're actually going to start
here even before the first one the reason I say that is because when you
actually go if you remember in our last video we looked at Vanguard fidelity and
John Hancock websites and I showed you where to go to find the mutual funds
well the mutual funds have very weird names
and they have ticker symbols like stocks so you're not going to know just by
reading the name you're generally not going to know what that mutual fund is
made up of until you actually click into the link and drill down the retail so
that's why when I actually do this process I actually start here the first
thing I do is look for the highest rates of return over a 10 plus year period of
time the Vanguard has a hundred and twenty six funder these guys saw my last
video so in those 126 funds I found there were five to ten investments that
were all star performers so right there I just cut my research list from 126
down to ten part of the purpose of us going through this criteria guys is the
save time you might have fidelity you might have John Hancock you might have
Vanguard I don't know what you have but find a way to analyze the information in
your 401k plan so you can see which funds and your plan have performed the
best over a ten-year period of time in my 401k plan out of the sixty investment
choices I did the are that I have only about five to ten of those were really
good performers I want to try to maximize get the highest rate of return
for our money and I'm sure you do as well
number three are the third criteria I look at is the global economy so by
global economy think of what's going on in the world does that investment make
sense like if so for example we're trying to invest in oil well are we
trying to move away from oil or are we trying to go more closer towards oil so
it might not make sense to invest in oil right if you think that 20 30 years from
depth down the road we're not going to use as much of it take a long term big
picture of how the future trends are going to impact your investment
performance because we do not want to be investing in something that is not going
to be relevant 10 30 40 years from now
number four minimum rate of return when I'm sorting through my 401k investments
online I don't I don't know about you but I don't I don't want to invest in
something that's only going to show me like a three or four percent return it's
going to be too low and I know I'm younger so I'm able to take higher risk
and you get higher returns I've made a pact to try to not to go below that six
percent annual return on my investment after bees are considered so I am
considering fees the fee a front-loading see yeah my pain the fee on the back end
of the speech will fund or do I pay a fee every year like a percentage like
one percent two percent on this mutual fund so I really do take these into
consideration guys but at a minimum this is me personally and you can choose what
you want to do for you guys but I'm looking at least a 6% our greater
returns on my money
the fifth criteria guys I use is I want to consider risk we always want to be
thinking about risk and by risk you know I had to think about hey you know how
old am i right now when do I want to retire and I encourage you guys to ask
yourself those questions as well how old are you when do you want to retire how
do you feel about taking some risks now my risk philosophy a risk preferences
are probably going to be different from yours and that's okay every single
person is going to have a different comfort level level with risk some
people are in the low-risk scale they are very conservative they don't want to
take a lot of risk other people want to take a very high amount of rhythm so it
really depends on the person themselves so here's my thoughts on this guys and
you can disagree with me totally fine so for me I want a higher rate of return
on my investment I am willing to take the risk I'm not a big fan of bond fund
and that's because I know that interest rates are all-time low so likely most
bond funds if the Federal Reserve raises interest rates the value of those bonds
is going to go down which means if you have money invested in those bonds it's
going to go down with it but especially with inflation being at what it is I
know the Federal Reserve says inflation is that 2% I personally do not believe
that I don't think it is I think inflation is really like five five
percent I think it's much more realistic because if we look at health care we
would look at the cost of college we look at the cost of automobiles the the
cost of those things this keeps going up our dollar is continually losing value
as a print money as more debt brought into play asset prices are pushed up and
really what that means is our dollar is not as strong as it used to be and so
that's why I would rather shoot for a higher rate of return I am NOT okay and
not comfortable taking only a two percent return three percent return
because I think it's too low because eventually in the long run I'll be
getting poor over time if there if the inflation rates at five percent I have
to take that in consideration and I have to shoot for something that 6% are
greater to stay current with the economy they'll always consider but if you
personally have to consider risk for yourself guys how much risk are you
willing to take but I can tell you this it's go back to principle number one if
you understand what you're investing in you're going to feel a lot more
comfortable than if you're just randomly throwing darts at a board guys we're not
doing that here so this is a process that I use for picking mutual funds you
don't have to use it yourself guys but I just want to share with you what I do to
get the rates of return that I do so take it so take it for what it's worth I
hope it helps you if any questions about this let me know I'm happy to answer
them for you but overall it's just coming up with a strip you have to come
up with a strategy for yourself maybe you limit my strategy or maybe you'll
come up with something completely different it's ok it's whatever works
for you but find a process a strategy that you can implement over and over and
over again in your investment and what's going to happen is you're going to get a
higher rate of return likely going to get a higher rate of return you're going
to feel more comfortable about it or you're going to learn how to manage your
risk and over time you're going to become a better and better investor less
time is going to be required for you to do that process because you'll have a
process and you'll you know you'll have it in place important thing to remember
guys as I'm going through this process what I do is if I see as I'm especially
liked as I look for higher rates of return I'm writing the names of those
mutual funds down and the ticker symbol so that I can quickly go back and look
at this later be writing things down are putting them in a Microsoft Word
document and an Excel document just somewhere as you go so that you don't
have to look back again later be like hey what was that mutual fund I wanted
to look at so that's that's my word of advice for you ok guys if you like the
video make sure to drop a like you guys are not already subscribed to this
channel make sure you hit the subscribe button down below our focus and mission
of this channel is to help you improve your financial position career and life
and we do that by teaching personal finance investing taxes and skills for
career and life success and we do that every single week so make
sure you don't miss any of our future videos and this series are in any other
series we produce and thank you so much guys for supporting our channel and
thank you so much for taking the time to watch this video like I said if you have
questions you know where to drop me drop them in the comments section below the
disk part of the series we're going to actually going to be going the detail of
how to understand an investment and how I learn the process I use to learn what
the beach' fund is are what's involved in a mutual fund and that will be key
and crucial for your long-term investment success so I hope you can
join me for that next part in serious love you guys peace have a great week
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment