Here’s my exact investment strategy for 2019, and precisely where I’ll be investing my money - enjoy! Add me on Instagram: GPStephan
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When it comes to investing, I ALWAYS think to myself: where can I get the MOST opportunity, long term. What is going to give me the highest return, with the LEAST amount of risk? And also, how much risk do I need to take, how hard do I need to work for that, and what’s going to get me the best value?
Here’s my thoughts when it comes to what I want to do in 2019:
First, I’m planning to use about 60% of my income this year to diversify and strengthen my stock market portfolio. This is something I pretty much see as a lower risk, lower time commitment, and yes…lower return investment. I think a more beefed-up well balanced portfolio would insulate me from anything outside my control and give me a little more liquidity, in the event I ever needed it. This move is really about spreading out my risk and also taking a more passive approach when it comes to investing this year - just for the sake of rounding out my investments.
So when it comes to doing this, because everyone just wants specific information, I’ll likely be investing a significant portion of my income between three funds - this strategy is also known as the “Three Fund Portfolio”:
First, I’ll be investing about 70% in Vanguard’s Total Stock Market Index - VTSAX.
Second, I’ll throw about 20% in Vanguard’s International Stock Market Index - VTIAX.
Lastly, I’ll just throw 10% remaining in the Vanguard Bond Market - VBTLX.
This strategy is more about investing in something completely hands off, zero work, just set it and forget about it…and this way, I’ll have the peace of mind knowing that I’m investing in something I consider 100% passive income.
Now my SECOND investment will be back to real estate…in previous years, this was my priority…but this year, it’s taking the back seat, but it’ll be a fun one. About 30% of my income this year will be saved up, cash, in high interest savings accounts earning about 2.2% or so. I’ve been somewhat casually looking at real estate to buy this year, but I just can’t find anything that’s worth getting…
And when I look at real estate, I look for VALUE…I buy places I’m 100% sure I can make money on…and from the properties I’ve seen so far, I just can’t find anything that’s a sure thing. So instead, here’s where I’m starting to realize there’s a lot of opportunity: DEVELOPMENT. This is where my cash is going to come in handy.
For instance, I have one unit where once the tenant moves out, I can spend about $60,000 fixing it up, and I’d be able to make an extra $1100 per month in rent. This is over a 20% CASH RETURN ON MY MONEY.
Also, like I mentioned a few months ago when I did the house tour of the new place I just bought, I’d eventually like to spend about $200,000 and create what’s called an ADU on the property - this is an Accessory Dwelling Unit, and this is just a fancy term for a guest house. Basically, I can build a $200,000 guest house and rent that out for about $1600 per month. That works out to be nearly a 10% cash return on my money - pretty much risk free, especially if I paid for this in cash.
So right there, with about $260,000 spent…I can make a guaranteed $2700 per month EXTRA with no additional debt, and no risk. To me, that’s the IDEAL scenario, and I can’t imagine any other investment I could possibly make right now that would give me those numbers.
So between those, that’s pretty much where most of my money is going this year. Balanced Index funds and save up cash for some development to increase existing cashflow…I see this as lower risk, more diversification, while still increasing value at the same time.
Hope that makes sense - this move is all about more diversification, spreading out my money a little more, focusing on investments that might be slightly more passive, and trying to be a little less heavy in real estate - just because that would be the smart thing ANY investor should do.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
Favorite Credit Cards:
Chase Ink 100k Bonus Point Offer - https://www.referyourchasecard.com/21/ZVSGGIXM8U
American Express Platinum - http://refer.amex.us/GRAHASOxHd?XLINK=MYCP
Get the Merch Here: http://www.GrahamStephanStore.com
GET $50 OFF FOR A LIMITED TIME WITH COUPON CODE: THANKYOU50
The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales: https://goo.gl/UFpi4c
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
When it comes to investing, I ALWAYS think to myself: where can I get the MOST opportunity, long term. What is going to give me the highest return, with the LEAST amount of risk? And also, how much risk do I need to take, how hard do I need to work for that, and what’s going to get me the best value?
Here’s my thoughts when it comes to what I want to do in 2019:
First, I’m planning to use about 60% of my income this year to diversify and strengthen my stock market portfolio. This is something I pretty much see as a lower risk, lower time commitment, and yes…lower return investment. I think a more beefed-up well balanced portfolio would insulate me from anything outside my control and give me a little more liquidity, in the event I ever needed it. This move is really about spreading out my risk and also taking a more passive approach when it comes to investing this year - just for the sake of rounding out my investments.
So when it comes to doing this, because everyone just wants specific information, I’ll likely be investing a significant portion of my income between three funds - this strategy is also known as the “Three Fund Portfolio”:
First, I’ll be investing about 70% in Vanguard’s Total Stock Market Index - VTSAX.
Second, I’ll throw about 20% in Vanguard’s International Stock Market Index - VTIAX.
Lastly, I’ll just throw 10% remaining in the Vanguard Bond Market - VBTLX.
This strategy is more about investing in something completely hands off, zero work, just set it and forget about it…and this way, I’ll have the peace of mind knowing that I’m investing in something I consider 100% passive income.
Now my SECOND investment will be back to real estate…in previous years, this was my priority…but this year, it’s taking the back seat, but it’ll be a fun one. About 30% of my income this year will be saved up, cash, in high interest savings accounts earning about 2.2% or so. I’ve been somewhat casually looking at real estate to buy this year, but I just can’t find anything that’s worth getting…
And when I look at real estate, I look for VALUE…I buy places I’m 100% sure I can make money on…and from the properties I’ve seen so far, I just can’t find anything that’s a sure thing. So instead, here’s where I’m starting to realize there’s a lot of opportunity: DEVELOPMENT. This is where my cash is going to come in handy.
For instance, I have one unit where once the tenant moves out, I can spend about $60,000 fixing it up, and I’d be able to make an extra $1100 per month in rent. This is over a 20% CASH RETURN ON MY MONEY.
Also, like I mentioned a few months ago when I did the house tour of the new place I just bought, I’d eventually like to spend about $200,000 and create what’s called an ADU on the property - this is an Accessory Dwelling Unit, and this is just a fancy term for a guest house. Basically, I can build a $200,000 guest house and rent that out for about $1600 per month. That works out to be nearly a 10% cash return on my money - pretty much risk free, especially if I paid for this in cash.
So right there, with about $260,000 spent…I can make a guaranteed $2700 per month EXTRA with no additional debt, and no risk. To me, that’s the IDEAL scenario, and I can’t imagine any other investment I could possibly make right now that would give me those numbers.
So between those, that’s pretty much where most of my money is going this year. Balanced Index funds and save up cash for some development to increase existing cashflow…I see this as lower risk, more diversification, while still increasing value at the same time.
Hope that makes sense - this move is all about more diversification, spreading out my money a little more, focusing on investments that might be slightly more passive, and trying to be a little less heavy in real estate - just because that would be the smart thing ANY investor should do.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
Favorite Credit Cards:
Chase Ink 100k Bonus Point Offer - https://www.referyourchasecard.com/21/ZVSGGIXM8U
American Express Platinum - http://refer.amex.us/GRAHASOxHd?XLINK=MYCP
FTX🤬
These vlogs, where you mention your journey are great – really inspirational and informative. Thank you!
Automate is truly the safest platform you can invest your funds.I must commend the platform, they are always consistent with withdrawals and their payments are automated always making me happy💯.
Can you donate me the lotus 😂 I’m an MR2 fanatic and that’s pretty close 🙂
Graham your videos have been so educational, but I so wish I could hire you for a 1-on-1 financial advising session cries
Just came from the future and Graham sold his Lotus, didn’t buy the Mercedes, but he bought a Tesla model 3 and his YouTube channel exploded to 2 million subs and he is moving to Nevada 😎
What doyouthink of fidelitys free index funds?
I think I watched 300 of your videos in the last two weeks… 😂 Thank you Graham !! 🙏
Lo and behold the market went down a year after this video was uploaded 😭😭😫😭😫
I think you should try using a regulated broker to trade or you can also reach out to Mr Thomas Rodriguez with <<thomasrodrigueztradingservices@gmail.com>>> to assist you
Graham “and if you use my strategy and the market goes down don’t be upset”
My god if you only knew what was going to happen in 2020
Saving your money and investing into stock market will be the wisest thing to do,to ensure success.
You've gotten excited about index funds. Haha
got me really looking forward to investing and finding ways to become financially free
For VTSAX, there's a $3000 minimum for initial investment. I was pretty bummed to see that since I was so excited to invest my first $875 in a 3 fund portfolio within my new Roth IRA account.
Hey Graham! You're seriously such an inspiration. I hope they use your videos in school in the future cause you give out more financial advice than anything i've ever learned in school. High school of course, not college lol
What if I want to invest all of my money into these stocks until I can retire early? Invest 100k a year and retire at age 30-40 for example? I'm 22. Would I invest outside of a roth ira and 401k? (im maxing out roth ira and 401k im taking minimum match reguardless). Where would I invest outside of these so that I can live off the interest?
Will the financing cost of the SLS justify your returns in a few years' time?
Hi Graham, I have a direct debit every month for S&P 500, I have due to come into a windfall $400-600K on stocks as our company is going public, what would your advice be? Put most in index? Or split between index and property? Thanks
vanguard has a 3000 minimum what else can i invest in index fund wise that has no mimimum requirement
Well, the market went down lol! Good prediction room, Graham.
I can't say anything that hasn't already been said other than THANK YOU and I wish I applied this when I first heard the video but I thought I didn't have enough money to invest at the time. The truth is, now I see I couldn't afford not to. Also can you do a video explaining how a roth 401k is not the same as a roth IRA. Initially I didn't know the difference which is why I just started my first roth ira this year. Luckily I could still contribute to 2019 and 2020!!!
Hi Graham hope you well. All way from South Africa. I looked at Webull to start trading but you need to be a European or US resident. Could you recommend another platform for me to use to trade in NY stock exchange!
Will appreciate your assistance
I make $15k every 7 days with Sir Raphael Samuel as my broker
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Oh boy did it go down the next year ha ha… Three func lazy portfolio still the way to go. You lost less than most other strategies lol