Probably one of the biggest “Critiques” of my videos is that I’ll often assume and base my calculations off of getting an 8% return, which many find unrealistic - so here’s what I base my calculations from. Enjoy! Add me on Snapchat/Instagram: GPStephan
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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 $120 million in sales: https://goo.gl/UFpi4c
One very important distinction here is that there is no such thing as a guaranteed 8% return. While we can base our returns off long term historical trends and use that as an educated guide, there will never be a bulletproof 8% return without any risk whatsoever. The other important distinction is that when we assume an 8% return, we never will see a consistent 8% return. I take the historic AVERAGE, meaning over a period of 30+ years. Short term, it’ll be much more difficult to calculate. Not financial advice, for entertainment purposes only - do your own research 😉
The first is the SP500. If we look at the historic averages of the SP500, it’s returned close to 8% adjusted for inflation with the dividends re-invested. Again, nothing is guaranteed - and it’s possible we’ll see lower or higher returns in the future, but I believe it’s reasonable to assume about an 8% return given the last 100+ years of data.
The second way you can get 8% returns, much like the above example, is individual stocks. This one is potentially MUCH risker, but with MUCH higher reward. I’d assume it to be much less passive than buying an index because you’re specifically researching a company and then monitoring that company to make sure they’re doing as well as you expected, and then maybe adjusting your position as necessary. It’s also much riskier because you have fewer eggs in your basket - unlike the SP500 where you basically have a small piece of 500 companies, when investing in individual stocks, you might only have a few - this has the potential to dramatically increase or decrease your returns.
The third way, and everyone will know as my favorite way to get an 8% return is through real estate investing. I have a trillion videos on the subject of how to make money in real estate, but your real estate returns are typically broken up into three categories: Cash return, Equity by paying down your loan, and Appreciation. Generally, getting a 8-10% return in real estate is fairly common - in fact, some people end up getting insanely higher returns depending on the area. Not only are you receiving rent, but you’re also paying down the loan - building equity, and owning an appreciating asset. Win win win!
The fourth way you can make returns of 8% or higher is through peer-to-peer lending websites like LendingClub or Prosper. This isn’t something I’ve personally done, but I know many people who have had a very good experience doing this and have averaged about 7-10%. These websites allow you to “loan” people money at set interest rates, for as low as $25 each. So far this has been fairly successful and seems to work great for people who loan money to those consolidating debt with a high income and decent credit score, but we’ve yet to see how sites like this will do during the next recession. I’m sure the returns will lower in economic turmoil, but regardless, it still seems like a fairly decent option for those willing to try it.
But the key to doing this is to always have a long term outlook. From the way I see it, the short term is too difficult to predict - but long term, we’ve got a great baseline from many decades of research behind us. And also, the longer you can hold, the lower the risk - no one knows what will be in the future, but we can certainly use the past as a guide - and this, is exactly how I figure my 8% returns. Not financial advice (Again) 😉
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
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 $120 million in sales: https://goo.gl/UFpi4c
One very important distinction here is that there is no such thing as a guaranteed 8% return. While we can base our returns off long term historical trends and use that as an educated guide, there will never be a bulletproof 8% return without any risk whatsoever. The other important distinction is that when we assume an 8% return, we never will see a consistent 8% return. I take the historic AVERAGE, meaning over a period of 30+ years. Short term, it’ll be much more difficult to calculate. Not financial advice, for entertainment purposes only - do your own research 😉
The first is the SP500. If we look at the historic averages of the SP500, it’s returned close to 8% adjusted for inflation with the dividends re-invested. Again, nothing is guaranteed - and it’s possible we’ll see lower or higher returns in the future, but I believe it’s reasonable to assume about an 8% return given the last 100+ years of data.
The second way you can get 8% returns, much like the above example, is individual stocks. This one is potentially MUCH risker, but with MUCH higher reward. I’d assume it to be much less passive than buying an index because you’re specifically researching a company and then monitoring that company to make sure they’re doing as well as you expected, and then maybe adjusting your position as necessary. It’s also much riskier because you have fewer eggs in your basket - unlike the SP500 where you basically have a small piece of 500 companies, when investing in individual stocks, you might only have a few - this has the potential to dramatically increase or decrease your returns.
The third way, and everyone will know as my favorite way to get an 8% return is through real estate investing. I have a trillion videos on the subject of how to make money in real estate, but your real estate returns are typically broken up into three categories: Cash return, Equity by paying down your loan, and Appreciation. Generally, getting a 8-10% return in real estate is fairly common - in fact, some people end up getting insanely higher returns depending on the area. Not only are you receiving rent, but you’re also paying down the loan - building equity, and owning an appreciating asset. Win win win!
The fourth way you can make returns of 8% or higher is through peer-to-peer lending websites like LendingClub or Prosper. This isn’t something I’ve personally done, but I know many people who have had a very good experience doing this and have averaged about 7-10%. These websites allow you to “loan” people money at set interest rates, for as low as $25 each. So far this has been fairly successful and seems to work great for people who loan money to those consolidating debt with a high income and decent credit score, but we’ve yet to see how sites like this will do during the next recession. I’m sure the returns will lower in economic turmoil, but regardless, it still seems like a fairly decent option for those willing to try it.
But the key to doing this is to always have a long term outlook. From the way I see it, the short term is too difficult to predict - but long term, we’ve got a great baseline from many decades of research behind us. And also, the longer you can hold, the lower the risk - no one knows what will be in the future, but we can certainly use the past as a guide - and this, is exactly how I figure my 8% returns. Not financial advice (Again) 😉
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
I've always stayed with stocks. My military friends who left houses behind at prior assignments and rent them out never talk about the cost of a new: roof, water heater, A/C unit, etc .. or the damage renters can do. Then if the renter decides not to pay .. lawyers, .. I'm OK — thru fairly safe stock investments, I've reached beyond what I ever thought possible. I'm still intrigued by real estate, but I really don't need to take the risk.
You do not model your returns including inflation.
so… real estate beats all?
I just came here from your video about how horrible peer-to-peer lending sites are. And in this vid you're recommending them. WTF?
The problem with this is that it all talks about averages as though an average works at all.
Example. Start with 100 dollars, year 1 you gain 50% so you have 150 dollars. Year 2 you lose 50% so you have 75 dollars. Your average rate of return is 0, your return on investment is -25%.
But this doesn’t just play out at a daily or weekly level, it plays out with every jump up or down.
Sure the average return adjusted for inflation has been 8% for decades, but a decades long average of averages is less than useless.
I’m not saying don’t invest, but you certainly shouldn’t invest if your expectation is that the 8% growth figure bears any resemblance to your expected capital growth.
If you have -10 percent and then 12 percent return. You will still be in the negatieve even thoughyou have a 2 percent return… or am i wrong?
Real estates kinda safer than other individuals.
I mean I would love to invest in real estate but where do I magically get 20,000 as a down payment? lol (Currently watching your videos and taking notes split screen) Sincerely, a 26 y/o third year pharmacy student w/ major student loan debt and absolutely zero knowledge of the stock market or investing, for now at least.
Appreciate video content! Sorry for butting in, I am interested in your initial thoughts. Have you considered – Rozardner Mind Tricks Reality (probably on Google)? It is a great one off guide for revealing the trick to get the mind of a millionaire minus the normal expense. Ive heard some amazing things about it and my close friend Aubrey at very last got excellent success with it.
Lovely video content! Forgive me for the intrusion, I am interested in your thoughts. Have you researched – Rozardner Mind Tricks Reality (do a search on google)? It is a great exclusive product for revealing the trick to get the mind of a millionaire minus the normal expense. Ive heard some amazing things about it and my buddy got great success with it.
I am from Spain, my friend in Texas referred me to this channel you make a lot of sense but I do not understand anything until she referred me to a financial counselor in USA that help me to craft my portfolio and over a year we have been working together making consistent profit enough to get me a new apartment and care for parents.
Sorry, but real estate has been a NIGHTMARE. Running into appliance issues that negatively impact my tenants and my downstairs neighbor (I own a condo). Then when I hire licensed pros to go fix it, they end up either fixing the wrong thing or quoting the wrong thing to fix. Then I have to hire other companies for second third and fourth opinions. No one seems to know what they're doing (South FL). Meanwhile time passes with issues continuing to negatively effect neighbors (water damage). High costs and stress levels through the roof. Also, dealing with an HOA that has all but abandoned the property, never returning phone calls or emails, etc. So hard to find honest good help nowadays. WHAT TO DO????
Comment
Gud vdo
Why don’t you open up a life time isa end of the year you get a 25% bonus
I was first looking for how to get into investing then after much convincing I met an expert Mr Alex Paton and things changed, with investing $40,000 I realized $32,000 in profits after 3 months. Just learn to never give up because consistency pays more.
Can you get 5% safe return from the govt. dividens???
How come on there are diffferent types of s&p 500’s eg on trading 212 the price is £44 a share but on google is over 2k?
Can I do this through TD Ameritrade?
Can you make a video on if it’s a good idea to open a Roth IRA right now please
8% return long term average is garbage
I am from Portugal, I want to invest but the only option here is Vanguard Ireland. Paying 41% taxes !! Somebody know what to do to pay less?
When it comes to very good investments I got the best professional advice when I contacted this guy Mr. Smith. He advised me on the best investment to make and today now I’m earning up to $30,000 monthly and Im now glad to say forex and cryptocurrency trading has been one of my family’s major source of income. lf your looking to earn passive income monthly through forex and crypto trading contact Mr. Smith by text/call (646)-582-9402 or WhatsApp +15162001939 . You can tell him hannah referred you ,.;;
In Costa Rica we get up to 7.4% net in banks and cooperatives for 1 year deposits.
Tell this to the pension fund that have to pay out regardless of ups and downs when the down comes there will be a lot of cuts and challenges. This next downturn will be as low as these artificial highs.
What about Roth IRA? Isn’t that 7%-10% on average over the long term?
I don't invest in S&P I prefer to choose my own stocks. There are too many companies in S&P that do not represent my values or the need for preservation of the environment and sustainability. I'd prefer to pick ethical and responsible companies to invest in.
Hey Graham correct me if i'm wrong, but you're not actually getting a return with equity unless you "separate" the equity from the house and reinvest it in something that gives you a greater % return than what you are paying in % interest on your mortgage, right?
1. S&P500
2. Individual Stocks
3. Real Estate
4. P2P Loans
Awesome video! I found this really helpful!
GRAHAMMMMM PLEASE RESPOND!!!!
PLEASE MAKE A VIDEO ABOUT VANGUARD NOW OFFERING $0 COMMISSION IN TRADING STOCKS JUST LIKE ROBINHOOD!!!!!!!!!!!! PLS PLS I HAVE A ROTH IRA WITH VANGUARD BUT I WOULD LIKE TO KNOW MORE ABOUT VANGUARD RECENTLY DOING $0 STOCK TRADES!!!!! PLSSS MAKE A VIDEO. I WOULD LIKE YOUR INPUT!
– by the way i am smashing the like button every time I post this comment lol 🙂
YES! YES! YES! I put some money in the S&P 500 in July and you are saying that this is the 8%er. So glad I figured this one out 6 months before I saw this video! 😀