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This all begins with the 60 / 40 Rule:
This is an investment formula discovered in the 1940’s which found the IDEAL combination of how much money you need invested in both stocks AND bonds to be able to last you INDEFINITELY, for the rest of your life, without ever running out of money.
When the 60/40 portfolio was at its peak popularity…bonds were paying a whopping 15% return…but, throughout the last 40 years, those bond returns have been consistently been dropping.
Experts are now saying that BITCOIN might soon be the replacement for BONDS in your retirement portfolio. Just recently, Ark Invest’s Cathie Wood said that people should begin treating bitcoin like a new asset class, because - it is. Large institutional and corporate investors are beginning to use Bitcoin as a hedge against the US dollar, by buying up LARGE SUMS to hold as a reserve.
When it comes to creating a portfolio that allows you one day retire and live off your investments for the rest of your life…I actually AGREE that there’s room for Bitcoin, and that BONDS might no longer give you the safety - AND THE RETURN - you’ll need in order to make that happen.
As Bond Yields have slowly gotten LOWER AND LOWER over time…it’s made them CONSIDERABLY less appealing to invest in, especially during a time where investors are WORRIED about their soon being more inflation.
For myself, I currently have about 2% of my net worth invested in Bitcoin…and, I’m slowly looking to bring that up to 5% by the end of the year. That’s not to say there can’t be a crash, or that the value won’t plummet by 80%…I’m sure, at some point, it will and that’s a risk you have to take - but, if you have DECADES to wait - allocating a SMALL PORTION of your portfolio into Bitcoin may very well be a beneficial move.
That means, as it stands right now - IF the 60 / 40 retirement portfolio is broken, I could absolutely see a place where it turns to, instead, 70% stocks, 15% bitcoin, 15% bonds…or, a slight variation of that, depending on your risk tolerance.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*Wealthfront Advisers LLC (“Wealthfront Advisers”) and Graham Stephan have an agreement in place to promote Wealthfront products and services. There is no formal relationship with Graham Stephan aside from this agreement. Any links provided by Graham Stephan are not intended to imply that Wealthfront Advisers or its affiliates endorses, sponsors, promotes and/or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated otherwise. The paid testimonial provided above may not be representative of the experience of other clients, and there is no guarantee that all clients will have similar experiences. Cash account is offered by Wealthfront Brokerage LLC, a Member of FINRA/SIPC. Wealthfront Brokerage is not a bank. We convey funds to partner banks who accept and maintain deposits, provide the interest rate, and provide FDIC insurance. Investment advisory services are provided by Wealthfront Advisers LLC, an SEC-registered investment adviser, and brokerage products and services are provided by Wealthfront Brokerage LLC, Member FINRA/SIPC.
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
ENDING SOON: Get 2 FREE STOCKS ON WEBULL when you deposit $100 (Valued up to $1850): https://act.webull.com/k/Vowbik9Tm5he/main
JOIN THE WEEKLY MENTORSHIP - https://the-real-estate-agent-academy.teachable.com/p/graham-stephan-mentorship-program/
THE NEW PODCAST: https://www.youtube.com/channel/UCMSYZVlQmyG8_2MkIKzg0kw
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
This all begins with the 60 / 40 Rule:
This is an investment formula discovered in the 1940’s which found the IDEAL combination of how much money you need invested in both stocks AND bonds to be able to last you INDEFINITELY, for the rest of your life, without ever running out of money.
When the 60/40 portfolio was at its peak popularity…bonds were paying a whopping 15% return…but, throughout the last 40 years, those bond returns have been consistently been dropping.
Experts are now saying that BITCOIN might soon be the replacement for BONDS in your retirement portfolio. Just recently, Ark Invest’s Cathie Wood said that people should begin treating bitcoin like a new asset class, because - it is. Large institutional and corporate investors are beginning to use Bitcoin as a hedge against the US dollar, by buying up LARGE SUMS to hold as a reserve.
When it comes to creating a portfolio that allows you one day retire and live off your investments for the rest of your life…I actually AGREE that there’s room for Bitcoin, and that BONDS might no longer give you the safety - AND THE RETURN - you’ll need in order to make that happen.
As Bond Yields have slowly gotten LOWER AND LOWER over time…it’s made them CONSIDERABLY less appealing to invest in, especially during a time where investors are WORRIED about their soon being more inflation.
For myself, I currently have about 2% of my net worth invested in Bitcoin…and, I’m slowly looking to bring that up to 5% by the end of the year. That’s not to say there can’t be a crash, or that the value won’t plummet by 80%…I’m sure, at some point, it will and that’s a risk you have to take - but, if you have DECADES to wait - allocating a SMALL PORTION of your portfolio into Bitcoin may very well be a beneficial move.
That means, as it stands right now - IF the 60 / 40 retirement portfolio is broken, I could absolutely see a place where it turns to, instead, 70% stocks, 15% bitcoin, 15% bonds…or, a slight variation of that, depending on your risk tolerance.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*Wealthfront Advisers LLC (“Wealthfront Advisers”) and Graham Stephan have an agreement in place to promote Wealthfront products and services. There is no formal relationship with Graham Stephan aside from this agreement. Any links provided by Graham Stephan are not intended to imply that Wealthfront Advisers or its affiliates endorses, sponsors, promotes and/or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated otherwise. The paid testimonial provided above may not be representative of the experience of other clients, and there is no guarantee that all clients will have similar experiences. Cash account is offered by Wealthfront Brokerage LLC, a Member of FINRA/SIPC. Wealthfront Brokerage is not a bank. We convey funds to partner banks who accept and maintain deposits, provide the interest rate, and provide FDIC insurance. Investment advisory services are provided by Wealthfront Advisers LLC, an SEC-registered investment adviser, and brokerage products and services are provided by Wealthfront Brokerage LLC, Member FINRA/SIPC.
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
What's up ding dongs, it's poinky doink! Here there you go, i said it, but anyway i never thought i would be making a video on this topic today. But research has just come out that claims the traditional way investors grow, their wealth, build their money and one day retire off of passive income for the rest of eternity is now becoming obsolete because of bitcoin yeah. This is really one of those things where had. I heard about this a few years ago.
I would have called it crazy, but as more and more time went on and more research was done, it's beginning to make a lot of sense. Why bitcoin would cause you to make some rather drastic changes in terms of how you invest your money, long term? Although here's the thing i want to get this out of the way early on this video is not about going and telling you just go and invest in bitcoin, it's going to be worth a million dollars one day, and then you can just go and retire, but Instead, this has to do with some rather drastic changes that completely ruin the traditional investment portfolio and some of the changes you could begin implementing today to make sure you don't fall behind now. It's very rare that i say a video i make will apply to everybody watching, but this is one of those few times where i highly recommend you watch all the way to the very end, and by considering what's just happened, you may very well be able to Set yourself up with a very comfy retirement where you could basically do whatever you want. You could watch youtube videos like this and, most importantly, you could also make sure to destroy the like button for the youtube algorithm.
I had to plug that somewhere. That's a nice plug right there and, of course, as a thank you for smashing the like button, because it helps me out a ton. I will make you a promise i'll intro one of my next videos, with whatever the top comment of this video says. So.
Thank you guys so much and also big, thank you to wealthfront for sponsoring this video, but more on that later, all right, so here's what happened and it all starts with, what's called the 60 40 portfolio. This was an investment formula discovered in the 1940s, which found the ideal amount of money that you would need invested in both stocks and bonds to be able to last you indefinitely without you needing to ever work another day in your entire life. Ever again, the reason for this was simple: when you go and retire, you can't just throw all of your money into gamestop and then hope for the best. After all, what happens if you retire and then gamestop drops 40 in 30 minutes and then your next 30 years are.
Fortunately that's where the 60 40 portfolio comes to the rescue. This system analyzed the returns of stocks and bonds throughout history during the best bull markets and the worst bear markets and came up with an asset allocation that would be able to survive whatever you throw its way and as you would assume that investment portfolio consisted of 60 stocks and 40 bonds. They found that if you want to retire 60 stocks gave you enough growth and passive income during a time where the market's going up, but during a downturn, 40 bonds protected you from losing too much money when you need it. The most. This also ties in very closely to what's known as the four percent rule, which suggests that you could spend four percent of your investment portfolio every single year, and definitely that will last you the rest of your life. That means, for example, if you want to retire off an income of 40 000 a year without ever having to work another day in your entire life ever again, you're gon na need one million dollars invested, and you have an 89 chance of that lasting you. For the next 60 years without running out, but that four percent rule is also influenced by how and where you invest your money and that's where the problems begin to arise see. Recently, people have begun to notice a growing concern with this strategy because historically it only worked so well because bonds were paying an unbelievable amount of money.
Just think of a bond like a guaranteed source of income you'll buy in for a set term and then, during that time frame it'll pay. You a set amount of money, no matter what happens now. If that sounds amazing to you, that's because well it was but not so much anymore. That's because when the 60 40 portfolio was at its peak, popularity bonds were at the time paying a whopping 15 return on your money.
But now, as you can see, throughout the last 40 years, those bond returns have been consistently dropping and now, of course, if you're lucky they're gon na be paying you a lovely one percent, that means you're no longer getting the same protection and the same returns as What you would have when this was first developed and that could end up losing you money now, of course you might be wondering, but graham, why don't we just invest in stocks instead, my tesla stock is up already 1200 and elon. Musk is awesome, and you know what that's a very valid point, but a good portfolio is all about risk versus reward and maximizing the amount of money you make for the risk you take. Investing a hundred percent in stocks is a risky strategy. In the event, the market goes down like during the dot-com bubble and prices never recover to their original level.
By the time you need access to that money like just take a look at cisco which peaked in 2079 dollars a share, and now, 21 years later, it's still trading 40 percent less than what it was. Don't let that be you that's why nearly everybody recommends. You have something else in your portfolio to be able to fall back on having bonds like this has historically been the right move, because they've held their value and paid pretty well. But, like i mentioned, that's not so much the case anymore.
So, given all the problems to this, there's one missing piece to the puzzle that we got ta talk about, and that would now be bitcoin but really quick before we talk about that, i want to say a huge thank you to our video sponsor wealthfront for those Not aware wealthfronts is an automated investing platform that utilizes software that helps you find the optimal portfolio to invest and grow your money long term. Here's the thing when it comes to investing. It doesn't need to feel like a roller coaster of buying call options on gamestop and it doesn't need to feel like you're out of control with your money. Instead, there are decades of data showing that investing in a globally diversified portfolio of low-cost index funds is one of the best ways to put your savings to work, and even though it sounds complicated, it's really not wealthfront makes investing easy, affordable and accessible. No matter what your knowledge of finance is, their account setup is also incredibly simple. All you need is a few minutes and five hundred dollars to open the account and then they will take care of the rest and best of all. If you smash the like button for the youtube algorithm, they said they're going to be waiving their 0.25 annual management fee up to the first 10 000 for the rest of your life. Just by using the link down below in the description, they also automatically use a strategy called tax loss harvesting that could lower the taxes you pay without doing any additional work on your end and 96 of their clients have had their advisory fees fully covered by that Tax loss harvesting service alone, not to mention i've, been using their high yield cash account for years, and i also get access to their financial planning tools which are totally free and that estimates how much your net worth could be in the future and how you could Further save and invest more money based on your income and spending.
So if you're interested in signing up or learning more, like i mentioned, wealthfront has agreed to manage your first ten thousand dollars completely for free for the rest of your life. Just by using the link down below in the description, so thank you guys so much and now with that said, let's get back to the video anyway, when it comes to the 60 40 rule, experts are now saying that bitcoin could soon replace bonds in your retirement Portfolio like just recently arc invest kathy woods said that people should begin treating bitcoin like a new asset class, because it is large corporate and institutional investors are beginning to use bitcoin as a hedge against the us dollar by buying up a lot of it like we Just had tesla announced their one and a half billion dollar bitcoin investment. Earlier this year, paypal announced that they would enable cryptocurrency as a funding source for 26 million of its merchants. They also just bought the crypto security company curve for 200 million dollars.
The payment processing company square also invested 170 million dollars into bitcoin, and the analytics company microstrategy has been keeping a significant amount of their cash reserves in bitcoin, plus they've continued to buy in even at all-time highs. When it comes to this kathy, woods said that bitcoin represents insurance against unhinged monetary policy and outright wealth segregation in some countries. Other investors are also advocating for a small allocation of bitcoin in any retirement portfolio, and these aren't exactly small no-name investors, either like jp morgan, who not so long ago, called bitcoin a fraud that will eventually blow up and who also said that they would fire any Trader who bought bitcoin because it's against our rules - and they are stupid and both are dangerous - is now advocating three years later, that investors place one percent of their portfolio in the cryptocurrency and they're, even launching their own bitcoin exposure basket. That gives access to 11 companies that hold bitcoin goldman sachs, also analyzed 300 of their clients and found that 40 of them already have exposure to cryptocurrency. They say this run-up today is a lot different than the mania hype back in 2017, because today, it's driven by large institutional investors who are buying in as a reserve against the us dollar, not by speculation. To me, it's not exactly surprising either. It seems as though some of the big institutional investors behind bitcoin are really worried about a few key points. I think the first would be inflation by keeping interest rates low in an effort to stimulate the economy.
There's the expectation that at some point, there's going to be some inflation as more people begin spending their money. That just means our dollar is going to be worth less as more money is printed and more demand pushes prices higher as a way to hedge against that bitcoin is starting to look like an alternative to holding cash. Now number two: the money supply, has increased exponentially throughout 2020 as more money has entered the economy and that, i believe, is really eroding at people's faith that the dollar they have today is always going to be worth a dollar. Now, if that sounds like i'm exaggerating here, here's a chart that you should look at as you can see throughout history, we've always had a consistent increase in our money supply as the population grows, the gdp increases and we take on a little bit more debt.
But in 2020 that changed entirely, there's no shortage of articles out there, pointing out that one-fifth of all of our money ever printed was in 2020. and because of that, people are looking for other places to put their money and bitcoin has been perfectly positioned to fit Into that spot now, third bitcoin is also being called an uncorrelated asset, meaning it's not easily influenced by other investments like stocks or real estate or bonds. By being completely independent from everything else, it allows for a lot more diversification in a borderless space with a lot more opportunity. And fourth, i believe, in absence of other safe haven spots, to put your money combined with a big push of mainstream popularity. Bitcoin has just started to become the recent go-to investment. I definitely believe there's a safety in numbers here, where the more institutions buy bitcoin the more acceptable it becomes, which means the more institutions buy bitcoin, which means the more acceptable it becomes, and that just continues. Bitcoin is definitely going to benefit from a network effect of growing adoption across multiple industries and, as it begins to solidify as an alternative asset class. Its value should begin to stabilize, and that has a chance to benefit those who use this as a store of value.
But unfortunately, the downside to all of this is that pretty soon tech stocks could be influenced by the price of bitcoin, because that's how these companies are now keeping their reserves. For example, analysts now say that the price of tesla stock is tied to the value of bitcoin, so if bitcoin goes down and tesla owns bitcoin, then tesla could actually go down because of that the same could also be said about any other company that holds its Reserves in bitcoin and really as more companies in the s p 500 begin placing their reserves in bitcoin you'll probably have some exposure to bitcoin inadvertently because of that, whether you like it or not. So, given all of this and the potential end to the 6040 portfolio, here are my own thoughts and where we could go from here when it comes to creating a portfolio that allows you to one day retire and live fully off your investments. I agree: there's actually room for bitcoin, as bond yields have just gotten lower and lower over time.
It's made them considerably less appealing to invest in my overall thinking, though, is this: if you're within five to ten years of retirement, it's not a horrible idea to keep some of your money in bonds, really just as a way to keep more money on hand. In case the market goes down and you need something to fall back on, but if you're 20 years or more away from retirement and you're looking to grow your money as efficiently as possible, then i do agree that bitcoin is a place in your portfolio alongside stocks. That's because when you're young, you have enough time to recover from any sort of market crash that you don't necessarily have when you're older, so you may as well use that to your advantage. Now now, as for myself, i currently have about two percent of my net worth held in bitcoin and i'm looking to probably bring that up closer to five percent by the end of the year.
I see a lot of potential in holding this just as a hedge against the us dollar, and also with the expectation that over the next few decades, it's probably going to continue going up in price. Now, that's not to say that i don't think there's going to be a crash or that it can't drop 80 in value. Listen, i'm sure at some point. That's probably gon na happen and that's a risk we have to take. But if you have decades of time just to hold this out and see how it goes, then i think allocating a small amount of your portfolio to bitcoin is probably a good move to make. That means, as it stands right now, if the 60 40 portfolio is broken, i could very well see a day in the future where it might become 70 stocks, 15 bitcoin, 15 bonds, or maybe a slight variation of that, depending on your risk. Tolerance as bitcoin continues to grow mainstream. I really believe the more stable and secure it's going to become, and i'm sure over these next few years, we're going to continue to see more people allocating bitcoin into their portfolio, especially if they start allocating this as the optimal investment portfolio for the rest of your Life, so with that said, you guys thank you so much for watching.
I really appreciate it as always make sure to destroy the like button. Subscribe button and notification bell also feel free to add me on instagram posts are pretty much daily, so if you want to be a part of it, there feel free to add me there. As my second channel, the graham stefan show i post there every single day. I'm not posting here so if you want to see a brand new video for me every single day, make sure to add yourself to that.
And lastly, if you guys want two free stocks, use the link down below in the description and weeble is going to be giving you two free stocks when you deposit 100 on the platform and those stocks could be worth all the way up to 1 850. So if you guys, like free money, use the link down below, thank you guys so much for watching and until next time.
Trading Cryptocurrency requires a professional knowledge, that is why I have always used the services of professionals who are more experienced in the field. This method has helped me a good living out of it, I make my withdrawal weekly without stress. All thanks to Sir Jason Brown, he has indeed helped alot of us on trading issues 🆃🅴🅻🅴🅶🆁🅼 ( @Jason611 ) .,.
As a forex trader, it's almost inevitable that you're going to experience some ups and downs along the way. Alertness and deciveness are both fundamental ingredients in the recipe for a successful forex trader
This video is awesome .Trading bitcoin requires adequate tutelage from an expert. Mrs Juliana has helped me attain really high level of financial freedom from using her as my broker.She’s reliable and trustworthy
Hello guys I have been watching some videos and I was thinking about investing in bitcoin/forex but still don't know where to start from.
Mrs Sonia James is legit and her method works like magic I keep on earning every single week with her new strategy,…
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💯.
Mrs Jane is legit and her method works like magic I keep on earning every single week with her new strategy
Mrs mary has been a blessing to me. I was able to send my kids a better school through the profits i got from trading with her. I wish i had started with something bigger
I am avoiding any bitcoin unless it crashes because the hype is getting worse than ever, which is all this is. Its still way too unstable and I dont like day trading. I prefer to earn my money the old fashioned way and that leaves little time for staying on top of things. When I notice things I am always late to the trend and then the ridiculousness just turns me off. I am just not meant to be rich in this era lol
It has been an amazing journey with him making money from the comfort of my home,I promise I was going to tell everyone about him , he's honest trustworthy and reliable for him transaction is taking over all market Mr jonny
i started working with you……I know I’ve changed a lot that really helped me to become a better person inside and outside….you are one of the reasons why I’m always trying my best…..You have influenced my life in such a positive way words cannot express my appreciation…..@Felixtrades0 on lG for getting me enough funds you know I appreciate you in so many ways
If you haven’t been dealing with Herickcard on telegram you’re loosing alot
He’s the best ever liveth 💯.
I was at a retirement seminar and the speaker spoke on how he quit his job after he made well over $450,000 PROFIT within 3months he invested $120,000. I just began investing and i will really appreciate any tips or helpful guide.
Forex and cryptocurrency investment will bolster your finances and it's really been helpful to us traders but you know the market is a very volatile one and as such it’s too risky for beginners to start their investment without adequate tutelage to go into it so rather than loose money to bad trades invest with a reputable broker like Mrs Stella Vaughn
Forex investment controls a huge part of my passive income, I invest big and my profits are even bigger, courtesy of my broker Mrs April Christiana.
2017: Bitcoin is bad because its a speculative investment
2021: Bitcoin is good because its a speculative hedge against MMT.
What happen to companies like TOPS ships? I saw their history used to be millions but now its less than $2
I feel like the more traction Bitcoin gets, the bigger the fall will be when they pull the rug from under people.
I have been watching some videos and I was thinking about investing, but still don't know where to start from
How could a completely unregulated stock possibly fail? For one thing, it increases by about a megabyte for every 1,000 transactions. Credit cards currently have a billion transactions everyday and there is nothing stopping people from doing that with Bitcoin. That is an increase in the size of bitcoin's file by a terabyte a day, and that file needs to be maintained by hundreds of computers. Every year you would have to add hundreds of hard drives to each of the hundreds of servers.
Not to mention all it would take is a scare and everyone would start selling out, until the price is back to rock-bottom, hundreds of thousands of people will lose everything, and a few people would buy up the stock when it hit record lows in some kind of apocalyptic pyramid scheme. It isn't sustainable.
60% stocks 40% bonds I can see going to 60% stocks 30% Bitcoin & Ethereum and 10% bonds (for the next two years). I did not hear you explain why stocks should go up 10%.
What do think about Ethereum? It’s a lot smaller than Bitcoin but I believe it has the potential to grow
I don't know who needs to hear this, you've got to stop saving money, invest some part of it, if you really want financial freedom
Too many damn commercials this is why I quit listening to you in the real estate area and now you're a freaking expert on bitcoin not
Hello I'm new to bitcoin trade and i have been making few loses, but recently i see a lot of people earning from it , can someone please give me a new strategy or at least tell me what I'm doing wrong?