So here are three things that you need to know before opening up an investment account. One of the first questions that you want to ask yourself is do you want to open up an IRA a 401k or do you want to open up an individual account which you can manage yourself In this video, we're going to be covering these topics and how you can actually get started in 2023 with you know your different investment accounts. I Really hope that you learned something new I Hope that you drop a thumbs up. Don't forget to subscribe and if you have any questions after this video I Hope that you know that I respond to all of my direct messages.

You can shoot me a direct message via Discord and that's that first link in the description down below or shoot me a direct message via Instagram and that's that third link in the description down below. I am verified on Instagram and that is my only account without further. Ado Let's go ahead and start sharing my screen. I Want you to be able to see I Wanted to give you an example of what the benefits of an IRA 401K an individual account right? For those that are just getting started, you might not understand the difference and I just want to, you know, point out some key points.

So the IRA and the 401K are a specific investment accounts in which they there are tax benefits. Um, the IRA if I'm not mistaken at least for my current situation or position that I'm in I can contribute up to 6 000 which I'm pretty much limited right on how much you can contribute on a yearly basis. Uh, the cool thing about an IRA is there is a tax benefit. You get to write it off right? And you can set up an IRA as an individual, right? So if you're self-employed and or you know, you just want to open up an individual account that's not managed by your actual employer, which is on the traditional side of the 401K.

So the 401K is something where if you're employed by someone, you might have heard that you might have one and or every monthly or bi-weekly paycheck. there's some amount that is contributed to your 401k. Some employers can even match up to a certain dollar amount for your contribution at least I. Remember, when I was employed, that was something that was offered.

So again, your employer is the one that actually manages the account, and depending on what you contribute, they can actually match to that. And again, this is something that is normally viewed as more of a retirement account. And there is tax benefits. When it comes down to this, that's very traditional, right? It's something that they manage for you and it's kind of more hands-off for you, right? An IRA account is something that you can actually set up yourself as an individual.

So this is something that you can potentially manage yourself. But again, is this something that you actually want to put yourself through if you do not know actually what to invest in, right? This is where I Think it gets a little bit more fun. These are these specific accounts that I like to focus on a little bit more consistently. This is an individual account.

So this is kind of like the trading accounts that you see if people are day trading and or swing trading if they're managing their own investment. this is normally on an individual account. So I wanted to kind of create a list of you know the pros and the cons of you know, an IRA a Roth IRA a individual brokerage account and then a 401k. So contributions, um, grow tax deferred.

So again, the tax benefit. There's a tax benefit for all of the accounts except a brokerage account. You don't get to write off whatever it is that you contribute into your individual account. So I just want to make sure that you're aware of that uh funded with pre-tax dollars.

That's an IRA right? Uh, not an I not a Roth IRA Because the whole point of a Roth IRA is that you actually get taxed right now and then you don't get taxed later. And then again, there's no tax benefit for an individual brokerage account. but there is for the 401K no annual, uh, annual contribution limits. Surprisingly, the brokerage account is the actual only one where there's no Cap all the other ones.

you are limited on how much you can contribute on a yearly basis. It kind of sucks, right? available to anyone with earned income. So Roth IRA that one does not meet that criteria and the 401K does not meet that criteria. But an IRA and a brokerage account do meet that criteria.

So no Rmds at the age of 72. So again, that's Roth IRA And then that's your brokerage account Because normally you are paying uh, what you actually make prior to you know you actually returned. Especially with an individual account. You are paying tax or capital gains tax on a yearly basis based off of what it is that you actually make if you actually end up selling the security, right? So no early withdrawal penalties.

The only one that actually does that is the uh, broke individual brokerage account. There are exceptions, and again, I'm not getting into all of that. There are exceptions. in case you know you're very ill and stuff like that, There's a series of exceptions, but again, traditionally it's normally a brokerage account that if I fund it ten thousand dollars and I begin to invest in the stock market.

But let's say two years from now I just want to pull money out or two days from now, right? I've funded ten thousand dollars, The money's there. It's pretty much just like a bank account, right? But instead of just the money sitting there I have the option of buying different companies with the money that I have um in that specific brokerage. uh set up tax bases, just buy errors Again, that's just a brokerage account and then added tax diversification brokerage account and Roth IRA So I just wanted to quickly explain that. Now one of the second things that you need to take into consideration is now when you pick what type of account you have uh or what type of account you have.

As you can see I have an individual account. The great thing about an individual account is again, you get to manage it yourself, especially in 2023, right? At least for the start. Markets are very oversold. Everyone always talks about how every how every previous recession is viewed as a missed opportunity, but every current recession is viewed as a risky time to invest, right? We all know that the rich always get richer by being able to invest during uncertain times, and they make money when the markets recover.

So I wanted to instead of talking about here are the top five stocks I think you should invest in I Want to talk about why I think looking into index funds are something that could be a value for you. So if you're someone that's just getting started, first off, it might already be very overwhelming for you to even decide. Do I want an individual account or want an IRA account? Do I want a 401k? It should be very black and white. so if you want to manage your own account, it's an individual account, right? If you want to manage your own account but you want a tax benefit, then you can go with an IRA or a Roth IRA a 401k.

Again, that's really just set up if you are employed by someone and I would set that up because if you can get that matched, if your employer has some form of match contribution, I would really look into that because that's pretty much just free money. They normally do have a limitation that you have to stay with them for at least like a year or two years and then you get to keep that matched contribution. but if you intend to stay with that employer then I would utilize that to to the highest possible Right. But the whole point of choosing index funds instead of individual stocks is you have to understand that individual stocks.

Let's say that like you know, well, Tesla Tesla's not performing very very well right now, right? Obviously I Believe in Tesla I Think that Tesla is going to eventually recover, but let's say that it doesn't right? Let's say that you know Elon just goes off the wall. Something happens to Elon and let's say Tesla just continues to sell off, right? if you had ten thousand dollars to invest and you invested all in Tesla. The unfortunate thing about that is that well, if Tesla were to go under, right, you lose pretty much all of your money and or you you gain that exposure solely based off of Tesla's performance. The whole benefit of investing in index funds is that you get exposure to a bunch of different companies by solely investing in one specific index and or ETF Uh, so I'm going to explain that to you and I wanted to give you an example I'm much more of a visual learner, which is why I pulled up those pictures of the different accounts that you can open, but I wanted to use something like the S P 500.

So there's three main indexes in the United States that are very well respected. That's the S P 500. that's the NASDAQ and the Dow Jones. So S P 500 is considered to be the top 500 most valuable companies in the stock market, right? The great thing about that is when asking the question of like, well, what makes up the S P 500 I mean you can literally click on this right and it goes down less Apple Microsoft Amazon Berkshire Hathaway alphabet For those that are unaware, alphabet is the mother company of Google right? and YouTube Exxon Mobil So you gain all of this exposure, right? So by investing so by investing in one index, so spy is the S P 500 ETF Meaning that when the S P 500 uh, index moves one percent, then so does Spy.

The great thing about this is that by investing in Spy, so let's say that I buy one share. that's 398.50 That's what one share cost me. So instead of needing to buy 500 different companies individually, I can buy one Index Fund spy and gain the exposure of 500 different companies. so it's much more I would say it's just it's much more simple.

Uh, that's the easiest way that I can put it by being so well Diversified and only being invested in in one ETF or one index. Um, it's much easier for you to stay up to date with what is going on with that index. And let's say that if one of the companies were to fail that in the S P 500 I mean the weight that it actually the influence that it has on the actual you know uh, index itself is so much smaller than. Remember: if Tesla were to go under and you have all your money in Tesla, you'd lose all of the money that you had in Tesla.

But by being invested in spy, let's say that you know it's it's part. As you can see, it's actually part of the S P 500. Well, even if Tesla were to go under, yes, it's it is going to negatively influence S P 500. But it's not going to negatively influence it by dragging it all the way back down.

right? And that's the great thing about being Diversified is you gain huge exposure by only being invested in one specific ETF. Now there's ETFs and indexes for everything. The great thing about that is if you wanted to have a little bit more of a focus on Tech right? Because you're a big Tech uh person, right? And and you want to continue to invest in Tech because you see that to be the future, you see there to be more growth for Tech than maybe traditionally. For the S P 500, you can click on NASDAQ.

you can see what makes up the NASDAQ 100 and again, NASDAQ 100 has more of a focus on tech companies. Then there's the Dow Jones Industrial right? And these are companies that are a little bit more on the traditional side, more on the retail side of things. Um, and again, if you prefer to gain more exposure for that, then maybe the Dow Jones would be more of a benefit. So I wanted to share with you not only talk about spy which is for the S P 500, but QQQ is the ETF for Nasdaq.

So QQQ instead of again buying a bunch of different tech companies, you can buy QQQ and that's one for one on NASDAQ. So if this if NASDAQ moves one percent then so does QQQ. And the great thing about this is again, you can you gain exposure to the top 100 100 tech companies according to the NASDAQ right? This offers me 44 return and then we have the you down which again, this is for the Dow Jones and you can see from overall lows to overall highs the type of return that this thing offers. Um, but again, this is for you Dow this is for spy and then this is for QQQ.

Now one of the things that I do want to remind you is that it doesn't just stop there. Those are the three most popular index funds right? NASDAQ S P 500 and DOW Jones. Once you begin to get a little bit more into it, let's say that you know you want to invest in real estate, but maybe you don't have the money to actually buy real estate. Well, there's real estate index funds and this is something that I'm actually going to be sharing with my Learn Plan Profit Group and I'm going to be sharing with them the top five and top 10 best performing index funds in the past 30 years.

When it comes down to you know being able to actually invest in these instead of actually being invested in real estate. So these actual index funds own real estate and based off of that performance you know will determine the 4 fluctuation of you know the actual ETF itself. So you can see that Vanguard Real Estate ETF This is just an example. this is ticker symbol Vnq By being able to invest in this, instead of you investing in real estate, you're investing in an ETF that has exposure to real estate.

So a great thing about that is, if maybe you don't have the money right now for investing in real estate, then this is a way that you can kind of get your feet wet. There's index funds for a lot of different things out there and again, this is something that I'll have to follow up with. And if you ever have any questions, then again, you know how to reach out to me. You know exclusively and that's uh, that first or third link in the description, all you have to do is send me a direct message.

Now one of the last things uh, that I want to talk about is, well, you know, how do you open up a trading account? Let's say that you are ready, right? You know what? Index Fund you want to invest in, you're like, okay, well, it seems like spy. Traditionally, if you look at, it outperforms 95 of other index funds, right? And if it has that consistency aspect, if it's oversold right now, I'm ready to open up an in an individual account, I'm ready to, you know, invest in spy. How do I do it right? Well, all you literally have to do is all you have to do is open up a trading account right? and I personally I I personally have an individual account opened up with Weeble and that's going to be the first link. I'm sorry, that's going to be the second link in the description down below.

So you can open up a free Weeble trading account, an individual account, and by using my link, you will actually earn up to 12 free stocks when you deposit your first 100. The great thing about Weeble is not only is it a trading application that I use myself Health but it's also available not just on desktop, but it's actually also available on mobile now. Weeble is also expanding to Australia and that that link is also going to be provided for you down below. So that's the specific trading application that I use and again, that is that second link in the description down below.

So you can open up your Weeble trading application or trading app. You can sign up and open up an individual account once you deposit that those 100 or whatever it is that you want to start investing into the stock market. Then again, you can begin to you know, buy the index funds and or buy the stocks that you actually want to invest in when the market is oversold now. I Do have a bunch of videos here on YouTube where I break down how to use this application, but if you want a full A to Z video Lesson Library I do have my learn plan profit lesson Library Not only do you get access to that full A to Z video Lesson library but you also get access to our daily live trading session I Trade Live every day, our private group chat, and access to the tech buds.

HQ So it's a one-time payment lifetime access and that is going to be the fourth Link in the description down below. So if you really want to get into trading and you're someone that instead of wanting to figure it out on yourself or on your own, you actually want to be able to tune on in and have everything kind of provided for you. again, the simple question is, do you want to condense the time that it will take for you to learn this stuff? And if so, then I have this entire setup for you, right? It's the fourth Link in the description. We're running our biggest sell to 150 off and right now there's four days left.

Right now, we're giving a free mystery box with every person that signs up for Learntime Profit 2.0 which comes with a trading mouse pad, a trading flag, a Wall Street trading journal, and a Wall Street Tee all included for free and it's provided for you on the thank you page once you sign up for Learntime Profit 2.0 and again, that is that fourth Link in the description down below. If you have any questions, you know you guys should know exactly how to reach out to me and that's going to be the first or third link in the description and I'll pretty much leave it at that. It sounds like my baby's crying right now. so I'm gonna go back to that.

So I really do appreciate you guys time. I Hope that I earned your thumbs up. Please consider subscribing And like always, let's make sure that we end the year on our green. Now take it easy team!.

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