What's up grandma's guys here so in the last year the stock market is up, another thirty percent, ethereum is up for a hundred percent. Amc is up, a thousand percent and dogecoin is up a whopping three thousand eight hundred and twenty one percent. Now, even though i cannot promise that i'll be able to pick the next home run, investment that allows you to turn ten thousand dollars into a lamborghini aventador svj. I can tell you about the best investments that you could make as soon as possible that are historically proven to work, even if all you do is invest on january 1st of every year and then do absolutely nothing.

This is especially important because there's a lot of concern lately about an over-inflated market sky-high, real estate values, all-time highs in a 100-year everything bubble that seemingly popped up out of nowhere. So it's more important than ever to stick with the investments that work and have the best chance at making you the most amount of money over these next 12 months. But before we begin, i want to share a quick message from the sponsor of today's video. The like button hi, my name, is graeme steffen.

You might know me from such classics as my 78 tesla and responding to pewdiepie, but what most people don't know is that those videos would not be possible without your help to smash the like button with one simple tap you'll be able to tickle the youtube algorithm Into recommending the video to an even bigger audience, who could also tickle the like button for the youtube algorithm, it's kind of like a pyramid, except this could be you at the very top. If you smash like button right now and subscribe, if you want to see more personal finance content like this in front of a green screen, so thank you so much for doing that, and now with that said, let's begin first index funds. Now i realize this sounds like a broken record, because i talk about this investment all the time, but that's because historically it works really really well, even when everything is trading at an all-time high. It's so good, in fact, that this is where i invested.

The majority of my own money throughout the last year and it outperformed a lot of my other investments plus the premise is really simple: an index fund is basically just a big basket of stocks you could buy into for one low price instantaneously. That way, you get to own a little bit of everything without having to buy them each individually at their full price. For example, if you wanted to buy one share of every single company in the s p 500, that would cost you a staggering 110 127.77 or you could just go and buy something like spy which for 477 dollars tracks them all at a price that isn't a Literal house, the advantage is by doing this, you get the diversification of owning 500 different companies, and this single investment is shown to outperform 95 of actively managed funds, meaning if all you do is make this one single investment. At the beginning of january, every single year, you're probably going to make a lot more money than your friends over at wall street bets.

Now, of course, there is absolutely the stigma out there that we're trading at all-time highs. Now is a market bubble, it's a bad time to invest, but the reality is. Studies show that since 1950, the market has hit an all-time high on seven and a half percent of all trading days, not to mention if we include the time the market spends within one percent of an all-time high that encompasses one out of every five trading days. Even more convincing is that since 1988, the market paid higher returns for investing at all-time highs versus just on a random day and 66 of the time.

Vanguard found that you're going to make more money. Investing everything all at once immediately than waiting for the perfect time to buy an even lower now sure, of course anything can happen and you have a 33 chance of the market closing lower at the end of the year. But if history is any indication, you're better off just investing immediately and then counting your profits at the end of the year. Second, individual stocks.

I say this because, let's be real, even though most of us know we're probably better off just buying index funds and then doing absolutely nothing that doesn't stop almost all of us from placing our bets and then seeing if we could do even better. And if you pick the right ones, well, yeah you could end up making a lot of money. For example, in the beginning of 2021, i invested a hundred thousand dollars in stocks picked at random payer monkey and one year later, that portfolio's returned 41 percent. Other stocks, like gamestop, have rallied over 700 percent.

Modern is up 115 ford is up 133 and with the right selection, you could wind up making a decent amount of money throughout the next year. However, as i'm sure you already know the higher the return, the higher the risk - and if you pick wrong, you could wind up losing a lot. For instance, c3ai is down, 77 peloton has dropped 76 robin it has fallen 50 and it becomes pretty easy to lose. A significant amount of your investment once you buy the dip and it keeps on dipping.

So my recommendation is that if you are going to take the chance on a few individual companies, there is a way to do it with the highest likelihood of coming out profitable, and that would be number one. Don't invest everything. Ideally, you should only allocate a small part of your portfolio to more speculative investments and that's it this way. If a few of them don't do well, you're, not risking everything, but if they do well, then you're boosting your return without getting carried away.

The second don't invest in hype, i have to say every single time i see some momentum gathering online or some upcoming highly anticipated event. That's expected to send the stock price soaring through the moon. It turns out to be already priced in, and the stock price plummets, while you're left holding the bag. The best way to sum things up here is that the current share price is often a reflection of the current financials multiplied by its future expectation.

If the expectation is that a company is soon about to be worth five times, the current trading price then most likely you're already paying a premium for that public information and third always understand what you're investing in now. Obviously my monkey portfolio was the exception, because i made that investment to prove that absolutely no one has any idea what they're talking about. But besides that, don't invest in a company, because everyone else is talking about it or because your favorite influencer likes it and they have a history of being right at least understand what you're buying how they make money. How long you plan to hold them for and how much you're prepared to lose? If you follow those three rules, it should give you a significantly higher chance of coming out ahead, profitable and to at least get you started in the right direction.

Feel free to use the link down below in the description and claim your free stock worth all the way up to a thousand dollars when you sign up for public and use the code graham enjoy now. Third, what most people forget is that when you make a lot of money in the markets, you're also going to have to pay taxes, sometimes up to 50 percent california. So as a way to avoid that, you should first be investing in a roth ira. Now, as a quick background, the roth ira is basically just a retirement account that allows you to contribute up to six thousand dollars a year in after tax money and then all the profit you make within that account is completely tax-free by the age of 59 and A half as an example, let's just say you max out a roth ira at six thousand dollars a year beginning at the age of 20, and all you do - is invest in an index fund that makes you seven percent annually by the age of 60 years old.

You would have 1 million three hundred and seventy one thousand dollars completely tax-free. If you had done this in any other account, you would be taxed on that one million one hundred and thirty one thousand dollars worth of profit. So, even at a fifteen percent, long-term capital gains tax rate, that's still a hundred and sixty nine thousand dollars gone to taxes, because you didn't listen to this video. Just think of all the things you could buy with 169 000, like this house in kentucky this ferrari 458 or this collection of charizards and let's be real chances, are taxes are only going up by the time we're older.

So now is the time to open this account and save as much money as you can today. The fourth there's no way we could have a best investments video without talking about one of the highest, yielding investments over the last decade, and that would be cryptocurrency and even though we've all seen the stories about people becoming a multi-millionaire with dogecoin retiring in your 30s. From an eight thousand dollar investment in shiba, inu or otherwise becoming a teenage millionaire with bitcoin, the truth is studies show that you don't need to go all in with a lottery ticket, like hope of making millions to do well and from all the data we have. These are the best cryptocurrency investments to make based on science.

First, research shows that you don't have to invest a lot of money to make a big difference. In fact, fidelity found that just a five percent allocation to bitcoin would have boosted the cumulative return of a traditional portfolio by 65 since 2014, even despite the sell-offs along the way. On top of that, a new york global investment firm even found that their best performing portfolio only contained three percent bitcoin and that boosted their accounts value by 50. The second, even though it might be tempting to throw it all in something like santa dash and hope that next christmas is better than this year.

Most data shows that you're best off just sticking with the top 10 cryptocurrencies by market cap and then doing absolutely nothing. As you can see here, a long-term hold, regardless of the year you first invested, has so far produced a positive return in excess of that of the stock market, leading us to believe that the most effective way to invest is to buy them all and wait. However, one more thing to remember from this is that, throughout the top 10 historically, the majority of those returns have still come from both bitcoin and ethereum, which, throughout the last five years, would have given you a 780 percent and a 2 623 return respectively. Just by investing 100 a week consistently so for anybody who wants to invest in cryptocurrency, this statistically is the safest approach, but the more you wander from that top five, as every study has shown us the bigger the risk, but also potentially the bigger the return.

That's why i believe that cryptocurrency can be a great investment in 2022, but only invest a small portion of your portfolio and stick with the safest largest most established coins out there. So that way, you get the highest return for the amount of risk you're willing to take. Fifth, we also have alternative investments which, throughout the last year, have done quite well. For example, we all saw what happened when logan paul showcased his pokemon collection and ignited to surge demand for nostalgic collectibles, which have already been appreciating at a rather consistent pace or classic cars which have nearly kept pace with the s p 500.

Over the last 10 years, even the right contemporary art is appreciated, 14 annually since 1995, leading people to believe that this is something to be taken very seriously now, even though this could absolutely be a very speculative, highly liquid investment that you have to research inside and Out it is possible to diversify and invest some of your money in this category and do quite well. For example, watch lovers would be happy to know that a rolex daytona has outperformed the stock market in 2021. Just buy a watch and enjoy it and that'll make you money each and every second. You can also consider buying and developing land or products in the metaverse, including decentral land or sandbox, buying certain nfts purchasing rare comics posters from memorabilia.

The list goes on. Like did you know, there's a massive marketplace for vintage posters where some of them now sell for millions of dollars. This is also one of the reasons why i bought this 2005 ford gt nine months ago, because not only is it a fun car to drive on the weekends, but it's also worth about 25 more than what i paid for it. The same thing could also be said about manual transmission, lamborghinis, a six-speed f-430 or an sls amg mercedes, as they become more and more rare.

Now the downside of the collectible market is that it's highly illiquid and you have to wait for the right buyer at the right time. So, in the event, you need cash immediately. The choice is either to sell it at such a rock bottom price. To someone who wants a deal or you have to wait for that reason, i don't recommend investing more than five percent of your net worth in collectible assets, just in case something happens and you need the money.

But if you know what you're doing or you have the money to buy the six-speed ferrari, you could end up doing quite well long-term. Finally, six we got real estate now. Yes, it is true that prices have gone up. 18.4 percent year-over-year interest rates are likely to begin climbing and inventory is at a record low, although it is still possible to buy a home is a good investment, and this is where i plan to invest most of my money throughout the next year.

First, everybody needs a place to live. Housing is something that a company can't just go and magically replace one day can't be outsourced and it can't be made cheaper online. The reality is, all of us need a home and, if we're not renting, we're buying, so the market is literally everybody. The second, the bank will lend you most of the money that you need to buy the house as long as you could come up with a 10 to 20 down payment.

This gives a huge advantage over stocks and that you could have complete control over the entire asset without having to buy the entire thing up front, without having the risk of being margin called. As long as you just make your mortgage payments, the third, since you have complete control over the property, you could make strategic renovations that will increase the home's value or increase the amount that you could charge for. Rent, for example, when i first started buying real estate. I would purposely look for places that were a bit worn down that were old and with a few months of work, they could be turned into looking brand new and that will increase the property's value in the process.

The fourth, the property - could also serve multiple purposes. In that you could move in as a cheaper alternative to renting or you could rent it out for an immediate return on your money. I actually took this a step further and combined the two by buying a two unit, building fixing it up moving in one side and then renting out the other to cover my entire cost of living. This is how i was essentially able to live for free while getting to own a building in the middle of los angeles and throughout my entire career.

I've just repeated this process over and over and over again, while i bought multiple properties in the process. The fifth, with all of this talk about high inflation real estate, is a great hedge against that. That's because when you get a loan from a bank, you're borrowing money and then paying it back over 30 years, but over 30 years, the value of your money in the future is going to be worth a lot less than it is today, thanks to inflation, making That a lot easier to pay off over time and, lastly, number six. The tax savings are incredible in real estate.

Every expense you have on the property is a write-off against your rental income. Like your mortgage interest, payments, property taxes, insurance repairs, maintenance, a property manager, you name it not to mention you could also depreciate the value of the property over 27 and a half years. So if the property is worth 275 000, that essentially means the first ten thousand dollars you make on that property is completely tax-free. That's why i've sunk so much money into real estate over the last decade and why it continues to be one of my all-time favorite investments besides subscribing here, if you haven't done that already and hitting the like button for the youtube algorithm.

So with that said, you guys thank you so much for watching feel free. To also add me on instagram and to my second channel, the gram stefan show i post there every single day - i'm not posting here. So if you want to see a brand new video from me every single day make sure to subscribe to that and don't forget to get that free stock down below in the description, it's worth all the way up to a thousand dollars. You may as well do that it's pretty much like free money.

Let me know which free stock you get. Thank you so much for watching and until next time.