For your chance to win the Tesla Model S and support a great cause, enter at https://www.omaze.com/graham - Enjoy! And now - lets talk about the current stock market, and why Millennials may see lower returns in the future - Add me on Instagram: GPStephan
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WHERE THIS STARTS:
According to Credit Suisse, and several other analysts…”Young people stand to make dismal returns on their investments.”
Unlike other generations, which have benefited from a relatively uninterrupted economy…Gen Z is forecasted to take on a market with higher unemployment, lower earnings, and higher taxes to pay off debts..and because of that, their returns will be lower than they were previously.
To put that into perspective, a 2% difference in returns over an extended period would mean that 30-year-olds today would have to work SEVEN YEARS LONGER, OR DOUBLE their savings in order to live as well in retirement…and that needs to be considered in how you invest moving forward.
Their advice was to consider saving more money, invest more money, consider alternative assets that might have a higher return, watch out for high fees, and to seriously explore the idea of how a lower return would impact your goals.
That’s the biggest problem with ANY “market prediction” article out there, like the ones we’ve just seen…they all take into account the current landscape of our economy, and what we ALREADY know is going to happen…and that’s the best that they can do. Even though, on the surface, it makes SENSE that we won’t see these types of returns indefinitely - it does bring the awareness that, at the end of the day, NO ONE knows what’s going to happen…that’s why, I’ve taken this approach that hopefully encompasses a little bit of EVERYTHING so that, no matter what happens - you wind up making money.
ONE: Don't hold 30% bonds
That’s because, the main purpose of investing in bonds is for stability…even though BONDS don’t get crazy huge gains, they don’t see large drops, either…and when the market is in a free fall…bonds can keep you from losing too much money. But, someone who’s just starting out today doesn’t need that type of safety net - given that, they might fine investing 100% in the stock market without any worries about “needing the money” before the market has enough time to recover.
TWO: DIVERISFY
That way - IF the market winds up going down, you don’t have ALL of your eggs in one basket.
THIRD: PLAN FOR LOWER RETURNS
I think it’s EASY to get spoiled in a market like this, where earning 5-10% in a month seems REASONABLE…but, when you look at the markets historically…that’s not NORMAL, and that isn’t going to happen forever. LONG TERM, we’ll likely return back to our averages of 5-8% per year after taxes and inflation…and that’s something that you should plan for, NOW.
FOURTH: SAVE MORE MONEY
Best case scenario, you invest more money than you need and have EVEN MORE profit while the markets go up in value…worst case is that your investments DO EARN less money as warned, and then you’ll be happy you saved more.
FIFTH: TAKE EVERY PREDICTION WITH A GRAIN OF SALT
At the end of the day, there are SO MANY variables that could change the entire landscape of the economy within a moments notice…and even though every investment analyst is doing their best with the information they have available…there’s still going to be a missing piece that we don’t know until after the fact.
So, my best advice is this: planning for a lower return is NOT going to be a bad choice…but, don’t take it literally, and still do your best to invest as you would normally.
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*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. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/
GET YOUR FREE STOCK WORTH UP TO $50 ON PUBLIC & SEE MY STOCK TRADES: http://www.public.com/graham
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
WHERE THIS STARTS:
According to Credit Suisse, and several other analysts…”Young people stand to make dismal returns on their investments.”
Unlike other generations, which have benefited from a relatively uninterrupted economy…Gen Z is forecasted to take on a market with higher unemployment, lower earnings, and higher taxes to pay off debts..and because of that, their returns will be lower than they were previously.
To put that into perspective, a 2% difference in returns over an extended period would mean that 30-year-olds today would have to work SEVEN YEARS LONGER, OR DOUBLE their savings in order to live as well in retirement…and that needs to be considered in how you invest moving forward.
Their advice was to consider saving more money, invest more money, consider alternative assets that might have a higher return, watch out for high fees, and to seriously explore the idea of how a lower return would impact your goals.
That’s the biggest problem with ANY “market prediction” article out there, like the ones we’ve just seen…they all take into account the current landscape of our economy, and what we ALREADY know is going to happen…and that’s the best that they can do. Even though, on the surface, it makes SENSE that we won’t see these types of returns indefinitely - it does bring the awareness that, at the end of the day, NO ONE knows what’s going to happen…that’s why, I’ve taken this approach that hopefully encompasses a little bit of EVERYTHING so that, no matter what happens - you wind up making money.
ONE: Don't hold 30% bonds
That’s because, the main purpose of investing in bonds is for stability…even though BONDS don’t get crazy huge gains, they don’t see large drops, either…and when the market is in a free fall…bonds can keep you from losing too much money. But, someone who’s just starting out today doesn’t need that type of safety net - given that, they might fine investing 100% in the stock market without any worries about “needing the money” before the market has enough time to recover.
TWO: DIVERISFY
That way - IF the market winds up going down, you don’t have ALL of your eggs in one basket.
THIRD: PLAN FOR LOWER RETURNS
I think it’s EASY to get spoiled in a market like this, where earning 5-10% in a month seems REASONABLE…but, when you look at the markets historically…that’s not NORMAL, and that isn’t going to happen forever. LONG TERM, we’ll likely return back to our averages of 5-8% per year after taxes and inflation…and that’s something that you should plan for, NOW.
FOURTH: SAVE MORE MONEY
Best case scenario, you invest more money than you need and have EVEN MORE profit while the markets go up in value…worst case is that your investments DO EARN less money as warned, and then you’ll be happy you saved more.
FIFTH: TAKE EVERY PREDICTION WITH A GRAIN OF SALT
At the end of the day, there are SO MANY variables that could change the entire landscape of the economy within a moments notice…and even though every investment analyst is doing their best with the information they have available…there’s still going to be a missing piece that we don’t know until after the fact.
So, my best advice is this: planning for a lower return is NOT going to be a bad choice…but, don’t take it literally, and still do your best to invest as you would normally.
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*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. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/
Great video I really liked it! I’m a young investor learning as much as I can right now about the stock market. I invest in DIVIDEND PAYING STOCKS FOR PASSIVE INCOME! My passive income portfolio is up 48% this year!!! I’m a hard blue-collar worker and have always paid for everything myself in life. I believe in WORKING hard & PLAYING hard! I’m very interested in learning more wealth building strategy videos from your channel, any tips? Keep producing great content and I can’t wait to watch your next video.
They use real data trying to propagate FUD! More the better so they can control, manipulate and profit over it! information ≠ manipulation
This is because they do not have professional guidance on their investments. I make huge profits on my investment since I started trading with Mrs Elizabeth Colleen, her trading strategies are top notch coupled with the little commission she charges on her trade.
I have been making over 300% profit from my bitcoin investment every week since my Colleague introduced me to Expert Victoria who now trades for me while I receive the profit.
With Logictoolz on iG, your iPhone xr will be unlock successfully believe me he unlocked my iPhone with just 30 minutes of his time…
I admit I'm not far in the video, but this generation is quite a transition generation. Older established companies are falling out of favor and new ones are cropping up every day. Zoomers can get good returns, but they've gotta be very selective about the stock picks they make.
Hi Graham! Do you recommend any websites, where I can track world economy and stock information? Just few websites with legit information about that kind of stuff?
I HAVE BEEN MAKING LOSSES TRADING MYSELF…I THOUGHT TRADING ON DEMO ACCOUNT IS JUST LIKE TRADING THE REAL MARKET… CAN ANYONE HELP ME OUT OR AT LEAST ADVICE ME ON WHAT TO DO?
I'm an INTENSELY ACTIVE INVESTOR. 2020 was TERRIBLE FOR ME. If you tried to buy value(buy the dip, sell the rip), YOU, YOUR SPOUSE, CHILDREN, and little cat Tommy were all SLAUGHTERED(ok, I might have exaggerated, but just about Tommy. He was spared). I had a much better year in 2019 and am having a better year in 2021. By comparison, the average investor did much better off the 2009 bottom than the 2020. In 2009, you could LITERALLY buy anything, and it went up. There were countless cyclical laggards that were flat or even down a lot in 2020.
So should I invest into the S&P500 in 2021? Because I just started investing this year and now I'm kinda worried! :O
If you want to become a millionaire, seek proper financial guidance from a licensed professional more so one with experience of the past bear markets.
Still a good time to buy Dogecoin not just a memecoin anymore. It became a currency for over 1200 stores/online stores etc . Do i have to say anymore then name Elon Musk and Mark Cuban?
What makes you think the government will stop supporting the markets with fiscal stimulus? The stimulus checks are extremely popular, why would the government stop such a popular program? After all, the stimulus costs taxpayers nothing.
If you are young only diversify if you don’t intend to learn to do a good DD. I personally put everything into one basket contrary to what everyone says. I am aware of all risk factors before investing bc of proper DD. Unlike betting where the odds are rigged agianst you sometimes there are amazing short term opportunities so if you want to make BIG money the posibiliities are 100% out there don’t limit yourselves!!
Nice video, I was able to build a big income stream during the covid-19 pandemic investing with a professional broker, Mrs Elizabeth Wesley
I HAVE BEEN MAKING LOSSES TRADING MYSELF…I THOUGHT TRADING ON DEMO ACCOUNT IS JUST LIKE TRADING THE REAL MARKET… CAN ANYONE HELP ME OUT OR AT LEAST ADVICE ME ON WHAT TO DO?
Graham can we do something about the scammers trolling your comments section pretending to be you. There is something seriously broken in thise peoples heads and it would be best to isolate them from polite society.
I like graham. Seems like a smart guy. But smart can be boring. Lol. No matter what the situation or scenario you get the same answer out of him. Save more invest more. Dont worry about the noise. And historically speaking that is absolutly correct. Problem is that i can only hear him say that so many times. Cant yall ask him some different questions please. Lol
A few things. As long as i get possitive returns im happy. If it grows a little slow then so be it. Second inflation i think will kick in shortly. We are already seeing it. So in raw numbers i think our returns will be legendary.
Recently i made huge profitson my investment since i started trading with mrs hanna gomez, her trading strategies are top notch coupled with the little commission she charges on her trade
On the contrary, if taxes only get raised on wealthy, $1M+ earners as proposed, the retail investors (like Gen Z and Millennials) that have help create this market will be just fine.
Seems like there's a resesion every 10 years so, I had already saved money from 2002 to 2007…and so glad i did. Before the pandemic hit i had started saving money again from 2013… Now expecting the next one by about 2029
What a stupid head line, new investors are getting destroyed, if you want to invest in tesla and buy stock today you would have a long term outlook of three to five years, if you put your money in today and worry that the stock is going down then you’re either a gambling trading , you are not investing!
But at the end of the day, mortgage interest rates have also dropped. Technically for average person you have same kind of life regardless you were born in 50’s, 70’s,90’s or now.
Everything has equal and opposite effect. You might pay more for something now than before but in return you will pay something less/have better opportunity for other thing.
Good advice! I miss these types of vids. Although you still go off topic more, and i forget what your vids about or find it hard to stay interested sometimes. If i was to add my opinion, the thumbnails are getting to silly for a millionaire with a following lol. You don't need your mouth open like a chick on Snapchat. Your followers will click your vids no matter what if the facts are solid!