What are futures? – MoneyWeek Investment Tutorials

so in this video we're going to take a look at the futures market basically the derivatives market as is called is made up of these things futures options and covered warrants which I do in another video and swaps which I've also done in another video once you've got the hang of those three groups of products you basically have all the planks required to understand derivatives so what our future's talked about in the context of commodities indices shares and bonds so let's start with the basic principles using a commodities based example and I'm going to use this example to illustrate all the key features bear with me if I use a little bit of artistic license in terms of the way the example works okay so let's set up an example of somebody who would use first of all something called a forward contract because the future is just an exchange-traded forward contract and forward contracts are very straightforward to understand most producers most manufacturers have their use for something in the forward market and the reason is they worry about price and this is a way basically to take out price risk okay so let's see how that would work so imagine I've got let's say a couple of sort of slightly undernourished kin Japs here one is a producer and the other is a manufacturer now producers how they worry about prices normally is that prices will fall if you're producing mining producing and commodity for example wondering about what you'll eventually sell it for you worry about falling prices whereas people can manufacture it using commodities such as the aluminium which we use in a moment tend to be more worried about prices rising they need to buy ahead if you're Aldi for example making cars out of the stuff you need to be buying ahead for production in six months or a year's time and your worry is what happens at the price spikes in the meantime do I just chance it wait six months and see what work when I'm not paying or should I do something about it so here's an example of how a simple forward contract will enable both parties to take away their respective concerns so a forward contract would simply be the producer saying to the manufacturer wallah I'll tell you what why don't we just say but I agree to sell excuse my spidery writing one tonne of aluminium I'll just call it al one tonne of aluminium when you need it in three months time and we'll fix a price of say two and a half thousand dollars per tonne alright so that's a bit spy driven it says I agreed to sell one tonne of aluminium al in three months at $1000 and the manufacturer thinks great that locks in my buying price the producers thinking great are locked in my selling price contracts done to people involved one is a buyer one is a seller okay and basically someone's going to win someone's going to lose in the sense that in three months time the market price of aluminium might be less than two and a thousand dollars who knows the london metals exchange for example if it's less then the buyers going to root wish they hadn't signed this contract if it's more than the seller is going to wish there and sign the contract but that's life at least with this contract in place both of them know how much the aluminium is going to be priced when they come here to deliver and take that of Ryoga in three months time so at the end of three months or what happens very simply is this in order for the contract be honored as you'd expect the producer sends a one ton of aluminium that is a picture of truck by the way one time of aluminium for manufacturer and two-and-a-half thousand dollars goes the other way and it sorry well as a forward contract and useful to both parties now in this scenario both parties are hedging their exposure to aluminium prices by locking in an agreed price three months ahead of when the aluminium – can be ready for delivery okay so let's take that a stage further let's take that further on and say right go back to the beginning so we've still got a producer a manufacturer on okay well we've still got contract number one and let's say that when this contract is signed back at the start of the three month period the market price of aluminium is two-and-a-half thousand dollars so the market price is the price they've agreed three months down the line now you might say that slightly unrealistic in practice let's go with it as an example so contract is signed manufacturer thinking great I know I can buy aluminium in three months time to another thousand dollars that's pretty similar to today's market price okay one month passes all right so that's the start of the example that's now let's say one month later one end later alright the market price has changed so the market price of aluminium is now three thousand dollars a tonne at the London Metal Exchange where we getting the price from okay all right in one month into this contract we have a winner and a loser already the manufacturer is thinking brilliant this contract means I can buy aluminum for two and a thousand dollars the market price is already risen to three I'm only one month in to this contract so far and the sellers thinking damn and really wish I hadn't agreed to sell for $2,000 when the market price is three if I could sell now I could make more money so imagine this scenario the producer puts a phone call in to the manufacturer and says I quite like out of that contract it's got two months to run I'd quite like out of it now the manufacturer might just say tough it's a contract you are going to deliver one ton of aluminium to me in two months time now and it's going to be that price okay or the manufacturer might say do you know what I'm prepared to do a deal here so the producers worried that if the price keeps on rising this contract gets worse and worse and worse it loses them more and more money the manufacturer might be thinking this is just a price spike okay bad is not going to last I see the price dipping in the next couple of months quite sharply so actually I'm happy to be out of this contract to clopsies I'm going to say that but that's what he's thinking so let's imagine that both sides want out of the contract early and what would need to happen this is a futures market and here's the answer you can't rip up contracts they're binding between these two parties but you can do something technical word coming up called no Veit them which is where you simply replace one contract with another so let's see how that would work and the end effect of it so one month in this is what happens same two parties involved but a second contract is drawn up and this time the manufacturer says all right here's the deal I'm prepared to do with you I agree manufacturer talking now to sell you one ton of aluminium in two months time because the original contract only got two months left to run okay well let's set the new market price so $3,000 right as the manufacturer says I'm prepared to set up a second contract I'm going to run alongside the first one and the producer thinks about it is alright now this process of setting up a second contract that almost cancels the first one is known in the futures market is Novation but who cares what's the effect of it okay we roll forward so three months later what's going to happen all right that's from the start at the example all right so we go to the end of the example well okay this is the beauty of what we're going to call the futures market in a moment here is the painful way of sorting this out okay and this when you think about it is not a sensible way to do it but you could you could take each contract separately so contract number one requires the producer to sell a ton of aluminium to the manufacturer at a price of two-and-a-half thousand dollars let's leave that one to one side so the producer thinks me right okay I've either got to have a ton of aluminium on site ready to go or worse I've got to go and find a ton of aluminium so that I can deliver it the manufacturer so let's take the second scenario where the producer thinks going down yeah I've got a contract right I better find a ton of aluminium so I can sell it and all of this contract otherwise I get sued so the producer goes into the open market and let's say the market price hasn't changed in the last couple of months and it's still three thousand dollars so the producer goes finds a ton of a living in three thousand dollars delivers it under this contract for two and a half thousand dollars okay and that honours contract number one so effectively is now a ton of aluminium sitting over here and the producer is already 500 dollars down having paid 3000 to get the ton of aluminium and then two and a half thousand only come in from delivering it but now the second contract kicks in so the manufacturer turns the same ton of aluminium straight round and delivers it back to the producer for $3,000 honouring that contract and the blue two things were one ton of a living room and sells it for $3,000 the market price okay now that is one way of sorting out these two contracts but frankly why would you bother could you're not just put them both in the bin to start with all right and have the producer pay $500 and the Macra all right if neither party was actually interested in physical delivery of aluminium they could use these two contracts as a way of hedging price changes in aluminium all right and all that would happen is the producer having locked in to sell it to an hour thousand and buy back at three has effectively lost $500 when these contracts expire and the manufacturers made $500 all right they might say well actually these two parties might have an interest in selling and buying aluminium is unrealistic but I could change these into trader one and trader two okay they could set up the first contract no intention of ever delivering aluminium then set up the second contract when the price changes still no intention of delivering or receiving aluminium but both contracts that have been trained a one-page trader to do $500 dropped up that would be called gambling on the price valu million and that's the basis of futures markets contracts which can be in theory bought and sold by anybody in the market don't have to be manufacturers and producers allow through this process of devotion are described basically any body in theory to gamble on the price of something like a commodity in this case $500 won by trader be lost by trader eh okay now just realist rate to finish off this little video just to illustrate if that works cause a bit of a mess if that works for two people in the market could it work for three and here's the beauty of futures markets is that when you set up a contract you don't have to cancel it with the same person if that sounds a bit weird bear with me on this one all right because what I'm going to do is just introduce three players into my market let's see how that would work now fit of artistic license here rather than having to write down by I'm just use L for long okay L for long and s for short or selling and that'll just simplify the amount of stuff I have to write on the screen but imagine you've got three players in the market a B and C just illustrate how a futures market could take those principles one step further all right let's write in a price for an asset traded on the open market of let's say so let's have a market price on day one of something nice and simple just ten dollars doesn't matter what the asset is could be a commodity for alchemist sake okay here's what happens these are now free traders in the futures market none of them want to take delivery of the asset ok so here's I could work a thinks on a bet on the price that's our set rising that's what I'm going to do is sell a contract to buy it called a long position at ten dollars now it takes two people to make a contract so B thinks the price of this commodity is going to fall and it's quite happy to take the other side of that contract with player a so this is what I mean by not writing out the full contracts again essentially L in summary says I agree to buy the asset in three months time for ten dollars I've summarized that as long ten dollars B has agreed to sell the asset in three months time for ten dollars so like my aluminum example just with shortened jargon okay now day two remember these are speculators now rather than producers and sellers they – the price in the open market for the asset is $12 hmm okay a is thinking great this is looking good I've basically agreed to buy gas at $10 and the market price is already 12 so if I pick up the phone and demand the asset for 10 I'm already in theory $2 up all right s and so B is thinking I've agreed to sell 10 already the price is 12 damn bit like my aluminium producer in the last example okay so mm-hmm let's see what happens next hey thinks do you know what I'd like this is a futures market I'd like to take out my $2 profit I Donna wait I'd like to take out my total profit now where that works is a sells a contract at the new price for $12 now you might be thinking I don't to play I don't want to close my position okay and realize a loss so I'm not interested in a bit like in the last example if the manufacturer on the side of the board just said one we're interested in to the second stage we're going to lead the first contract open but this is the advantage of a market in walks trader C and says yeah I'm prepared to take a gamble on the price of this asset I think actually it's going to keep rising so I will buy the other side of AIDS contract for a price of $12 hmm all right now this effectively leaves two players in the market hey has closed out by being long and short the same commodity just at two different prices a has effectively closed out any commitment to buy or sell the asset okay that leaves be betting on prices falling and see betting on prices Rises let's do one more day day three the price rises to $14 for the same asset I guess is the market price for the asset these people are gambling on at this point BNC this like to close out their positions and neither of them wanting to actually take or make delivery of the asset how'd that work be having sold a contract would need to buy it back at the new price of 40 and see and having bought a contract originally would need to sell it at the new price of $14 okay this is just to illustrate how a futures market could work in principle with three players in it what's the overall result first of all the asset in question has not been bought and sold by anybody this is all gambling okay all of them have closed out open positions you can't do that by being long twice or short twice you need to be long and short in other words you need to buy and sell okay so hey is sitting on a profit long ten short well buying something at ten closing a contract at twelve of $2 B unfortunately having committed to sell this asset at ten dollars and being forced to buy the contract back to avoid delivery of fourteen is down four dollars and C has agreed to buy up twelve got out of that commitment by selling a contract at the new price of fourteen so that's a profit of two dollars so here's my point I guess but basically everyone's closed out their positions minus 4 plus 2 plus 2 is 0 so the lads are picky like all right no aluminium copper gold silver what if you like has changed hands between any of these people all they've done is use the futures market organized by an exchange to take a punt on prices and there's been two winners from one loser one big loser as it happens and that's how markets work right if it works for three people it'll work for two thousand provided there is always and somebody in the market prepared to take the opposite view to you and normally a market that's the case all right so to recap futures are based on forwards forwards are commonly used by producers manufacturers in the real world to fix the price at which they take the Librium delivery of an asset okay those principles can be taken on a step further and converted into tradable futures contracts the advantage of futures contracts being you don't have to move any assets around whatever those assets might be in order to speculate on the price of them changing alright and that introduces the idea there as many people as you like can be evolved a futures market and that also introduces the idea that the volume and value of contracts traded on something like it's a copper mmm can far exceed the amount of copper that's physically on the planet because if this works for three people with no copper or aluminium or gold moving around the market then presumably it could work for 10 million people doing the same thing okay and finally a word of caution were you as a professional trader to leave a futures contract open by mistake has been known to happen in the early American Midwest the early days of futures trading there was one Muppet at a bank who left open a commitment to buy 20,000 head of cattle alright the day arrived he hadn't entered into the opposite contract that would have closed out the position so he got a phone call from what's called a Clearing House saying where would you like your twenty thousand head of cattle okay now clearly you can't drive for Marc Wall Street that makes sense and by the way you don't just buy the head you get the whole beast alright so that particular bank had to write a big check so that they could find somewhere a ranch in capital hand to put 20,000 head of cattle delivered under a futures contract they'd forgotten to close out alright so what I'm saying is all the futures market just like the forwards example I gave you you can if you want to enter into contracts where you physically end up buying or selling a commodity but it's perfectly possible to use them for purely speculative purposes as well

11 Things Millionaires Don’t Invest In

I'm one of entire have watch to spend time with my family we're just shy of two million dollars now and the awakener HD 3 is really clear right there oh she use my own line welcome to the Chris Hogan show home of everyday millionaires this is your show where your life and your money takes center stage it's your life VIPs take charge I'm so excited to be back with you all and you know I love to hear from you so if you've got a question or you've got a comment or a success story I want you to give us a call the number to call is eight four four two eight three nine three eight three again the number to call is eight four four two eight three nine three eight three or you can send us an email the email address is simply this ask at Chris Hogan 360 dot-com send us an email we'd love to hear from you well you know we're all about the phones and so guess what that's exactly where I'm headed right now I've got Todd on the line calling in from the Twin Cities Todd how are you today I'm very well Chris it's a pleasure to speak with you today well thank you my friend and I appreciate you taking the time to call in I understand you have you have made some some money errors in life yeah I have it no unfortunately I'm beyond that but but it certainly it wasn't a pleasant time yeah my wife and I we were living on the east coast and we were expecting our first child she was about eight and a half months pregnant mm-hmm and I was offered a job back in the Twin Cities and I really wanted to be in the Twin City since I was in high school okay so when my wife is about nine months pregnant I flew out spent 24 hours looking at 24 houses and because I thought I've got a I've got to be able to put a roof over our head bought a house in in less than a week and then flying back to to my wife came across this podcast thing by a guy named Dave Ramsey and thought well I'm a captive audience on the plane here I might as well take a listen to this okay and and this was in 2006 when when real estate was starting to sell kind of slowly but it it didn't make its way to the Midwest anyways it took about an extra six months after after we had purchased our house in Minnesota before before we were able to sell our house in New England hmm and so in order to cover that we had three mortgages a newborn and our salary had been cut by about 40% goodness gracious god yes I mean you you have to you at this point in time have got to be filling financial stress like on another level I would not wish that summer on my worst enemy it was not a fun it was not a fun summer but but we got through it I started listening to Dave Ramsey I had an opportunity to walk to work and starting to hear his message in his story and thought man we we got to do this yes we you know we've sacrificed way too much we've gone to school for too long got good jobs and in areas that interest us to be this broke so so my wife ended up going back to her we doubled our salary and we started living off of one income we started paying off all of our debts Wow one by one and as of today we're at Dave's baby step number seven now hold on a second now you just fast forwarded you you all cleaned up a whole lot of stuff I mean we aren't we do it you did I mean and how long did this take you about seven years Wow I mean yeah we had a really big shovel yes you did and and did your wife go back to work so late for the cleanup I mean this was thought dead or what was her motivation um she my wife grew up in in Eastern Europe she grew up in Poland and she learned that you got to work yes and so move into a new city she didn't have family around her didn't you have a huge network of friends mm-hmm so she thought I'm going back to what I know how to do so she started working part-time in a bakery she's got a couple of college degrees and worked her way up to the corporate level of a company in the Twin Cities and so now she works at at the corporate headquarters doing technical design work for them Wow so uh so she just worked her way and worked really really hard yes to bring home a little bit of extra money every month that's why what you both I mean you both did and it's that point Todd where you you you look at your situation and you go you know what we work too hard you know we work too hard it's for this to be the end result of three mortgages and have all this pressure on you so tell me this did you you got it cleaned up in seven years did you did you pay off the mortgages what did you do yeah we just we just we really put ourselves on a budget I we really buckled down and whatever we could whatever we could scrape up we put towards paying extra on on the mortgage so yeah it's just one month at a time that's right buddy and listen all that stuff it paid off because not only did you attack debt but Todd I want you to tell the listeners what is your net worth right now ah we're approaching 2 million that is fantastic again an everyday millionaire on the line and I love your story Todd because we all make mistakes we all do things wrong we all find ourselves in a bind financially but you didn't stay there you weren't stuck and so I'm very proud of you thank you again for taking the time to call in you see VIPs we can make mistakes trying to own a home for your family is a good thing but I've been there when I bought a home while owning a different home right and it's one of those things where we start to move so fast that we're not thinking clearly now for those of you that are younger out there I want you to hear me with this okay I'm talking directly to you you see me looking at you okay I'm if you're watching the show I'm making the eyes right now are you seeing them all right listen slow yourself down slow down and get intentional Riley start to think through like Todd said at one point they had three mortgages right three more just imagine the stress of that he said three mortgages a baby on the way and move into a brand-new city are you kidding me that's three layers of stress right there on another degree I mean I just got another gray hair in my beard you see it right there pop through you see it look all right but anyway listen to me he didn't stay there and I'm proud of him and I'm proud of he and his wife because they got focused and guess what we're talking to an everyday millionaire that's a big deal people that are working hard that are focus and listen I don't care where you find yourself right now okay don't tell me you're stuck cuz you're not stuck you just stopped and I want you to start believing and start getting intentional and starting to move forward because you can do this alright listen if you've got a question I want to hear from you I'll call us call us and leave us a voicemail the number to call us eight four four two eight three nine three eight three again that number to call as eight four four two eight three nine three eight three we'd love to hear from you or you can send us an email the email address is simple it's ask at Chris Hogan 360 dot-com send us an email we'd love to hear from you as well all right I'm going back to the phones I've got Travis in Grand Rapids Travis how are you that's I'm starting up to be talking to you man how are you Oh buddy I'm focused and not finished what do you got going on today well some 23 years old I'm married I just want to make sure I'm on the right path to retire a millionaire I've got about twenty six thousand dollars in retirement right now actively contributing the 15% and would match from work it's actually about 20% of my annual income my wife and I are in the process of building a home right now okay I just want to know what steps I can continue to take to make sure I'm on the right path and that I don't fall off the path right I'm no student loans everybody that anything like that borrow money that's good I mean I like that I mean I'm gonna tell you right now Travis if you stay focused with that that's going to keep you on the path so do you all have any other debt outside of this house that's being built no sir okay about 26 percent down to so we should be or in good shape it's it's following the rules that you guys heard put in place over there and we're on path there okay that's good because this is one of those big financial decisions do you all have kids yet not yet no sir okay hey how many does she want to we're on it we're in agreement on that one you better get that in writing okay i'ma tell you right now yeah but no I love the fact that you all put down 26% that's huge but here's the deal here's what I wish someone would have told me about housing it's one of those things where we get in this mindset that we're building the house you know the dream house and I don't want you to think like that odds are you may live in this house for five to seven years now it could be wrong you may stay in there longer but I don't want you to get in this mindset that if we don't do it now then it's gonna be more expensive later throw that out the window I want you to stay focused stick to the budget make sure the builders doing their job you all stay on the budget and stay focused and I'm telling you get in there the goal is obviously I don't know what kind of loan or whatever they're gonna convert you to but I'd love for you to go with a 15-year fixed and attack that thing get it out of your life and I'm telling you you can do this so I love that you're 23 years old Travis and your focus like this do you all have an emergency fund built up yes sir okay good okay about 20,000 they're fantastic and combined we make about 75,000 a year so the expectation is the house will be done in about six months okay we'll have another 15,000 or so that were expected to throw back on the mortgage again okay because we're staying with family members and tells bill okay we're able to pile up a big Hey and I will tell you this I'm gonna the outside of you guys being aligned on the financial stuff which is a big deal as a husband and wife but make sure you all are dreaming together and Travis hear me with this buddy before I let you go you see people say all the time Oh Chris and Dave they don't want people to have no stuff no that's not true at all I don't want stuff to have you so if you're gonna do something I want you all to save up pay cash and go slow okay you promise yes sir all right because I know we're doing Rapids there's Travis I'll come up here all right I don't want it under that certeyn Oh my friend we would come and hang out I'm proud of you buddy hey keep up the good work tell your wife I said congratulations you guys keep staying focused and keep working together all right okay all right buddy yes sir thank you you see all right there's a couple things we got to talk about here cuz these are these are big deals number one you know the fact people say all the time one Millennials well they're not focus at all I mean they're just running around in flip-flops and and and and house shoes and doing all kinds that it's not true just talk to my 23 years old man's focus they put 26% down on a house right they're going into it with their eyes wide open I don't like when people make generalizations like that right we got young people that are focused their listeners to the Chris Hogan show these people are dialed in and focus I love that but here's the thing with housing this is a big big decision I want you look I'm look I'm looking at you all right listen to me slow down there's not a law that says you can't rent renting allows you to save up so you can buy a home the right way that's the key don't let other people get you riled up where you get focused and you get off your plan stay committed to what it is you're trying to accomplish slow down just slow down and breathe and then you move forward right with a clear plan this Travis and his wife will be an everyday millionaire I guarantee you it's just a matter of time for them to walk through the process and stay focused all right listen all right you know what a lot of people have asked me Chris all right what's the path how do I make sure that I get on the path for everyday millionaire all right I want to be one of those I'm gonna ask you something it's a question do you know your net worth okay do you know it is there's a lot of questions out there about it of what exactly does the word net worth mean so I'm gonna break it down for you right now I want you to think of the things that you own right and then subtract out what you owe on that's gonna give you your net worth where are you right now so here's the deal to get started to get the net worth calculator here's all you got to do go to Chris Hogan 360 com slash net worth all right again Chris Hogan 360 com slash net worth and get this there's also a text in now what you get this right because this is gonna be difficult text the word Hogan all right there it is text the word Hogan to three three seven eight nine again the word Hogan 2 3 3 7 8 9 because here's the deal you got to know where you stand to know where to begin see for you to be able to come in every day millionaire so make sure you check out the net worth calculator today and oh don't be stingy with this information tell your friends tell your family so people can know exactly what's going on now as always DW will have a link to this and the show notes but if you're watching all you got to do is just click the link below right it's gonna get you right there and you're gonna be able to know exactly where you stand right here today so it's a great opportunity I'm excited for this tool we've worked with the developers and really walk through this process to help people know where do you stand where are we and so I think it's a great opportunity for us to get started alright listen people have asked me all the time I get a lot of questions about investing and people are want to know all right what about this strategy Chris or what about this different type of investment Hogan what do you think and I really wanted to take some time and really dig into this so here's what I'm about to do I'm about to walk you through things that millionaires don't invest in right I'm getting ready to tell you I'm gonna shoot you straight all right and walk you through this but I wanted to make sure that we took a few minutes to talk about the difference like I looked up saving like the definition of saving guess what it says savings is the amount of something that is not spent or used right so that's that's saving but listen it is so what's the investing investing is the act of committing money or capital to an endeavor right that could be a business project real estate whatever or investments with the expectation of obtaining additional income or profit now I'm telling you the difference between these two because it's so important for us to know the difference between saving versus investing so I save for an emergency fund right I might save to be able to take a vacation unless you're on baby step two and you got debt then all you're doing is attacking debt right your vacation you go outside then you come back in you stay focus you work but I invest for the future I'm doing things later so I'm investing money in my 401k or investing money in my Roth IRA to be able to walk through to have money set aside now you all have all heard me say before you want to invest 15% but I want you to make sure that you have the help of an investment professional as you're doing this looking at your 401k to understand exactly what you have available and what you should select but also what you should stay away from and so I'm I'm only focused on things that millionaires don't do today all right and so I got a list of them here listen to me here's some things these are things that typically tell people to stay away from savings bonds alright that's not something that's going to help you to be able to grow that was something that that back in the day people would look at that as a saving mechanism we saved now I want you to use a money market account it's gonna give you a better rate of return prepaid college tuition this can become an expensive thing that up from a company that may or may not be around that's something to avoid prepaid burial plans these have caused people a lot of headache and a lot of heartache at a time where they're already experiencing a loss so I want people to avoid that and then there's also certificates of depreciation okay oh I'm sorry it's called certificates of deposit this is something people use they will set money aside and plug it in there here's the deal it locks your money down and it's not giving you any growth so that's why I call them certificates of depreciation because your money is actually depreciating right it's not working for you or doing what it could do and then this one Oh Lord listen okay you have to edit that out I just got riled up right here this next one I'm about to tell you about this is one that I hear at least twice a month two times two times a month people are asking me about this one Gold people will ask me Hogan I want to get a gold bar because you know if the economy collapses then at least I got a gold bar I just want to hug them right it's a tight hug to look because these arms I don't have chicken arms okay I'm tell you right now I'm strong well used to be I'm old now but listen to me gold bars alright if if the economic system has an issue you mean to tell me you're gonna roll up into the grocery store with a gold bar and get what you're gonna get laughed at right because you can't buy milk you can't get eggs you can't get anything you need with that little bar you know it won't have value so you don't want to invest in something that's not gonna have value okay now again don't get me wrong and don't send me any emails either if you're somebody that's an everyday millionaire and you want to get you a gold bar fine go do it you know why you've already hit the status you're there you're rock-and-roll in your focus but I'm saying for people that are trying to build and to get started this gold is not going to be something that's gonna give you anything to really stand on later except for some stomach aches right as the price fluctuates all right if I got riled up over that one you know I've got another one this one is trends right these investment trends there's always something that pops up every few years that gets everybody riled up and happy and you know where I'm going with this one right Bitcoin okay Bitcoin now if you've been plugged into the show you know I talked about that a while ago but essentially bitcoin is this thing so it's not even a coin okay so DW I don't know why they have Bitcoin in it and it's not really even a coin it's code all right so it's this it's this thing that you invest in then you don't get anything in return but you have some code right that has to be then validated by this mysterious person and then authenticated later right now listen to me it sounds like a bunch of mystery to me sounds like snake oil to be honest with you that they used to sell back in the westerns I just dated myself right there but whatever I've seen reruns of Gunsmoke y'all know about that but listen to me bitcoin it is it's this it's this fad and people get caught up in it and they think oh I want to do something cool well listen you under something cool put money in a 401k right dude do some things that are gonna help you to have growth not something that's mysterious and that could have make your money evaporate so listen let me tell let me tell you the list again for those of you that are that you're sitting at home listening to this I want you to drop this stuff down because I want you to protect yourself and your friends stay away from savings bonds prepaid college tuition prepaid burial plans certificates of depression excuse me certificates of deposit gold and Bitcoin millionaires don't invest in those things they really don't and see those things they're not a good idea they're not a thing that's going to help you to build wealth it sounds cool and the a shroud of mystery around it but I'm gonna tell you something millionaires don't do these things and I'm gonna tell you something else all right hold on listen I got a whole lot to say about this like I am I am riled up in this I got a lot to tell you but here's the deal it's because this episode is focused on what millionaires don't do what they don't invest in and I got more to tell you but but I got to get back to the phones and so I'm gonna go back to the phones but listen I'm coming back to this cuz I got more things to tell you about but here's the number to call if you've got a question or a success story give us a call at eight four four two eight three nine three eight three again that number to call is eight four four two eight three nine three eight three because I would love to be able to hear from you alright I'm going back to the phones I got a Alexandra on the phone how are you hi I am fine thank you thank you for taking my call well I'm honored to be able to speak with you hey I'm just curious what is the temperature right now in Connecticut degrees okay alright because people tell me you know that's one of the places I've never been and people always tell me it's cold right is it is it cold there a lot okay how long have you lived there Alexandra I have lived there about 30 years oh you've been there a long time what's the coldest you've ever seen it oh that's not too bad no no okay all right well people are making it sound like it's the Arctic so I need to come visit why we'll do that how can I help you today okay my husband and I have a very good income we have no debt but we have two big mortgages one is on a family summer home which my husband would sell because it's tied to his family we do fund or retirement accounts a 401 K and a 457 so long so my husband and me do those to the maximum we have decided in our marriage that our legacy gift to our kids was to pay for college so they could graduate debt-free okay the problem is that we are now in year three of eight straight years of private college tuition and as a result you're living paycheck to paycheck so my question is should I be concerned about not paying down our mortgages and building our wealth or should I view the next six years of our lives at a time of giving to our kids because we can and be okay with just doing the maximum on our 401k and 457 and not going into any other okay all right so this is this is multi-layered here I want to ask a few questions Alexander and I appreciate you sharing this with me because I can hear the stress in your voice what is your household income right now it's about three hundred and eighty thousand dollars okay all right and you're telling me the the the your your in eight straight years of paying for college or that's what you have left right we have six more years six more years how many kids do you all have we have two they are 20 and 16 okay all right and you all decided that you wanted to pay for college that was your that was the legacy gift you wanted to give your kids correct okay how much do you you said you all have a 401 K and a 457 how much are in both of those combined ballpark combined about 1.8 million oh okay wait a minute Alexandra how much is in those 1.8 million okay so I'm talking to everyday millionaires here on the line well we started saving before you knew each other so we came into my marriage okay Alexander do you know you're a millionaire I don't feel like a millionaire honey okay well we'll get to that in a second but do are you hearing me do me a favor say I'm a millionaire I millionare you are honey y'all have worked hard I don't know if that's not something for you all to be shy about you've worked hard here to be able to do this and so you guys have have pushed and focused and you're there so now that changes my focus here a little bit because right now you all are trying to do given and trying to do that on the school front but now it's a matter of the paycheck-to-paycheck is the thing that's really kind of eating at me because you all have a great income and right now what's happened is is it's it's it's you've lost your way a little bit and as far as taking on this big opportunity and this massive level of debt for your young people to really understand what's going on I think the thing that you've intended as a gift has actually become an anchor for you all financially and so I want you and your husband really to sit down and talk this through so you can figure out how are we gonna approach this moving forward you see just because you start something doesn't mean you can't adjust it okay I mean that's good you have the right intent you've got the right mindset on it but I mean we got to be smart about where are they going to school you know if they're going to school and it's 40 or 50 thousand a year that's what the whole nother ballgame that's supposed to go in a place that's that's 15 to 20 and so a note really boils down to mathematics and I'd also say look at your budget you know look at the budget understand kind of where you are every dollar will help you really get plugged in and understand how to be in more control but you've got an opportunity here to make some adjustments and I think those adjustments are what's gonna be really important especially for the 16 year old that's coming up they need to apply for scholarships and grants and really be able to look at this so we're going to with our eyes wide open and the other side of this is as this a deal that you all are making for undergrad or is this grad school because I'm gonna tell you I got some friends that are career students okay seriously I've got a friends that have gone to got a bachelor's a masters a PhD an element of P I mean they're going after everything and so there needs to be a fine line on this of what you guys are going to do so again congratulations on reach and everyday millionaire status but now what I want you to do is that let's put some more guidelines on this you and your husband have a conversation I can hear the angst about the the family summer home because we definitely want to attack those mortgages or what's the long-term play are you all planning to stay in your home and if so we need to get that thing paid off and so you own it and so I think the key is gonna be tightening up the budget and getting a little bit more focus but having those conversations together Alexandre I think you all can definitely get there and really be able to walk through this again okay VIPs looking at this really being aware and staying aware that as you're chasing down progress and you're trying to make some things happen we've also got to make sure we're staying in tune and earlier I was talking to you about things that millionaires don't invest in alright and and I want to come back to this because when it comes to investing everybody I think these days tries to get cute or clever they think that they found this secret to investing and really the reality is is that obviously sometimes they end up chasing something down that's almost like a one-hit wonder right I mean seriously like when I say the phrase one-hit wonder you know exactly what I'm talking about right it's like those music artists they had that one song and for a minute they were the man or the woman they were running things in the music industry right like like one-hit wonders like for example alright listen y'all remember the song Ice Ice Baby yeah okay yeah that was my I don't know if he had anything else DW did had anything else yeah he says to do you never eat doesn't know alright listen here all right what about this song don't worry be happy okay I don't I don't know if they had anything else okay and then get this one what about this one achy breaky heart I can't say that and keep a straight face right what what happened to achy breaky who was that bill that's Billy Ray Cyrus like where is he now well actually he's probably doing quite well cuz his manager his daughter Miley but you get my point right they had the one song they just fell off the charts now I'm not knocking anybody because I'm not a songwriter like I that's not what I do but the point is is that mindset what we don't want to do is chase something down that could be a one-hit wonder a thing that hey I'm gonna go all in on this and if it does well that's great but if it does not lose at all because I'm talking to people that have gone down this path I'm talking to people that have done this with Bitcoin a gentleman that I know liquidated 401k and put it all in Bitcoin right he's gave up almost 50 percent of his money to put it in the Bitcoin and the point is is that he was in it at the height and guess what it is now it's down significantly like almost 68 percent so he's watched all this hard-earned money almost the evaporates right in plain sight so I don't want you to do this I want you to understand the options that we have so we're not a one-hit wonder but we're doing some things that really help us stand out and really stand up for our future and see everyone wants to know what do millionaires how did they do it right how did they invest what did they do how did they walk through how did they grow their nest egg well as many of you know our own in-house research team just did the largest study that's ever been done on net worth millionaires and I'm telling you largest we studied over ten thousand millionaires ten thousand of them and really dug in to get to know their stories and understand things that they don't do like we wanted to know what they did and what they thought and we've got a lot of their stories captured but I want to tell you some things that they walk through that they don't do one of the top things they don't do single stocks single stocks we hear about this all the time and people get confused because they say well Hogan you and Dave talk about investing in the stock market yes you have gross stock mutual funds and other things that are there but single stocks are where you put money in to get a piece of the company it's almost like owning the brick right of a building and people are doing this the problem is is that it's so volatile now when I say the word volatile what I'm talking about is that it fluctuates up and down a lot all right I mean it can it can give you you'll need a roulade to watch some of these right because adjust your stomach just gets in knots why because the market responds based on somebody hiccuping or or or doing something weird and it impacts the stock price so single stocks are not something that they do guess what else they don't do business loans right they're not doing because anybody that knows business knows that if you take out a business loan you're essentially your obligating yourself on a personal level there has to be collateral put up for these loans you all know I'm a former banker so you know I know about collateral this is the thing that I'm putting on the line in exchange for this loan well most of the time that ends up being a home it ends up being a personal signature or even if you own the company an obligation or a promissory note that allows them to pierce what's called the corporate veil which means that even if the company goes on there you are reliable as an individual so they don't do business loans guess what else they don't do leveraged investing schemes now these this one I get frustrated on because this is like a HELOC all right now we've all heard the word HELOC that's a home equity line of credit can I give you the Hogan translation of a HELOC it's a big credit card that's attached to your house there it is right there a big old credit card because it's a revolving credit that allows you to pay on it to what you ball and it just stays there by the way those are technically as second mortgage and a lot of people aren't aware of that but millionaires aren't doing any of those they don't do single stocks or not doing business loans they're not doing leveraged investing or gimmicks like helix here's some other things that they avoid also I'm letting you in on some of the study stuff they told me not to tell you this stuff and I'm going to tell you because I can sophisticated or complicated retirement planning or strategy okay they're not doing that they're not try to do something where they look hip or cool by the way you know the most popular things millionaires use to build their wealth don't tell nobody for one case there it is that's the thing that they use to be able to get to every day millionaire status they also don't do self driven investment strategies where they're just doing it on their own you all remember day traders back in the day okay and that's all man that was another one it was that one is almost like Bitcoin today day trading became huge right because all you heard were the stories of people that that that went big they didn't tell you they didn't stay big long right so guess what they don't do this millionaires aren't doing this you know what they do don't tell anybody I told you they're working with an investment professional they're sitting down looking at their 401ks with an investment professional to get the right kind of guidance so they can make directions and decisions based on their destination that's what they're doing and so listen I'm telling you the things to avoid because I don't want people making mistakes right I made mistakes back in the day when it came to investing because I was trying to be hip okay I'm gonna tell you all right I bought a stock all right bought the stock it grew it was doing well so guess what else I did I added money to it and it grew some more but guess what happened guess what happened take a wild guess it stopped growing it started going in Reverse and I refused to let go because I've wanted to hope then it would come back and it went further in reverse all the way down to nothing and so what I had was something that I put into something that was very very volatile so when I talk about this VIPs I'm talking on a personal level because I ran the numbers on my stupid back in the day and if I hadn't done that and I had invested it the right way I'm probably looking at close to three hundred and fifty thousand dollars right now I need a minute hold on hold on that just hurts my heart oh by the way do you see that look those of you that are watching look what DW got me okay that's pretty cool right there but listen all right so I want you to learn from my mistakes I don't want you to make the same error that I did I want you to remember remember the story of The Tortoise and the hare right and I read that sort of my boys all the time but it's it's slow and steady wins the race like don't try to be glamorous don't try to be super hip or cool stay focus so here's the deal I've told you a lot of things to avoid but if you want to read I get more information about what you should be investing in listen to this if you want to build a solid investment strategy here's what I want you to do I've got some articles on my website go to Chris Hogan 360 comm slash articles and I've got one on there called investing 101 let me tell you this again go to Chris Hogan 360 comm slash articles check out the article I have on there the the blog posts about investing 101 and it's gonna be at the top of the feed so you won't have to dig far because this is information people need to know so again if you've got a question or you want to call us call us at eight four four two eight three nine three eight three again that's eight four four two eight three nine three eight three we'd love to hear from you call us and leave us a voicemail or if you'd prefer to send us an email the email address is asked at Chris Hogan 360 calm now you all know I'd love to do research let me let me find my little article here because this is one of those things where to go DW throw it away hold on I'm fine those of you watching on YouTube you're seeing me hunt for this thing but I got it right here but I want to walk you through this article because I saw this and I went no way it says Millennials expect to become millionaires despite debt right and I chuckle at this because I go I love that they're wanting to become millionaires but we got to help them we got to educate them on this debt problem alright take a look at this data shows that 70% of the male Millennials expect to be millionaires and just only 38% of the females felt the same but looking at this they they all have this appetite for debt they don't see it as as big of an issue as they thought for here's an example the survey asked around 1,500 American Millennials at what age they thought they'd hit millionaire status fifty-three percent believe they'll become millionaires in their lifetime seven percent expected to become millionaires by age thirty 19 predicted by age forty sixteen said by the age 50 and 70 / 7 percent excuse me thought they'd be millionaires by age 60 or later but here's the deal majority of them 17 percent of them had not achieved financial independence from their parents yet so they're still living at home looking at this I think you know when I first read this I go hey I love that they're dreaming big I love that they're focused and they have this desire what we're gonna need to do some guidance right we're gonna have to help some people I mean first foremost we got to get out of the nest that means you're you're leaving home and becoming an adult right on your own but also I want to give some caution because I really want parents to be able to guide young people to help them to understand kind of the danger of debt and the threat of debt to not only the now but also the future so we have to guide them we have to help prepare them to watch out for some stuff because we all know the commercials on TV the credit card offers right the car loans student loans all these things are hovering out there so it's something that can be dangerous to people right and can end up attacking their financial futures so we've got to guide them we need them to understand that debt is not a tool debt is a threat okay let me say that again that's not a tool debt is a threat and so if parents aren't teaching young people this then they're left of their own devices when they get out on the college campus or out into the regular world or in the workplace right and so people end up making those mistakes and they can get caught up and tangled up in that situation so let's guide them let's help them to understand exactly what's going on where they are and then I want to also fan the flame I want Millennials to believe that they can become an everyday millionaire because they can they just need to work the right kind of plan now when I say plan here's what I'm talking about I'm talking about budgeting I'm talking about attacking debt smallest the biggest that means write it out on paper I want you to attack the little one first and work your way down I want you to build up an emergency fund to give yourself a cushion between you and life happening and then I want you to invest 15% of your household income it will put doing those things right there will put you on the path now we also have to keep lifestyle in check it's okay to want some things I just don't want you to let your wants get out of the place and in a way of the things that you need so Millennials believe that you can but I also want you to work like you should and that's being focused and staying plugged in and we all know we've got Millennials listening in to the show I want you all to share the message with people let them know what's going on so they can know what they can do and the direction they're gonna go so it's a great opportunity to really get plugged in and I'm gonna I'm gonna get back to the phones now dig in because I know you've got questions but if you do have a question or a comment call us that number to call us eight four four two eight three nine three eight three again that's eight four four two eight three nine three eight three or you can send us an email at ask at chris hogan 360 com next up I've got Jennifer on the line from North Carolina Jennifer how are you today I'm great today Chris how are you oh I'm fantastic I love to hear that southern accent don't say that too loud because I'm actually some Pennsylvania so you know Yankee hasn't I guess I've lost the Yankee and me hey you know what's hilarious is that me being from Kentucky I actually moved to Pennsylvania was up there for five years right outside of Pittsburgh though how long have you been in North Carolina well see I've been down here for about 25 years so I some what I've been told that now qualifies me as a southerner so I can't quite you know but hey when you go back home you can for sure because you were born there so it's good how can I help you how can I help you today well you know speaking of Millennials I have a daughter who is 22 and she is currently in college and she has about two more years ago we're taking the roundabout way to get through school but my questions about I we have gotten my father logs blessed us with getting her series the series double e savings bonds when she was really young when she was a baby and we probably got one a month for probably ten years so we have a good like ten thousand dollars yeah well what says that it's ten thousand dollars little pieces of paper but you know as you know the interest on those things are ridiculously low and not all of them have matured so we've been able to cashflow her college with some of these savings bonds because fortunately she has gotten scholarships and so what we're picking up is with those savings bonds is just a little extras like books and you know additional tuition but my question that I have is is that for the ones that have not matured yet what is the best thing to do with those because I kind of feel like having them sit there for another you know 15 years you know until they mature it's probably not the best thing but I also want to make smart choices to make sure you know that we're doing the right thing yes well you know what and the heart behind the the grandfather that sent those in obviously the heart was that he was loving on this child right and to be consistent like that over a 10-year period that definitely shows something what I would do it because it's really based on how they're structured and wired I would get those things connected and get go sit down with a smart vest or pro or your investment professional to figure out one of the options because some of them will allow you to go ahead and cash it in with a surrender fee others lock you in so without seeing yours and being able to look at it I'd gathered those up and go sit down and look because I've heard of people that have went ahead and kind of taken the surrender fee on it just to get the money and then they started to invest it for their kids for later in life so going grab them up and go sit down with an investment professional figure it out if it is one of those where you look at it and it's too much to surrender or you're wanting to allow it to mature again just you know put those things in a safe deposit box so you can be aware of where they are and make sure your daughter or whoever it is knows where they are and what they are so there's a time frame so Thank You Jennifer for the call I definitely appreciate that again looking at this and walking through there's so much going on out there VIPs people have questions people want to know what do I turn what can I do well I'm gonna tell you I myself had a question I wanted to know was the American Dream still alive in America was it really possible for someone an everyday person to really build wealth in America today well guess what we did we did the largest study that's ever been done on everyday millionaires studied over 10,000 of them we wanted to find out the truth I wanted to know their story I want you to hear this because this this got me excited I had an opportunity to sit down and and talk to a lot of everyday millionaires I mean it was one of those where you know in insight understanding exactly what was going on and what did they walk through right what did what are the things that they worked through and and really pushed through to be able to achieve and I'm digging up this store because I want to share it with this is from an and said I have been a single mom for 27 years and I've built almost all my wealth during that time as a single mom and she says even on one income I did it through discipline and consistency she said in having a loving caring family who convinced me that I would make it through this a single mom Ann has a net worth of 1.1 million dollars she's an everyday millionaire as a single mom and she said she's been on her own for 27 years and she raised her kids but she also did something else she I'm sure she loved on her kids and guided them but she also is providing for herself and she didn't allow what happened to her in life keep her held back from what she wanted to do with her dreams and thank you I'm proud of you again it's an every day millionaire all right I'm getting back to the phones but if you've got a question or you want to call us call us and leave us a voicemail the number to call is eight four four two eight three nine three eight three we'd love to hear from you next up on the phone I've got Christine calling in from st. Paul Minnesota Christine how are you I'm good how are you good oh I'm focused and not finished how can I help you today well I'm calling you today because my husband is stressed out about retirement oh and I was hoping I could get your opinion on our situation okay well tell me this how old are you all we are 25 years older what Christine your husband's 25 years old he's stressed out about retirement okay what's going on what's causing him to be stressed out I don't know I think we're doing pretty good he's stressed out to the point where he's considered getting a second job oh ma we got married we got married three years ago and during that time we paid off $36,000 in student loans okay and that we will have a fully funded emergency fund month okay and where you have $15,000 say for a tournament best fire and we're really looking forward to saving up for a down payment for a house okay okay so you all you've paid off the debt you you you're gonna have your fully funded emergency fund next month you're investing in the 401 K and you guys are saving for a house is that we're not yes the only thing is that we're not currently saving for retirement okay 15,000 we had was before we started paying off that okay that we just left alone okay gotcha so is that 15,000 where is that parked right now okay gotcha so you did some investing prior so you do have 15,000 saved up for retirement yes okay and so but you're telling me your husband is stressed out about it yes okay you want to be farther ahead okay and do you all have kids yet no kids okay all right so you got time and money right now get him talk to him and find out where's he wanna be like what are his dreams have you all had a dream meeting yet hold on you just got sad why did why what what did he tell you what he wants to do okay well but you all are 25 you got some time right so he's the planner that's right well and here's the deal you guys are wired different and and it's the male-female thing which is actually one of the things that can make you all a great team it is going to be a matter of really kind of dialing in and do me a favor I want you to hear each other like when when you talk about your dreams and you say as you said yourself you're all over the place you got a lot of things you're interested in a lot of things you want to do for him did he tell you his dream yes what is his dream his dream is that when we start having kids he's not working all the time and can spend time with his kids okay and take them to sports practice okay okay and see his stuff yours is activity driven and his is more family driven and there's nothing wrong with that I don't think there's a right or a wrong did he come from a family that that didn't have money no he's actually really good okay all right and so he's learned some of those habits so do me a favor all I want you guys to do is stop simply work together like I want you all to talk to each other share it but here's the deal don't try to fix each other stuff just hear each other you guys said I want you to tell him Christine for me you all are ahead of the game at your age I mean seriously you're 25 years old you guys don't have any debt you've worked hard to pay that off you're gonna have your emergency fund fully funded emergency fund in place next month and you guys have already started saving for retirement so now it's a matter of going into this process with your eyes wide open as I talked about earlier right with a caller that is looking to find a home I want you guys to go into it with your eyes wide open so you don't become house poor and what I mean by that is that you buy so much house that you can't do other things so slow way down make sure you get connected with a real estate ELP in your area all you have to do is go to Chris Hogan 360 comm and click on real estate ELP you can find a trusted real estate agent up there that'll walk you through the process so you understand exactly what it is you're doing and what you're buying and so it's a great opportunity for you all to stay connected and to truly make sure you're getting on the same page but again talking to each other it's not a one-off that's going to be a continuous thing that you do you guys are newlyweds still been married for just three years so you're working to learn each other but I'd say always choose to support each other and encourage each other and that happens with communication so VIPs if you want to join a community of future millionaires we a plan for you we have a Facebook group that is absolutely rockin and rollin this is a community these are people that are focused on doing things the right way because they're on their millionaire journey so all you have to do is go to facebook.com slash Chris Hogan 360 and click on the group section and then join Hogan's everyday millionaires but I wanted to give them a shout out and take a question from the group Jillian sent in she goes Chris I'm on baby steps four through six for those of you that are new baby steps four through six means she's investing 15% of her household income she's also saving up for college but she's paying extra on the house that's where they fall financially and she says I found out I'm considered a highly compensated employee so I can't contribute more than 10% for the Roth 401k I'm fun during a regular Roth as well as an HSA where else can I complete the 15% so again being able to look Jillian where you are financially and the money you have coming in what you're putting aside and investing in the Roth 401k for those that are listening out there Roth 401k simply means you're using after-tax dollars to go into your 401k so it's growing tax-free remember when you hear Roth Roth equals tax-free growth so it's a great opportunity but Jillian you have some other options you got the Roth 401k highly compensated your income is at a certain level so there may not be things that you qualify for for example with the Roth IRA but for highly compensated people there's what's called a backdoor Roth IRA and that's a great opportunity for you to establish an IRA but go ahead and pay the taxes on it therefore converting it now again I want you to get connected with a smart investor pro to be able to walk through the process to understand exactly what it is and what you qualify for but here's another thing Jillian for people that are out there if you're maxing out your 401k and you're putting the the top amount in that you can each year don't forget that you can still save for retirement outside of retirement accounts what I mean by that is you can put money and gross mutual funds with being attached to a 401k again smart Wester Pro can help you set that up where you're putting in a few hundred dollars or a few thousand dollars whatever direction you want to go but you can put that aside consistently to be able to help you start to save up to be able to chase down your dreams well listen I want to thank all the callers I want to thank my everyday millionaire Facebook group my phone screen uh Amanda DW my producer Bobby my audio dude forced and plugged in and listen until next time don't make excuses make progress

US economy about to collapse… & dollar's going down with it – Peter Schiff

we began today's newscast with another market slump there's been a couple of them of late yes it recovered later in the day but many very smart people are saying it may be a sign of some things to come one of those is Peter Schiff Peter is a CEO and the chief global strategist at Euro Pacific Capital he's all over the googles as they say and he's all over YouTube as well I see him there myself all the time really smart passionate commentary is what he offers something he often has a tendency to say things by the way that a lot of people don't so Peter thanks so much for being with us you know I don't know if you caught the very beginning of the show but I explained that there's a household debt issue of about 15 trillion out there is that the only debt that we need to be worried about ya know everybody is loaded up with debt and it's not like we we began the this monetary experiment without much debt we had a lot of debt in 2008 in fact the financial crisis was about debt it was about our inability to pay the debt that we had but instead of addressing the problem and allowing a debt to be paid down the Federal Reserve led us down the primrose path into much deeper debt by keeping interest rates at zero and holding them there for so long the Federal Reserve actually encouraged an overly indebted nation to borrow even more money so now it's all facets of American society that are leveraged to the hilt individuals corporations the federal government the state and local governments so everybody is loaded up with debt and guess what interest rates are now finally rising and that means the cost of servicing that debt is going up and this is going to be a problem just like an adjustable rate mortgage was a big problem in 2008 when these things were resetting people couldn't afford to pay well the same thing is gonna happen on a national scale rates are going up and we're too broke to pay so the problem is if we try and normalize things it's going to create chaos is there any way that we can avoid that at this point no it's impossible in fact because we kept it going so long the collapse is going to be that much bigger I mean the sooner we face that reality the better but no politician wants to face that reality right I mean they want to pretend everything is great right of course and by the way the Trump tax cut does it alleviate the concern worsen the concern what does it do well obviously it makes the concerns worse because if the government is collecting less revenue then the deficits are getting bigger and so now the government has to borrow even more money and that becomes an even bigger problem what we need is smaller government but nobody wants to shrink government including Donald Trump who is now the defender of Social Security and Medicare he wants to launch another nuclear arms waste and start to space for us so it's all about spending more money so Trump wants to spend more money and cut taxes at the same time I mean that's a completely reckless all right let me not ask you a question as a news guy now let me just ask you a question as Joe citizen sitting out here listening to your conversation where I'm thinking man this guy is making some sense but I'm very concerned about what he's saying what are the signs that I should be looking for and what should I do about it well the signs are already there I mean look the stock market is falling 40% of the S&P is already in a bear market so the stock market is forward looking to the next recession looking at what's happening with the homebuilders the housing stocks the financials the retailer's all these are the same things that were happening in 2007 leading to that crisis so people need to be prepared this is not only going to be an economic crisis but a political crisis as well because the Republicans are gonna take the blame and socialism is gonna be seen as the solution and it's going to make the problems that much worse when it's implemented you know 2021 so what you've got to do is get out of US dollar assets the dollar is gonna be the biggest casualty along with the American standard of living but you've got to invest in foreign assets look at some of the bargains in foreign stock markets emerging markets hmm that have been depressed by the strong dollar they're gonna be they're gonna see a boom with dollar weakens and look at the price of gold up another eight bucks today but it's still about 1230 Gold's going to new highs it was at 1900 in 2011 it's gonna go much higher this time so just it on some golde it's a hold stocks it's a it sounds like a new reality Peter and we thank you for the hard truth we gots to go but thanks so much for sharing some of your wisdom whether you look forward to talking to you again you

How to Invest in Real Estate as Early as 19 [12 Steps]

all right time to start the day and if you follow me on instagram at real me Kevin you would have already known that I went on a run this morning know somebody of the comments that I should be further away from the camera so know that in today's video we're gonna talk about how you could start with real estate at 19 years old and I'm talking about investing in real estate not even being an agent in fact don't do whatever it is you do and go to college but this is how you could start at 19 cuz that's what I did and yeah if you didn't already guess this one's gonna be a vlog style educational blog see the playlists own it honestly all these courses are gonna have another biggest bull look and I'm not saying that people can't make money with wholesale but if anybody knows the thing or two about wholesaling they know that it's all involved with taking advantage of the real estate agent so just make sure that you throw that realtor some light you know no guess how many wholesalers I shut down all the time I'm moving in close to the camera now so sorry for that one person that didn't like it oh I'm coming up with a camera where's jack I found max hey Meg good morning oh he's right there what's up jack mornings are the worst so hectic everybody sends emails starting up like eight that's why I like waking up at 4:30 alone today we're talking twelve so today I'm doing an educational blog style video on how a lot of people say hey how do I get started and really you can do this at any age but I really wanted to make a video targeting people that are in college and there are some really neat interesting features about that position step number one tricks up oh look I big that thing is Kevon myself and this huge tree stump are here to tell you today about how you can acquire a property at the age of 19 step number one this sounds really basic but you gotta save money like fifteen to twenty five thousand dollars I was so anxious to get my first job and I got my first job there and I worked about 15 hours a week and I started thinking that and it helps to have a girlfriend who saves early because we kind of combined our funds which we'll learn about later in this Kevin really brought me down though you didn't start saving at fifteen well first I met Kevin when he was 16 and I actually applied for his first job for me yeah that was after what we call my pre job when I worked at Hollister Lauren quit for me she was my legal assistant actually really surprised they just did take you off the schedule so I acted as if I was some type of recording for you right and I said something like hello I am calling on behalf of Kevin Patrick like it's a fill-in-the-blank step number two is you know how to start building credit it's so important Lauren does property management she sees all the time oh well I'm in my 20s I don't have credit yeah I'm too young to have credit yeah sorry you ain't getting the rental place the same is true for buying you have to start establishing your credit do it at 18 we both went into a special place to open up our credit cards on our 18th birthday Lauren where do we go it's a really really unique Bank called will you're actually really easy to get a credit card from when you're 18 they're kind of like yeah sure we'll give you a credit card with a $500 limit and we're like okay just paid off every month pay that religiously I think we each probably paid it off like three times a month just to make sure we'd make the payment I just played back that clip to review it and my leg looks so massive because it's at the edge of the lens that wide-angle lenses just like disproportionately larger than the rest of my body careful for the mud Lorie careful and the bikini over there who's been whose is that number three I hate to say it you have to have a job it's not about that later but the most important thing is have a job so that worst case you know you can always at least make the payment your housing payment is $1,500 a month and you make $2,000 a month that's fine and I'm not suggesting that you want to be that tight all the time but this is when you're 19 years old if you're making 2,000 bucks at 19 that's great Lauren and I each made about 900 to $1,000 per month when we bought our first house so our payment was $1,900 and we were making just $2,000 a month we weren't expecting to only make $2,000 forever and even if it's a nine-to-five job I know that 95s have a guide rep but it's really really good because it's a secure job you can rely on that money and of course you could get fired or something happens but for the most part you know you work these many hours per week and you make this amount of money per hour it's predictable unlike self-employment especially a 19 it's very difficult to make consistent money at 19 at self-employment you take advantage of consistent employment like Lauren said yeah can you get fired of course you could also get hit by a bus tomorrow or somebody could walk up to you and stab you and kill you that literally just happened I get a little upset when I hear so many videos on YouTube say ah quit your nine-to-five take advantage of that predictability or nine-to-five gets ya buy a house hey Lauren was that too aggressive what am I being it's passion that's it they all say have passion especially especially that guy in the comments that's it scaring your audience it was I made a mistake okay and I thought you know just kind of giving you like some closer insight was better just like you said get away from the 95 job with the realistic truth is so many people have 95 jobs so let's actually talk about it and let's work with those numbers and the benefits of having a 95 job I honestly wish I had a nine-to-five job because I feel like I work 80 hour week you know what Kevin you at a 95 job would still figure out how to fill up the rest of the hours that you got off work and then do something else you were just a special special human and now we're gonna check out a staging job that I just did I just want to make sure everything is perfect before I take the fun partial stage partial stage where we take the photographs today and you can get any type of date forfeited on it this really gives a cool effect for putting up against a wall the funny thing about staging and everybody asks me this like oh it's staging that's you must have like a really really nice house in your home yeah I do like how I decorated my home but staging is completely different from actually living in a place because it's not functional at all like why would I waste my valuable counter space for this little tray that literally gives no purpose at all but to look nice and say with this I mean I'd including a blender and between a toaster so you know my house doesn't look like the staging jobs because it doesn't make sense to actually live in a staged house these are fake another thing about functionality versus what looks good for a stay in houses I would never in a million years have light tan couches especially with kids and with white it would make no sense at all that would be stained in like a second at my house but it gives a really really nice open light effect in any room and this furniture really can go in any house again sorry for my appearance Kevin didn't tell me we're filming again today I thought I was just gonna work on a sale man every day I don't log what no meet Lauren hey so now that I looked at that other staging job I haven't fully approved it it looks very good and it's ready for photography we're on to the next where I am staging partial staging another family room and a dining room in a house that's about 20 minutes away step number four is having a fallback living space our fallback was worst case and for whatever reason we weren't able to make extra money or live off the rest of our savings until we increased our incomes over time we would rent the property out and move back which they did charge us right but it was like 200 bucks oh no they didn't charge me rent excuse me they charge you rent for living with my family want to make sure that that property can rent and cover as much of that payment as possible yeah that game plan inset whether it be with a friend with your mom and dad whatever just know you could always fall back on something very worst case there you have to evacuate now beyond having a job and mommy and daddy's help hatch which we say that because we definitely made use of it it's also a good idea to make sure that you can afford the payment don't get a forty nine hundred dollar payment because you can make it happen with the advice that's coming up with the rest of the advice in this video number five even though some of the advice that we're gonna give later in this video means you can actually get a higher payment than really what you're making you don't want to be in a place where you're not comfortable with the payment because ultimately you need to make sure that everything goes okay so the reason we got a 1900 our payment will baking mm is because we knew our incomes would be going up we just wanted to get in and we're gonna talk about exactly what kind of property to buy you don't have to start out extravagant it's okay to start out with a condo or townhouse or small house you just want to start somewhere so you can start building that equity I always told myself even if I had to quit my new real estate career just to make the payment that's what I would do check out some of the before pictures of the house that Lauren is staging right now and see what Lauren's doing with it right now Lauren it's hard to see now because I have a lot of my deck or on the deck but this is an extremely tiny and this table of chairs that usually has the two chairs at the end of what I did just make it seem like it makes sense is I took the two chairs away and just have the two tiers on one side have a bench that can tuck in and then it makes the whole area it seem like it makes sense with the size of the dining table now we're gonna talk about step 6 that's where you come from option 4 fallback is to get a roommate which when you have an attached bathroom it makes your life easier living with another person because it's not really fun to share bathrooms with people that's the thing if you have a place that has two bathrooms you should be able to easily get a roommate that can take the guest bath and rent out a room around here at least ran out of room for seven hundred to twelve hundred dollars per month you know just suppose we have some clients that go into buying a property knowing that they're going to get two roommates and it haves their payment often it's incredible it's smart if you have to do it it's totally smart I think that was something we were considering doing oh it totally was when we moved into our first place we thought okay absolute worst-case scenario we move back in with mommy and daddy but we thought if an in-between step were to happen where we're like oh we make it but it's super tight we could always rent out the two rooms we had a three-bedroom house so we could rent out the two extra rooms did you stage that monkey right there I didn't stage any of this part I just staged that front dining area living room part I got my Vista back I live for a vanity like that hey Lauren look what I did with the blinds I mean it so you can't see the whit neighbor this is probably the hardest part number seven you gotta have help I'm sorry to say when you're 19 you probably don't already have two years of work experience you probably don't have the qualifying income anyway so this is what you need to do and don't feel bad either it's totally normal that was the place Lauren and I were and we couldn't qualify alone so here's what we did we found a family member with a little debt a decent credit score and enough income to help us qualify the very important part about this is you have to remember to start building your credit remember the credit step you got to start building it because everybody who goes on the loan to get the best pricing has to have at least a 740 credit score it's okay as long as you're above 700 you should be fine you don't even 800 in fact you don't even get any benefit having a 741 or an 800 it's all the same so don't worry too much about having that perfect super high score just get it over 7 as soon as you can find somebody who can qualify with who also has at over 700 and is okay also being on the hook for the debt so you'd better not mess them up okay because these are gonna be people might be able to help you set up future deals as well so here was our example we bought a house for three hundred and five thousand dollars the total payment was 1939 it was a cosmetic fixer totally needed a bunch of work who's a foreclosure and my father co-signed with us so he didn't put any of the downpayment down that was all Lorne and my savings and instead he just helped qualify for the loan in fact they used a zero for my income but we still made it happen still bought our first house in nineteen and today it's a rental property Oh extra note if you have a bunch of student debt qualifying can sometimes be near impossible because the student debt payments really kill not only your qualifying ability but even if you bring a cosigner on that has little debt themselves and they have a great job or even just a decent job where they can prove income your student loan debt could kill it all same goes for credit card debt card debt any kind of debt payments will lower your ability to make this happen so you need to build credit but not build debt housing debt is different way number eight to minimize your chances of you getting screwed and the people that lend you money getting screwed or the people that cosign with you getting screwed basically to minimize all your chances of failure here's what kind of property you need to buy the ideal property to buy is one that is cosmetically dated as it it's got shag carpet wallpaper acoustic ceilings original kitchens original bathrooms all that stuff sucks but and I love to buy these properties they've done the expensive stuff they put in a new water heater they put in dual pane windows they replace the roof recently they've replaced the heating and air system these houses are dime a dozen out there guess who the only people are you're gonna compete with you're not gonna compete with other homebuyers because 98% of homebuyers they don't go for this cosmetic stuff you're gonna compete with flippers and guess what you'll win every time buy because you could pay more a flipper has to build in their selling costs and they have to have their margins so tight so that in three or four months they can put it back on the market and try to make twenty or thirty thousand dollars when we bought our first house it was listed for 287 thousand five hundred dollars as a foreclosure and we'd be 3:05 for it because there were two cash flipper offers on it full price and guess what we were putting down three and a half percent and they went with us because well yeah we paid like seventeen thousand five hundred dollars more which was a lot but we didn't care I mean today the fact that we paid that much more has advertised to like virtually nothing we haven't sold the property and we have no intentions of selling and we're just gonna keep renting it and what we do sell it we'll exchange so we'll always be able to beat out a flipper especially since lepers have to pay short-term capital gains it makes flippin very very expensive just to show you an example yet see this carpet nobody wants carpet like this well under the carpet in this house is this hardwood flooring which looks like it this however this hardwood flooring looks old it doesn't look that great look what three dollars a square foot goddess with a professional hardwood company this refinish so the point is get something cosmetically dated that most people won't want and not only are you going to be able to fix it up yourself probably for way cheaper than what the market discounts it for but because the market discounts the prices of cosmetically dated houses so much you can actually buy something for 3% fix it off and end up with 20% equity after your fix up costs because the market just discounts cosmetically dated properties so severely step number nine you need three and a half percent of your own money you put three and a half percent down on an FHA loan you can have what's called a non occupant co-borrower that means your parents are now able to cosign with you qualify for the property and they don't even have to live there but you get to live there yeah do you have to pay mortgage insurance yep don't worry about that step 12 has a solution for that so just a little bit of perspective on what three and a half percent down means that means if you get a $300,000 property you control you put down just ten thousand five hundred dollars now are there gonna be some closing costs and some fix up of course would be nice to have twenty thirty thousand dollars around or just keep saving so you can fix it up over time absolutely but the bank says you just need ten thousand five hundred dollars and you control a three hundred thousand dollar piece of real estate that is awesome that's America for you and should take advantage of it because if you're not taking advantage of it that's fine I'll keep buying those deals but I just thought I'd share it and put it out there that worked for us I'm not saying it works in every scenario again we're not saying you can't lose your job and have problems and then you know have to figure out how to make up to your parents that you lost this house that they co-signed on that would be bad ideally your parents are also in some kind of position where worst case if the market fell their jobs are not subject to the market so that the payment can continue to be made or whatever payment can be made just long enough to get the property rented that's always your fallback roommates or a fallback and the ultimate fallback is just renting the whole thing out but you got to get into control and the only way you can get in with 3 and a half percent down so you have to say you live there and that doesn't mean just say you live there no no live there move there but if you lose your job and circumstances change that's ok then it's ok let's say you lose your job fine move out no problem then the bank doesn't care the bank at that point just wants your money you have options if you buy the right deal a really good cosmetic fixer that has its systems upgraded is a score now what about taking title well if I can find the deed I'll show you and I have to always disclose when it comes to taking title can't give financial advice I'm not an attorney you should consult an attorney you don't have to take title proportionate to how much money you actually put into the deal when Lauren myself and my father took title on that three hundred five thousand dollar deal I got 49% but dad got one percent and Lauren got 50% you could do whatever combination you want you could do yourself ninety nine percent your parents one percent fifty-fifty with your parents and then you'll solve that in step 12 sorry I know it's late now step 11 do some fix up yourself learn how to do drywall look at this ball myself this beautiful set when I fixed my first washing machine find multi Minister some tools bent this conduit myself even wired up my little Tesla charger all by itself now I know this is supposed to be in conduit and haven't gotten to it yet but now my little GFCI breaker here right all these things you know surge protector whatever they're things that I've done myself because I like to know how to do things because then I know the value of things and I know what I'm getting bids how long something should take there's a value to doing something yourself take a look at some of these pictures from that first house we bought for $305,000 every time you see my life I learned so much I'm so grateful that my father-in-law encouraged get in there and work there's so many people willing to share their construction knowledge with you and if you don't have somebody guess what go do some electrical stuff after watching some YouTube videos don't turn the power on yet pick up the phone and call electrician and say hey 300 bucks just give me 45 minutes of your time which is like a way over payment anybody will come help you out safety check all my work tell me and teach me what I did wrong quick lesson now you got a safety check on the outlets and swishes eat it gotta figure that all out yourself I don't want you to burn your house down maybe electrical is not the place to start what I'm trying to say is it's an idea step number 12 the final one you bought a cosmetic fixer you've built equity in it now you do a refinance and you officially own the entire property because ideally by the time you refinance your incomes gone up you could qualify for the house yourself and your equity positions gone up because hopefully the markets appreciate it but not only that you bought a great deal and you finished fixing up the property and now you can get appraisal for more money so you refinance and you get rid of that mortgage insurance that's exactly what we did see we bought in 2011 and refinanced in 2013 mortgage insurance go on so there's a special loan program called the FHA 203k which is totally a topic for a different video but basically the bank let us finance $50,000 to fix up the property look at that with three and a half percent down America is ridiculous so what if you fail what if the market Falls if the market Falls hopefully you've enough equity so that you can sell as you're realizing that the markets falling but even if the market falls to a point where you're upside down as long as you can rent the property out should be okay and there really shouldn't be a reason why you can't rent the property out and that's all I got for ya oh but wait if you're still here who's a caricature is better ah

Top 10 Mistakes New Business Owners Make

hello it's Amanda with watch me franchise and this is our third video in the business tip video series everyone makes mistakes it's how we learn and new business owners are no exception to this rule to help our viewers overcome these trials here are the top ten mistakes that nearly all business owners make number one thinking too small or too big if you think too big you can wind up biting off more than you can chew alternatively if you think too small you may be missing out on valuable customer opportunities it is important to be aware of how much business you can handle and position yourself for expansion number two losing your focus or drive too many new business owners get caught up in the excitement of opening their business and overworked themselves too much too soon remember that opening a new business is a long-term project and you need to stay focused yes you are going to work long hours but be sure to take breaks and not overexert yourself too soon number three taking on too much by yourself you cannot do everything on your own and if you try to then you can lose your energy quickly it is always a good idea to seek the help of others such as employees or professional services then you can focus on your own goals and not worry about the smaller details number four sacrificing your personality your business is an extension of you as a business owner you will likely work long hours and when you are not working you will probably still be thinking about your business in order to make this kind of commitment you need to love your business and know that it is a part of you number five not tracking your advertising when you spend money to advertise your business it is important to know if your money is being spent effectively or not for example it is wasteful spending thousands of dollars for a billboard that never generates new customers the only way to know if your advertising is effective is to track it number six investing too much in one client new business owners are often quick to rearrange their entire business structure for their first big Lyonne but make sure not to put all your eggs in one basket not every client will last forever and you do not want to be forced to close your business if you lose that one big client number seven going against your gut instincts when you open a new business you will want to heed the advice of others but do not let it overshadow your gut instincts when all is said and done you are the business owner and you need to trust your own ideas number eight not getting involved in the community attending local events and becoming an active member of the community are great ways to get free attention to your business networking is an important part of building up good business relationships that can directly lead to customer opportunities number nine managing employees poorly poor employee management can be detrimental to a new business owner managing employees is not something that comes naturally to everyone and creating bad relationships with employees can create serious problems for a business owner number 10 trusting that signed contracts will be honored although any document that contains an agreement and signatures is technically a legally binding contract in order to enforce it you will have to go to court this can cost thousands in legal fees in a waste of business owners valuable time business agreements are relationships that are based in trust if you keep quality relationships trustworthy clients then you will not have to worry as much about what is written on paper well there you have it if you can make a conscious effort to avoid these common mistakes then you will find it much easier to open and operate your new business be sure to check back next month for the next installment in our business tips video series see you soon

10 Expensive Discoveries Found During Home Renovations

home renovations are known for being pretty costly but sometimes you never know where you'll find very treasure you might think that you need a treasure map and advance excavating equipment to find a treasure chest but sometimes it's as simple as swinging a hammer in your own living room not that we recommend you trying this at home but we'll show you some lucky people who found expensive items during home renovations if you want to sign up for even more awesome discoveries brought to you by the hub be sure to hit that subscribe button and then join our notification squad goldbrick for people with plumbing troubles in their houses it seems like plumbers just exist to take money but a couple of plumbers in Calgary actually returned something extremely valuable to the homeowner le Feb du Lundeen matteri were tearing apart a bathroom and noticed something unusual in a pile of dusty rubble at first they assumed the glint was part of an old light fixture but they soon realized that it was far too heavy they reached into the pile and pulled out a gold brick the size of a cell phone the golden brick ended up being worth about $50,000 it weighed over two pounds and was stamped with a serial number honest to a fault the plumbers returned the brick to the owner who had been missing it terribly pebble is the owner of perfection plumbing and gas Ltd and in his 12 years on the job he says this is the most expensive item he's ever unearthed it's thought that the homeowner had stashed the bar under the jacuzzi tub and the vibration from the motor in the tub caused it to become dislodged from its hiding place and get lost but bull' hopes that finding and returning the gold bar means that good karma will soon be coming his way half a million dollars finding a large sum of money in your house seems like it'd be awesome but there really depends on who left it there to be discovered when a couple bought a home in Paradise Valley Arizona they began to do some renovations and discover that the walls were literally full of cash half a million dollars in cash that is the money belonged to the former owner of the house Robert Spann he had a habit of storing valuables all over the house and after he passed away his daughters scoured the property finding various stocks bonds gold and other treasures when they were convinced they'd found all there was to find the daughters put the house on the market as is unfolded when the new owners hired a company to do some renovations they found two old ammunition canisters full of cash in the kitchen wall and an additional two inside the bathroom now here's where it gets complicated the contracting company believes that it was entitled to the money while the couple believed it was there since they owned the house we believe that legally this is referred to as Finders Keepers losers weepers rule meanwhile spans daughter's file the suit also claiming that the money actually belonged to them the core ended up finding out that because the daughters didn't voluntarily and intentionally give up the money it still belonged to them movie posters while finding a treasure trove of movie posters probably isn't as exciting as finding a gold bar or a stack of cash they can definitely add up Blair Pete ray from Alberta Canada was set to renovate his new home and begin tearing down some of the walls while the saying one man's trash is another man's treasure certainly applies here because it seems that the homes previous owner used vintage movie posters as insulation after only living in his new house for two weeks he stumbled onto a plethora of movie posters from the late 1920s and early 1930s there were about 360 posters and film title cards that were once likely displayed in a movie theater they were found stuffed under floorboards in a crawl space and underneath the roof the posters featured many big stars from that time period including Bela Lugosi Buster Keaton and Greta Garbo out of the over 300 posters he found 40 so far have been sold at auction and brought in about $30,000 after auction fees were paid cleverly the homeowner stated that he plans to use the proceeds to pay off the renovations that netted him the treasure to begin with cash in the ceiling if you have already checked your floorboards and walls for a cash you might want to check your ceiling as well in Queensberry New York hilltop construction company was hired to renovate the kitchen of an older home the home belonged to Jim and Judy Thal and let's just say that they were pretty thrilled with the job the construction company did one work opened an access panel above one of the kitchen cabinets and found a nondescript brown paper bag that just so happened to be filled with cold hard cash the $100 bills inside the bag were dated back from the 1960s and totaled $15,000 it was the son of the company's owner that found the bag and he just tossed it on the floor saying here's a bag of money but thankfully another worker actually looked in the bag and discovered that it was in fact a bag of money it's scary to think that this could have easily ended up in the trash heap but instead it was turned over to the shocked homeowners who also decided to put it towards future home remodeling projects comic book some people are lucky enough to find hidden treasures in their home that's even more valuable than the house itself one such fortunate individual is David Gonzalez from Hoffman Minnesota he paved just over ten thousand dollars for a fixer-upper property and immediately got to work he was tearing out old insulation in the garage when he noticed that a previous owner had used newspapers and comic books to line the walls one comic in particularly caught Gonzalez's eye and he brought it inside to show his bike after subsequently protecting the delicate comic from his wife's grabbing hands Gonzalez decided to track down someone who might be able to tell them what the book was worth the comic book is one you might recognize in 1938 Action Comics number one was released which may seem familiar because that was the first time we all met Superman the con it was in rough shape but it still commanded a hefty price of over one hundred thousand dollars when it's sold at auction getting a one hundred thousand dollar book out of a ten thousand dollar house means that Gonzales got a return on his investment times 10 when asked what he intended to do with the money he said the usual spiel about taking care of his family but then added that he also wants to buy a Camaro Maps okay so maybe finding the treasure map is usually only the first step towards finding something expensive but you have to admit it's a very important step when Guilford and Christine Watkins begin renovating their floor they had to peel back many layers of old flooring in the dining room hidden beneath one layer were old ship maps and nautical charts for years these had been covered by layers of foam newspapers and thin suits of linoleum they were able to trace the map's origin back to the 1800s the house itself was built in 1833 and was inhabited by generations of a family that owned numerous ships and even a shipping company the maps vary in size and geography highlighting the English Channel the Dutch coast and British America it's estimated that these maps are worth up to $6,000 because of their historical significance but the Watkins family has no intention of selling they bought their home in no small part because of the old-fashioned charm and they plan to properly matte and frame these unique pieces of history in addition they're also looking forward to renovating the rest of the house to see if they find any more hidden treasures mosk finding cash or rare comics in your house is an exciting occasion but a couple in Rome found something even more incredible while renovating their home something of immense value that it's hard to put a price tag on Joe's epic Adelia and Valeria gia Russo purchased an apartment in via Porto de Castro located near the Royal Palace of Palermo after owning it for nearly a decade they finally got around to renovating their home they planned to knock down a wall in order to create a more open floor plan when they notice that the plaster was wet due to a leak when cleaning it up they noticed Arabic right in underneath the plain looking walls were detailed Arabic inscriptions made in silver and gold startled and intrigued by this discovery the couple called in a restoration expert in an expert in Palermo history it's thought that this home once belonged to a nobleman or a merchant in the late 1700s the former owner had constructed a mosque right inside his house the discovery was very important as a mosque built in a private dwelling had never before been seen in Sicily as far as a dollar amount for this incredible discovery we can't really say for sure but it must be worth a pretty penny painting secret rooms and fake walls seem like something out of a Sherlock Holmes novel but once in a while they do appear in the real world as well just ask brothers Dave and Don Jr trachy who inherited a house in Vermont that it once belonged to their late father when the brothers began renovating the house they noticed a strange gap in a wood paneled wall they tore down the wall and found a secret storage area inside holding one extremely valuable painting the painting is breaking home ties an original Norman Rockwell a copy of the painting was once published on the cover of The Saturday Evening Post and was subsequently voted the second most popular cover in the magazine's history second only to another Rockwell painting of course when the paintings sold at auction it was for a record-breaking 15 point 4 million dollars of course the really interesting part of this story is what the painting was doing back there in the first place well it seems like their late father had bought the painting for a mere $900 back in 1960 and he considered it to be his prized possession while going through a bitter divorce he cleverly reproduced the painting and hid the real one behind the fake wall in order to stop his estranged wife from taking possession of it coins while some people immediately recognize that they've hit the jackpot this wasn't the case for a construction worker Richard Mason while renovating an old house on the island of Lindisfarne he was digging out the basement when he found what appeared to be a simple old jug he took it home and put it in his own basement where it stayed for eight years one day Mason finally got around to cleaning it up when he noticed that it was rather heavy he tipped it over and gold and silver coins began to pour out inside the jug were silver and gold coins dating from the 14 20s to the 1560s the total estimated value for these coins is around $40,000 and over half of that value is from one single rare coin the golden sciutto of Pope Clement the 7th folks I'm at the 7th was famous for his refusal to annul the marriage of Henry the 8th the Catherine of Aragon in the 1520's this coin is one of only three that are known to exist between finding a jug full of valuable coins and the previous worker who found a paper bag full of money you're going to want to make sure to inspect all your items carefully during a home renovation Mayan murals scraping away plaster is a time-consuming and usually boring part of any home renovation project that is unless you find a one-of-a-kind piece of ancient artwork buried under a layer paint Lucas as a Cana Ramirez began chipping away plaster in the kitchen of his home in kejal Guatemala when he made a startling discovery on the oldest layer of plaster in the house is a centuries-old Mayan mural ramirez immediately calls in experts and ceased renovations less he inadvertently damaged the mural Boston University archaeologist Williams Paterno examined the mural and believed that it depicts the conquest in a Mayan ritual that is still performed today Saturno added that it's astounding that the mural survived this long as similar murals have not been so well preserved and fade with prolonged exposure to light it's thought that the home in which it was found must have once belonged to an important member of Mayan society the people in the mural appear to be mine you're seen wearing some European clothing so it's likely this was created after the Spanish invasion it's hard to put a dollar amount on a priceless piece of historical artwork especially one that can't exactly be sold to a museum but it's clear that this is something of incredible value have you ever made any strange or valuable discoveries when inspecting a new house tell us about it in the comments from a bathtub to the ceiling it seems like there's no place people won't tuck away some of their valuable items kind of makes you want to check the corners of your house and just a little bit closer thanks for watching our video don't forget to subscribe to our channel and join our notification squad bye for now you

Chris Graeve – STOCKS VS. REAL ESTATE – Which has a better Return on Investment?

the biggest question I had that started me on the path of entrepreneurship was where to put the extra money I'd saved to get a high return and grow my retirement fund have you ever asked yourself this too at first I started to look at stocks because it seems like the easiest way to make quick money especially if you're not starting out with a lot of money but I also knew so many people who dabbled in stocks with their savings only to be disappointed when they found out that their best year got them only 8% and frustrated when they lost half their value at a bad stock pit but as I begin to do more research real estate really began to look more appealing for four main reasons reason number one little to none of your own money required to put down but you still get to reap the rewards of large profit amounts because houses are the biggest purchases most people make in their buddy have you ever seen signs for people who buy cars for cash they are essentially trying to buy a cheap distressed car for $3,000 fix it up by doing a thousand dollars in repairs and sell it a couple months later for five or six thousand leaving them with fifteen hundred dollars after fees and taxes that sounds ok and attainable right but that person most likely spent months and months learning that trade in order to do it risk free in the same way when I started I spent months and months learning the real estate trade and learned how to do the exact same thing except I buy a distressed house for a hundred thousand dollars doing thirty thousand dollars in repairs and selling for a hundred and eighty thousand leaving me with twenty thousand dollars in profit after fees and taxes which sounds better what if I told you there's a way to do that with less risk than most people think now most people are saying wait wait stop don't be ridiculous I don't have a hundred and thirty thousand dollars to spend on a house even if it is a really good deal but here's the secret I learned there are a lot of rich people who know their money can make them higher returns in real estate than in stocks but these people are looking for people like you that have the time and are motivated to borrow their money buy a house and make a large profit that you can both share reason number two real estate offers higher safe returns than any other investment vehicle you might have heard stories of friends that day trade stocks that make crazy returns in minutes or hours what they don't tell you is that they lost the same amount nine times in a row the week before this bias you have for stocks is similar to how you never see lottery losers on the news so you think that winning is actually a higher possibility for the most part average people people not on Wall Street don't make a killing in stocks you can make four or five 6% in stocks safely but the average person does not make that killing in stocks if you've ever seen the wolf of Wall Street you'll know that some of the people that make the real money in stocks are the ones that are selling you the stocks and making Commission they're making their money off you and not the stocks if you want to be safe with stocks you'll most likely only make six to eight percent on average so if you have a hundred thousand dollars you're only making six to eight thousand dollars in your pocket every year now let's look at real estate compared to that in real estate it's very easy to find a rental property that will return you twelve percent on your investment so if you buy a hundred thousand dollar house you will be getting twelve thousand dollars in your pocket every year and if you use money from the bank for a majority this is called leveraging and use your own for a small percentage you can very easily turn that 12 percent into a 20 percent return on investment don't worry this isn't actually as intimidating as it sounds just letting you know that there are a lot bigger opportunities in real estate as a 21 year old about to be fresh out of college I wanted something that could slowly liberate me from needing a nine-to-five day job now whether you're 21 or you're 40 and already in that nine to five day job this video is for you I wanted something active to do every day and day trading could be that but the risk to return ratio just wasn't enough to let me quit my job real estate offered an asset I could literally control everything about which leads me to point number three real estate is a physical asset that you get to control and make more profitable by changing the expenses and raising rent for example as a shareholder of coca-cola you have no control over whether the company grows or suddenly tanks while coca-cola is stable there's also no way control it to make it grow faster and give you more money I wanted to be in control of my money and be able to grow it and sustain it to get as much money back as possible with a rental property you get to control everything about it for example cutting down expenses raising rents and finding better tenants and lastly point number four I wanted something that would be able to survive economic downturns ok I'm going to give you two scenarios which one sounds better to you your entire life savings is and mutual funds stocks and bonds this is grown at an average of 8 percent for the last 30 years and the year before you plan on retiring the market crashes your retirement savings is now half of what it used to be you had a million dollars in your retirement funds now you have $500,000 not a million dollars are supposed to last you for 40 years now you have to make $500,000 last in the pool so now you have to keep working for another 10 years while the market recovers or just decide to live on half of what you would plan scenario number two your retirement is based on 10 paid off rental properties that bring you $10,000 a month passive income a year before you retirement the market crashes and you lose half of the value of your homes guess what you still make $10,000 a month if not more when the market crashes people don't want to buy as many houses so rent prices will rise sure you just lost a lot of the value of your homes but you didn't base your retirement on the value of your home so you based it on what was your monthly income so you still get to retire this year the market will recover in a few years and you can sell your houses later if you really want to cash out but for most people they'll probably keep those 10 houses and make 120 thousand dollars a year for the rest in life I'm going to be honest with you there might be a few drawbacks for real estate real estate will require slightly more time upfront to do research and pick the right team and the right houses you can go buy shares of coca-cola in the next 10 minutes but it will take a little longer to buy your first house but if you listen to an audio book for 10 minutes a day on the drive to work or just read for 10 minutes a day before you went to sleep I guarantee you will have enough information in one month to buy your first house with the assistance of a good realtor a good contractor and a good property manager and by the way any good book that you read should teach you how to find these people and vet them now buying that stock in 10 minutes doesn't necessarily mean you've made a safe decision or any money so to do stocks the right way I would argue that you also need a lot of upfront research time before you buy and dollar-for-dollar I strongly believe real estate has safer and higher returns hey thanks for watching the reason I created this channel was to start changing the conversation on how to build wealth and I legitimately want other people to have the success that I've had in real estate so definitely comment below if you'd like me to put out another video on how to find investors to put up a hundred percent of your purchase price or which books you should start reading right away thanks