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hi it's mark so have you ever had a
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hundred dollars in your pocket and
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wondered how you could turn it into a
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thousand ten thousand or even a hundred
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thousand dollars well sadly this isn't
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something they teach in school come to
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think of it it'd have been pretty
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awesome if they had because of this lack
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of knowledge it seems pretty scary for
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most beginners to get started in
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investing but in today's video i'm going
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to simplify the whole process invest in
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my money allow me to become a
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multi-millionaire and guess what i
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started with that's right a hundred
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dollars well probably less than that to
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be honest i'm not saying becoming rich
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is easy but by taking calculated risks
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you'll be able to grow your wealth over
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time i understand everyone has a
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different risk tolerance so today i'm
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going to be revealing how to invest for
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beginners with a hundred dollars and as
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we go through the video the risk is
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going to increase but remember as the
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risk goes up so does the potential
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reward i'll also be putting my money
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where my mouth is and investing a
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hundred dollars into each one of these
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options so you can see exactly how to do
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it i'm just about to invest in something
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i never thought i'd actually do it goes
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when someone asks me how they should
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invest a hundred dollars i usually say
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invest in yourself you can do this by
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buying books and improving your skills
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but assuming you've already done this
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now we're going to be talking about the
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specific places you can actually put
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your money now i'm a businessman i'm not
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a financial advisor these are just some
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of the ways i've invested my money over
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the years and they've worked for me you
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can also sit back and relax because i'm
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not going to try and sell you anything
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at the end just remember if you enjoyed
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the video then smash that like button
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because it really helps push this video
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out to more people and also consider
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subscribing if you want to grow your
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wealth the first investment is a high
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interest savings account this is a one
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out of ten on the risco so the lowest
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possible risk that you can have nowadays
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it's extremely hard to find any savings
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account that will pay a substantial
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amount of interest but that's not the
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main reason it's on the list by putting
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your money into a savings account you're
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actually starting to create what i like
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to call an emergency fund which i
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believe everyone should have this is
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money that you can access if something
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unexpected comes up and it's extremely
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low risk and by having money on hand you
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can avoid getting into debt and having
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to pay crazy fees back i remember when i
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bought my first apartment i had a minor
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crisis after about two months as a hot
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water system went wrong and it needed
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replacing because of my emergency fund
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it saved me over 200 as i didn't have to
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take out a payday loan when you leave
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your money in the bank it slowly loses
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its value so when i am looking for the
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best savings account to combat this i
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look for two things the first of course
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is a good interest rate which depends on
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the economy mostly the second thing is
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having the ability to access my money
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instantly some banks that are really
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worth looking at and consistently have a
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good rate of interest are ally bank
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markets by goldman sachs and citibank i
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currently have an account with markers
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by goldman sachs and their interest rate
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is 0.7 which isn't very high but it is
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currently one of the best available so
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there we go nice and easy 100 deposited
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into my savings account now for gold
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often referred to as a safe haven i'll
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give this also a 2 out of 10 on the risk
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out did you know that since the creation
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of the federal reserve in 1913 the us
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dollar has lost 95 percent of its value
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so you're actually only left with five
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percent of its original purchasing power
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so if you want to stop your money losing
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value then maybe gold is for you if you
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had a hundred dollar nugget of gold in
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the year 2000 it would now be worth
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approximately 580.
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the piece of gold hasn't actually
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changed in size it's still the same
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piece of metal but what has actually
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changed is the value of your dollar and
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how much gold you can buy with it gold
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was actually our original currency used
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by our forefathers i remember those days
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well it's perfect as it can't be
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manufactured and it lasts for thousands
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and thousands of years so if you've ever
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watched gold rush on tv you'll know how
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hard it is to actually mine this stuff
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out of the ground now you may be
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wondering if it's so safe why have i
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given it a 2 out of 10 on the risco it
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all comes down to opportunity cost you
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have to ask yourself if you really want
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to just protect your 100 against
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inflation or if you want to invest it in
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other opportunities
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which could make it grow a lot quicker
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if you invest in gold then you would be
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missing out on these potential profits
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making it a little bit risky i would say
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that this is the perfect investment if
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you have a lot of money already and all
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you want to do is just protect it there
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are two different ways that you can
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invest in gold the first way would be to
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actually buy physical gold but if i
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bought jewelry i know gold bars coins
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and that sort of thing i'd probably be
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paying too much because the person
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selling it would want to make a profit
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which means i would be paying more than
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the true value of the gold itself the
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alternative is to invest in gold within
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a broker app like robin hood in the usa
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or trading 212 in the uk then you're
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able to buy gold at its true value and
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have the option to sell much quicker in
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the usa i would look for the gld etf on
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robin hood which is one of the largest
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gold etfs in the world as of june 2020
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they hold over
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million ounces of gold in vaults all
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around the world as i'm currently in the
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uk i'm gonna invest using trade in two
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one two in a similar share and with just
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a click of a button there you go i'm now
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mr gold man if that doesn't sound
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exciting enough for you then why don't
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you try a simple low-cost index fund
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i'll give this a 3 out of 10 on the risk
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scale if you invested just 100 per month
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into an index fund with a 7 annual
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return then after 30 years you'd have
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123 thousand dollars that's the power of
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compound interest you can do all of this
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without having any knowledge of the
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stock market i remember when warren
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buffett one of the richest men in the
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world placed a million dollar bet that a
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simple s p 500 index fund would
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outperform a professionally picked
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portfolio of hedge funds over a 10-year
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period now this contest wrapped up in
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2017 and the results were made public
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warren buffett had actually won a
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million dollar bet which really shows
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the power of index funds and that the
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everyday person can take on the pros
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with little to no knowledge imagine an
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index fund is like a bag of haribo
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gummies the machine in the factory puts
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a range of the most popular candy into
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one bag so you can enjoy the best of the
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best without having to pick and buy each
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and every one individually now just
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replace the candy with companies that's
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what an index fund is you can buy your
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own selection bag of the most popular
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companies in the world such as apple
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microsoft amazon and facebook and your
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money is split between all of them now
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let's go back to the haribos imagine you
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left these on the side and they're open
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for a few days or so they'd go hard and
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they certainly wouldn't taste as good
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would they but by putting them in a
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container you can stop that from
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happening
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this is very much like index funds is if
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you leave them unprotected the
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government will start taxing you on the
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profits you make but you can protect
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them with a sort of container like this
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which is known as different things in
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different countries in america it's
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called a roth ira and in the uk it's an
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isa these containers allow you to
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protect your money after tax and then
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any profits you make are yours to keep
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but because they're so good and they're
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so powerful there's a cap on how much
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you're allowed to invest each year so if
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i was you i would take full advantage as
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soon as possible and max out your
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allowance there are more in-depth
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strategies you can use but for the
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purpose of this video i'm going to be
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investing a hundred dollars into an s p
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500 index fund which over the last 20
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years has an average yearly return of
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seven percent drop a like if you'd like
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a full video covering this topic because
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there's so much on this we could talk
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about but mark a hundred dollars isn't
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enough as the s p 500 is over three
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thousand dollars a share well you don't
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actually have to buy a full share to
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invest my favorite brokers are fidelity
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child swap and vanguard so if we head
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over to vanguard's website now and we
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find the s p 500 here you can see what
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companies are in the index fund so you
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can buy the right one so all you have to
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do is create an account i already have
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one and deposit some money and then
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click there you go job done the fourth
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way to invest is in a real estate
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investment trust otherwise known as a
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reit i'll also give this a three out of
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ten on the risk scout now imagine your
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friend collected a hundred dollars from
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three thousand people he will have three
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hundred thousand dollars then he takes
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this money and he buys a property he
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rents it out and splits it with all
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three 000 people that helped him buy the
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property which helps them start
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generating some of that sweet passive
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income that's the basic way of
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explaining a reit it lets everyone
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benefit from investing in income
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producing properties without actually
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buying one think of it like buying a
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small share in a property let's say you
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own the front door someone else owns the
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windows and a few other people own all
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the bricks but all together you own the
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property equity reits own things like
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offices shopping centers apartments
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hotels and much more and they get their
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income through the rent by law they have
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to pass on 90 of all profits to the
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investor like a dividend however they're
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taxed a little differently the cool
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thing is that at the start of 2019 the
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10-year average return for re-etfs did
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better than the s p 500 with an average
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return of 10
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if you're in the usa by investing in the
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vg slx by vanguard you can average a 12
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percent return which beats the average
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real estate investor how awesome is that
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as i'm in the uk i'm going to use the
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trading 212 website to put a hundred
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dollars into a similar reit it has high
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global diversification meaning i can
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invest in all the up and coming property
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markets around the world the next option
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is buying and selling items the risk on
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this really depends on how good you are
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at finding great deals but i'll give
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this a i know four out of ten on the
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risk scale the good thing about doing
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this is that you can buy and sell
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something that you're interested in and
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have knowledge about which can lead to
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bigger possible returns now i'm going to
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invest my hundred dollars in either
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pre-owned radio control model gear or
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golf equipment both of these i've got an
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interest in so i should have a
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reasonable idea of what each item is
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worth pokemon cards would be a great
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area to have some expertise in as their
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value at the moment is skyrocketing
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logan paul just bought a charizard card
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for over 150
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dollars how mad is that so i've been on
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facebook marketplace as most people have
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access to that platform and i found
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myself a model engine that i'm going to
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go and try and buy it's up for 75 pounds
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which is approximately 100 us dollars we
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sent a few messages back and forth and
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i'm going to go and have a look at the
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item now
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hello there i've come about the engine
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oh in the box as well cool that's good
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cool it looks right so would you take 70
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for it no i've got 75. this box in good
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condition
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can you do a bit better i'll tell you
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what i can do
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there you go i'll throw that in really
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that's what it came out of 75 quid
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that's that's a deal okay there you go
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i'll give you 75 quid there you go and
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we're videoing this for our youtube
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channel do you mind no that's fine all
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right then see you again thanks a lot
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thanks for that
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so i've done a listing on ebay for the
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model engine and the model plane i'm
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going to actually advertise on a
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specialized website for model flying as
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i'm sure i'll be then selling to the
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right people and hoping for big profits
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now we're starting to get serious it's
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time for individual stocks this gets a
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6.5 out of 10 on the risk scale there's
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a certain amount of risk that comes with
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investing in individual stocks but if
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you pick your companies well then it can
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be really exciting is there's the
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potential to make a lot of money during
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a dot-com boom back in 1995 i was really
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lucky to pick a few great stocks which i
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cashed in and i made a lot of money in a
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very short period of time when the
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bubble burst some of the companies i'd
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held on to which has cost me very little
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went completely out of business luck and
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timing can be a very crucial part of
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stock investing i picked these stocks
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using what's called fundamental analysis
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which means i looked at the business
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financial statements their market and
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also the leadership of their companies
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back then this was a lot of work but now
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it's easily found out on yahoo finance a
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while ago i read an article about an
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experiment where they simulated 100
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monkeys throwing darts
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like this at the financial pages of a
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newspaper the stocks the monkeys picked
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on average outperformed the so-called
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smartish hedge fund managers on wall
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street so for this video i thought it'd
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be fun to put this theory to the test i
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don't have a monkey so i thought i'd
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have to do so i'm going to throw a dart
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at the board and as you can see i've
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randomly selected 20 different stocks
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and wherever the dart lands that's what
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i'm going to invest in now i've just got
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to put on a blindfold okay here we go
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right let's see what we got
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and we've gone into samsung
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right so i'm going to jump straight onto
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my brokerage account and set an order
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for samsung
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if you want to invest your hundred
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dollars in individual stock then weibo
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are currently giving away three free
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stocks for a limited time when you
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deposit a hundred dollars into your
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account i'll just leave the link in the
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description if you want to pick up those
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free stocks so now we're going to be
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moving into the realm of gambling and
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speculation rather than investing number
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seven is cryptocurrency this is a 9 out
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of 10 on the risco so you've probably
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heard of bitcoin this is currently the
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most popular type of crypto if you had
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bought a hundred dollars worth of
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bitcoin in 2015
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today it would have been worth around
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about five thousand dollars that's a 5
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000 return on your investment and that's
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pretty unheard of therefore many people
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that invested in bitcoin in the early
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days became millionaires overnight but a
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lot of people also lost money if you'd
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invested around a hundred dollars in
00:14:09
december 2017 when bitcoin was at an
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all-time high by december 2018 you'd
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have had less than 17 left so really no
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one really knows what it's going to do
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next it's extremely risky but still very
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attractive because it has the potential
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to make you millions there are three
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main types of cryptos these are ethereum
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ripple and obviously the big one bitcoin
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but let's just focus on bitcoin today if
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you want to learn more about other types
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of coins you can read something called a
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white paper and it will give you all the
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details the cool thing about bitcoin is
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that it uses something called blockchain
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and it isn't regulated by the government
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you also can't create any more bitcoins
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which makes inflation absolutely
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impossible in my opinion this investment
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will probably only make sense if you're
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investing an extra hundred dollars that
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you don't really need so i'm going to
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jump onto the most popular bitcoin app
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which is called coinbase and invest my
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hundred dollars in bitcoin and forget
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about it
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by the way if you want to give this a
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try i'll put a link to coinbase in the
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description down below and you can pick
00:15:13
up ten dollars of free bitcoin at least
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that gives you a bit of a head start the
00:15:17
last is definitely a full-on gamble you
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may have guessed it already it's the
00:15:21
lotto this is definitely a 10 out of 10
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on the risco and isn't something i would
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recommend doing however i thought i'd
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include it in this investing video as so
00:15:30
many people choose to do it in fact 57
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of all americans buy at least one lotto
00:15:36
ticket per year the chance of actually
00:15:38
winning is 1 in 14 million which might
00:15:41
sound quite possible but let me just try
00:15:43
and put that into a bit of perspective
00:15:45
you're 4 000 times more likely to win an
00:15:48
oscar than win the lotto millions of
00:15:50
people lose their money every year but
00:15:52
they keep playing as the rewards are sky
00:15:55
high if you win i'm just about to invest
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in something i never thought i'd
00:15:59
actually do it goes can i have 100
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scratch cards please
00:16:07
lovely thank you very much thank you
00:16:08
cheers and thanks bye as you can see
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this is going to take me quite a while
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i'm going to leave a counter on the
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screen so you can see how much i've
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spent versus how much i've earned back
00:16:18
from my investment let's do this
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[Music]
00:16:28
i hope there's a bit more in this lot
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there's got to be hasn't it
00:16:41
so we're halfway through the most we've
00:16:43
earned so far is three dollars on one
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ticket i'm going to need some help i've
00:16:47
got 50 more to go come on curtis i know
00:16:49
you've been itching to have a go at this
00:16:51
have you got your coin ready i do ready
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let's race to see wait for it who can
00:16:57
find the most money in the remaining 50
00:16:59
cards ready okay on your marks get
00:17:02
set go
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y'all ready to go
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come on
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15
00:17:17
really yeah no yeah
00:17:19
oh wow 15.
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he's only just started doing this he's
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got more than me
00:17:27
[Applause]
00:17:30
find a 2x to win two times that must be
00:17:34
ten dollars we think is that ten dollars
00:17:36
ten dollars ten dollars
00:17:38
[Laughter]
00:17:40
you say you're smashing me but i'll tell
00:17:42
you what how about this how about this
00:17:45
another dollar
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[Music]
00:17:46
[Laughter]
00:17:48
[Music]
00:17:50
you're ready now i'm making my move
00:17:54
better
00:17:55
cause i'm coming through i'll tell you
00:17:57
what this has gotta be an astonishing
00:17:59
last four cards if we're gonna get any
00:18:01
money back from this so we just came
00:18:03
back and we double checked it we made
00:18:05
back fifty dollars from our hundred
00:18:07
dollar investment now you may think that
00:18:08
sounds pretty good but that's actually a
00:18:10
negative fifty percent return this was
00:18:13
meant to be a little bit of fun but it's
00:18:14
pretty sad to think that people play
00:18:16
this regularly and on average are losing
00:18:19
half their money when they could pick
00:18:20
any one of the other investments in this
00:18:22
video and have a much better chance of
00:18:24
being successful i hope this has taken
00:18:26
some of the mystery away from the other
00:18:28
forms of investing and made them a
00:18:29
little bit more understandable for
00:18:31
beginners if you'd like me to make a
00:18:32
part two of this video to see how these
00:18:34
investments have done over a month then
00:18:36
make sure to smash that thumbs up button
00:18:38
to let me know i'm going to leave the
00:18:39
next video here but don't click on it
00:18:41
just yet remember to subscribe to the
00:18:43
channel and ring that notification bell
00:18:45
so you don't miss out on part two okay
00:18:48
i'll see you on the other side