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Hey bow tie Nation Joseph hog here with
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a special video today that I know is
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going to change a lot of lives out there
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that's because we talk a lot about
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picking stocks here on the channel but
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sometimes I think we're making it more
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complicated than it needs to be and it's
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not just here but any investing blog or
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flip on CNBC and they expect you to hit
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the ground running like Warren Buffett
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it can be easy to get overwhelmed and
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you end up not starting on that
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investing Journey that makes your money
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work for you so today I want to change
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all that I want to make getting started
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investing as simple as possible with the
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eight most important questions you're
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going to need to answer then I'll tie it
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all together with a step-by-step
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strategy you can use to make $33,000
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monthly income from small Investments so
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stick around for that for those of you
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that have already started investing it's
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going to be a great refresher course on
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all the basics that will make you rich
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if you've lost money investing folks
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over the last few years it's probably
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from not following these steps and the
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first question I get from beginner
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investors is how much should I invest
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it's probably the most common question I
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get and the one I I think keeps most
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people from getting started but the best
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and probably the worst answer here is
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just invest what you can I know it's not
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the easy answer you want but it is the
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truth in our step by step later on in
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the video I'll show you how to turn $150
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or $300 a month into $3,000 monthly
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income but it's not a rule and it might
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not work for everyone and yeah you're
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going to hear things like save 10% of
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your income or calculators telling you
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how much you need to be investing but
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they all leave out one crucial detail
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you your own income and your budget are
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going to determine how much you can
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invest each month so go through your
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spending figure out what's left in your
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budget after paying those must pay
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expenses now I would recommend starting
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investing with at least A1 or $150 a
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month but if you can't do that just
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start with $50 a month what's important
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here is that you get started investing
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you start building that habit of putting
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money in stocks no matter how much
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whether it's $250 a month or 25 bucks
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next here it is critically important
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that you get ready to invest and this is
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something most investors fail to do what
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I'm talking about here is getting your
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finances ready to start investing
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because it's one of the most
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heartbreaking things to see and it
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happens all the time but I see people
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start investing they're motivated their
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portfolio is growing they love it then
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then something happens and they have to
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withdraw some of that money folks it is
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so demotivating having to start back
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from zero and a lot of people they just
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give up they never get back to investing
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and it just ruins their lives so a few
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recommendations here on getting your
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finances ready to invest first is you
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need at least a month's worth of
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expenses tucked away in savings now I
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know you're going to see a lot of advice
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on the internet saying you have to have
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at least three to six months worth of
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expenses before you even get started and
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I'd say 3 months is a good Target but I
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don't want you saving forever before you
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start investing the important Point here
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is that youself have some of that what
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if money in savings so you never have to
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withdraw your Investments next here if
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you can't scratch together at least $150
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a month to invest it's time to take a
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hard look at your budget and your income
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and that last part that's something that
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most people just don't think about that
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income side of the equation yeah most
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can usually find an extra 50 or so in
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the budget to invest but sometimes you
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just got to realize you need to make
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more money whether that's through a side
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hustle or just finding a better job as
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you're planning here as you're working
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through this I also want you to not be
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investing every time sacrificing
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everything and just being miserable I
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fell into that trap myself in my 20s I
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was saving every penny working two jobs
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and managing my own real estate rentals
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I was living on ramen noodles and having
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zero fund just so I could invest more
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the problem was I would burn out every 6
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months or so and go on a shopping spree
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I'd set myself back two steps and it was
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because I didn't have that plan for what
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I could realistically invest and still
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be happy in the now that's why I created
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this quick three-step guide to making
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your investing plan within 5 minutes
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you'll be able to create an investing
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plan that makes your goals the
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motivation to keep investing and that is
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customized to your needs I'm going to
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leave a link below in the description
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it's totally free just something I want
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to put together for all you out there in
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the community so click through that link
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and get your stepbystep guide now I have
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seen too many investors miss out on the
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opportunity to make their money work for
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them and it's because they didn't have a
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plan that fit their needs so look for
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that link and get your free customized
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plan so now you're ready to start
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investing but what do you invest in
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you've got the money what do you put it
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in for that maximum return but for that
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I've got to reveal probably the greatest
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lie of investing that it's all about
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picking stocks in fact investing is much
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more about that regular amount you
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invest and watching it grow over those
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10 or 20 years so don't stress out so
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much about picking the right stocks in
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fact the best strategy for your
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investing dollars and this is the one I
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use with my own portfolio is called the
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core satellite approach now this
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strategy is called core satellite
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because you have that core of
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Investments that make up between 60 and
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75% of your portfolio these are in
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exchange traded funds or ETFs for
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example you might have 15% of your money
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in the Vanguard real estate fund the
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ticker vnq which hold shares of
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companies in the real estate sector
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maybe you hold another 10% of your money
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in the Vanguard long-term Bond ETF the
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ticker blv which invests in thousands of
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bonds and pays a 3.9% dividend and
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finally here maybe you hold another 50%
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of your portfolio in a few funds like
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the pro shares s&p500 dividend
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Aristocrats ETF ticker Noob a fund of
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the best dividend stocks in the market
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so by investing most of your money that
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course 60 or 75% and 3 to five funds you
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get that instant diversification across
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stocks bonds and real estate your money
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is spread out across hundreds of stocks
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you've got Bonds in that bond fund and
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cash flow from the real estate fund then
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with the satellite portion of your
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portfolio that remaining 25% or so of
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your money you can invest in those
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individual stocks that could really
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produce those higher returns but the
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beauty of this core satellite strategy
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though is that because you only have
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that 25% of your money to invest in
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these individual stocks and say you
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investing 3 to 5% in each stock means
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you're only picking maybe 8 to 10
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individual stocks and first this is
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going to cut in half the amount of time
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you have to spend looking for stocks to
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buy and following those Investments you
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don't have to worry about the money in
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those three to five funds you hold if
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they're Diversified across a group of
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stocks bonds or real estate so they're
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going to be getting that average return
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on the Investments and second because
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you only have maybe 3 to 5% of your
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money in each individual stock you never
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have to worry about a blow up in one
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company destroying your whole portfolio
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Okay you have an idea of the stocks you
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want to buy but now where which is the
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best online platform for begin are
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investors folks there are a million in
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one investing platforms but honestly
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they're all pretty much the same there
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are just two things you want to look for
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here and I'm going to share which
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platforms I use first you want to look
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for an investing site that doesn't
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charge you to buy stocks when I started
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investing in 1999 brownen company
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disrupted the market by being one of the
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first lowcost Brokers and that was at $5
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a trade but even that's too much anymore
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most of the major Brokers and investing
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apps have gone totally commission free
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next here you want to look for a
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platform that gives you the investing
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tools and the research that you need to
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invest now this one isn't nearly as
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important as that commission-free
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investing and some investors especially
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beginners might not even need those
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research tools but then the trick is
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when you're picking where to invest is
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there's nothing wrong with having more
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than one investing account in fact
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between retirement and regular accounts
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I have six accounts on four different
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investing apps it's free to open an
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account and a lot of times you're going
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to get bonuses like free shares on Robin
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Hood to cash back on E Trade and all the
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research You'll Ever Need another great
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question I get from beginner investors
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all the time is how do I start a
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portfolio now you've got that money to
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invest you have an idea of the stocks
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and the funds you want to buy from
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watching this Channel and the investing
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site you want to use but now the
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question is do you buy them all at once
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with just a little in each stock or do
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you invest everything in one stock each
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month here I would definitely recommend
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buying all your stocks at once putting a
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little in each instead of buying just
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one at a time then adding to it each
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month the reason is if you buy just one
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stock a month putting all your money
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into it it's going to be a long time
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where you just have a lot of risk in
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just one or a few companies for example
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even if you're planning on investing in
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maybe 15 stocks or funds for 6 months
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you're going to have all your money in
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just a handful of them okay we're here
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to actually investing putting your money
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down to buy a stock and this is going to
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be surprisingly easy I'll show you how
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to buy a stock on eade here but the
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process is almost identical on most apps
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we're here in one of my accounts and
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let's say I want to buy shares of
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everyone's favorite Apple ticker AAPL
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now if you don't know the abbreviated a
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ticker symbol you can just type in the
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name of the company and a drop down is
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going to show you the ticker here on the
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stocks profile page you're going to see
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all the basics like price market cap the
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52 we range of prices and dividends then
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across the top you'll see a bigger chart
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recent news and options trading now
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let's say I've already done my research
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and I want to buy the shares so you can
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just click on buy over here this order
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page is almost identical on any platform
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you see the bid price of the shares
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which is the highest price an investor
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in the market is offering to buy and
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here the ask prices the lowest an
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investor is willing to sell now the
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difference in these two prices get more
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important if you're doing options
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trading because they can be much further
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apart for most stocks though the bid and
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the ask prices going to be less than a
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few pennies difference and right around
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that quoted price for the shares in this
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drop- down list you can buy sell sell
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short or buy to cover a stock we'll
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select buy and then put in how many
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shares we want now if you're on a
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platform that lets you buy fractional
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shares or invest a dollar amount in a
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fraction of a share this is probably
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going to be that dollar amount how much
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you want to invest rather than having to
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pick the number of shares since we have
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to buy whole shares here on E Trade
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we're going to divide our investment
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amount say let's $1,000 into a stock
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price about
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$233 and we can buy three shares of
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Apple now for this price type the
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majority of the time when you're buying
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stocks you can just put this in as a
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market order that's going to buy the
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shares immediately at the current market
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price these other orders like the limit
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order are more for when there's a large
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bid ask spread and you need to tell the
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app at what price you want the shares
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again though not really an issue for
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most stocks doing that the platform is
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automatically going to show me the total
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cost of the trade and I'm ready to go
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just two more questions here to start
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investing before I show you that
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step-by-step plan and this is another
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really common question for beginners and
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even those investing for a while how
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many stocks should you own you get these
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all these great investing ideas every
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day online or on TV and it can be very
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easy to build a portfolio of hundreds of
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stocks you just keep investing in
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everything you see but the truth is you
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really don't need to research shows so
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that once you get maybe 20 or 30 stocks
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your overall return starts to look a lot
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like the average Market return because
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you're so Diversified you've got a
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little bit of money in everything it's
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another reason why I like that core
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satellite strategy having those three to
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five funds gives you all the
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diversification you need in those asset
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classes then you've just picked 10 or 15
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stocks of companies you really like
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stocks you really think can do well and
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here a question every investor needs to
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ask eventually when should I sell so
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you've got your stocks you're investing
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every month when do you take those
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profits and run the simple answer would
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be never just hold those three to five
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funds and the 10 to 15 stocks you really
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like maybe even 20 stocks till you
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retire and start living on your
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Investments but we all know it's not as
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easy as that and even long-term
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investors have to sell their stocks
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sometimes so I want to reveal two
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problems I watch for in stocks to know
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when to sell first is when there's a
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scandal or a lawsuit and no
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accountability by management hey bad
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things can happen to good companies and
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even the best run into problems
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sometimes but management doesn't step up
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and say this was my fault here's what
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I'm doing to fix it and I'm dumping the
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shares now another sell signal one we
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talk about more here on the channel is
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if the stock price just reaches where I
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think it should be and whenever you're
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investing you need some kind of an
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estimate whether it's an analyst Target
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or your own and how much the stock is
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worth I wouldn't necessarily sell a
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stock as soon as it reaches that Target
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but if it goes much higher looking for
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something a little bit more room for
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return so now you've got those eight
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critical questions to answer to start
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investing and be sure to ask any more
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questions you have in the comments below
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cuz I want to make sure you're set to
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start making money now I want to reveal
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that step-by-step strategy to start
00:12:07
investing how just 15 years of investing
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small amounts can give you an extra
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$3,000 or more each month from your
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Investments understand this is just a
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generalized plan I've suggested amounts
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to invest here so anyone can get started
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but if you can invest more do it and
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you're going to grow that portfolio even
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faster here's the plan you start the
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first year investing just $150 a month
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following the outline that we went
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through in this video that first year
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you're getting used to investing putting
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that money away and watching it grow and
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at first I don't want you to get too
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caught up in the numbers here because
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the idea is more important for your
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success if you can invest a little bit
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more to start then that's great but
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there are a few reasons to start off
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slow this first year that that you need
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to know about and first I want you to
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get started with an amount that isn't
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going to break your budget I want you to
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see that you can still enjoy life while
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you're investing your money with this
00:12:56
plan starting off slowly and then adding
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to it every few years I want you to see
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how even small Investments can grow to
00:13:01
hundreds of thousands of dollars and all
00:13:03
you need in retirement understand that
00:13:06
even when the budget gets tight any
00:13:08
amount is going to help you reach that
00:13:09
goal again here and we'll get back to
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that plan I want you to start slow and
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gradually work up to investing larger
00:13:15
amount so you find that point where the
00:13:17
investing doesn't break your budget so
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we're starting off slow this first year
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with an amount anyone can manage now
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this second year we're going to be
00:13:24
increasing that monthly amount to $300
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so you've got a whole year to play with
00:13:27
your budget and income so so you have
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that money available here we're going to
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be doing this for 3 years $300 a month
00:13:33
and this is to build that rock solid
00:13:35
habit of investing every single month
00:13:37
since you've got decades left to invest
00:13:39
most of your Investments can be in
00:13:41
stocks but don't forget to have maybe
00:13:43
10% of your money in bonds and 10% in
00:13:45
real estate stocks at a minimum that's
00:13:47
going to give you that Max return in
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those early years and really help grow
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your money this is also a Runway though
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you've got three years of investing $300
00:13:55
a month but then we're going to be
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increasing it to 550 to really start
00:13:59
building your wealth so in that 3 years
00:14:02
that is the perfect time to start
00:14:03
building up your other income sources
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maybe you start some kind of passive
00:14:07
income sources we talk about here on the
00:14:08
channel so you're ready to invest that
00:14:10
550 a month starting in year five so
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through that fifth year you've got an
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Unstoppable habit that is quickly adding
00:14:16
up you've built that portfolio to over
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$22,000 already with thousands of
00:14:21
dollars in profits and it's this point
00:14:23
you really start to see it grow here
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you're going to be doing this for 5
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years and I guarantee after that first
00:14:28
year it's going to be like second nature
00:14:30
to you you won't even miss that 550 a
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month by year 10 here you've got almost
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$80,000 in your Investments that's going
00:14:36
to be 8,000 a year in profits and we're
00:14:39
going to be doing our last increase here
00:14:41
for the next 5 years through year 15
00:14:43
you're going to invest $650 a month
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stick with it find the cash to invest
00:14:48
because this is the last 5 years you're
00:14:50
going to have to put money away that's
00:14:51
because after year 15 that's it keep
00:14:54
that money invested but now you've got
00:14:55
another $650 a month to enjoy life and
00:14:59
in 15 years you're going to have a
00:15:01
$720,000 portfolio that is all you need
00:15:04
to produce that $3,000 a month income
00:15:06
when you retire and next I'm going to
00:15:08
show you how to do that just 15 years of
00:15:11
investing that's all you need to secure
00:15:12
an estake that is more than twice the
00:15:14
average and produce a $3,000 a month
00:15:16
income of course feel free to keep
00:15:18
investing by this time you're going to
00:15:20
get to where you love watching that
00:15:21
portfolio grow and even cutting back to
00:15:23
maybe $300 a month investing you're
00:15:25
still going to be able to watch it grow
00:15:27
and enjoy spending that extra money and
00:15:29
this is the part I love look at the
00:15:30
miracle of this after just 15 years of
00:15:33
investing less than the time it took to
00:15:34
hit puberty for some of you you invested
00:15:37
$992,000 and it's going to see it grow
00:15:39
to 34 of a million doar more than
00:15:42
$600,000 in profits that is $720,000 and
00:15:46
you can withdraw about 5% of that a year
00:15:48
letting the rest grow that's going to
00:15:50
produce $36,000 a year or $3,000 a month
00:15:53
for the rest of your life get your free
00:15:55
customized investing plan with the link
00:15:57
below or click on the video to the right
00:15:59
for seven stocks I'm buying for 100%
00:16:01
returns this year seven stocks to get
00:16:03
your portfolio started don't forget to
00:16:05
join the let's talk money Community by
00:16:07
tapping that subscribe button and
00:16:08
clicking the Bell notification
