Investing Masterclass: Stock Markets and Index Funds - Learn to Invest! S&P 500 | Diversification | BrainyMoney And Son Han, CFA,CPA | Skillshare

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Investing Masterclass: Stock Markets and Index Funds - Learn to Invest! S&P 500 | Diversification

teacher avatar BrainyMoney And Son Han, CFA,CPA, Personal Finance Made Easy!

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

22 Lessons (1h 1m)
    • 1. Objectives

    • 2. Only Invest What You Can Lose

    • 3. 03 Defining Shares Revised

    • 4. 04 Dividends

    • 5. 05 Stock Price Movement

    • 6. 06 Where do Stocks Come From

    • 7. 07 Market Capitalization

    • 8. 08 Index Funds

    • 9. 09 What is Investing

    • 10. 09a Index Funds and Monopoly Analogy

    • 11. 10 Power of Compounding Interest

    • 12. 11 Non Compounding Interest

    • 13. 12 Compounding Interest Recap

    • 14. 13 Power of Starting Early

    • 15. 14 Investing Goals and Risk Tolerance

    • 16. 15 Warren Buffet Advice

    • 17. 16 Before Investing

    • 18. Discuss Debt Class and Core 4 of Personal Finance

    • 19. 17 Betterment Intro

    • 20. INVT101 18 Betterment Walk Through

    • 21. INVT101 19 Betterment Conclusion

    • 22. Investing 102 Ending Invest In Yourself

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About This Class

It's March/April 2020 and we're going through a global recession. Watch a course about the recession here.

We will invest $25 together into a mix of stocks and bonds. You can invest as little as $10 into this diversified portfolio that includes over 500 companies' stocks and 500 companies' bonds. How amazing is that?

You should only invest what you can lose. Never invest money you will need. The stock market is volatile and unpredictable. 

This course provides all the information you need to buy a diversified portfolio in the real world. 

We will learn the investing vernacular and prep you to buy a diversified portfolio. 

We will finally learn how to buy a stock or index fund using Betterment. 

This is for students who are beginners in the stock market and need a strong foundation.

The information contained in this class is not intended to and does not provide legal, tax, or investment advice. It is provided for informational and educational use only. Please consult a qualified professional for consideration of your specific situation.

Who is the target audience?

  • Anyone with a strong understanding of the stock market should NOT take this course
  • This course is designed for students with little or no knowledge about the stock market
  • Anyone who wants to learn to invest 

Meet Your Teacher

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BrainyMoney And Son Han, CFA,CPA

Personal Finance Made Easy!



We're here to teach about personal finance and to keep you motivated. 

Learning what you need to know to take control of your finances is easy. What's hard is staying motivated.

We're here to teach you about personal finance and to keep you motivated!


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1. Objectives: Okay. What are today's objectives Will cover what you need to know to begin investing $25 in a combination of stocks and bonds. And what we call that is I diversified portfolio. We're not gonna invest in one stock. Okay? We're not gonna invest in one bond. We're gonna invest in over 500 different companies for stocks. As I said in the intro Andan, we're gonna invest in bonds as well. This is a beginner course, and Onley requires $25 to start investing as a lot of my courses. This is United States centric meaning, like I live in the United States. And I know how to invest in United States. I'll give some European some advice, but again, this is for the United States will not do a deep dive into financial instruments. We're not gonna cover preferred stock, standard deviation to root of etcetera. Those are things that I covered when I study for the chartered financial analyst exam. Not something that we uncover here. This is for the real world. Okay, so we're not gonna learn a lot of academic terms here. We're gonna learn what we need to know to invest $25 in a combination of stocks and bonds, a diversified portfolio and feel comfortable about that. So those air today's objectives, that being said, let's get start. 2. Only Invest What You Can Lose: so one thing that we wanted to add to our investing courses. This you should only invest what you can lose as you see in this recession in 2020. And we have a recession class now, So please take it is that you can lose a lot of money. So when we talk about risk tolerance in the market going down 30% it's done that do not invest money you cannot lose. Okay, So to invest in the stock market, you have to hire, have a high risk tolerance. So if you cannot lose that money, do not invest those dollars. I cannot stress that enough. I have a lot of money in the stock market. It's gone down 30%. But as I've said, I have a long time arising. I'm very young, so I don't care that it went down. I'm actually investing Mawr, but for you, if you cannot stand to lose those dollars or if you need them for whatever to buy a home or whatever, you should not be investing. I cannot stress that enough. During Cove in 19 3. 03 Defining Shares Revised: What is this? Stock stock is defined as a share of ownership of a company. If you own a company stock, you actually own a percentage of the company itself. In a percentage of the profits paid through dividends will learn what dividends are later on. It's also known as equity or shares in a company, so we're gonna use those terms interchangeably. Stock slash shares Right now that value the stock is not tied to the profitability of the company. Sometimes it is, and sometimes is not. The price of a share of Apple, for example, is based on supply and demand of this year. That's why you see the price of the shares of Apple going up and down a lot. This is known as volatility, price movements or volatility happens at every second of the day during normal trading hours. So what's the impact of? You are as the investor What does owning stock get me, you know, So you you own part of the company. You are now involved in some of its management decisions, and you are entitled to some of the company's profits. Shareholders often gets a vote to choose the board of directors to pick independent counts or auditors to approve any major change in the company, like merging with another company. What exactly you are entitled to depends on the amount of stock you own, even if you cannot do anything as you please in the company. The bigger portion of shares that you own lets you have a bigger voice decision. Incorporations are usually done by voting, and the bigger the shares you own, the more implement influential. Your vote is, however, these air not important to common folk as you, because you do not own a huge portion of the corporation. What is important is that you entitled to a portion of a company's profits or dividends. The more shares you own, the larger the portion of profits you get. If the company doesn't release dividends, like most corporations, do they invest it back into the company, which in turn increases the value of stock over time. Okay, so what that means Don't recap what I just said. You get certain rights as an investor, but because your shares are so minuscule, this is not applied to you. Okay, what matters that you entitled to a portion The company's earnings or what we call dividends. It will cover that again. The value of your shares should increase as the company's earnings and thus value increases , and we'll talk about that in a second. 4. 04 Dividends: Okay, so we'll go through a diffident his example. You've all heard of dividends and you're not really sure what they are. Dividends are easy to understand. So this is an example that we're gonna go through together when they bring the slide up. So we have a company apple. Okay, let's say that Apple makes $100 years this year out of the $100 they're gonna pay $3 to Joe , who is an investor, and that's a dividend. That's it. Different is a portion of the company's off the company's earnings. The remaining $97. What happens to that? Follow this arrow back that $97 goes back into the company. Okay, It's what we call retained earnings and finance, which is pretty obvious. Retaining the earnings is the money that we're putting back into the company from your earnings. Now you know what a dividend is again to recap. Apple makes $100 this year. $3 goes to you, Joe. As the investor, $97 goes back into the company, and that is a definition of a dividend. So now that we know what dividends are, there are two ways to earn return on a stock. One is from dividends, which we just talked about. Dividends are the result of a company's earnings. That's that $3 that Joe got right as an investor. The 2nd 1 is the price movement of the stock. The value of your shares goes up after you buy them. Those are called capital gains. Okay, so let's go through this life. So dividends are result of the companies earning capital. Gains are based on the investor demand for this stuff. When the price goes down, those air called capital losses. When the price goes up, those air called capital gains. So why does the price move up and down? It's all based on investor demand. Let's go to the next line to dive into this in a little bit more detail. 5. 05 Stock Price Movement: so reasons for price movement. There are several reasons for price movement, but really understand that the price should be based on the value of the company and emphasize should. So the more company earns, the more it is worth. However, that is not always true. The price and the value can be different here, a couple reasons for price movements and analysts recommends the company they're good. Earnings releases are bad ones versus expectations. A big one for tech companies, its future growth potential. We'll go over some interesting facts about profit and price of Amazon in the next line and the news. Think about E. Coli when that had an outbreak with Chipotle A. That was not good for their stock, for obvious reasons. So these are the reasons for price movement on this line. You can see chart that compares the market cap or market capitalization of the 10 largest companies in their profit in the past 20 years. We will cover what market cap is in a couple of slides. But right now, just think of it is how much it cost to buy the entire company. You can see here that Amazon Okay, so I'm gonna point out Amazon with my mouse here. Has it had $5 billion in profit in the last 20 years? OK, but is worth $458 billion. However, Exxon's I Wanna point out Exxon down here has had $597 billion of profit over the last 20 years, but they're only worth $346 billion. Right? Investors see Amazon's growth potential here, and I'm pricing that into their price of saying Amazon's worth $458 billion. Are they right or wrong? It's impossible to predict the future. And this is why when we get into the investing section, I talk about investing in 500 companies versus one we don't know. Okay? And what, and recognizing what you don't know is gonna be a very big park and understanding how the stock market works. You don't know exactly every small detail with Amazon, so you're going to diversify away from the risk of one company by investing in 500 companies, which I'll teach you how to do at the end of this course. So this is a recap of stock price movements. We covered Amazon just now, right? So it's not always earnings that is going to tell you the value of a company of the price of that company. The recap is that the stock price movements are based on supply and demand. People want Amazon stocks. It shoots up in price and then going back, I'll show you right here. It's worth $458 billion right? They've only made $5 billion. So that's definitely based on supply and demand. Investor sentiment is what affects the price of a stock, and what you learned over time is that people are irrational. Okay? And that's what's gonna cause the price of movement, price of stocks to move so that price is not always right at this moment in time, over the long run, the price will revert back to its actual value, or we believe that to be the case. But even if it's not, this is why we have I diversified for portfolio. 90% stocks, 10% bonds investing over in 500 different companies 6. 06 Where do Stocks Come From: Okay. Where do shares come from? New stock in a company can come from two places. New issues. What will call IPO's initial public offerings and stock dividends? Air splits? We're covering this. So you know some terminology, not a huge deal. To focus on new issues, which we call I pose or initial public offerings, like we just said, is when a private company decides to go public and issue shares of stock for anyone to buy , this is often called an initial public offering their an I p. O. And when large private companies go public, it could be very exciting event with huge fluctuations in the stocks price in the first few weeks while the market decides on a fair price for the shares. Okay, so you could think about Facebook. You think about Twitter. They were private companies that went public. We're going to stay away from this in this course because it's horses for the real world. US has an average investor were to stay away from my pose. Private companies go public and issues stop primarily to raise money as they sell the shares in the company. The original owners allow the public to vote on some management decisions in exchange for the cash raise in the stock sale to reinvest and helped the company grow. So why are they doing that? To get money, stock dividends are splits. Companies may also decide to issue new shares of stock after the AIPO. This can be done by giving all current hair holders additional shares in proportion to how many shares that currently have. For example, they can say for every 10 shares you own. Now they're issuing you an extra one share. This would be a 10% stock dividend in the market Price for the stocks would drop by 10% although all shareholders still have the same value. If the stock dividend is large enough, usually about 20% it isn't stuff instead called a stock split. There are many reasons why companies wanna have it stock dividend or split, and we won't cover that today. As this is an introductory course, I just want you to know that they exist. You know, some of the terminology again at the end of this course will buy shares that already outstanding. You don't need to focus on this. I just want you to know the terminology 7. 07 Market Capitalization: So we heard the term market cap and I said we would come back to market cap and here it is . Okay. Market capitalization. Let's go into this live market capitalization On first of the total dollar market value of a company's outstanding shares commonly referred to his market cap, it is calculated by multiplying company shares outstanding by the current market price of one share. So here it is marked gap equals total shares outstanding times the share price. The investment community uses this figure to determine a company size, as opposed to using sales of total asset figures. Using market cap. To show the size of a company is important because company size is a basic determinant of various characteristics in which investors are interested, including risk. Okay, so that's why I put down here. As companies get larger, they have considered less risky large capping over $10 billion. It's also easy to calculate, which we covered. A company with 20 million shares selling at $100 a share would have a market cap of $2 billion. Investors believe that the largely company is in market cap valuation, the less risky that company is. I take this approach by investing in the S and P 500 which is the largest 500 companies in the United States. I think it's a good point to say Here is well, everything that I recommend I do for myself. Okay, So I am. I invest in the S and P 500 which is a far largest 500 companies in the United States. I have a rough portfolio of 90% stocks and bonds, so I just want you to know that what I'm recommending is what I do on my own. 8. 08 Index Funds: So I just talked about the S and P 500 right? And then I invest in it and you don't know what that is. It's what we call an index fund, which we're gonna learn about now. An index fund allows you invest in many socks by purchasing one investment, for example, in index funds gives you exposure all 500 stocks. That is in that index index funds can be an excellent tool. Died to diversify your portfolio and reduce your risk. After all, if your money is spread across hundreds of stocks and one crashes, you don't really give a crap right. The impact of your over poor overall portfolio is minimal. So let's say that index fund over here toe. Last year, Home Depot, Exxon plus for 97 other companies. An apple. Let's say Apple was bankrupt. If you're invested in the S and P 500 which is 500 of these companies you care for, one goes bankrupt. No, you really don't. I mean, that's not great, but it doesn't really matter if you have 499 other companies you're invested in. But let's say that you're invested all in Apple and that goes bankrupt. Then you lose all of your money. So a single stock represents partial ownership in one company. So this is significantly more risky. So let's avoid this for now. And that's why at the end of this course, we're not going invest in one stock, we're gonna invest in a bunch of them. So I want to go over a visual example for you because this is a little bit easier to see. So this is the S and P 500 index fund. This is S and P 500 these are the companies invested that have the 500 companies in them. Here's a visual example that s and P 500. Like I said, you can recognize most of the companies no matter where you live in the world, right? And I think that is the power of this, right. That s and P 500. There's so many companies in here that do stuff across the world internationally. And that's where you can say, look, because I'm diversified. I have a lot less risk 9. 09 What is Investing: Okay, so now we're on investing for beginners. This is a really fun part of the lectures. So let's move on to the next slide here. What is the stock market? The stock market is where buyers and sellers meet to decide on the price to buy or sell securities, usually with the assistance of a broker. Let's take a look a closer look at what you need to know about how stocks are trading. Okay. Brokers include betterment, which will use this one in the next section, which is I use betterment, TD Ameritrade, Vanguard E Trade, etcetera. I actually have experienced with all of these brokers because I need to be able to test everything before recommending it to my students who actually use all of these brokers. Different brokers offer different things. So what is investing? Investing is really about working smarter and not harder. Most of us work hard at our jobs, whether for a company or own business. We often worked long hours. I know I did, which requires sacrifice and add stress. Taking some of our hard earned money and investing it for future needs and our family's future needs is a way to make the most of what we are investing is also about making priorities for your money spending is easy and gives instant gratification. Okay, whether the splurges on a new outfit vacation to some exotic spot except depending on how you want approach that or dinner in a fancy restaurant. All of these are wonderful. Make life more enjoyable. But investing requires prioritizing our financial features over a present desires. Okay, investing is a way to set aside money while you are busy with your life and have that money work for you. Okay? Money is gonna build it on itself so that you could fully reap the rewards of your labor in the future. Investing is a means to a happier ending. Okay, so covering this line investing is the exact opposite of spending. You build your network worth, which is wealth by investing your money and not spending it. Okay, So thinking about all those fancy things that people have usually not own is bought with money. When you spend money, you don't have any money left over to invest. Okay, So investing is really, really important, and saving is really important. Spending is the exact opposite of investing. So you want to invest and not spend. They're different types of ways you can go about investing, including putting money into stocks bonds, which we're gonna talk about mutual funds, E T. F s real estate and other alternative investment vehicles or even starting your own business. Every investment vehicle has its positive and negatives. I dropped some of those words. So you at least here, in a couple of times, we're not gonna focus on all of those things. Now that you have a general idea of what investing is and why you should do it. It's time to learn about how investing let you take advantage of one of the miracles of mathematics. Compound interest, the power of compound ing interests, which will cover 10. 09a Index Funds and Monopoly Analogy: another keys take away slide here. Investing is not gambling, and it's not scary. Okay, so we want you don't understand that. And we're gonna use Monopoly to help you understand what investing is like. Okay, so on the next slide, you'll see that this is Monopoly. So here's Monopoly. Everyone knows this game. If you don't. The purpose of the game is a by oppa's many properties. Okay, follow my mouth. All these properties here, you wanna buy as many properties, you can go bankrupt. All the players, when they land on your spot, they land on your slot, they pay you rent, then you have all the money, and everyone else has nothing. Each of one of these faces represent a property. Okay, let's focus on the property everyone wants. Look to the right here, and that's boardwalk. If I ask you to want, If you want to own for Boardwalk, what would you say? Most people would say, Yeah, but you condone boardwalk. And because there are 40 spaces on the monopoly board, there's a 2.5% chance that someone lands on. That's not exactly right, but it'll work for this example. So you have a 2.5% chance of somebody landing on Boardwalk. Now let's say I give you the option. Toe own 10% off every property on the monopoly board. So you own 10% of Pennsylvania Avenue, 10% of North Carolina, 10% of Pacific Avenue, 10% New York Tennessee ST. James Place. You own 10% of everyone, including Boardwalk and Park Place. Would you rather own 10% of every property on the monopoly board or 100% of Boardwalk? Hopefully, your answers. 10% of every property on a monopoly board. That's the difference between gambling and investing. Gambling is betting on one company. Let's say Apple or Netflix to do really well. Investing is saying I own a small percentage of the top 500 companies in the United States . That way, when any of these companies being money you to you will as well defining the term index fund, an index fund is like owning 10% of every property on the Monopoly board. You own a small percentage, also known as a share of each property. That's what we recommend investing in an index fund run by Vanguard and you can invest in these two betterment. No. You know, now you know something that most American Americans will never understand wanted index fund is and how it actually works. This is gonna be a very short video. The rich on the S and P 500 which are the top 500 companies in the United States. As you can see, percent of us hustle toning $10,000 in Warren stock by wealth class top 1%. 94%. The bottom quintile. 4%. So you can see the rich owned the S and P 500. And that's why I'm telling you to investment s and P 500 through betterment. 11. 10 Power of Compounding Interest: so come pounding is a process of generating more return on assets, reinvested earnings, toe work. It requires two things they reinvestment of earnings and not spending it in time. Compound interest can help your initial investment grow exponentially. For a younger investors, which a lot of my courses have people that age of 18 1920 years old is the greatest investing tool possible in the number one argument for starting as early as possible. So now let's do an example together using Google shoots or Excel. So first, download the file and let's get started. Okay, so here's the Excel spreadsheet that we're gonna be working with. If you don't have Microsoft Excel, I would download this and open it up with Google sheets. It should be the exact same way. Okay, so this is our first example. This is a compound ing interest. We're gonna cover a non com pounding interest example. We need to do this together. Okay, You have to see how this works. I have included a completed work before you. Please don't look at that yet. Let's do this together first so you can stop watching and actually engage in the work. So that being said, Let's get started. Example one up. Here, you invest $1000. Today you earn 8% on that amount annually and you don't take out any earning. This is calm poundings. Okay? You don't take it out and spend it. You do this for 15 years. Let's see how much we have at the end of the 15 years. So $1000 to start, we earn 8%. So we multiply that times 80.8 So $80 is 8% of 1000. That makes sense. How much do we take out to spend? We will take anything out. Were very responsible. People here are ending. Investments are 1000 bucks plus 80 that we just made to it. The 1080. Okay, is that makes sense. But here it is. What do we start with next year? We start with 1000. So we earn 8% on that. So when a multiply D six times 8% we're gonna hit Enter when I earn $86. How much do we take out to spend? We're not taking anything out because we're responsible people. So now how much money do we have? we have 1000 $166. What you're going to see here is this in earnings line is gonna increase every year. That's what is compound interest is. But don't take my word for it. Let's do it together. Year three is gonna be equal to the ending investment of the previous year. Right beginning is equal to the last years ending when equal $1166 earned 8% on that. So equal signs times 0.8% Enter. We just earned at $93 this year. Do we spend any of it? Nope. So what are some? Here are some is 1260. Your four evil to 1260. Yachts are beginning investment. We got this down now, right? It's equal to times 12600.8%. Right. So 8% were earning 100 $1 this year, taking out to spend nothing. How much do we have legal to some here. So as you can see, let's do one more year just so we could hit the thing home before we just drag out the formula. Your 51 start with $1360. How much our earnings equal to times 13600.8 enter $109. How much we take out to spend zero bucks. That leaves us with how much? $1469. So are earnings start from 80 to 86 to 93 to 1 A 1 to $109. So when you're one, we earned $80 in your five. We learned 100 $9. You see these two things that I'm highlighting in yellow? So this is the power of compound. If we took the money out, we'll see what happens in a second. But every year were earning mawr more money on the mountain that we invested. And this is our money working for us, right? We're using our investments, the workforce. We don't have to do anything. So now let's drag this out instead of doing each formula individually will drag it out by making this little crossbar here, Little Excel. Trick is this is how you drag out formulas and what we're going to see here, guys. Sorry, this is just went to zero toe. One changes zero all the way across Okay, So what I did is copy and paste all the way across and make that zero. Is that your one? We earned $80 in your 15. We earn $235 of interest because our beginning balances grow over time. Okay, so we started with 1000 80. We ended with $3172 over a 15 year period because our earnings started earning on top of each other. So let's check our work. Let's go to the completed tap 1080 ending with 3172. Is that the same thing We got 1080 here, ending with 3172. That is correct. So we did this correctly. This is the power of compound ing interest. Our money is making money on itself. The $80 gets reinvested into 1080 and then we earn 8% on the 1080. Okay, so our $1000 initial investment turns into year 15. $2937. Well, what's 8% of 200,937? Well, it's 235 which is higher than 80 right? And that's why in 15 years that $1000 investment just grew to $3172 I'm bolding it here so you can see in the highlighting at yellow. Okay, so now that being said, let's move on to the next part of the lecture and non com pounding interest example. This means that we spend a lot of money. We don't. We make money on the earnings, but we want to go ahead and spend it, so let's go on to that example. 12. 11 Non Compounding Interest: so I cannot stress this enough. I hope you download the Excel file and then either doing this in Google Sheets or Microsoft Excel doing it together, we'll show you the power of compounding interest. Now this one's were actually non com pounding example. Okay, so you're spending a lot of money urine to spend what you are. OK, you invested $1000 today. You earn 8% on that money annually and you take out your earnings and you spend it on something fancy every year. So you're not compounding your money and you do this for 15 years. I want to compare how much money I have at the end of calm pounding, which is 3172 and non com pounding. Okay, I'm not frugal. I'm just gonna spend everything I have. I've never watched Sun's core for personal finance, and I think that spending money is cool in having you know the newest iPad every year will make my friends like me more. Let's go through that example. 1000 bucks. We earn 8%. Just like the previous example. Multiply this by 8%. So 1000 here right, $80 of earnings 1000 here. $80 burning. Same exact thing. However, I'm taking this money out now. I'm gonna spend it. So I'm gonna equal to negative this so that $80 comes in. $80 comes right back out. What's my ending? Investment Political to $1000. I made 80 bucks, but I spent it right away. Right? So that's the end of your one year two. How much will have have $1000 to start with? Because I spent all my earnings. Okay, so now I'm gonna multiply this by 8%. How much do I earn? 80 bucks. My gonna hold and spend it. Yeah. I'm gonna go and spend it because I want to impress my friends by spending money. So now I'm going to sum this up. How much do I have? $1000. Okay, so now let's do one more year before we drag it out. I think you're about to get the message here. 1000 pups, right. Earnings equal. $2000 times 8% made. 80 bucks. Great. Man. I'm feeling great. Oh, well, I'm gonna spend it because I'm going to press everyone. Hope I just spent the money down to sum it up. 0 $1000. OK, so now let's drag this out. Because I think the lesson here is not the math of the Excel, but seeing what it does in the long run. I started with 1000 bucks. I ended with 1000 bucks. Let's come check that with our answers back here on the completed tab. $1000 I end with $1000 because I spent $80 every year. So that is right. So what does the state owe us? I earned three times the amount of money on a bold this one, too. So this is on the type of Indian social do. This is non com pounding. I end with $1000. Here I end with calm pounding off 3172. This ties into everything that I've been talking about. The power of compound ing interest investing. Yes, that's good. But if you take out your earnings every year like you see here taking out your earnings to take out to spend, you're not allowing your money toe work on itself and to build on itself. Okay, so that's the power of compounding interest. Your money makes money. All is italicized. It embolden your money, makes money. You don't have to do anything. You work all these long hours that we talked about in this case, your money's earning money on it itself. So that $80 is now turning into $235. And here $80 is still 80 bucks. Right? Because we're taking all of the money out, and we're taking it to spend it. That is the power of compound ing interests. That is the weakness of non com pounding. And that's where people spend a lot of money on buying fancy stuff. They never get to reap the benefits of this. This is what I reap the benefits on. Okay, Over the last 10 years, I've been investing my money, but I have not been taking it out. My money is now calm pounding and building on itself. Okay, I'm gonna bold this now. Sorry, I'm not bold it and put a border around it. So you really see the power of compound ing injures high? Delighted all yellow. This is calm. Pounding your money makes money. You decide to spend all your money. You're gonna be working for the rest of your life. So that being said, that's the end of this Google sheet Lecture on com pounding versus non compound 13. 12 Compounding Interest Recap: Okay, So hopefully you heard the passion in my voice when I talked about compound interest in the on leeway to do calm, pounding interests is to control your spending. Okay, so you're like, OK, son. Well, that was on an Excel spreadsheet that was on Google sheets. I don't know what the real world example of that is. So I'm gonna give you a real world example The benefits of calm pounding in the popular Vanguard 500 Index fund. This is what I'm invested in. If you held him for 20 years ending February 28 2017 a $10,000 investment into the fund made on February 28 1997 would have grown to a value of 42,650 at the end of the 20 year period. This assumes the every investment of all funds distributions for dividends, interest or capital gains back into the fund without reinvesting the distributions. What do you think That value that initial $10,000 investment would be would have grown to $29,548 or 69% of the amount with the reinvestment. So obviously that's a real world example that if you re invested all of your earnings, you would have had 42 grand out of $10,000 initial investment versus 29 grand on a $10,000 reinvesting in this example current. Your taxes would have been do on any fund distributions or stock dividends if the investment was held in a taxable account. But for most investors, those earnings can grow tax differ in a retirement account such as employer sponsored 41 K which I covered my personal finance course. What a 41 K is at the end of this class. We're actually gonna invest in a taxable account so we can see how to actually invested in a diversified portfolio. 14. 13 Power of Starting Early: now we'll talk about the power of starting her. Let's do an exact Excel. Google shoots Example the importance of starting early Again. I'm trying to engage you. So you really see the power starting early? I have many students in the 18 to 28 drains, and this is for you. Okay. Understand? The power of starting early, if you're not in that range, is still imply for you, because the importance of being able to have time to compound your interest. Okay, so download the Excel spreadsheet. Um, it's in the notes. What now you need to do is if you don't have Excel opened up in Google Sheets, we're gonna focus a little bit here onto the time value of money you gonna be like, son. Well, I don't know what the time value of money is. Well, then spend a little bit of time on my intro to corporate finance course. That's gonna be a really important course, understand? Time, value, money. I'm gonna assume that you understand time value money at this junk at this juncture. So we're gonna do this together. So you're starting at 25 years old. Okay. You want to retire at 60. And you want a $1,000,000 at the end, and you want to earn 5% annually, we or you will earn 5% annually. Okay, so what's our goal? Our goal is to have a $1,000,000. Okay, so it's a 1,000,000 bucks here. That's our goal. Our current savings. I have nothing. I'm just starting out my annual contribution. I'm actually gonna try to figure that out. So right now we're labelled out his ex rate of return. My rate of return is my 5% interest. And my how many years to retirement do I have? I actually am 60 looking to have retired 16. I'm 25 years old now, so I have 35 years to retirement. So what? I'm looking for my annual contribution. What we're gonna compare here is the annual contribution. If I'm 25 if I'm 35 if I'm 45 I'm gonna show you the difference. And that's why I'll show you the power of starting early so they calculate my annual contribution. I'm gonna do equal signs. PMT open parentheses. It's gonna ask me for my rate. What is my rate? My interest rate is actually gonna be cell C 29. It's being covered by this Excel help, But I can put in C 29. Yours will be C 29 as well. My end per, which is years to retirement, is 35. My present value. I currently have zero. My future value have labeled all of these for you. To help you out is a 1,000,000 bucks. I'm gonna close my parentheses. Hit, Enter These always come out negative. Change the sign on that. So I need to put in $11,000 per year if I'm 25 years old to retire at 60 and have a $1,000,000 in savings. So what's my monthly contribution? I'm gonna divide that by 12. So $923 is my monthly contribution. If I start at 25 years old, I want a $1,000,000 I earned 5% annually. Okay, $1920. It doesn't really tell you anything because you don't know what that is relative to. So let's say that I started 35 years old and said, My future value. My goal is the 1,000,000 bucks. Still, my current savings is your dollars. I'm trying to find my annual contribution. My rate of return is still 5% in my years to retirement, so I'm retiring at 60. But I'm 35 years old now. Someone subtract 35 years. How many years is that? I have 25 years left to invest, so I want to find out my annual contribution. How do I do that? Equal sign. PMT Open print disease. What's my rate? C 38. My end Per labelled C 39 right here. Years of retirement. That's what it is. President value Nothing. How much does my future value? A 1,000,000 bucks. Close parentheses. I'm gonna write my negative. Appear to change the sign. I need to put in $20,000 for a year. I'm gonna divide that by 12 my monthly contribution. Take away some decimal points and make a little bet. Look, a little bit better is $923 If I started 25 years old, That's my monthly contribution. Gonna put a box around that If I started 35. My monthly contributions $1746. So waiting 10 years means that after almost double my contribution. Okay, so you don't see the power starting early. Now let's do one more. But starting at 45 years old, put a box around this and do this one together. So instead of starting in 25 I'm gonna actually start at 45. I want a 1,000,000 bucks. By the time I'm 60. I currently have $0 in savings. My annual contribution. Put it X because we want to find that. What's my interest rate? 5% years to retirement, 60 minus 45 years old. I only have 15 years of retirement, Guys. 15 years. I gotta get to a 1,000,000 bucks. What's my annual contribution Equal To put the negative right now. Negative PMT my rape C 47 per labeled as C 48 president value while it zero. Um, and I want to get to a 1,000,000 bucks. How much I need it. Contribute annually. $46,000. What's my monthly contribution? Divided by 12 $3800. I'm gonna zoom out a little bit so you can see him all at once. So if I started 25 my monthly contributions 923 by started 35. My monthly contributions 1746. And if I start at 45 years old, I could contribute $3800 a month to get to a $1,000,000. Now you can see how the years to retirement. It's so helpful on building my nest egg. The longer time I have, the less I have to contribute. Okay, so let's divide these out. 923 17 46. That is 1.8 times now. $3800 divided by 923 four times as much. So if I had started 25 to $923 a month, if I started 35 I have to almost double it. Not quite, but almost doubling to 1746. If I started 45 years old, I have to multiply it by four times my monthly contribution to get to a $1,000,000 that 60 years old. So now you see that power of starting early for everyone in this class. Start saving your money. Putting into 41 K at the end of this class will put $25 into betterment. But start investing now because that gives you the power up. Using your years to retirement toe work in your favor to get to your retirement goals 15. 14 Investing Goals and Risk Tolerance: so we just talked about retirement goals. So what? You're investing goals? No one. Investing strategy or approach fits all. Every investor has different reasons for investing different goals. Different time horizons, Right? Starting in 25 35 45 in varying degrees of comfort with investing, it's important to find an articulate your own parameters. So for your goals, what are your objectives for the money that you will be investing is safety of principal, with some level of returns efficient. Are you trying to accumulate money for a longer term goals, such as a college education for your kids, or perhaps a comfortable retirement for yourself? You might even have different investments for different goals. The point is that before you decide to invest more than $100 it is important to understand why you are investing in the end result that you are seeking. Golden objectives should not be created in a vacuum. You also need to know your risk, tolerance and time arising as part of the goal setting process. We just talked about Time Horizon, right, retiring at 60 when you're 25 years old, 35 years old, 45 years old and women hit risk tolerance on the next couple of slides. So that being said, what are you investing goals? It's important to understand what you're investing goals are. So what is risk tolerance? Let's start with this question. What would you do if all the money you had invested in the stock market dropped by 10% or replace this by 20%? OK, which you A sell everything be so some see do nothing d by some more e by as much as you possibly can. If you start here and you sell everything, you have a low risk tolerance, which means that you should be investing in savings accounts. If you do somewhere in between, you have a medium risk tolerance, which means that you should do some combination of bonds and some stocks if you buy as much as you possibly can. If your answers e, you have a high risk tolerance, which means that you should be invested in almost completely stocks. Your son where you add I'm in e Okay, I'm 32 years old, so I'm very, very young. I have a long time horizon until I'm 60. When I want to retire and I don't really want to retire. Want to keep working, making lectures like this. But it was have a long time horizon, so I don't really care at the market. Draws by 10%. 20%. Why? Because I don't need that money. I already have my emergency fund. Watch my core for personal finances. Know how much you should have in your emergency fund? So I don't need the money that stocked away in on my investment. So I have a very high risk talent. You may not be there if you plan to sell everything you could be selling at the wrong point in behavioral finance. What we learn is that a lot of people will sell everything when the market drops and buy back when the market goes back up. That's a horrible idea. Okay, So knowing your risk tolerance before you enter the market is gonna be really, really important. And that's also why we're starting with two shots. A small investment of $25. Okay, so risk can mean a lot of things, But the context of investing it means the risk of losing money. In other words, the risk that amount of money invested will decrease in value, possibly zero risk tolerance is the degree of variability and investment returns that investors willing to withstand Risk tolerance is important component in investing. You should have a realistic understanding of your ability and willingness to stomach large swings in the value from your investments. If you take on too much risk, you might panic and sell at the wrong time, which we just talked about. All investing involves risk in one way or another. Okay, stocks can go up and they can go down, and they in. They vary in price. That's the volatility that we talked about over certain periods of time. Let me give you an example. When When I graduated from graduate school in 2008 that s and P 500 dropped by 37%. While this decline in the stock market was one of the worst in history, less severe market corrections are not uncommon. How much of a drop in your investments can you stomach? Okay. I can stomach a huge drop. Not everyone can, because I don't need the money right now. I don't have any kids and I'm not married. Your risk tolerance will likely be a in part, a function of when you need the money. Just like I talked. I don't need the money any time soon. No, as your time horizon, which is usually a function of your age, which we just did in the previous example on Google sheets. Someone in their twenties or thirties who is saving for retirement shouldn't give too much thought to fluctuations in value, known as the volatility of their investments. That's at work in that volatility. In contrast, someone in their sixties likely will and should have a lower risk tolerance if for no other reason that they don't have a time. They're fully recoup a major loss in the value of their investments. So think about your age, and that is also tied to your risk tolerance. Your investment should be aligned with your time horizon, which you will need the money, especially if some or all of your investments are targeted for a specific goal. For example, let's get it through an example Here. You're young parents investing for your newborn's college education. You don't know anything about this tolerance, so that's why you're watching this class now. Your long time Horizons allows you to take a bit more risk in the initial years of your new born. When you're a kid gets the high school, you might adjust the investment Miss Mix to help ensure that you don't suffer any major losses in the years leading up to the start of colors. So let's say that you have a newborn. You have a higher risk tolerant, as in your saving for college. As that kid grows older and older and older, you're gonna have a lower risk college because you don't want to lose all your money right before they student. Your kid need to go to college and you don't have any money to send him. OK, so that's gonna be really important to understand. Risk tolerance is so important. So ask yourself this question. Replace the 10% with 20% even, and this is determined what your risk tolerance 16. 15 Warren Buffet Advice: Okay, So, trading frequency everyone's heard of, like, day traders. Or watch some, you know, movie about it. And you're like, Oh, wow, that's really sexy. Well, not always everyone. How long you will stay in one particular investment. Okay, that's up to you. Legendary investor. Somebody I look up to. Warren Buffett rarely sells the stock he owns and doesn't get run over by market fluctuation. This is generally known as a buy and hold strategy. And the other extremes are traders who buy and sell stocks on a daily basis. This is fine for professionals, but not a good idea for the average investors. Not a good idea for you. Nobody is advocating that you hold your investment forever. And in fact, things changing should probably be reviewing your mission individual holdings periodically to ensure that they're still appropriate for your situation. Okay, So, like, what do you do, son? I have a buy and hold strategy for myself. I by the S and P 500 my plan is to hold it forever. I have a very long time horizon, as on 32. But what's right for me may not be what's right for you. I take the warm buffet approach, but you may not do that. But what I do recommend is that you do not You do not do a daily trading strategy, okay? And buy and sell stocks on a daily basis. Horrible idea for multiple, multitude of reasons. I'm not gonna cover those right now, but the buy and hold strategy is way better for the average. And Okay, so what about knowledge here for a second? It's gonna be really important. Understand? Some investment vehicles require sophisticated knowledge and monitoring while mawr, while others are more setting, forget. And that's why we're gonna talk about betterment or second, your investment decisions should be based on your comfort level in your willingness to devote time to researching your choice is an easy route Is that choose a variety of low cost index funds that cover various parts of the market such as bonds, domestic stocks and foreign stocks. We're gonna do that. This is what betterment does. The company will talk about later on. The S and P 500 is the lowest cost index fund that covers the largest 500 companies, and we will actually have a mix of bonds in this diversified portfolio. Using betterment could be really, really cool. And then it's important. Understand? What you don't know is important that investors understand what they do and don't know. They should never be talked into investing in something that they don't understand are uncomfortable with. Let's go over the warm buffet coat. Quote on slide 30. Okay, so I'm going to read this quote, um, work for work. My advice to the trustee couldn't be more simple, but 10% of the cash in short term government bonds and 90% in a very low cost S and P 500 index fund. I suggest Vanguard's okay. Vanguard is a company. I believe that trust long term results from this policy will be superior to those attained by most investors weather, pension funds, institutions or individuals who imply high theme managers. It's gonna be really important. Understand fees. I have a ton of respect for Warren Buffett for several reasons. He's a great investor, but also he's frugal. For example, he's owned the same house since 1958. Think about how many people you know who buy and sell a house every three years in the transaction. Cost moving. Caustic Senator, they are incurring. How many times have you bought until dowels? They're not billionaires like Warren Buffett. And he's on the same house since 1958. That being said, I recommend to books if you want to learn more. But please know, not everyone knows that much. On the next slide, you will see a recommendation of a book by warm buffet cold as days of warm buffet and another book called The Intelligent Investor. Okay, so I recommend that essays of Warren Buffett and the intelligent investor main thing to know is Understand what you don't know. You're not a professional. You don't know the insider trading off Amazon or other companies. That s and P 500. This advice from Warren Buffett. I support the Warren Buffett advice on this slide. Which is why we're gonna cover betterment in a second 17. 16 Before Investing: so before investing. Pay off high cost debt After continue to make timely bill payments of evaluating your eligibility for match retirement plan contributions, which we talk about in my personal finance course, your goal third goal should be to pay off high interest debt. For most people, the most expensive debt is associated with credit card or unsubsidized student loans. The average American has 4400 credit card debt. The average interest rate on those credit cards is around 15%. The graduating class of 2015 average 35,000 student loan debt more than any class in history. This high interest it is an emotional burden and drag on your finances, which is why eliminating it from your balance sheet is a top priority. I consider any debt costing about 5% in interest or finance charges to be high cost debt, okay, interest rate above 5% high cost debt and should be paid off before general investing's. Others may use a higher number, maybe like 8% of the high cost debt. But I'm gonna take a very conservative approach, anything greater than 5%. Okay, so you have debt. That's costing you over 5% in fees paid off as fast as you can. Start with the highest debt, our interest rate debt first, see my personal finance cores. We talk about this a lot about how you should pay off everything but your house because your house should cost you less than 5%. But if your house cost you more than 5% in your loan that something's wrong, you should really look into that paid off as quickly as possible before investing. Why is that? Because investing will generally return between like six and 8%. If your debt is causing you 15% and you're investing earning 68% that doesn't make any sense. So you have to pay off your high cost debt before investing. Okay, that's gonna be a really important point. I hate debt in general. I have zero debt. Um, I love that so hopefully you can get to that area. But I know a lot of people have some debt. As long as you live, your debt is not costing you more than 5%. Then you can start investing 18. Discuss Debt Class and Core 4 of Personal Finance: Okay, so we're getting pretty close to investing here. And I wanted just to stop here for a second. Thank you for making it this far through the class. You learn a lot now. A lot more than most Americans know about investing. So congratulations. What I will also say, though, is that before we actually invest, I know we're investing such a small amount, so it's not a huge deal just yet. Is that you? Taken to my classes? The first ones to be the core four per personal finance. Why is that important class? Because we talk about debt there. We kind of dive into it. I'm not a lot, but it gives you a good overview. What you should have be doing as it relates to your debt in the second class I'm gonna recommend is understanding your debt. So that's my other class. You can see both classes below me. So why am I recommending that class? Because 80% of Americans have debt and don't really understand it. They don't understand how much cost, how much debt really cost them way. Talk about compound interest in this class And what we didn't talk about compound interest when it when it works against you like Carnac our debt. So it doesn't make any sense to invest and earn 6%. 7%. When you have credit card debt over here, that's costing you 1920 25%. So you gotta pay off your debt on. So that class helps you understand that the core poor personal finance will tell you how that attack your debt, Which debt should do pay off first. But again, this cost a very good class because we're always started with 10 or $25. So it doesn't matter how much debt you have 10 or $25. Not gonna make a big impact on that. And it gets you your feet wet to understand how investing works. So with that being said again, I recommend taking both of those classes, of course, for personal finance in the second class, understanding your debt, you could take both classes below me. Eso that being said, let's keep going 19. 17 Betterment Intro: Okay, so let's talk about better, man. I'm going to read a little bit off this slide. I think it's important. Add a little bit here and there, but generally just reading on this life. So now let's invest $25,000 to momentum Betterment with a mix of stocks and bonds. This is our diverse portfolio that we keep talking about. Okay, that diverse portfolio. When we go through this example, I'll be pausing the video here and there because my personal information is gonna be on there. So I'm not gonna be showing you my personal information. Just just heads up. Um, I get nothing for recommending betterment. I recommend it because I use it. I don't recommend anything. I don't. You see all of my lectures, I recommend mint. I recommend betterment. I recommend a lot of different things that don't always end in mint, But betterment is really, really good. I'm a chartered financial analyst, and I saw that it was a really good tool, which is why I recommended betterment is considered a robo advisor. These there These are low fees and invest in low cost index funds made by Vanguard. Remember that vanguard thing. Well, that's the company that Warren Buffett recommends, because there are a lot of low cost fees. You not want high fee managers. It only takes $25 to get started. And it is great for beginning investors to get started quickly and watch how their investment moves for European students. Check out E. T F Matic. I don't know much about them, but I heard good things. Invest a small amount and then do your own research. Okay, I know a lot of students watches from all over the world. I know my classes are United States centric, so it's a little tougher for me to recommend things in Europe because I lived there. But I didn't start investing that OK. I was in a citizen of Europe at any point. So it's important to look in research on your own and independently verify everything I say . Actually, for students in other countries, look for low cost index funds. Fees of two percents can eat massively into your earnings potential. Okay, so you never want high fees. So that being said, let's go invest that $25 20. INVT101 18 Betterment Walk Through: so there are two ways to get to betterment. Obviously, typing in betterment dot com or going to google dot com and typing in betterment here, type in betterment. There are lots of ads for you can click in betterment here. Okay, Get to you the same site. So already have any Callum betterment. But I'm not gonna open up another account because I do not actually have a taxable account with betterment. All of mine are through, like my 41 K or Roth ira, so I'm actually gonna make a new, better many count. Okay, so let's get started. You click up here in click get started. So I'm gonna create a betterment account again. Throughout this video. I'll be pausing it That has any personal information. I'm gonna be pausing it for that of those parts. So I'm gonna create a better man account. I'm gonna type in my email address, and here's what I'm gonna pause. So I put in my email address. Now you're gonna put your first name, Your last name, your phone number. How did you hear about us? Your address. Your zip code, etcetera. So I'm gonna do that. And I'm a pause again. So I put in my, um, address and stuff. And now you're putting into so security number your date of birth in your gender. So obviously, I'm not gonna be doing that while everyone could watch someone pause it here. So I put it in myself. Security number of my date of birth now and so put in my employment status put employed on Did it continue? Occupation Blank. So I'm gonna go and pause it again. Here, you'll see tax filing status, your annual income reported federal tax bracket and estimated investable assets s. Although until this in pausing again, you'll see questions like this Regulatory questions. Are you employed Are associated with a broker dealer? No, no and no. So I'm not subject any withholding from the i. R s. So I'm gonna hit no one. All these didn't continue andan. Now you gonna answer some security questions? I'm gonna do this while I do this on the hit pause. So it's gonna take you to the screen on screen. On what type of account would you like to open? I'm gonna open up the individual taxable account. I'm gonna continue. What would this account be? used for. I'm gonna put retirement. I'm gonna continue here. Are you saving for retirement? Yes. I am saving for retirement Tax coordination. Could you improve your after tax returns? Um, so I'll put tax coordination on you can read through this on yourself. What? Tax coordination is turning on and off. If you decide to do that, I'm gonna leave it on. Continue. Um, so now it's building, like portfolio setting my allocation, finalizing my settings. My counts been set up in its complete. So now it says making a positive get on track when you make a deposit will transfer. Not your sect. It from my count, which I'm not black out into your individual tax will count. So now starting here. Restart here. The amount I put in this $25 I'm gonna do mine. Recurring. Okay? Because I actually do want to set this up. You're gonna set yours up as one time because I think it's important to set up $25.1 time to see outworks for being. I'm gonna put $25 recurring monthly on the first of every month. So this growth projection, the graph below shows how much we project that you'll have at the end of your investment period based on the amount you deposit the allocation you selected in the projected market performance. So average market performance at the end of 20 that see here, 2024. I'll have around $61,000. But if the markets poor only have 25 $27,000 this is $25 a month. Okay, so I'm gonna pull that up for you. $25 a month is $300 a year. I put in $300 year or $27,000 market does poorly or $61,000 of the average more at the market. Just does an average. So that's really, really great, obviously. So I had some starts and stops in there because a lot of personal information not shown. Now, let's set your risk level. Okay, so you're gonna have a screen like this and maybe a little bit out of order. But 90% stocks, 10% bonds. Okay, So what are your holdings? So let's go through the holdings. You're gonna have Ah, vanguard Total International Blonde D t f. So I told you there would be some bonds in there. Another bond emission. International emerging markets bond US total stock market, international emerging markets. You was value stocks, large cap, and you can read about them. You. So why what? Why this asset class in the ZTS just read through it here. This set of holdings is one of the three that office explosion of value stocks of certain sizes, size and value are to Dr Tilt of Betterment portfolios optimization. So, essentially, what this is saying is like, Look, this is telling you why you Why they chose this one to invest in okay, They have small caps, other bonds here, developing markets, midcap, and and other high quality bonds. So this is 10% bonds, 90% stocks. They have projections over here, likely one year return between negative 15 and plus 34% average annual return. That's at 6% that I talked about in allocation over time. Okay, so this is the 90% in 10%. My auto adjust is also there a lot of key futures in here. You're gonna ask betterment about them or read about them on your own. So this is the auto adjust again. I'm a little bit different. I'm 32 years old, so I could easily do 90% bonds. I mean, 90% stocks or 100% stocks. I'm actually gonna keep minded 100% stocks here. You could see the variation in my return could be between negative 17 plus 37%. Again, you have to think about what is good for you. But again, this is $25. We're doing such a small amount. So you could put whatever you want here. And it's only $25 for anyone. That's not a lot of money that's going to the movies twice. Okay. Or something along those lines are getting Starbucks five times. This is $25. Get started on investing. Set your risk level, set your deposit to $25 that's it. Um, and then I'm gonna I'm gonna stop here on Let me know if you have questions on betterment. There are other videos all linked to to show you how betterment works. Let me know if you have any questions, though. 21. INVT101 19 Betterment Conclusion: so that's it. You've now invested $25 in some sort of combination of stocks and bonds. Critics your own diversified portfolio across like a different funds that betterment offers through Vanguard Low Fees, a diversified portfolio that reduce the amount of risk you have. That's it. You've done it. That's the coolest part of this course. You invested $25 yourself. Now do some research. Look what you're invested in your investing over 500 different stocks on Ben. You have different bonds as well. In the $25 it's such a small amount looking through it. Look at it. Let it let it ride for a little bit before you invest more. My $25 I am doing a monthly recurring deposit because I needed to set up a tax full count through betterment, Um, and so I need to set that up anyway. So is a great time. I have other money invested in betterment as well. It's a great time to invest in through betterment. So just like my other courses, there's a re a world take away here, and this one is really cool. You're taking away that you can invest $25 in a diversified portfolio, goes without saying that there is a capital gain sacks. It varies from country to country. In the United States, individuals and corporate corporations are subject to the capital gain sex. I'm gonna put a little note down here that most people invest through their 41 K You don't have to pay tax on the 41 K until you would try. My advice is, look for low cost index funds in your 41 K and determine it. That's right for you. Check for high fees. Those can really eat into your returns. OK, it's similar to the example that we did in which we had earnings, and then we took those earnings out. We spent them. You're spending them on high fees. It's very similar to that. Betterment uses Vanguard, which uses low cost in next funds, which is what Warren Buffett recommends. So again, check for those high fees. So that being said, that concludes this section, which is we started a better man account. We invested $25 together again. I get nothing from recommending betterment. I do it because I use it myself and you saw that now. So that being said, let's move to the conclusion and end this part of the course 22. Investing 102 Ending Invest In Yourself: So now that you finish one of our most popular classes, investing 10 to what we highly recommend is learning how to invest in yourself. The art of a side hustle, which is starting a freelance business for yourself, is incredibly important, probably mawr important than investing in the stock market. Yes, it's good to invest through betterment, invest in the stock market. But investing in yourself has the biggest return, and what I would do is watch this class the art of a side hustle, starting your own freelance business to learn how to build a real world skills and create your own lifestyle business, which is a profitable business that will help you diverse a fire income we'll learn about Amazon will learn about how they have multiple income streams and how you should as well, so highly recommend the art of a side hustle, which is essentially investing in yourself.