MASTERCLASS: 10 Places Your Money NEEDS To Go As Soon As You Get Paid

"and then some time goes by and you look at Zillow and you see oh I could sell my property for now $1.7 million"

"you don't have to pay any money in taxes today this is called a 1031 exchange"

"we're always going to need a roof over our heads no matter how crazy the metaverse becomes"

"what I'm looking for is a 7% cash on cash return on my money"

"if you can find the next Amazon or the next Uber before it becomes Amazon or Uber well now you can see a massive return on your money"

"Bitcoin might be the next digital gold"

"Compare that to the 2% fee you'd have to pay with a mutual fund where you're paying $2 out of every $100 you invest"

"0.04% in fees means that for every $100 you invest you're going to be paying four pennies in fees"

"this has an expense ratio of 0.03%"

"a couple ETFs that will give you exposure to the S&P 500 are VOO and SPY"

"something like VTI will give you exposure to the entire stock market with big companies medium-sized companies and small-sized company"

"a couple examples of ETFs that are focused on paying your Dividends are VYM and RDVY"

"a couple examples of this would be VWO and IMGO"

"some of the most popular Innovation ETFs are managed through through the Ark fund which is managed by somebody named Kathy Wood"

"a couple example of reit ETFs would be VNQ and IYR"

"QQQ so QQQ gives you exposure to the NASDAQ... SLGY so SLGY invests into the smaller cap growth companies"

"the CEO of Coca-Cola made $24.8 million"

"Warren Buffett who is an owner of the Coca-Cola Company he owns a lot of the stock he made over $700 million in dividends"

"you're going to be paying somewhere between 15% to 30% in taxes... the top tax rate for your investment income today is 20%"

"you need to go out and save $2,000 ASAP"

"you got to work to pay down your high interest debts this is things like your credit card debt as fast as possible"

"when Americans go out and they get more money they go out and they buy a faster car they buy a bigger home or they go on a vacation... this makes it easier for you to go out and spend more money"

"investing is a long-term game... we're talking for a decade or more"

"the stock market has gone up despite Market crashes despite recessions because we've seen a market crash a recession pretty much every decade for the last century and yet the stock market has still risen"

"it takes more money to get started it takes more work to get started"

"The way it works is you can go out and buy a property this can be a house this can be an apartment building this can be a mixed use building you go out and you buy this property this building and then you're going to lease it out to somebody else who's going to use your building so in this case we'll use a house and now I'm going to lease it out to this nice couple with a mustache with his wife who has a braid or as we like to call it in my native language Punjabi a good this nice couple live in my home now in exchange for them living in my home and using my home they're going to pay me $1500 a month every single month for living in this property I don't have to do any work after they move into the property because now I already own the asset"

"so if I can ran out this home for $1,500 a month and let's assume for the sake of this example that my expenses are $11,000 a month to own this property that's my taxes my insurance my maintenance fees my management fees and my mortgage is $11,000 a month this means that every single month I get to put $500 worth of profit into my pocket this is the money that I get to put in my pocket which means every year I'm putting $6,000 into my pocket"

"so going back to this home let's assume that when you bought this home it was $20,000 for the land and $150,000 for the actual house now you will get to tell the IRS that and because this property that I bought is one year older I deserve a $5500 tax break which means you put $6,000 in your pocket this is the money that's in your bank account but you only have to pay taxes on $500 this is your taxable income because you get to take this depreciation expense on your property"

"but real estate gives you another exception because now what you can do is you can take all of this money you take the $1.7 million and you go out and you buy a bigger property let's assume that now you buy a bigger property with multiple units I clearly am not a good artist here but you go out and buy a bigger property with this $1.7 million and this $1.7 million property is going to pay you with more rent more profit because it's a bigger property and bigger tax breaks for your depreciation deduction but now the advantage not only is that you own a bigger property but you don't have to pay any money in taxes today this is called a 1031 exchange it's called a like kind exchange you don't get this in the stock market but you get this in real estate where you can flip your property after one year you own the property for a year you can sell it for a profit flip it into a bigger property and pay $0 in taxes today and you can do this again and again and again keep flipping properties into a bigger and bigger and bigger deal deal and he can do this until you die and never have to pay a penny in taxes on these capital gains"

"we've seen retail real estate get hit so hard because of the digital Revolution we've seen office real estate get hard because of the pandemic and people working from home those two will keep going through Innovative shifts and they're going to be changing a lot but residential real estate we know that people will need a roof over their heads which is why I like residential real estate we've seen retail real estate get hit so hard because of the digital Revolution we've seen office real estate get hard because of the pandemic and people working from home those two will keep going through Innovative shifts and they're going to be changing a lot but residential real estate we know that people will need a roof over their heads which is why I like residential real estate"

"what I'm looking for is a 7% cash on cash return on my money meaning for every dollar that I invest I'm going to make 7 cents in positive cash flow 7 cents in profit every single year if I invest $100,000 that's $77,000 a year in positive cash flow that's what I'm looking for"

"but if you hit the right one now you can see an insane return on your money because if you can find the next Amazon or the next Uber before it becomes Amazon or Uber well now you can see a massive return on your money so higher risk and higher potential reward"

"so now Market briefs is its own company and I'm investing my own money that I make from Minority mindset and other places into Market briefs that way I can grow Market briefs and our team bigger faster because I believe and I know that our Market briefs newsletter is the best financial newsletter out there and I'm working to grow this every single day along with our whole Market briefs team"

"gold is your traditional inflationary hedge because gold has been used as real money for centuries and everybody whether you're in India China Mexico United States everybody knows the value of physical gold"

"sure Bitcoin might be the next digital gold Bitcoin has a lot of potential in the future but it is not exactly there yet it's not therea in the sense of protection it's not there yet in the sense of security however it might be there in the future but because Bitcoin is just so volatile you see so many crashes and swings up and down I wouldn't say that it is your real money the way that gold is now"

"compare that to the 2% fee you'd have to pay with a mutual fund where you're paying $2 out of every $100 you invest so the fees with an index fund are way less because now you substituted that money manager with a computer and computers are a lot cheaper to maintain than people especially if they have a mustache"

"so the Vanguard index fund has a minimum investment of $3,000 so if you don't have $3,000 to invest you cannot invest in this index fund"

"but unlike an index fund you can buy and sell shares of VO every single day whenever you want when the market is open remember with the Vanguard index fund you had a $3,000 minimum investment and those transactions only happen once a day with vo you don't have a minimum investment all you have to do is buy one share of this ticker symbol and then you can buy or sell vo whenever you want throughout the day"

"so the S&P 500 is just the largest 500 companies in the United States that trade on the stock market so if you are a company and you are one of the biggest 500 companies on the stock market well then you are going to fall into the S&P 500 so this is literally just an index or a group of the biggest 500 companies on the stock market a couple ETFs that will give you exposure to the S&P 500 are VO and SP py"

"a total Stock Market ETF gives the exposure to the entire stock market previously we talked about the S&P 500 Index which gives the exposure to the 500 biggest companies in the stock market something like bti will give you exposure to the entire stock market with big companies medium-sized companies and small-sized company so now you're literally just investing your money in the stock market"

"so there's two ways that you can make money in the stock market you can make money through appreciation which is when you invest your money in a stock you bought it for $100 a share and then the price of the stock goes up to $200 a share and then you sell you just made $100 because the price of your stock went up this is called appreciation but the second way that you can make money in the stock market is through something called dividends so at the end of the year some companies have a lot of cash in their bank account and when a company has a lot of cash in the bank there's a few things that they can do with this money they can save this money for emergencies they can invest this money back into the company or they can pay this money back to the investors they can literally just give it back to you in a cash payment called a dividend"

"so smaller startup companies are not going to be paying out dividends because they want to get as big as possible as fast as possible and every dollar that they have is going to be going right back into their company but some companies your more mature companies or larger companies are going to have this extra cash cash pile because they're already very large and at the end of the year they're going to have a huge profit and if they want to pay this money out to their investors one way they can do that is through dividends"

"when you're investing in Emerging Markets the whole idea is you're taking on a little bit more risk because you're investing in new countries things like China and India and Brazil and what you're hoping for here is that these smaller countries are going to see economies that are going to grow faster because they're smaller and they have the opportunity to grow bigger plus you naturally have some people that are a little bit worried about the long-term health of the United States economy so they want to diversify some of their money outside of just the United States economy"

"Innovation ETFs so some of the most popular Innovation ETFs are managed through through the ark fund which is managed by somebody named Kathy Wood and Kathy Wood is now a famous investor because of the returns that she's got her investors and just a disclaimer I do have my own money invested in a handful of different Arc funds but the whole idea behind these Arc funds their symbols are all Arc a k and then something like Ark K is the flagship Innovation fund if you put in a g here it's the gome fund if you put an F here it's the fintech fund they have a fund for space exploration they have a fund for a lot of different things in the Innovation space"

"what a Reit is is a real estate investment trust so for all of my real estate people that want to get exposure to real estate on the stock market this can be a way for you to get exposure to that by investing your money in reads when you invest your money into a Reit you're investing your money into a company that invests in real estate or that invest into mortgages so you're not getting direct exposure to the real estate per se but you're investing in the company that invests in real estate"

"REITs are required by law to follow something called the 90% rule which says that REITs are required to pay out 90% of their taxable income or their profits to their shareholders people like you through dividends and so a REITs income comes through rental income because these REITs own these rental properties these investment properties and they make money from rent and then after they pay all their expenses their management fees their property insurance their utility bills their property taxes or other fees once they pay all their fees then they take the rest of this income and 90% has to be paid out to people like you shareholders through dividends"

"these are your companies that are trying to grow as big as possible as fast as possible and then Within These growth stocks you have your large growth stocks and your smaller growth stocks your larger growth stocks are a little bit more mature these are companies that might be making profits they might be paying out small dividends but they're still really investing in their growth they're still investing a lot in ation because they still want to grow bigger so the first example of this would be investing in something like QQQ so QQQ gives you exposure to the NASDAQ which is essentially the 100 largest companies which are not Financial so this would be companies like Amazon and apple and Microsoft and Tesla a lot of these companies are tech companies but when you're investing in QQQ you're getting exposure to 100 of the largest non-financial companies which many of them are in the tech space on the other hand and you also have the small cap growth stocks where you can get exposure through something like s LG so Sy y LG invests into the smaller cap growth companies and these are going to be a lot of companies that you might not have heard of"

"but that is one of the worst ways to increase your wealth and I'm going to show you why growing up in a traditional Indian house good grades was very important and I assumed that your grades were linearly correlated with the amount of money that you were going to make better grades more wealth I used to believe that if I got good grades I'd be able to get a good job which is true so if I got better grades I'd be able to get a better job that's partially true and if I got even better grades I'd be able to make even more money now that's not so true let me give you an example to show you what I mean we'll talk about the Coca-Cola company with 2021 numbers in 2021 the average average worker in Coca-Cola employee made somewhere between $30,000 to $180,000 a year this is from the people working in the factories to the drivers all the way up to people working in the headquarters the people that are the financial people the directors and all of that you made somewhere between 30,000 to $180,000 a year now if you were to climb up the corporate ladder in this level you could work your way up from 30,000 to 50 maybe 70 if you go to the headquarters now you can work to 80 100 150 up to $180,000 a year here now if you want to make more than this you could at Coca-Cola but now you're going to have to move away from just being a worker to now being what I call a thinker thinkers are typically your sea-level Executives"

"but now as the owner when you get this money in dividends the top tax rate here is 20% there are some exemptions where you might have to pay a few extra percent but in general the top tax rate for your investment income today is 20% meaning not only can you earn more money not only do you not have to go to work every single day in the headquarters but you are working and doing something else making more money potentially and also paying less money in taxes"

"so the very first thing you got to do before you do anything else go out and save $2,000 ASAP and that means if you don't got $2,000 saved up don't go out and eat at restaurants don't go out and do anything stop buying stuff completely don't go to the mall you need to go out and save $2,000 right now because you are in a financial danger zone"

"the reason why is because your credit cards are charging you 15 18 21 25 sometimes 28% a year in interest now the reason why that's so significant is because here when we talk about investing your money like crazy when you go and put your money into the stock market if you're go and buy rental properties now you're trying to get something like a 5 to 10% return on your money those are your goals as an investor those are considered good General returns but if you're paying 15 20 25 30 30% in interest to your credit card company but you're trying to get a 5 to 10% return here you are losing in this game of money"

"if you're working to earn more money you got to just understand you got to be willing to invest in your income that's really what ultimately comes down to if you are an employee that means investing in how do you earn more money maybe that means taking classes on how you can get a better job maybe that means getting a career change maybe that means getting a certificate maybe that means working harder to earn more money whatever it might be you got to start investing in that income"

"and I'll tell you that the first time I made a million dollars the first time my tax return showed them a business made a million dollars I walked away with $20,000 that was the money that I took for myself the other $980,000 went right back into the business now I could have taken out way more I could have taken a whole lot more bought a nice car gone on a whole bunch of expensive vacations and a bunch of nice fancy things and expensive things but that's not what I wanted to do because I wanted to build a bigger business"

"the people that build the real wealth with Investments are not people that are investing for 6 months even six years we're talking about for a decade or more and I call it a decade of sacrifices because it takes time to number one start putting this system to work to spend less and earn more to then put the money here but then it also takes time to let your money compound and grow"

"if you want to start investing in the stock market it requires the least barrier to entry and the lowest amount of money to start them you can start investing your money in the stock market as little as a dollar $10 $100 it doesn't matter"

"because we've seen a market crash a recession pretty much every decade for the last century and yet the stock market has still risen despite every market crash and recession and so now if you don't know how to do the research that's okay you can just put your money to the stock market there are funds that give you exposure to the S&P 500 that's the largest 500 companies in the stock market"

"it takes more money to get started it takes more work to get started you got to find the right team you're going have to deal with bad property managers you going have to deal with bad contractors now you can get great returns you can get great tax benefits there's a lot of benefits to investing in real estate but not everybody should or can be a real estate investor"

"the reason why so many people don't become wealthy isn't because they made the wrong investment it isn't because they have the wrong expense ratio in their funds it isn't because they didn't do all the right analysis it's because they are not investing the key is you got to just get started"