New Investors Waiting For Recession To Invest, Investing Your First $10,000 – (My Opinion)


welcome back financial investors my name
is Brent and today I wanted to go over
two topics today now this was sparked
from a comment I received on wrote on a
facebook paid post
welcome back financial investors my name
is Brent and today I wanted to cover two
topics in today’s video
this was sparked by a comment I received
over on the Facebook page this investor
had left a couple comments of portfolios
and they were actually doing fairly well
their portfolios look really good from
the leaks that they had shared when I
asked them hey which of these portfolios
are you currently invested in this
individual said that he has not started
invested in he is waiting for the next
recession so what I want to do in
today’s video is cover number one should
you get started right now with the
worries of the recession coming up in
the future and number two how much
equity you know what should you and be
invested in in my opinion if you have
less than 10,000 20,000 or so on of
equity in the market I would say
anywhere below $10,000 or less let’s go
ahead and cover that topic of where you
should get started invest in in your
portfolio so with that said if you have
not subscribed to the channel I would
HIGHLY appreciate it if you do hit that
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enjoy this video find a helpful with the
thumbs up and if you have any comments
or questions drop them into the comment
section below I am going through
questions right now looking for topics
to make in upcoming videos that way if
that question or comment is you know a
common question that other viewers
subscribers may have then we can cover
it here in a video in an upcoming video
here in the channel so with that said
let’s go ahead and get into the video so
number one if you are brand new to the
market getting started should you wait
for the next recession or should you get
involved now now that is all due to your
personal personal constraints so if
you’re looking at your own savings your
own debt first you’d have to obviously
see how much you could get started with
investing so do have a rainy day fund
you have
debt out there to get started say this
individual has no debt they have $20,000
of savings and then you want to get
started right now well let’s go ahead
and set $10,000 to the side and that’ll
be our rainy day fund now you have ten
thousand dollars left over with ten
thousand dollars in today’s market
should you get started investing and the
answer is absolutely yes so what you
could do in this case is if you’re brand
new getting started you split that
$10,000 in half and you invest $5,000
right off the bat so $5,000 goes into
the market immediately working for you
now yes that market is going to be
handed over into the market and it’s
going to go up it’s going to go down but
over the long term so long as you’re
invested in sound companies or in you
you know quality exchange-traded funds
that will go in an upwards trajectory
now as far as trying to time the market
let’s tell us quick story of a friend of
mine who I have been asking when is he
gonna get started in the market
well this individual I asked back in
2016
hey you should get started investing
check out this platform back at the past
in 2015-16 I believe I was using motive
investing and this individual he said to
me look we’re eight years past the past
recession we make a win to another
recession here in the future and I’m not
going to invest yet I’m going to wait
2016 past he said the same thing in 2017
and 2018 and now currently in 2019 he is
still on the sidelines waiting to get
started investing because he doesn’t
know when the next recession is going to
happen no one knows when the next
recession is going to happen so in my
opinion and it’s always good to get
started right now because the sooner
that you get started the sooner you know
whether your positions are too high or
too low and if the market does seem to
pull back a little bit you can always
add more equity you are not going to be
getting started with $1,000 worth $5,000
even $10,000 and that’s
to be it if you are investing and
getting started right now set up a plan
to continuously add equity into the
market either every week every month or
every year that way you’re constantly
adding equity into the market and if the
market does happen to go down during a
period well guess what you have brand
new equity going into it in the future
which will lower you your your unit
costs it’ll increase your yield on cost
you’ll be able to buy additional shares
at cheaper prices and your dividends if
you have a stock or exchange-traded fund
that pays out a dividend you’ll be able
to receive more dividend income those
dividends that are getting paid L will
buy back more shares at a cheaper
discounted price and over time that fund
will move back into the positive
direction or will continuously creep
higher depending on the market right now
we don’t know if the market will go
higher if the market go will go lower
there’s a lot of signs out there but the
first thing you know right off the bat
how much time do you have really
to get started invest unless you plan on
quitting invest in at 60 and you’re 30
right now you don’t just have 30 years
until 60 its until you basically die so
what’s your age here Tsar’s age I
believe 85 is the current average for
you know where we end up croaking in the
bucket so we’ll say that I’m 34 years
old and I’m going to be living until 85
that is about 50 years or so that I have
to actually be invested in the market is
my risk tolerance going to change in
that timeframe yes somewhere in between
those 50 years my risk tolerance will
adjust but right now as a young
individual I don’t really have to worry
about that it’s next recession guess
what I’m so going to be working I’m
still going to be hustling I’m still
going to be adding equity into the
market so trying the time this market in
these current conditions is not really
worth it all that we can do is get
started right now let our portfolio you
know couldn’t buy back more shares right
now get paid dividends and just throw
more money at it
over time it’ll all work itself out so
that is basically I know
buddy he has said he wanted to get
started invested in the market for the
past three or four years now and he has
missed an incredible amount of
appreciation but not only that it’s the
share amount that you own the the faster
and the younger that you are to get
started that’s when you begin to
appreciate or collect more shares you
get started in 2018 if I took the same
equity that I have right now and went
out there and try to buy the the stocks
that I currently own I would not have
the same amount of shares that is
because during my time frame in the
market in the last year and a half these
dividends that have been paid out for my
count purchased back more shares of with
equity that I did not have to personally
deposit into my m1 financed Roth IRA
that is additional shares that I didn’t
have to work for it just automatically
purchased them for me or you know I
started specific stocks in order to add
it into my portfolios market right now
absolutely yes there is no reason to
time the market because you really don’t
know if the market will trend for
another year right now we’ve been
training sideways for a year and a half
we’re building up to something are we
going to go higher because of a trade
deal with yields getting cut or are we
going to go lower maybe we don’t have a
quick fix here with the trade war and it
escalates a little bit further we may
deteriorate who knows but you’d have
years to get started it and stay long
and the market now the next topic here
is what you should get started investing
in if you have less than $10,000 now
here on the channel I don’t discuss it a
whole lot as because it’s not probably
fun and entertaining you know I have an
m1 Finance account that I use for my
wife it’s the m1 finance Roth IRA that
is the main account here that I showcase
here on the channel and it has about
thirty to thirty four different
individual stocks now if I was invested
in ETFs here on the channel and looking
at my portfolio on a week-by-week basis
when I was only invest in either one or
two ETFs it would probably get really
boring but I want to have fun with this
channel I’m trying to track
you know I’m trying to track my journey
here financially and both the stock
marquee in collecting dividend income
showcasing how to get started at the
dividend portfolio how to watch it grow
and appreciate and continue to grow and
pay out dividends and I’m also doing my
real estate business but I like to kind
of showcase the em1 finance dividend
account because it shows that everyone
can get started you can pick stocks and
it’ll appreciate it’ll deep reshape and
it’ll kind of move in line now the m1
Finance account it doesn’t always track
the market sometimes it excels and beats
at other times it underperforms it but
the m1 finance account as a whole makes
up a very tiny fraction of my total
portfolio I believe the m1 Finance
account makes up roughly 10 to 15% of
the total equity that we have invested
and the stock market so as a brand new
investor with less than $10,000 my first
$10,000 was in an SP fund it was in
something that tracked the market some
of the most popular ones out there are
the iShares S&P 500 I believe it was its
ticker symbol SP why this one tracks the
S&P 500 has a very low expense ratio the
other one that’s very comparable to it
is the Vanguard SP 500 fund this is one
that I have myself inside of the m1
finance taxable camp it is also tracking
the S&P 500
I believe that what has an expense ratio
point zero three now inside of my Thrift
Savings Plan inside of my Roth 401k
inside of my other IRA account over on
m1 finance I have ETFs and funds that
track the market because these are not
accounts that I actively watch and track
so if you have less than $10,000 get
started investing in something that
tracks the market your first $10,000
because say you have $10,000 put it in
half get started with $5,000 now you
know if the market will move higher if
it’ll move lower if you invest and it
does downtrend one five ten fifteen
percent set up plan to continuously add
equity into the
market you know you have $5,000 set it
on the side maybe add $200 every week
and tell your portfolio begins to
balance out or if it’s diving down
pretty hard maybe add a little bit more
capital in order to lower you your your
unit cost increase your yield on cost
and also dependent on the
exchange-traded funds that you’ll be
picking both the SP 500 and the SP why
the ticker symbol vous they also pay out
a dividend right around two percent the
other one I would recommend and I see a
lot of investors buy-in as a PTI this is
a total market the Vanguard total market
the exchange-traded fund that’s another
very popular one that has a mixture of
about I believe it’s two thousand
different individual stocks the SP has
roughly 512 so there’s a different
balance there but as a brand new
investor you shouldn’t be worrying about
trying to analyze a stock and figuring
out whether it’s overvalued or
undervalued you should just be focused
on getting started and by investing in
an exchange-traded fund this will get
you in the market you won’t have to
worry whether we’re going into a
recession whether we’re going to go into
a pullback because you have time on your
hands plus if it does pull back and
you’re invested in an exchange-traded
fund you can just add more money into it
it’ll lower your gonna cost and over
time it’ll increase with the market as
it rebounds they may take a few months
it could take a year it could take you
know multiple years as we’ve seen here
in the last year and a half the market
hasn’t done much but if you hadn’t been
invested in a company or stock that pays
or exchange-traded fund that pays out a
dividend you would have collected
dividends during that time frame my m1
Finance account going forward from
today’s date will make six hundred and
six dollars and just dividend income
this is from an account that I just
started back in 2018 if I did not invest
any more capital into the specific fund
it would continuously payout over $600
of dividends every year or five or fifty
dollars on average per year but I am not
stopping right now I have as I said
roughly fifty more years of being
invested in the market and over fifty
years that is a lot of dividends that
are going to get paid out to me that I’m
gonna
able to buy back and of course I’m gonna
be adding more and more equity into this
portfolio and by the time here in just a
few years here we’re gonna be tracking
it in this in this channel we’re gonna
see this portfolio surpassed 1000
surpassed 2000 and continue growing into
the thousands of dividend income getting
paid so as a brand new investor just
really quick recap do not wait for the
next recession that get started getting
soda right now even if you have just a
hundred dollars five thousand ten
thousand dollars and you get started and
we do go through a crash you are not
stopping and pulling out right now you
know depending on your financial
stability you know make sure that your
gonna be financial stable you’re not
going to need that money any capital
that you invest make sure that you’re
not going to need it personally for
yourself if you take it out for some
other side of investment make sure that
your return will at least keep up with
the market or exceed it the average for
the S&P 500 is seven to ten percent so
make sure that if you do withdraw your
capital out of the market for any needs
make sure that you’re reinvested into
something else that can either drive you
at a seven percent or higher average and
that would be fine otherwise keep it
invested in the market if you do need to
pick up other side jobs in order to fund
any sort of issues that you’re partaking
do that but don’t try and remove capital
from your portfolio over the long term
otherwise you’ll kind of you’ll kind of
hurt your results so that is pretty much
all I wanted to cover in today’s video
hitting both of those topics on whether
you should wait for the next recession
to get started or get started now
obviously you want to get started as
early as you can because that’ll give
you the best benefit over the long term
and number two if you have less than ten
thousand dollars to get started to
invest it in the market get started with
the S&P 500 take your simple s py or
ticker symbol vous or the total market
fund which is ticker symbol VT I I’m not
sure if I said that earlier in the video
so I wanted to go ahead and say those
three ETFs are excellent to get started
in the market and if they do go red just
add more equity in lower unit cost
increase or yield on cost and increase
your dividends going forward so if you
have anything you would like to add into
the comments of this
go ahead and type it in right now drop
me a comment saying either you have any
questions or do you agree with getting
started right now in the market type yes
I agree with getting started regardless
of the next recession and what is your
plan what would you do if I handed you
right now $10,000 to invest in the
market what would you do with it how
would you split it up let me know in the
comment section below and that is it
thank you all for tuning in today’s
video if you guys have not subscribed to
the channel I would HIGHLY appreciate it
if you do subscribe to the channel if
you do like this video find it helpful
hit the thumbs up and if you have any
comments or questions again drop them
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I do read and apply your or your
comments and thank you all for tuning in
I will see you next time have a great
day bye

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