Black Edge
@BlackEdgeHQ • 2,197 subscribers
Learn to not suck at investing
Videos
"Low IQ, high energy." Robert Downey Jr.'s verdict on Wall Street after visiting in 1993:
Black Edge1,626,329 Aufrufe • vor 3 Monaten
Dave Ramsey on investing $150,000 outside retirement accounts without getting crushed by taxes: A caller named Steve asked Dave how to invest $150,000 outside of retirement accounts. Dave's answer revealed a tax strategy most investors overlook. Dave starts with his two foundational rules: "Rule number one is you don't want to do it unless you understand it. Rule number two is you put somebody in your life that has the heart of a teacher." Then he gets into the real problem with investing outside retirement accounts: "I personally invest, Steve, inside my retirement accounts in four types of mutual funds: Growth, growth in income, aggressive growth and international. Outside of retirement accounts, those funds all create taxes each year as they grow. That's a problem." His solution? Low turnover ratio mutual funds. Dave explains the concept using a rental property analogy: "If you buy a rental house for $200,000 and it goes up in value to $300,000 and you still own it, you do not owe taxes on that 100,000 in growth because you've not sold the house… So, you've got capital gains growth, but you don't have any taxes because you've not sold it." The same principle applies to stocks: "If a share of stock goes from $50 to $70, you don't pay taxes on that $20 gain until you sell it. Same is true inside a mutual fund." Here's where the turnover ratio comes in: "The turnover ratio is when they sell the stock inside the mutual fund. If it has a 90% turnover ratio, that means almost all the stocks get sold every year. And so all those gains are going to be taxable every year. If they have a 5% turnover ratio, which is a low turnover ratio, that means you're not going to pay taxes on the increase in value until you sell the mutual fund cuz they aren't selling the stocks inside the mutual funds hardly at all." The target number Dave gives: "You want an under 10% turnover ratio. Because anything that turns over the gain is they're going to send you a tax bill on the gain every year." Here's a shortened version: The takeaway: Outside of retirement accounts, how often a fund trades matters more than what it holds. High-turnover funds create a tax bill every year. Low-turnover funds let your money compound quietly until you sell.
Black Edge189,513 Aufrufe • vor 3 Monaten
Warren Buffett's 3 rules for success: When asked for his top advice, Buffett doesn't mention stock picks or valuation models. He starts with something simple: "By far the best investment you can make is in yourself." His first rule? Learn to communicate. "If they just learn to communicate better, both in writing and in person, they increase their value at least 50%." "If you can't communicate, it's like winking at a girl in the dark. Nothing happens." His second rule is about protecting your mind and body. Imagine you're given one car for life. You'd fix every scratch and maintain it perfectly. "You get exactly one mind and one body in this world, and you can't start taking care of it when you're 50." His third rule: Choose who you surround yourself with. "You want to associate with people that are better than you are. You'll go in the direction of the people that you associate with." And the most important choice? Your spouse. "You want to pick a spouse that's better than you are, and hope they don't figure it out too fast." Three simple rules from one of the greatest investors alive.
Black Edge22,150 Aufrufe • vor 4 Monaten
Keine weiteren Inhalte verfügbar