Forget about Millionaire status - focus on THIS instead
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- čas přidán 9. 07. 2024
- Millionaire status is all you hear about online, whether in articles, videos, or tweets. But achieving a million dollar net worth shouldn’t be your primary goal with investing at the start. In this episode of the Build Invest Live podcast we dive into how generating income to pay your monthly bills is a better goal and helps you build up the right habits to build wealth for the long term.
0:00 - Millionaire is overused online
1:26 - Why “just do this for 30 years straight” doesn’t work
5:27 - Why millionaire status can be misleading
6:14 - Net worth example
9:05 - Connecting dividend income to your monthly bills
9:40 - A better approach - an income snowball
15:39 - Another way to get excited about investing for beginners
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Ive been learning English for 20 years now (5 of them in a university). I'm 26 at the moment, so I don't think it's too difficult to do something consistently for 20-30 years. Very soon, after a year or two it just becomes who you are.
180K in investments and I make around $600 monthly then reinvest. Next year $650-750 or more a year and it keeps going. Invest early, diversified, and often.
Awesome!
I hate to tell you but if this is only 4% return. You lost to inflation the last three years and wouldve made (literally) 10x more buying (40%) SPY
Is S&P 500 ETF only enough to get enough to retire early?
I like what you said instead of becoming a millionaire, let’s just put our assess back to work so that we can start paying the bills 😂😂
Good talk!
Love this video!!!
Millionaire was cool 25yrs ago now you can’t even retire with that. The plethora of content creators are making their ad dollars, selling ebooks, and affiliate payments. Your content and message is well above that. Most people think retirement is sitting on their couch all day. The day you stop is the day you start to die.
Another kick butt vid man. Right on!!!
Thank you!
great video. loved it. also i think another overlooked benefit of dividend investing is that banks love to see dividend income as collateral. specifically when you apply for loans. you can leverage your dividend income to buy a car for example.
Nice, that's something that you almost never hear about actually - great point!
Great insight and very doable. A fantastic way to build that investing mindset muscle✨💯❤️
Preach it! Within the first minute, you state what I preach as a sales coach. Rethink what you think you want and learn what you would be happy with. Find consistency and don't stress about the "Best" at the moment kinda investment.
Crypto, NFTs, and Tulip mania in the 1600s (I'm sure I have a relative that is still waiting for his return on Investment into the Tulip garden he invested in 500 years ago.) along with "why this stock or this real estate," all on CZcams, makes people "jumpy" and their plans change with every new video they watch. Smart Video Matt. (Love the dog relaxing in the background. German Shepard, Malinois, other?)
Thank you. He's a long-haired German Shepard. Completely uninterested in my videos.
@@mattderron But he adds a dimension to your character without saying a word. LOL. I grew up with a Long-haired GS. My favorite dog I ever owned, and that was 50+ years ago!)
Great example with the monthly bills to see benefits now! Thanks for your explanation.
No worries!
Another great video.
The Netflix example is a very good one.
Personally I just love to see the dividend roll into my account, usually when it reaches about 1k$ I will buy stock/ETF with it and then I love the mental gymnastic of calculating how much money that extra 1k$ invested will bring next month, and the month after that etc.
Why a thousand dollar you ask? Well my brokerage cost a flat fee of 6$ per trade so on a 100$ trade that is 6% and I find that expensive but on a 1,000$ trade it represent only 0.6% and I find that quite reasonable.
One last thought:
1M$ sound like a lot of money today but 30 years from now what is it going to buy you, a loaf of bread?
Cheers,
a
.
Matt:
At about 06:53, "something" moves on the couch behind you... Be careful when you get up from that chair. ;-)
I didn't know you had a podcast. I'm gonna check it out - thanks for mentioning it.
It’s literally just the same videos in podcast form right now
A million is so '90s. I hate to say it. Great video.
Dude you're awesome, I started dividend investing in 2019 and the first two stocks I bought were Realty Income and J&J lol
Nice!
This is more realistic to everyday life thank you.
Nice Matt. You've put up your opinion perfectly.
Thanks!
If you max out your 401k for 25 years and invest in large cap stocks... you'll be a multimillionaire. Easy formula... but difficult to execute due to not prioritizing long term savings and investing.
This video is probably the single most important piece of advice for anyone thinking about starting their investment journey! To realise a tangible return on an investment within a one year time frame to encourage saving and investing short or long term. Ten thumbs up and ten stars!
Thank you! This is one of my favorite videos for that very reason. Nothing wrong with starting in a way that you can see the real value of what you’re doing quickly
Just found your channel, Great Content!
Thank you!
Awesome message!
Comment section is hilarious!
Finally, i just watched the most intelligent CZcamsr . Man you're AWESOME
Thanks for the kind words, I appreciate it!
Absolutely agree with that 100% !
Thank you!
Very inspiring thank you 🙏
No worries!
Crawl learn then walk then learn sOME more then RUN
Will they still payout dividend ratio if the price drops as it has since 27 July 2023?
The price shouldn’t really impact their ability to pay their dividend. It’s about the income they collect from tenants. As of last month I think they had a 99% rental rate which was their highest ever so I think the dividend is good unless things like that change
I know but I get so jealous and start to think why I didn't start early special when I see 18 or 19 yo starting to invest still my goal is replacing my total income x2
It’s ok, we’re only competing against ourselves not anyone else
thank u...
No worries!
Great job sir!! I’ll rewatch it later.
Thanks!
Instead of buying that shiney new car with a payment, put that payment cash into QYLD until you've amassed enough where the monthly dividends will make the payment in perpituity.
Qyld might go down in value per share but as for income I am with you 12% over 10 years can't be beat!!!
My only concern with QYLD and those covered call income ETFs is that the dividend payouts (in dollar terms) seem to go down over the long-term, not up. So if someone is in retirement and just wants a high yield that may work - but it's not something I would hold long-term. Just my opinion though
@@mattderron No I think your exactly right!!! But QYLD, RYLD, SVOL they seem to be for income now and not income later. So I can't expect them to have payouts that increase.
@@mattderron yes, not the best investment like alluding to in your video. But that monthly distribution is sexy and might be motivating away from the shiney new car payment.
Does dividend investing beat a S&P 500 ETF
It depends what you mean by "dividend investing." If your focus is dividend yield, then probably not over the long-term. If your focus is dividend growth - then possibly. Ultimately it depends on what your goals are and what your mentality is.
S&P 500 is a great investment in general - if you are happy with your job and income and have the ability to build up a nest egg over 30 years without issue - S&P 500 can be a great way to do that in a very low effort way.
But for some people "beating the S&P 500" isn't their primary goal. If you need to build an income stream to live, or want to move away from your 9-5 job then focusing on dividends can help do that.
This video is about helping folks who are struggling with the mentality of investing because they can't see the immediate benefit by putting money away to hopefully do well in 30 years. A way to help that is to focus on getting dividends that pay part of your bills each month. The tangible progress helps them see the value of investing and getting them started in good habits. It's not about investing in the most optimized way.
Well usually if you want to replace your 9-5 job with investment income you’ll probably need to be a millionaire in some form or another.
Yes eventually, but a lot of folks just don’t invest because they think it’s so far away and they’ll never get there. Being able to replace 10%, 25% or 50% of your primary income is impactful too. Plus it just motivates you to keep going because you see the benefit
Yeah and I agree with you. Issue might really be the income or buying power increases over time. I saw way more benefit making 1,600 vs. 800 a month. If I get a $18 to $20 an hour job odds are I will again see more benefit making $18 to $20 an hour than I saw making $12. I just don't think people worrying about investing makes any sense if they can't get the incomes up over time...... Saving money can't save me if I make just too few dollars.
100% agree with this. For most folks starting out spending time getting your income up is way more important than picking the perfect investment. Just putting everything into something easy like a S&P 500 index and then going to work on your income (new skills, new company, whatever) will take you much farther. Once that income is up, then try to optimize your investments.
@@mattderron The most obvious example is someone like Andrei Jikh. If I remember correctly he said it took him 15 years less to reach 1 million in investments because his income went up by multiple times!!!! And by the time he dies he thinks he will have paid at least 1 million in taxes!!!! Median income earners only make about 2 million in a working lifetime! I think his biggest advantage was income growth over time not investments. And in addition he made more money than he spent by large margins which a lot of people are not doing even now.
Yup, this is why I think learning the basics of investing is more than enough for most people. If you get your income up and aren't interested in researching investments, VOO works fine for 20-30 years. If you want to get a little more involved, do a 2 or 3 fund portfolio with ETFs that match your goals. Want to go even deeper because you love it? Then start researching stocks. But job 1 is to build your income. Without that it's hard to build wealth no matter what you invest in.
Realty Income - not Income Realty lol
I know, I do that a lot. I had a whole video where I said it wrong. They should maybe consider changing their name for me lol
Being a millionaire is better than not being a millionaire.
True, but I don’t think I was implying that it wasn’t. This video is about finding a way for people to get started with investing in a way that shows them tangible value early on so they’re more likely to continue investing long enough to reach millionaire status or whatever their goals are
@@mattderron IMO, while i agree baby steps and immediate results can motivate someone to keep investing for the long term goal... the use of "being a millionaire" is the spark that starts that flame/journey. While one group may find the journey to long or aspirational... there will be another group to use the desire to be a millionaire as motivation. I don't know what the sizes of these groups, but i do know a one size fits all approach won't work for everyone. My journey and motivation started when i was younger, and understanding that being poor really sucks, and nothing would change unless i did something.
@mrallan8063 for sure, I totally agree. I have a similar story. That’s why I make many different videos about different topics for slightly different audiences. Trying to get as many as I can to get started in the way that works for them. Like this one which is a different take - czcams.com/video/N_oBTbcBbYc/video.html
this is bullshit bruh. 5% u get that in savings now
Savings accounts don’t consistently grow their dividends. Yield on cost is an awesome concept
@@mattderron ur assuming that the dividends will go up and that the company will continue to do well. u can get far higher returns by just investing in spy
I mean sure SPY is great, the whole point of the video is to show that you can get tangible benefits with investing earlier by taking care of bills with dividend income. Especially for folks who struggle with discipline over 30 years or who have a job that isn't stable. Not everyone is just looking to have the "biggest retirement number in 30 years". Plus, plenty of dividend payers that consistently grow dividends that also outpace the S&P. LOW, MCD, WM to name a few. Lot of different approaches to investing that solve different problems