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
red subscribe button below if you do 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
into the comment section below 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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9 thoughts on “New Investors Waiting For Recession To Invest, Investing Your First $10,000 – (My Opinion)”

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  2. Thanks for a good overview of points to consider for a new investor. Education and self-knowledge are paramount; otherwise, one will be easily swayed by the media cycle. Take a risk tolerance or investor questionnaire to get a sense of how to allocate. Consider how investing fits into your overall financial life. Then, decide the account type (IRA, Roth IRA, taxable) that fits your needs. As a beginner, I wouldn't consider single stocks or bonds until I learned to research them. I would use broad-market ETFs, like VTI, BND, & VNQ, and use dollar-cost averaging to buy more units each month. This helps to get used to price swings.

  3. What do you think of M1's Expert Pies? I invested in one. It wanted me to allocate funds to over 17 bonds, REITs and mutual funds. The pie is spread to big. Allocation went from 20% down to 1%. As a result instead of only investing in 2 or 3 I feel I wasted investment time. Funds allocated under 10% did not do well.

  4. Great topic. People need to learn about and understand compound interest. Then they need to acknowledge inflation. I think when a person is understands those 2 words they would be more likely to start investing.

  5. With $10,000, i would start with $2000.. then add shares slowly every week or so. market is good but still volatile.

    1st.. dont do penny stocks. 2nd. % allocation.. example. 5 stocks, 20% each.. 10 stocks, 10% each. let m1 do the works.. dont buy manually. Dont chase individual stocks. m1 auto invest dynamic reblancing is very powerful.. 3rd.. Consistently Dollar cost averaging, and add shares slowly. I am not a financial advisor..

  6. Ooooooh this is a juicy topic! But a great one that needs to be discussed! Hindsight is always 20/20, but no one knows exactly when the market will bottom out for the next recession, so I will choose to keep on DCA! If I had $10k laying around without a purpose, I’d definitely throw it in the market somehow. 👏🏻🔥🔥🔥🔥

  7. With $10,000 i'd be very very conservative and invest $1000 (s&p 500 near all time high and market very volatile) right now using m1finance . Deposit the rest in a high yield savings account. Then very slowly add to your m1 finance (i'd say $200) every week religiously.

  8. as they say: the best time to plant a tree is 20 years ago, the second best time is today. i wish i would have started investing long ago. but, you gotta start somewhere.

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