5 Best Investments For Life

hey everyone welcome back to the channel my name is nate and in this video i'm going to share five investments that i'm holding for life and i haven't made a video like this in quite a while i tend not to talk about too many personal investments that i make but because the demand was there we thought let's make this video here today and share with you some of these investments that i'm holding for life and maybe you want to consider as well now a couple of quick disclaimers here i'm just a random guy on the internet i'm not a financial advisor so don't take this as advice just use it for entertainment purposes i don't know okay that doesn't matter and also i think we're gonna hit a million subscribers sometime this week so if you haven't subscribed already and you want to help push us over the edge i would really appreciate that okay so let's get started here with these different types of investments but i first want to preface this with some of the things that we take into consideration here when i think about investments that i might want to hold for 20 or 30 or 40 years one of them is the potential longevity of certain industries or companies so what you're going to find is that these five different types of investments it's probably going to be comprised mostly of different types of funds like exchange traded funds or mutual funds we'll explain that in just a minute here and it's not so much speculative penny stocks or companies that i think are going to go to the moon tomorrow or something it's more so companies that i see a lot of long-term growth potential with but of course like i said i'm not an advisor okay i think we got that one cleared out all right so the first one that i'm invested into that i'm probably gonna hold for a pretty long time is the vanguard healthcare etf so the ticker for this is vht and there's a couple of reasons why i like investing into the healthcare industry now i think some of these are pretty obvious like the fact that healthcare is always going to be something pretty important to most people but also you know thinking about different types of industries i think the healthcare industry has the best chance of surviving for a really long time right we think about the priorities in our lives healthcare is certainly up there i actually like investing into healthcare companies more than say energy companies because i feel like there's less of this possibility of becoming totally decentralized with health care if that makes sense for example if i'm investing into an energy etf or an energy fund that owns a lot of different types of energy stocks well i don't really know where this is going in the future i don't know how oil and gas companies are going to be looking in 20 or 30 years but also it could be something that i could see being totally decentralized where people just have their own solar panels and there's no massive energy companies that are sort of making money off of this so this is why i think that the healthcare industry uh really has a lot of growth potential for it but also when i think about the aging population not just of america but of most of the world most of the world is getting older uh and if we look at one of the largest demographics it's baby boomers in america turns out baby boomers have some money not to say that i i want baby boomers to have bad health of course that's not the point there but my point is that as baby boomers get older they also have a lot of money they're going to be spending a lot of money on health care they're going to be opening up their wallets and making sure that they are in good health which is going to cost money whether it's physical therapy or different types of medicine there's a lot of money in health care overall and i can see that trend continuing in the future and another reason why i like the healthcare industry in something like this vanguard healthcare etf is because it does offer a decent amount of stability because you know when you think about for example looking at last year thinking about what happened with the recession and the economy healthcare was still very prioritized on our list among everything else and so some of these different companies that are within this vanguard healthcare fund you probably recognize companies like johnson johnson and pfizer and merck a lot of companies who made vaccines for kovid but also you know a number of different biotech companies and it's pretty made up of a lot of different companies right so we have over 400 companies that are within this etf an etf is an exchange traded fund it's basically just a big basket of stocks if you're not familiar with that i would suggest doing a quick google search but let's look at a couple of different criteria within this healthcare etf one of them being that the expense ratio is point one percent so it's one tenth of one percent this is what i would consider to be a very low expense ratio you always want to take these into consideration when you are looking at different types of funds or investments that you are getting into so with the one tenth of a percent uh expense ratio this means that if you had say uh one thousand dollars in this fund over the course of a year you would probably be paying about one tenth of a percent uh to vanguard as their fee to basically make the fund for you and to manage the fund for you so if you had a thousand dollars in that it would probably cost you about one dollar per year in order to run and operate that so it's pretty low when i see expense ratios over half a percent or over one percent that's when you start to think you know is this really worth it um but what point one percent is relatively low let's take a look at overall performance over the past uh 10 years or so and we can see that it's done pretty well since 2004 uh it has performed quite well uh and just remember that you know past performance does not mean future performance just make sure you don't see something and say oh well this went up 20 so it's going to go up 20 next year that's really not how the stock market works um but overall yeah i really like the vanguard healthcare etf i think it has a lot of stability um it's something that i'm personally invested into but please if you invest into it please invest your own risk because stocks go down funds can go down don't think that you can't lose money you certainly can but it's something that i'm going to be holding for probably a couple of decades and also if you're wondering how to invest into some of these like vanguard for example if you don't have a vanguard account that's okay because this is an etf you can most likely buy this through almost any brokerage firm that you might have even if you're not in the united states there are ways to get into this so if you have robinhood or m1 finance or a variety of different other types of brokerage firms or whatever app you might be using to buy and sell stocks you can probably buy this vanguard etf through there and some of the other ones that we mentioned as well so just keep that in mind because sometimes we'll be talking about vanguard funds or schwab funds but you can probably find these on the market regardless of who actually puts that fund together all right so that leads us into the second one that i wanted to discuss here which is investing into real estate but look i don't really want to be a landlord i figured this out for myself that you know i don't want to be somebody who actually owns properties i don't want to have to deal with tenants but also i don't want to have to deal with property managers if i buy a property and then somebody else is running it and taking care of it there's still things that come up still things that i have to deal with so i wanted to think about how i could get into real estate without actually having to own a physical property and this is when i looked into something like the vanguard real estate etf now you can get into reits this this vanguard etf right here is vnq that's the ticker for it if you're interested in it but i like having some exposure to real estate and there's a few reasons for this one is because real estate is very much a tangible asset meaning that something that i really worry about a lot in the economy especially in today's world is inflation and i think about the possibility of having hyperinflation i think about the fact that more than 22 percent of u.s dollars were printed in 2020. basically what's happening right now in the economy is the government is saying hey let's make more stimulus packages it's going to get us more approval right it doesn't matter democrats republicans it doesn't really matter who you're looking at when the government's pumping out money and they say we're going to provide a 1.9 trillion dollar stimulus package yeah this is actually really much needed not to get too far into politics here but yes people need money people need help a lot of people are struggling because of the pandemic but the problem is that we're basically just saying hey let's do a 1.9 trillion dollar stimulus package and let's just pull it out of thin air we're not saying well we need to balance the budget we're not saying well to get this 1.9 trillion dollars maybe we should maybe cut maybe defense spending or cut different types of spending within the government we're not doing that at all we're just saying let's just make more money and so we're making more money and the concern that i have is that holding cash the u.s dollar if i just had a million dollars sitting in my bank account i think in 10 years that's going to be worth a hell of a lot less so i went off on a little bit of a tangent there but circling back here on how this affects you and me this is why i like to invest in real estate or have some exposure to real estate because i know that real estate will probably keep up with inflation i shouldn't say that as a fact but i hope that it keeps up with inflation historically it has because we're not making any more land and there's a lot more people coming onto this earth every day and so that's the reason why i like to invest into real estate a couple of different ways you can do this for me i just like to go for the vanguard real estate etf but maybe you want to actually buy physical properties yourself and be a landlord i have lots of friends who do that especially good if you have some time on your hands too and maybe you have a job but you're looking for something extra do on the side this could be a great way or you could get into specific reits so reits are real estate investment trusts and you could get into specific reits that focus more so on specific areas right you could buy a reit for a company that is specifically focuses on maybe apartments in texas or apartments in california or new york apartments right and so you can invest into those specific companies as well if you think those are going to boom or do really well long term one thing that i will caution you on is personally i'm not too bullish on commercial real estate i'm not really sure about where that's going to go in the future with office buildings and even with retail um so i try to focus on some type of residential real estate people always need a roof over their head they always need a place to sleep and so for me that provides some level of stability this vanguard real estate etf though does uh hold a number of different types of real estate so they own residential they have a lot of different reefs within this etf but it gives you a broad sort of way to invest into something like that and the expense ratio on is point one two percent so also what i would consider to be a very low expense ratio uh so the fees on it are pretty low and once again you can buy this on robinhood or anywhere else that you think about uh wanting to invest into it okay so we talked about some of these different vanguard funds let me switch it up a little bit and share the next one with you which is a great way to get a lot of exposure to the thousand largest companies in america uh that are publicly traded which is the schwab 1000 fund okay so this is probably my favorite one and i think actually uh thinking about my portfolio this is probably the largest one that i own uh once again you don't need to have a schwab account in order to invest into the schwab 1000 index fund but this is the 1000 largest u.s companies and you can see here that it covers approximately 90 or more of the total u.s stock market cap so i feel pretty safe being in something like this of course there are times when this fund goes down right if you look at it back in march it went down just like the rest of the stock market did back in march of 2020 so this is something that of course i'm holding for a very long period of time let's just take a look at their top 10 holdings within this fund it's apple microsoft amazon facebook tesla alphabet which is essentially google and all of their holdings berkshire hathaway which is a company that warren buffett is is running and then johnson johnson which is obviously medical and then j.p morgan chase so they do own or or they are kind of having hands in a lot of different types of companies throughout america but this gives us an overall just kind of broad way to invest into america into american companies but let's say that maybe you don't have too much of a bullish feeling about american companies maybe you think that america is on the downfall and there's not a lot of growth left in america i don't know i'm sort of on the fence i think there's still room for growth but regardless maybe you don't want to be so exposed to american companies sometimes i get that feeling and so more so lately i've actually been shifting outside of american investments and looking for some ones in emerging markets uh in different parts of the world and so that's why the next one that i'm going to share with you is what is known as the vanguard emerging market etf so this uh the ticker for this is vwo and this is going to hold a lot of companies from different areas in the world like china brazil taiwan and south africa so a ton of different areas this is what would be known as an international or global etf and the expense ratio on this is 0.1 percent so once again very low i like vanguard funds as you probably know but let's take a look at some of the different holdings that this etf owns and so you might notice some of these companies and you might recognize them especially looking at their top 10 holdings here like alibaba and maybe you recognize jd.com or neo which is the popular stock that a lot of people have been investing into so just looking at this right here you can see probably a good amount of these are actually based in china but there are other ones within here as well so this fund is comprised of 5048 different stocks it's one of the largest most diversified etfs that i've seen out there most other etfs that i'm investing into might have 400 companies or 500 companies but this one has over 5 000 which is a lot uh which has both good and bad the good thing about a fund that holds 5 000 different companies is that maybe there's some companies within there that can really boom and really take off and be the next amazon but the problem is there's also going to be kind of crap companies in there as well that might be mixed in the bag so this is why it gives us a lot of exposure but it gives us some level of stability historically though you know these emerging markets actually haven't been performing as well as some different u.s etfs that i've seen in the past 10 or 15 years but nonetheless i still think that there's a lot of room for growth for the next couple of decades especially in areas where maybe their gdp per capita is still one-third of america's and they still have a lot of room to run uh to to catch up to the gdp per capita in some of those countries and so maybe their growth rate is a lot faster right look at a place like india for example where their growth rate seems to be a lot faster with their gdp growth same for a lot of other areas within asia and africa as well their gdp growth can be a lot faster growing accelerating a lot more than maybe some more i guess we could say developed countries like in america or the united kingdom where it's almost not been stagnating but not growing as quickly in some of those uh countries okay so the last one that i want to mention here it's going to be pretty brief because it's not my favorite but maybe for people who want to be a lot more risk-averse and they're worried about maybe valuations of certain companies we have something like the vanguard total bond market etf the ticker for this is bnd and as you can see i'm kind of a fan of vanguard funds i don't buy them through vanguard but i still get the vanguard funds this isn't my favorite but i still wanted to include it on this list because like i said not everybody wants to be exposed so much to stocks and maybe they want something that's seen as traditionally safer than the stock market which is bonds now bonds have not been a favorite for most investors in the past couple of years and this is because yields on these bonds have been pretty low i mean sometimes these yields can be below one percent so it's really not that attractive especially when i factor in the fact that you know if you're getting a one percent yield on certain types of bonds but they also have the risk of defaulting on those loans is it really even worth that one percent when you average it out especially when you get some of these different bond market etfs uh when some of these companies fail and they can't pay then you end up losing money right you don't get your money back uh look what happened with puerto rico back i forget what year that was when they defaulted on a lot of loans and and so it happened so don't just think that bonds are totally safe it's one of the biggest misconceptions that people have thinking that bonds are guaranteed money that it's safer than stocks it's not always safer it depends on who's issuing this bond right if is it apple is it a company that is highly reputable uh or is it something you know like some company that's a small cap company they're a little bit risky because if they're issuing a bond the yield better be a lot higher than a company like apple or i think actually exxon mobil has one of the highest credit ratings as well but this uh actual vanguard total bond market etf is comprised mostly actually of government bonds so this is probably just what i would say is like a kind of a safe bet if you want to just park some money in there but you're not going to really see a lot of growth in this i mean it's kind of almost fixed like you're if if you are getting a bond for two percent yield you know you're not gonna be getting more than two percent on that and kind of worst case scenario you can end up losing a lot of that money so i actually i'm not really sure why i included in this video but i think it's mostly because i know there's a lot of people who maybe are in their 50s who are watching this video and they want to play it safe because stock valuations are pretty lofty right now let me just show you the shareholder pe again just to show you that valuations are getting pretty crazy a lot of people are buying on margin you guys have been hearing me talk about this a lot just be careful with investing in individual stocks especially penny stocks please don't just go and watch like tick tocks and then dump your life savings into some random penny stock or some random nft or something else like that so thanks for watching the video i appreciate it and if you found any value in it make sure you drop a like subscribe to the channel and let me know what video you want to see next if you like these five different investments that i personally am in and i'll see everybody in next week's video

Channel: Nate O'Brien

Views: 404,435

Keywords: nate o'brien

Id: _Nb6OKOM_nw

Length: 17min 35sec (1055 seconds)

Published: Wed Feb 24 2021