How I'm Investing My Money In 2023.

hey everybody welcome back to whiteboard finance my name is Marco and I'm here to help you master your money and build your wealth it's 2023 uh Happy New Year to everyone watching this video um I hope you all have a great 2023. uh the reason I wanted to create this video which is going to be talking about what I'll be investing in in 2023 most likely it's just because a lot of new investors are getting spooked if you look at the S P 500 we're pretty much down 20 percent year-to-date there's been a lot of volatility a lot of people don't know what to put their money in so I've been investing for a pretty long time since I was 18 I'm now 35 so about 17 years now and I've learned a lot of a lot of things and more more behavioral things and psychological things more than just you know what to buy over those 17 years because that changes all the time but this is more about staying the course for some of the younger investors so that's where I want to move forward with this video so um this is not going to be a PowerPoint presentation this is basically just me giving you a list and then I'll share my computer screen here so number one is going to be equities AKA stocks here's a quick shout or shot of my Charles Schwab portfolio and I'm going to go to something right here history so when I click on History I'm going to sort this by Buys so you can only see you know what I've bought but basically this is just to prove a very very quick Point okay and this is not going to tell you exactly what to invest in it obviously needs to fit your investment profile and your risk tolerance profile but here's a quick example so if you look at the dates here on the left you can see that I buy stocks every single week like clockwork every seven days or so I am buying equities I'm buying stocks this is because I subscribe to the philosophy of dollar cost averaging so if you don't know what dollar cost averaging is just very quickly in a nutshell you are buying uh pretty much the same dollar amount over the same interval so with this portfolio every every week every Monday or Tuesday I buy a thousand dollars worth of stocks not just the one that you see on this screen here there's many more than this but just for the sake of this video I'm not going to go into that but like clockwork I dollar cost average I also dollar cost average every single week in my M1 Finance uh sap Ira dividend portfolio so you can see here December 5th December 12th December 19th 26th the second I put in 230 dollars every single week thousand bucks a month and I've been doing this for I want to say like almost three four years now and I've been sharing this publicly on the community tab of my YouTube channel so the other thing I'm going to invest in um and I do have like Roth IRAs I do have other portfolios but just for the sake of this video I want to show you all the types of equities I'll be investing in so this right here is a 529 plan for my daughter I believe in Ohio every four thousand dollars for the year is able to be a write-off so it actually reduces your taxable income come by four grand so that's what I'm going to invest this year I'm going to put four thousand dollars in the 529 plan for my daughter this is Ohio I'm from the Cleveland area so I don't know what your state is if it's any different but I can only speak for Ohio um and just so you guys know Cleveland is not Ohio so when people make fun of Ohio that's fine that doesn't include Cleveland we're not uh Ohioans if you will if that makes any sense but the reason I dollar cost average you guys is because um no one has a crystal ball right okay I started investing right around here 2006 okay and you can see literally like a year later I got my teeth kicked in by 30 40 percent uh during the great financial crisis and ever since then um you know we don't know what the FED is going to do we don't know what macroeconomics is going to do we don't know what policy is going to be we don't know what the political atmosphere is going to be like or the political environment is going to be like the only thing you can do in my opinion without having a Chris the ball is to invest early and often and at a repeatable interval so that's why I dollar cost average so perfect example that most recently what more people may remember if you haven't been investing for that long is cervasive sickness you know March of 2020 no one could have predicted this going down you know 20 30 40 percent in literally just a month and then no one else could have predicted that we'd see unprecedented money printing which led these markets to new all-time highs just months later okay so that's why I dollar cost average because as long as the market goes up and to the right you're most likely going to see an increase in your portfolio Okay so moving on number two is going to be something that some of you may be familiar with which is what we call eye bonds okay so with I bonds I'll show you right now at the time of this recording the latest CPI numbers since November of 2021 is basically just over seven percent inflation okay so uh inflation was running hot I did a couple videos about this uh earlier in the year uh inflation real inflation was probably more like 20 25 for everyday household items um but overall it came in at like nine or ten right around there so the reason for this is because I want to show you what I bonds are so right now I have uh I invested ten thousand dollars in eye bonds maybe like five six months ago uh that grew to about ten thousand two hundred thirty six which you can see right there my wife also has ten thousand dollars in her name and I literally a few hours ago it's uh January 2nd at the time of this recording um I bought ten thousand dollars more of I bonds you're only limited to ten thousand dollars per year so the reason for that is because these are actually um inflation adjusted okay this basically measures the CPI and it gives you a comparable uh return that way you can at least put away some money and somewhat combat inflation this is going to be different than a savings account which I'll get into in the next slide so for those of you not familiar with ibonds very quickly they basically compound semi-annually meaning that every six months you apply the Bond's new interest rate to the principal value this is typically being compared to CPI or the inflation rate the Consumer Price Index so without making this whole video about I bonds all you pretty much need to know is where is it you can redeem them after 12 months however if you cash in the bond less than five years you're going to lose the last three months of interest that you earn so for example if you cash in the bond after a year and a half 18 months you get the first 15 months of interest you lose the last three okay that's pretty much all you need to know when it comes to I bonds you can dig in a little bit further I buy them from treasury direct I've done videos on how to use treasury Direct in the past on how to buy t-bills the process for buying an i bond is no different okay so investment number three is going to be cash or t bills so how can you invest in cash how does this even make sense so what I mean by investing in cash is just setting aside a war chest so I talk about this all the time I've been talking about this for years on my channel when you think of cash a lot of people think of cash as kind of like an emergency fund you know playing defense or being you know risk averse if you will by keeping in a savings account I look at this as both offense and defense so 2023 is probably going to be a difficult year especially if layoffs continue if that continues then we're going to see unemployment rates Spike up and we're also going to see a weakening in the economy that's when I really think real estate and other things I'm going to talk about in this video are going to drop which creates an even bigger buying opportunity for your War chest meaning the cash that you have saved so so I personally use Capital One 360 it's a performance savings account it's a money market account it's earning 3.3 percent so I'm going to show you that real quick so you can see here um you can have two different ways to save in cash or two different ways to save for your War chest you can keep it in a high yield savings account uh these guys right here it's earning 4.1 percent um if you go to another bigger Bank like PNC for example they even have a four percent annual percentage yield again Capital One 360 which I use is 3.3 percent I have all my money in there maybe I'll switch maybe I won't I've been using it for years the other thing is with t bills these are the latest auction results from T bills you can see here the duration it could be a four week T Bill eight week T Bill 52-week T Bill and you can see basically the rate that you're getting on these uh bills by locking up your money by buying treasuries okay I have a video on how to do this just search my channel it's pretty easy easy you can do it through Charles Schwab you can do this for Fidelity you can do it through treasury direct this website is treasury direct that you're looking at right now this is the most recent auction results as you can see right here so you can either go the high yield savings account route or you can go the t-bill route and if you want to lock up your money for let's say a month four weeks you're gonna outperform a lot of these savings accounts if you go for eight weeks you're definitely outperforming 17 weeks so on and so forth okay pretty pretty simple here you guys so with cash again uh if if stuff really hits the fan in 2023 or 2024 I want to get my War chest up to a certain amount because yes I'm still losing money to inflation remember inflation is right around seven eight percent you're earning three to four percent in a t-bill or in a savings account so Savers still are losers you guys have to realize that but it's better than earning 0.01 or 0.1 percent uh which it has been in the past when interest rates were really low makes sense okay so moving along number four is real estate I feel like everyone should have real estate in their portfolio uh whether it's through real estate investment trusts whether it's through syndications whether it's through owning actual tangible real estate um there's a bunch of different examples when it comes to investing in real estate I actually just did a video on this uh seven ways to invest in real estate even if you're broke I'm not going to rehash that in this video but what I will show you is a couple things that I'm going to have my eye on especially if layoffs persist and especially if foreclosures start to pop up so this right here is the hudhomestore.gov website this is basically housing Urban Development you can see all the different properties here based on your state that are being auctioned off at any given time so it just depends on where what Market you want to invest in this is a super powerful website my lawyer back in 2013 was buying up houses here in like a class a rental property he was buying them for pennies on the dollar like literally for 20 30 40 Grand cash right so those properties were running from like 12 to 1500 bucks a month now they're worth I'd say 150 to maybe 190 200 Grand give or take keep in mind it has been 10 years but he was able to scoop them up for pennies on the dollar make cash flow and he owns them free and clear and he's got the equity appreciation as well so this is what you want to look at in times of real estate bubbles popping the other thing I'm looking at is sheriff sales okay so this is specifically for Cuyahoga County this is basically where properties are auctioned off right these are foreclosure sales it's exactly what it sounds like I'm going to have my eye on that as well if people start losing their jobs they can't afford their mortgage you know if they don't have money for a rainy day these foreclosures you're able to pick up properties for pennies on the dollar if you know what to look for the only con is a lot of times you don't have access to these properties you can't get inside them you know to vet them and see you know if they have serious issues such as foundation for example but that's outside the scope of this video and then number three is fundrise fundrise is essentially a syndication platform real estate syndications can be a great way for individual investors to participate in larger commercial real estate deals and help outpace inflation if you don't want to vet sponsors but still want this exposure I personally use fundrise I've invested my own money with them since 2019 and continue to do so fundrise is essentially a platform that allows you to invest in private real real estate deals that you most likely wouldn't have access to or enough Capital to do so on your own this is all done through your mobile device or desktop and it's super simple to set up the nice thing is that you don't have to be an accredited investor to use fundrise at the time of this recording they have over 371 000 active investors six billion dollars of assets under management and 223 million dollars in net distributions earned by their clients since you don't have to be accredited any U.S citizen or permanent resident over the age of 18 can invest Investments can be as little as ten dollars and all the way up to a hundred thousand dollars or more their most popular tier which is their core portfolio starts with an initial investment of five thousand dollars listen inflation crushed the average Savers portfolio in 2022 with inflation rates higher than seven percent while the average savings account was earning a fraction of that so real estate has historically kept up with inflation in the worst of markets and other markets is absolutely blown past inflation and overall return turns so fundrise is the country's largest direct to investor alternative investment platform built to outperform today's volatile market conditions overall I'm happy with my fundrise portfolio which is at 5.6 percent return year to date compared to the S P 500 being close to negative 20 percent year-to-date if you're interested in adding real estate to your portfolio check out the link in the description below and start the new year off by diversifying your portfolio with fundrise okay so moving on from Real Estate number five is Bitcoin and this is where I get all the hate in the comments because people don't understand money the properties of money what money even is what fiat currency is what the Petro dollar is geopolitics uh yada yada right I'm not going to get into that video into this video right now but notice how I specifically say Bitcoin and not the rest of crypto uh Bitcoin has a marketing problem it is it is part of the crap coin casino if that makes sense when people think crypto they associate Bitcoin with crypto these couldn't be further are apart based on many different things a lot of these altcoins AKA crap coins I'm not going to swear in this video it's one of my New Year's resolutions but basically they have faces to them they have CEOs they have uh CMOS Chief marketing officers they have marketing teams they have uh they're surrounded with celebrities they're surrounded with all these different things to get you to invest in their pump and dump schemes 99 of all coins are crap okay Straight Up full stop Bitcoin is not Bitcoin is different and I'll tell you why um the reason I'm investing in Bitcoin in 2023 uh is because that the having is 436 days away so if you don't know what the Bitcoin having is uh it's basically when the reward of mining a block gets cut in half so when Bitcoin was first created in 2009 uh if you basically mined a block or verified a block you get rewarded with 50 Bitcoin uh in 2012 that gets cut in half to 25 Bitcoin 2016 12.5 Bitcoin 2020 was the start of the last bull market uh 6.25 Bitcoin and in 2024 this is going to get cut in half again it's a 3.125 so why is this important well this is going to happen in April of 2024 uh because typically after every having the price of Bitcoin uh explodes so you can see here after this having the price exploded after this having price exploded after this having price exploded uh to the point where we reached I believe sixty eight thousand dollars for this cycle and then you know goes down goes down goes down like clockwork right so uh after 2025 or so um there may be a good chance that we see six figure Bitcoin maybe 2026 um you know a lot of people think I'm crazy when I say that but I'm not I mean it's I don't know how else to explain it in a five minute YouTube video but um I'll just tell you this read these three books okay just do do me a favor don't even do it for yourself okay or your kids or your grandkids uh read uh the bullish case for Bitcoin read inventing Bitcoin and read the Bitcoin standard and then read the Fiat standard that's all you need to do just read those books and you'll understand what time it is okay so moving on number six is precious metals so I know this is more of like a boomer kind of a thing like you know the the crazy old guy hoarding gold in the drywall of his house or you know in the backyard of his uh you know he's digging holes in his backyard um but I do I do believe in precious metals and at the end of the day you have something cool to pass down to your kids your grandkids when everything goes digital with Central Bank digital currencies uh you know Fiat money is already 99 digital your credit cards digital everything's digital stocks are digital for the most part it's cool to have something tangible and that's proven to be proven to be proven to be a preservation of value so in Roman times you know one ounce of gold could buy you a nice tunic now uh an ounce of gold can buy you a nice suit right 18 1900 bucks so uh typically what I've used in the past um actually for the past seven eight years now I buy all my um precious metals from JM Bullion uh you can see my order history here I have orders going all the way back to April of 2015 May of 2015 you know June 2019 December you know a few few weeks ago I bought a bunch of gold the thing is guys it's um I actually have a lot more transactions on JM Bullion but I check out as a guest that's just my account so absolutely check them out if you want to buy physical tangible gold so what I'm doing is um I bought an ounce of gold uh like a couple weeks ago I want to do that every year for the rest of my life that way you know I can give it to my kids grandkids things like that so I don't have anything else that I'm investing in I was gonna add things like businesses I was going to add things like you know YouTube channels I was going to add you know local businesses but at the end of the day you know I'm kind of spread thin with this channel enough as it is um and then also being you know father and you know all the stuff that comes with family I'm trying to lead a lifestyle business which comes from this channel um and you also have to realize guys you need to invest I know this is like the corny part that like every you know influencer talks about you need to invest in yourself so um the last one for me is investment in my time so I also want to learn you know piano I'm taking piano lessons um what else picking up a new hobby reading books things that don't need to be said in this video but invest in yourself because that's going to be your highest Roi no one can take away the knowledge in your head and also no one can take away the skills that you learn so for me that's going to be piano there's a lot of physical goals I have and a lot of you know mental goals and personal goals and travel goals but I just wanted to go over my finance ones in the this video so I hope you can use this as a guide I'm just a regular person just like you my parents are immigrants like I was born and raised in Cleveland Ohio dude I still live here um I come from a normal middle class background okay grandparents didn't speak English parents came here with no money that kind of a thing so if I can do it you can do it stay the course everything I'm teaching here in this video is it may not make you ridiculously Rich overnight but it is the simple path to wealth in my personal opinion so as always I hope this video was helpful if it was please share it with a friend I have over 925 000 subscribers my videos don't get shown to anyone don't know why but it is what it is so thank you so much for watching and have a prosperous day no matter how balanced and nuanced these videos are with the stuff that I talk about whenever I bring up Bitcoin there's always the one dude in the comments I don't invest in them imaginary money I stay away from it what do you think your dollar is dude

Channel: Marko - WhiteBoard Finance

Views: 117,819

Keywords: how to invest in stocks for beginners, how to invest in real estate, how to invest in stocks, how to invest in index funds, how to invest in bitcoin, how to invest in mutual funds, how to invest in gold, how to invest money as a teenager, how to invest in s&p 500, how to invest in real estate with no money

Id: inLKcYixfAE

Length: 20min 32sec (1232 seconds)

Published: Wed Jan 04 2023