The Things That Millionaires DON'T Invest In

people have asked me all the time I get a lot of questions about investing and people ever want to know all right what about this strategy Chris or what about this different type of investment Hogan what do you think and I really wanted to take some time and really dig into this so here's what I'm about to do I'm about to walk you through things that millionaires don't invest in right I'm getting ready to tell you I'm gonna shoot your straight all right and walk you through this but I wanted to make sure that we took a few minutes to talk about the difference like I looked up saving like the definition of saving guess what it says savings is the amount of something that is not spent or used right so that's that's saving but listen it is so what's the investing investing is the act of committing money or capital to an endeavor right that could be a business project real estate whatever or investments with the expectation of obtaining additional income or profit now I'm telling you the difference between these two because it's so important for us to know the difference between saving versus investing so I save for an emergency fund right I might save to be able to take a vacation unless you're on baby step two and you got debt then all you're doing is attacking debt all right your vacation you go outside then you come back in you stay focus you work but I invest for the future I'm doing things later so I'm investing money in my 401k or investing money in my Roth IRA to be able to walk through and to have money set aside now you all have all heard me say before you want to invest 15% but I want you to make sure that you have the help of an investment professional as you're doing this looking at your 401k to understand exactly what you have available and what you should select but also what you should stay away from and so I'm I'm only focused on things that millionaires don't do today all right and so I got a list of them here listen to me here's some things these are things that typically tell people to stay away from savings bonds all right that's not something that's gonna help you to be able to grow that was something that that back in the day people would look at that as a saving mechanism we saved now I want you use a money market account it's gonna give you a better rate of return prepaid college tuition this can become an expensive thing that up from a company that may or may not be around that's something to avoid prepaid burial plans these have caused people a lot of headache and a lot of heartache at a time where they're already experiencing a loss so I want people to avoid that and then there's also certificates of depreciation okay oh I'm sorry it's called certificates of deposit this is something people use they will set money aside and plug it in there here's the deal it locks your money down and it's not giving you any growth so that's why I call them certificates of depreciation because your money is actually depreciating right it's not working for you or doing what it could do and then this one Oh Lord listen okay you don't have to edit that out I just got riled up right here this next one I'm about to tell you about this is one that I hear at least twice a month two times two times a month people ask me about this one Gold people will ask me Hogan I want to get a gold bar because you know if the economy collapses then at least I got a gold bar III just want to hug them right it's a tight hug to look cuz these arms I don't have chicken arms okay I'm tell you right now I'm strong well I used to be I'm old now but listen to me gold bars alright if the economic system has an issue you mean to tell me you're gonna roll up into the grocery store with a gold bar and get what you're gonna get laughed at right because you can't buy milk you can't get eggs you can't get anything you need with that little bar you know why it won't have value so you don't want to invest in something that's not gonna have value okay now again don't get me wrong and don't send me any emails either if you're somebody that's an everyday millionaire and you want to get you a gold bar fine go do it you know why you've already hit the status you're there you're rock and roll in your focus but I'm saying for people that are trying to build and to get started this gold is not going to be something that's gonna give you anything to really stand on later except for some stomach aches right as the price fluctuates alright if I got riled up over that one you know I've got another one this one is trends right these investment trends there's always something that pops up every few years that gets everybody riled up and happy and you know where I'm going with this one right Bitcoin okay Bitcoin now if you've been plugged into the show you know I talked about that a while ago but essentially bitcoin is this thing so it's not even a coin okay so DW I don't know why they have Bitcoin in it and it's not really even a coin it's code all right so it's this it's this thing that you invest in then you don't get anything in return but you have some code right that has to be then validated by this mysterious person and then authenticated later right now listen to me it sounds like a bunch of mystery to me sounds like snake oil to be honest with you that they used to sell back in the westerns I just dated myself right there but whatever I've seen reruns of Gunsmoke y'all know about that but listen to me bitcoin it is it's this it's this fad and people get caught up in it and they think oh I want to do something cool well listen you under something cool put money in a 401k right do do some things that are gonna help you to have growth not something that's mysterious and that can have make your money evaporate so listen let me - let me tell you the list again for those of you that are that you're sitting at home listening to this and want you to drop this stuff down because I want you to protect yourself and your friends stay away from savings bonds prepaid college tuition prepaid burial plans certificates of depression excuse me certificates of deposit gold and Bitcoin millionaires don't invest in those things they really don't and see those things they're not a good idea they're not a thing that's gonna help you to build wealth it sounds cool and there's a shroud of mystery around it but I'm gonna tell you something millionaires don't do these things earlier I was talking to you about things that millionaires don't invest in all right and and I want to come back to this because when it comes to investing everybody I think these days tries to get cute or clever they think that they found this secret to investing and really the reality is is that obviously sometimes they end up chasing something down that's almost like a one-hit wonder right I mean seriously like when I say the phrase one-hit wonder you know exactly what I'm talking about right it's like those music artists they had that one song and for a minute they were the man or the woman they were running things in the music industry right like like one-hit wonders like for example all right listen y'all the song Ice Ice Baby yeah okay yeah that was my I don't know if he had anything else DW did have anything else he says to do you never you doesn't know all right listen here all right what about this song don't worry be happy okay I don't I don't know if they had anything else okay and then get this one what about this one achy breaky heart I can't say that and keep a straight face right what what what happened to achy breaky who was that bill that's Billy Ray Cyrus like where is he now well actually he's probably doing quite well cuz his managers daughter Miley but you get my point right they had the one song they just fell off the charts now I'm not knocking anybody because I'm not a songwriter like I that's not what I do but the point is is that mindset what we don't want to do is chase something down that could be a one-hit wonder a thing that hey I'm gonna go all-in on this and if it does well that's great but if it doesn't I lose at all because I'm talking to people that have gone down this path I'm talking to people that have done this with Bitcoin a gentleman that I know liquidated 401k and put it all in Bitcoin right he's gave up almost 50 percent of his money to put it in the Bitcoin and the point is is that he was in it at the height and guess what it is now it's down significantly like almost 68 percent so he's watched all this hard-earned money almost the evaporates right in plain sight so I don't want you to do this I want you to understand the options that we have so we're not a one-hit wonder but we're doing some things that really help us stand out and really stand up for our future and see everyone wants to know what do millionaires how did they do it right how did they invest what did they do how did they walk through how did they grow their nest egg well as many of you know our own in-house research team just did the largest study that's ever been done on net worth millionaires and I'm telling you largest we studied over ten thousand millionaires ten thousand of them and really dug in to get to know their stories and understand things that they don't do like we wanted to know what they did and what they thought and we've got a lot of their stories captured but I want to tell you some things that they walk through that they don't do one of the top things they don't do stocks single stocks we hear about this all the time and people get confused because they say well Hogan you and Dave talk about investing in the stock market yes you have gross stock mutual funds and other things that are there but single stocks are where you put money in to get a piece of the company it's almost like owning the brick right of a building and people are doing this the problem is is that it's so volatile now when I say the word volatile what I'm talking about is that it fluctuates up and down a lot all right I mean it can it can give you you'll need a roulade to watch some of these right because adjust your stomach just gets in knots why because the market responds based on somebody hiccuping or or or doing something weird and it impacts the stock price so single stocks are not something that they do guess what else they don't do business loans right they're not doing business loans because anybody that knows business knows that if you take out a business loan you're essentially your obligating yourself on a personal level there has to be collateral put up for these loans you all know I'm a former banker so you know I know about collateral this is the thing that I'm putting on the line in exchange for this loan well most of the time that ends up being a home it ends up being a personal signature or even if you own the company an obligation or a promissory note that allows them to pierce what's called the corporate veil which means that even if the company goes on there you are reliable as an individual so they don't do business loans guess what else they don't do leveraged investing schemes now these this one I get frustrated on because this is like a HELOC all right now we've all heard the word HELOC that's a home equity line of credit can I give you the Hogan translation of a HELOC it's a big credit card that's attached to your house there it is right there a big old credit card because it's a revolving credit that allows you to pay on it to what you borrow and it just stays there by the way those are technically as second mortgage and a lot of people aren't aware of that but millionaires aren't doing any of those they don't do single stocks they're not doing business loans they're not doing leveraged investing or gimmicks like helix here's some other things that they avoid also I'm letting you in on some of the study stuff they told me not to tell you this stuff and I'm gonna tell you because I can sophisticated or complicated retirement planning or strategy okay they're not doing that do not try to do something where they look hip or cool by the way you know the most popular things millionaires used to build their wealth don't tell nobody for one case there it is that's the thing that they use to be able to get to everyday a millionaire status they also don't do self driven investment strategies where they're just doing it on their own you all remember day traders back in the day okay and that's all man that was another one it was that one is almost like Bitcoin today day trading became huge right because all you heard were the stories of people that that that went big they didn't tell you they didn't stay big long right so guess what they don't do this millionaires aren't doing this you know what they do don't tell anybody I told you they're working with an investment professional they're sitting down looking at their 401ks with an investment professional to get the right kind of guidance so they can make directions and decisions based on their destination that's what they're doing and so listen I'm telling you the things to avoid because I don't want people making mistakes right I made mistakes back in the day when it came to investing because I was trying to be hip okay I'm gonna tell you all right I bought a stock all right bought the stock it grew it was doing well so guess what else I did I added money to it and it grew some more but guess what happened guess what happened to wild guess it stopped growing it started going in Reverse and I refused to let go cuz I've wanted to hope then it would come back and it went further in reverse all the way down to nothing and so what I had was something that I put into something that was very very volatile so when I talk about this VIPs I'm talking on a personal level because I ran the numbers on my stupid back in the day and if I hadn't done that and I had invested it the right way I'm probably looking at close to three hundred and fifty thousand dollars right now I need a minute hold on hold on that just hurts my heart oh by the way do you see that look those of you that are watching look what DW got me okay that's pretty cool right there but listen all right so I want you to learn from my mistakes I don't want you to make the same error that I did I want you to remember we the story of The Tortoise and the hare right and I read that sort of my boys all the time but it's it's slow and steady wins the race like don't try to be glamorous don't try to be super hip or cool stay focus so here's the deal I've told you a lot of things to avoid but if you want to read I get more information about what you should be investing in listen to this if you want to build a solid investment strategy here's what I want you to do I've got some articles on my website go to Chris Hogan 360 comm slash articles and I've got one on there called investing 101 let me tell you this again go to Chris Hogan 360 comm slash articles check out the article I have on there the the blog posts about investing 101 it's gonna be at the top of the feed so you won't have to dig far because this is information people need to know

Channel: Chris Hogan

Views: 473,592

Rating: 4.6692777 out of 5

Keywords: money, retirement, planning, chris hogan, dave ramsey, The Things That Millionaires DON'T Invest In, how do millionaires invest, how do millionaires invest their money, how to invest, how to invest money, rich, investing, investments, how to become a millionaire

Id: U43NstvCgD4

Length: 14min 10sec (850 seconds)

Published: Thu Mar 14 2019

Reddit Comments

[u/Linkamus]

Ya, this guy has no idea what bitcoin is. Basically his advice is, "I don't understand it, so you shouldn't invest in it"....

[u/sevensidedsilver]

At this point, I'm encouraging of people bashing bitcoin... anything to just have a small chance of keeping the price low so I can accumulate more with my tiny salary.