Future-Proof Your Retirement: Expert Tips for a Lasting Investment Portfolio

Find out all you really need to know about how to build long-term wealth.
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Well Built Wealth: www.wellbuiltwealth.ca/
Links:
OSC “The Big Picture”: www.investmentsillustrated.co...
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Intro (0:00)
Key Fact #1 (1:14)
Key Fact #2: (10:17)
Key Fact #3: (15:51)
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DISCLAIMER: All videos on this channel (including this one) are for educational or entertainment purposes only. They are not (and are not intended to be) financial, investment or legal advice. It is our firm position that everyone has a unique situation and should seek professional advice on how best to navigate it. Rhys Martell is a Chartered Investment Manager (CIM), a Fellow of the Canadian Securities Industry (FCSI), a Qualified Associate Financial Planner (QAFP) and more. However, he is not registered to provide investment advice and, therefore, does not provide specific investment recommendations. Those looking for specific investment advice should seek out a registered professional.

[@Jenomonix]

This is a master class on long-term investing. Arguably the best on YT. Well done!!

[@wellbuiltwealth]

Oh wow! Thank you! Seriously…

[@Martyupnorth]

I still find it fascinating that people can't accept that over any long period of time, the stock market always goes up. I used a dollar-cost averaging strategy for many years, to take advantage of the highs and lows, without trying to time the market. Holding the course during turbulent times is the hardest thing I had to master. Psychology is such an important part of any financial plan. You do a great job of presenting facts, and taking out the emotions. Great video as usual.

[@wgemini4422]

I think the Japanese market would disagree.

[@wgemini4422]

The other issue is while advisors like to show you this chart (they all do), they never mentioned that most people don't have that long an investment horizon and short term returns are a lot more volatile, not to mention cost would eat away most of the gains. Low cost ETFs are relatively recent inventions. If you got more money than what you know to do with, investing in the stock market more than likely will come out ahead. If you needed the money? Well, make more money so that you would never need it. That's the only way. Of course, that's assuming our stock market wouldn't make a long term trend change like the Japanese did. That is not a given given the constant drop of our productivity.

[@annetteandersen9307]

@@wgemini4422 that is sooo true

[@dewifairclough3154]

Found you the other day…. WOW glad I did. Excellent and easy to understand commentary. Canadian too

[@wellbuiltwealth]

Thank you 😊

[@BD-wk5pc]

Best video I've seen Rhys. Nobody has explained this so succinctly. As an "unsophisticated" investor...very validating too. Thank you.

[@wellbuiltwealth]

Thank you! :)

[@billyrock8305]

Be an owner not a loaner. Excellent summary ✅ #1 Your most powerful wealth generator is your income. 💵 #2 Eliminate all debt. Car loans, mortgage, credit card etc. 🚗 🏠 💳 #3 Invest your surplus money to generate more money. ⬆️ #4 You can never lose long term in the stock market 📈 Humans always find innovative solutions to complex problems. Oh, and always have a budget. 💰

[@markust8904]

You are super talented. I watch your easy going pace, your mannerisms, your voice, your excitement. your knowledge, your clear information and knowing when not to go into the Blah, Blah, blah. Great stuff. New subscriber.

[@wellbuiltwealth]

Whoa!! Thank you!

[@chogno98]

This is, hands down, the best explanation of what the stock market is and the reasons for investing that I've seen in 10+ years as a passive investor. Just fantastic!

[@wellbuiltwealth]

I appreciate that!

[@JojoC88]

So, glad I found your channel. You explain things plainly and to the point. Thanks for your hard work! 👊

[@wellbuiltwealth]

👊🤓

[@BigNormchamp]

This is fantastic. Thank you so much.

[@zeekay3383]

Well researched piece, I especially like the Time covers and the subsequent 10 year return.

[@terryevp4084]

Top-notch explanation and very easy to understand. Many Thanks. must watch video for everyone who is interested in your Financial knowledge...!!

[@harmyjim2]

Many thanks for this video. A fan of long term.

[@macfady2181]

No new info for me here, but I really appreciated your delivery, exceptionally clear.

[@AMG-BENZ-1]

As a retiree who's already started his RRSP meltdown, I've taken more of a short-term approach on potential returns by keeping some of it in the market and some in RRSP fixed term GIC's. Your video confirms that time is an investor's best friend, but in the end it's all about how much of that time does one have ahead of him (her) before having to pull those investments out. Love your videos, one can only hope that you can put them out with a higher frequency!

[@wellbuiltwealth]

Thank you! And you are correct that short-term money needs to be treated differently. For sure :)

[@tristanblackwood1917]

This channel has been a great find

[@fitnessoverfifty-suncoastfit]

Fantastic - thank you!

[@stevosworld1656]

You have a great way to simplify this stuff and make sense of all the noise. Thanks for doing these awesome videos. Great job!

[@wellbuiltwealth]

I appreciate that!

[@tanyamelo9846]

amazing video thanks so much, iv been investing for only a year now and i just love the way you explain things, especially how when you are using investing terminology that you take the extra second or two to actually explain what those words mean, very helpful for new people,

[@sunflowersadie543]

This channel is my new 'binge'

[@wellbuiltwealth]

😊

[@scottcampbell115]

Great video! Your ability to communicate information is excellent!

[@wellbuiltwealth]

Thank you!!

[@anubischick]

Wow man. Thank you!

[@wellbuiltwealth]

🤓

[@cherylkelly8009]

Thanks for the great video ! I truly believe in the SPY and invest accordingly!

[@slyanover]

That's what's worked for me the last 20 years. 100% in stocks, mostly US.

[@TheoreticallyNo]

I love your clear presentation style. I completely agree with the points made in this video. A couple minor quibbles. First, when we look at USA returns we must remember they occurred over a period of time when the USA became the dominant world power AND avoided destruction of the homeland in several wars. Second, we generally see good returns in developed counties with strong governance and property rights. What should we do about risks those do not hold going forward? To guard against not knowing the future, be diversified. To guard against revolution or war affecting your home country, hope for the best. If the country came to ruin, one would have bigger problems than one’s portfolio returns.

[@wellbuiltwealth]

Thank you. And agreed. Totally. Diversification is super important. Topic for another video :)

[@luisfigueroa2721]

Great video, as always! While listening to the video, I was thinking about 3M. A company in big trouble because of ‘forever’ plastics. I have been wanting to buy this stock but staying away due to the price tag…. Today you can buy it at the same price that it had in 2013! Time to become an owner🎉

[@wellbuiltwealth]

Thank you!

[@James_48]

I do think it’s important with examples like this to put the “opening stake” into perspective. The average salary in 1935 amounted to $1,835 while the average wages of hourly employees were only $627. So, it’s worthwhile pointing out that to get comparable results today one would have to invest roughly half their salary or about 1.6 times average wages. It’s difficult to completely translate this but the ability to invest half of one’s salary is not an easy task. Nevertheless the value of time and compound investing is significant and everyone benefits from investing as early as possible.

[@wellbuiltwealth]

I hear you. But it’s not about the amount of money in. It’s about the profound gap between owning and loaning (and inflation) over a long period of time.

[@MH-lk8md]

No matter how much money you invest, the return is the same.

[@jwsmith519]

It's nice to include post 2008. A world of Quantitative Easing to infinity and beyond! If the markets drop too much, the FED just sends out the plunge protection team and restarts QE.

[@Pkeats817]

So, being over 50, I preferred the low volatile investment for my pension when I semi-retired, but now I will work on a TFSA. With this, I will invest a bit differently. I will still probably have some GICs and some other investments that can make bigger gain. I will not live to 90, so I know I don’t have that much time. High risk is not where I’m at!! 🙂

[@ib516]

Great video and the reason I ignore everything Michael Burry :)

[@MSChan-nc5ux]

McD is not in the fast food business, they are in the real estate business.

[@ericmoran4298]

Your information is explained in simple terms that is understandable to people like me who have come from parents who grew up in the 1920's with the mentality of working hard and being conservative with your money will give you success. However I was the last child of 5 and is 54 and have had a good life and have savings and a government job but still don't trust and or understand how money really works in this economy.

[@wellbuiltwealth]

Thank you!

[@ryanm7171]

I love what you say, but it only applies to a few countries, including the ones you named and Australia. Imagine investing in Japan in the 80s. Imagine investing in Germany prior to the Great Wars. Diversity is key, although I'm a hypocrite. I invest mostly in Canada because of the dividend tax credit. I figure if the Canadian stock market loses most of its value, I have bigger problems as a Canadian citizen. Something must have gone really wrong. Anyway, for North American investing, your logic is sound. It took me so long to trust investing. Last year, people could have gotten about 2 per cent buying a GIC from a bank or over a 4 per cent dividend by buying the same bank's shares.

[@wellbuiltwealth]

That’s a solid point for a follow-up video. Diversification is bedrock.

[@heatherbolichowski1910]

@wellbuiltwealth Loved the historical charts showing growth. If I were to invest $1000 now in an index mutual fund for my 18yo child to use upon their retirement, should I put it inside a TFSA or RRSP, or leave it unregistered?

[@wellbuiltwealth]

Thanks! I’d have to know the whole situation to say for sure. But probably in a TFSA in their name.

[@gabrielakerekes5844]

Thank you for the great video. I have a question for you. Why when you invest in RRSP you are not allowed to invest all your money in US stock. I tried and my guy said I can’t ,I must have “some” invested in Canadian stock. It is a percentage that have to stay in Canadians stock and what’s that percentage? Thank you !

[@wellbuiltwealth]

Thank you! I can’t speak for your advisor or your portfolio but the foreign limit was scrapped by the government a long time ago. Check this article to learn more: www.theglobeandmail.com/amp/news/national/new-rrsp-rules-scrap-30-foreign-content-limit/article18216859/

[@BcDano139]

👏👏👏👏

[@dchitra]

Is that chart available? How do i get that ?

[@wellbuiltwealth]

Yup. Link is in the description.

[@medwayhistory3101]

Unfortunately bonds have been very volatile in the last few years; the theory of smoother but consistent returns has been proven wrong. Stock indexes are at, or around, an all time high and bonds are down fifteen percent from highs with inconsistent monthly distributions; why? Will there be a reversion to the mean and a bond market snap back? My strategy is to sell my bonds as soon as they get closer to par and go 100% stock indexes. Obviously bonds are not the guaranteed safe retirement vehicle and are in fact the long and short term loser. I wish I could go back in time to apply that hard lesson learned! Good luck everyone!

[@gem5858]

What if your retirement isn’t too far off like just less than 20 years (currently just have banking advisor but now your making me curious 🤨…)

[@wellbuiltwealth]

Owning is always where it’s at. But just make sure you have good cash reserves to be able ride out nasty markets. Actually, I have a video coming out tomorrow on exactly this topic :)

[@jamesupright2894]

I dislike how the Andex chart is compressed. The US should be WAY higher than it is. That said the dips are also much larger than represented too.

[@wellbuiltwealth]

That chart is put out by the Ontario Securities Commission. You should let them know if they have it wrong.

[@jamesupright2894]

@@wellbuiltwealth It's not "wrong" it's just deceiving. The space between $0-$10,000 is the same as $10,000 to $100,000 is the same as $100,000 to $1,000,000 etc. It is exponentially compressed on the top end. The lines should be way futher apart and then the ups and downs should look greater than they do relative to the lines in the lower sections

[@helenkerkhof3734]

How to do we become a owner?

[@derekcox6531]

It should be noted though,that in 1974 very few regular people were even able to “invest” in the stock market. You tell ME who,in 74, “had a broker” to invest in the stock market. 2024 is a much easier time to be investing. It’s almost not a fair comparison to say “if you invested in the stock market in 19..whatever” very few people had the pathway to cracking that world. Just saying…

[@RobertAllen943]

Oh come on. Index funds did not even exist until the mid 1970's and did not become popular until the 90's. A lot of stocks in 1935 don't even exist today. On top of that, most people don't have a fraction of the time horizon you mention. Lastly if you invested in anything on the planet 87 years ago and never touched it, you made money . This chart is pinned to the wall in every big six bank advisors office in Canada as a sales tool. I find this stuff so disingenuous. I was in 100 % commission sales for 36 years , you are a good salesmen, I'll give you that.

[@paulavellano103]

Do you think we are in to a great depression. Huge stock market collapse.?

[@wellbuiltwealth]

Nope.

[@thepmanvan111]

If I went back 40 years a I’d wait until 2009 buy 200000 Bitcoin and would have 5.6 billion today.

[@MH-lk8md]

I would buy an investment that actually has some real value backing it. Crypto currency investments, while interesting, is pure gambling.

[@freedomlife3623]

Then you forgot your coin account password or the exchange you bought & store your coin went kaput, your investment will be $0. 😂hat it’s😂

[@RobertAllen943]

Lets stop trying to trick people with the stock market charts . $1000.00 dollars in 1935 would be about $25,000.00 in todays dollars. Now before you think that is not much different ---- Average cost of a house in 1935 was $3,450.00 , Average wage was $1,600.00 per year , a new car was $625.00. Using a chart like this without explaining this is disingenuous.

[@nicolasgilbert8850]

So let's approach it as how we can maintain purchasing power.

[@RobertAllen943]

@@nicolasgilbert8850 Because "index' funds did not exist in 1935 you would have to buy every stock individually. The S&P was not invented until 1957. Of the 30 companies that where in the Dow in 1935, none of them are in it today, and most of them don't even exist today and haven't for decades. Index funds did not exist until about 1975 and did not become popular until the late 1990's. This chart is on every big six bank advisors office wall for a reason. It's a disingenuous con job that advisors use to sell mutual funds. Truth is, that depending on the "sequence of return" time-line risk, Historically it only works about 50% of the time, the other 50 % of the time you loose your capital and purchasing power. Look at the S&P from 2000 to 2013 ... zero return... zero. The market is a gamble, no other way to put it. You want to gamble with your retirement. Godspeed.

[@freedomlife3623]

Well, if you don’t invest in stock market, you will be deeply under the water. That’s why the data shows investing in the market is the best inflation hedge.

[@RobertAllen943]

@@freedomlife3623 I posted a really good follow up to my original post but I guess the Author will not share it. Huh... Anyway, not typing it all out again. But saying if you don't gamble in the casino you will be " deeply underwater" ?? Really silly comment my friend. The US market made zero percent for 13 years. from 2000 to 2013. It was not until the Fed printed money like a drunken sailor did it go up. And FYI, Index funds did become a thing until the mid 90's they did not even exist up until the mid 70's. People look at the last 10 years and think it is normal . IT WAS NOT NORMAL. It cannot and will not continue. And there are plenty of other places to make money other than the stock market. Real Estate is a good one. Hell 5 Year GIC's where at 5 % forever, all they way up until the financial crisis in 2008. The stock market is graph of rich peoples "feelings" ... nothing more. Now the truth is in play again everyone is begging for the rates to go low. RATES ARE CURRENTLY HISTORIALLY NORMAL. They are not high. They where grossly unprecedented abnormally low for the last decade. But hey, if you look at a chart of the S&P over the last 30 years and think the last 10 years are normal and it will continue up then buy, buy , buy away. Godspeed.

[@rickallen9099]

Not that helpful to look at such a large timespan because nobody is going to be OK waiting 87 years to see a good return. Are you Dracula or something? People don't live that long. 30 years would be a realistic timeframe.

[@wellbuiltwealth]

If you go to that chart online you can choose your time frame. If you want 30 years, no prob.

[@MH-lk8md]

This is how wealth is built. There are no short cuts unless you are talented and willing to become an entrepreneur.