How to Invest Money - Find the Best Way for You

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In this video, we cover:
0:20 - Emergency fund 101
1:16 - Choosing a brokerage account
2:00 - Roth vs traditional ira
3:35 - How to invest in mutual funds
4:16 - Index funds
5:52 - Etf vs mutual fund
6:11 - How to invest in etf
7:12 - How to invest in bonds
10:16- Bonds vs stocks
11:14 - How to invest in stocks
Investing it a great way to build wealth, but it’s important to make sure you’re starting on solid footing. Generally, it’s best to only invest after you’ve set aside some savings in an emergency fund and paid down any high interest debt.
Having three to six months living expenses on hand is helpful in case anything unexpected happens, and paying down high interest debt is a guaranteed return that’s hard to be beat by anything you’d invest in.
Opening a brokerage account is typically a quick and painless process that you can do in a matter of minutes. You can easily fund your brokerage account via EFT transfer, by mailing a check, or by wiring money.
There are a couple things to keep in mind though:
First, determine the type of brokerage account you need. For most people who are starting out this means choosing between a standard brokerage account or an individual retirement account (IRA).
If you want easy access to your money, are just investing for a rainy day, you'll probably want a standard brokerage account. On the other hand, if your goal is to build up a retirement nest egg, an IRA is a great way to go. These accounts come in two varieties -- traditional or Roth.
When most people think investing, they think stocks and bonds. It’s what they hear all the time in the news, we’re going to define both of them quick:
A stock is an equity stake in a business, owning a share of a company means you are a part owner, and are entitled to a sliver of the company’s profits. If the business succeeds, you enjoy your stake in the business being worth more.
A bond is really a debt. If you buy a bond, you’re loaning a sum of money to its issuer for a predetermined period of time. In exchange, the issuer makes regular interest payments at a predetermined rate until the bond comes due, and then repay what you lent them upon maturity.
There are other ways to invest, but stocks and bonds are generally the most common. Now you can put your money into stocks and bonds several different ways, you can buy:
Individual stocks and bonds
Mutual funds that hold stocks and bonds
ETFs that hold stocks and bonds
One of the most popular investing vehicles out there is the mutual fund. Mutual funds are a collection of stocks, bonds, or other securities that investors can buy a share of.
You can find mutual funds that invest in stocks, bonds, as well as other types of investments, such as commodities.
Most funds are available to all investors, even those who have only modest amounts to invest, which increases investing access for many.
Beyond that basic definition, if nothing else, the thing you need to know about mutual funds is that there are actively managed funds and index funds.
We generally prefer the latter. Same for ETFs.
If you’re looking at mutual funds, be sure to keep an eye on:
The returns over 1, 3, and 5 years and how they compare to the S&P 500 or the fund’s benchmark
The fund’s “expense ratio” -- basically how much you have to pay to the person managing the fund.
Mutual funds are great for beginners -- they allow you to instantly be diversified and you’ll earn returns that beat most “professional” investors.
You can invest in individual stocks if you have the time and desire to research stocks on an ongoing basis. If this is the case, we encourage you to do so -- it is entirely possible for a smart and patient investor to beat the market over time. If not, it’s totally okay to stick to ETFs and mutual funds and call it a day.
Here are the important concepts to understand before you get started.
Only invest in businesses you understand
Avoid high-risk stocks until you get the hang of investing
Always avoid penny stocks
Start out with established growing businesses with market leading positions.
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[@Soyosan22]

Finally a video that clearly and easily explained stocks and bonds.

[@kangre63]

These videos are excellent. This is the type of content I have been looking for. Thank you!

[@Kry38]

Love how you broke it down into simple bites, making it incredibly easy to understand. Thank you!

[@jackmugan5531]

I've you started investing in Forex?

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I appreciate the balanced perspective you provide in your videos. Keep up the work to educate without introducing unrealistic expectations and fear.

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Reliable and humurous, the kind of resource I'm looking for!

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Great video for beginners!

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You got it! Plenty more like it coming. Let us know if there's a topic you want to see us hit.

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Gracias... Un súper like !!!

[@MotleyFool]

Thanks Juan!

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Good video. 🤓

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Very helpful overview. Thanks.

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I've you started investing in Forex?

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[@jackmugan5531]

I've you started investing in Forex?

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Good

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[@nicodemusngufuli3646]

on bonds, is the fixed interest rate paid twice a year or the interest rate divided by twice from the fixed interest rate then paid after six months?

[@sgreeson3461]

Is a mutual fund better than a 401K if you only have an extra $50 a month to put in it?

[@generand3148]

Can you do a video on digital assets or cryptocurrency

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💲

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[@jackmugan5531]

[e-mail]

[@LCC2731]

Wow this dude is just the Tom Brady of teaching stocks.

[@zacharyjarjoura7612]

I really enjoyed the video and learned a lot. However, as a beginner in this, I feel as though the narrator is talking a bit too fast.

[@goodone8041]

Slow down the video

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he is cute

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*CORONAVIRUS* 😬

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YOU SPEAK TOO FAST, SLOW DOWN A LITTLE !

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Do you trade forex?

[@GHYSMG]

Huh

[@MotleyFool]

Heyo, Dylan here. What can we clear up for you?

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