Investing For Beginners: Cash Flow Vs. Capital Gains

[@WhiteBoardFinance]

*Do you prefer investing for Cash Flow or for Capital Gains? Let me know below!*

[@timopraxis]

A little bit of both, but it looks similar. If you have certain mutual funds, they give both dividends periodically as well as capital gains (short and long term) at the end of the year. We just reinvest both for the most part to help prepare for retirement.

[@TheTomtah]

I like the idea of cash flow investing and dividend stocks. Unfortunately I live in the EU and collecting dividends from foreign companies triggers more taxes and forces me to do more paperwork to avoid these taxes. This makes foreign dividend stocks(for example those listed on NYSE) a pretty bad alternative for me(unless I sell every time they're about to pay dividends which defeats the purpose of cash flow investing).

[@FlamingBasketballClub]

I actually like this channel. Why? In comparison to most financial based channels on KZbin you are providing sound & proper knowledge of finance, sales and entrepreneurship & you are knowledgeable/experienced. I also like that you are well educated in the field of finance and entrepreneurship.

[@GarVry]

Cash flow seems less scary for a newb.

[@chaff5]

I think cash flow is probably best for most people. You have to be extremely knowledgeable and very liquid for capital gains to work in your favor and even then it could easily turn on you. With cash flow, especially dividends, if you're able to keep an eye on things then you could get yourself out before things get really bad.

[@mikenorman5172]

Dividend investing are surely a key way to have a passive income, just make sure you don't overlook the fundamentals of company and get blinded by its dividend. It can be great if you make 5% a year but if the stock losses 20% per year you in trouble.

[@farisnajmibahari5468]

A very good point, checking out a company's growth and stock prices are always key in choosing a stock to invest in.

[@michealvaughan8089]

I love his video, it's very clear and straightforward.

[@youngwolf2526]

@@michealvaughan8089 Been young and money crazy forced me into watching these video and am really glad I did.

[@singhvishal2858]

It might be silly question to ask these but am thinking of starting out a bit of Investing for myself, how can I invest and own stocks from a different country? Currently in India.

[@rachealjones6039]

Is it's advisable to invest in dividend, like know your opinions.

[@harrisahmed3066]

I have 3 streams of income now at the age of 26. Regular workplace, dividends, and rental income from real estate. Wondering, and working on what my 4th stream of income should be.

[@collinsnorman473]

I had to key into index funds after my partner summed up to 750k in profit after trading usually away from dividends, Mary Margaret Cartier the highly skilled professional handling my portfolio told me more will remit into profit in this quarter of the year from index funds, the easiest to ascertain a million within the dip and rise.

[@willruiz305]

I watch a lot of different people BUT I love how Marko can do almost an entire video without breaks. This should tell people a lot on his knowledge.

[@13edarger]

Love your videos... one concern I would have, to paraphrase Dave Ramsey, would be “If little Jimmy comes to you for a $15K loan cause he can’t get it anywhere else, it’s because everywhere else has figured out little Jimmy ain’t paying them back.” Keep up the awesome work!

[@ppcian]

Marko, I cannot thank you enough for the shout out, my friend! Means the world to me! Really enjoyed watching your video. The stock you mention, 3M (MMM), actually happens to be one of my favorites. It's out of favor now, due to the overall stage of our market (later stages of the industrial cycle), but I've been accumulating for the long-term. The driving force for my cash flow investing is definitely financial freedom, a concept you highlight in the video. Love DRIP programs, and glad you mention those. And, love my holdings (literally have emotional attachment to them), but as you accurately mention you gotta be careful with that as well. Thanks again, my friend, and wishing you a fabulous weekend! (Disclosure: I am long MMM)

[@WhiteBoardFinance]

Thank you Ian!! You as well buddy

[@marktalksmoney1956]

Cash flow is the life blood of your business. As millions of people in 2008 found out the hard way when asset prices crashed.

[@jaidancraig]

I agree! Having cash flow is crucial!

[@treejay818]

@tenderloin87 YOUR RICH

[@dusk5956]

Thank you so much! I needed this years ago while in college. Then again, I’m glad I went to a affordable college - no debt, and have this as a learning tool today 👌🏼

[@gilayahmcintosh8766]

Thank you so much! I am in high school right thinking starting small business and wanting possibly get started investing and this first video where I actually understand what’s going on in.

[@justinv3512]

Marko, this is the IRS. We're here to audit your ...pokemon income.

[@harikrishnanchandramohan4209]

@Marko. Pls answer these 2 questions. 1. What if I need to change my positions in stock. In that case, I anyway need to sell and incur a capital gain 2. For paying back my SBLOC, I again need to sell my assets. If I anyway sell it and incur a capital gain, why do i need a SBLOC.

[@theinvestmentabc6245]

Best way is to go with a mix of both strategies. You can buy dividend stocks which have still growth potential. Similarly you can buy properties, renovate them, rent them out and sell it in the future with capital gains

[@AboutAysha]

Thank you for breaking this down in a super easy way to understand!

[@Th3leG3ndx]

Currently have 4 dividend stocks.i've made money on all! Highest equity is SBUX.

[@nmgzerberuz]

Love the great advice this video has provided, you the man Marko!!!

[@AdrianoFerrari11235]

Thanks!

[@WhiteBoardFinance]

Thank you!

[@VetteSource]

The trick is to find an asset class where you can do a little of both. In my case it has been in a very specialized niche of the salvage industry. Depending on how I decide to process it, I can generate cash flow immediately upon acquisition of an asset or hold for future capital gains.

[@curlyvanya]

Love this video, really liking the idea of being decisive and focus on one strategy at a time

[@pjf3837]

I invest for both and reinvest to increase my net worth.

[@jaidancraig]

That's a super smart strategy. I like your mindset!

[@jingdelgaco352]

Thank you Marko for sharing your Knowledge

[@honglingliu2407]

I will keep invest in cash flow. Very informative video. Thanks.

[@JustinHouser]

Is it weird I watch the whole ad when it appears on your videos? Not sure if it gives you more money, but you deserve it 💰🤙

[@tyrehester5550]

66 and retired. Cash flow, steady as she goes. DRIPs are great!

[@manuelcastillo5999]

I was hoping that you would cover the tax differences between cash flow and capital gains. Probably important.

[@jaidancraig]

That would make for a great video!

[@camgere]

The video did a good job of discussing this at a high level. The classic cash flow strategy is recurring monthly rental income from rental property. CAP(italization) rate and Return On Investment (ROI) are the common metrics. Low income, crappy neighborhoods, like the one you live in, often have higher CAP and ROI than hoity-toity wealthy neighborhoods. So no excuses! Some day you sell the rental property and hopefully get a capital gain. The classic capital gains strategy is one time income from flipping (no rental income). You buy property, fix it up if necessary, and sell it for more money as quickly as possible. Profit = Selling Price - Buying Price - Expenses. Buying "Subject To" the existing mortgage and Lease/Option are sketchy ways of real estate investing with little of your own money invested. You buy from motivated sellers and sell to motivated buyers. Or rent to motivated renters.

[@bannertraveller5879]

There are plenty of sites for tax advice. I don't think Marko is a CPA or tax advisor probably best not for him to give out too specific of advise on that matter

[@motas92]

Agree the picture is not complete until you get the real impact after taxes.

[@renavatio22]

As an advisor I can tell you he is addressing what’s most important first, your skill set. People who excel at “finding deals” can organize this in such a way, like the Self-Directed IRA he mentioned, to achieve their goals. Their taxation can be deferred or in some cases even avoided altogether. For the latter you would certainly need a skilled CPA and Financial Advisor. If you don’t excel at buying low/selling high, it’s probably better you invest for cash flow, especially when you start to factor inflation in.

[@chandankataria8193]

Do you do trading 🤔🤔🤔

[@O1Kanoby]

Love this guy man, keep it up Marco. I'm watching you from Toronto, Canada 👀🇨🇦 (Where an average sized condo goes for 800k)

[@WhiteBoardFinance]

Lol thanks. $800k in Cleveland gets you 5 acres, excellent schools, and a 4,500+ sf Mcmansion.

[@jaidancraig]

That's some expensive real estate. Sound kind of like New York

[@FinanceOptimum]

(Mainly) Wealthy Chinese parking capital. Oh well...

[@thesammuthusamy]

1400 cad per sq ft. Now for a pre construction.... New york still high at 1700

[@thesammuthusamy]

@@adamtatusko I am.not sure 1700 ny rate is cad or usd

[@deltas4587]

Wow great video! Thanks alot this is super helpful

[@FlamingBasketballClub]

Great introduction video to investing.

[@finsimple4396]

Cash flow is great, but growth investing is my personal favourite. I'm not going to buy into a stock solely based on the dividend payment. I want to ensure that the base economics are great first, the dividend is just a bonus. There are plenty of great businesses which take all retained earnings and reinvest into the company to grow, rather than pay out dividends. e.g. Warren Buffet's very own Berkshire Hathaway. Though there are many companies that do pay a dividend with great underlying economics such as Coca-Cola. It really comes down to the business itself, either strategy can be very beneficial depending on the investors lifestyle and preference.

[@jaidancraig]

I agree with this 100%. I feel like dividend stocks have become very popular lately. Dividends are good and all but if a stock has too high of a dividend yield, that can be a red flag. I freaking love your mindset!

[@emourcy7985]

Good shit bro

[@reh604]

How do taxes play into each of these two different approaches?

[@dsadasey]

Good stuff, cash flow opportunities is what I been researching lately and you just summed it up nicely! TY

[@jaidancraig]

I am trying to become more familiar with it as well.

[@masterdigger3572]

Way to go Marko

[@FinanceOptimum]

Great stuff

[@demonkinglamb636]

Do you have a informational video on Startup Investing?

[@austinabrahan4463]

Knowledge is power and u giving it out for free

[@magnafire1]

Not really free, he gets paid for it lol.

[@WhiteBoardFinance]

Did you pay to watch this video?

[@Pantera972]

@@magnafire1 it is free to you since you're not paying anything.

[@magnafire1]

@@WhiteBoardFinance well I was just joking. It's obvious we don't have to pay.

[@magnafire1]

@@Pantera972 It was a joke, it's obvious we don't pay but he also wouldn't be on KZbin for free if he wasn't getting paid for it. He has said he was pursuing a KZbin career on past video's. I'm not knocking him for it, I might do it one day as well. I think we should be paid for our knowledge.

[@thebeardedlifestyle5563]

“Youre in the hood somewhere “ the hood mess with you now 😂

[@eydat]

You're a good teacher! Thanks.

[@mezzadam1123]

Great information Marko. Definitely like and share worthy!

[@WhiteBoardFinance]

Thanks

[@beefwellington2945]

Is gold a good investment to future proof your money?

[@robertblackburn211]

Can you do a video on US savings bonds??

[@onajeofficialmusic]

Hello, Marko. Which option, if you're financially independent, generates the maximum cash flow for you? Thank you very much.

[@johnbriceno5912]

Do you recommend ETF´s for cash flow investing for long term? Thanks for the video!!

[@domteewhy52]

Pokémon comment had me dyin’ . Another great video 👍🏼

[@MrKijana23]

You have such a good spirit bro. And you're a gifted teacher. I'm pumped that I found you; even though I found you because you disagreed with my guy Dave Ramsey about credit cards...lol. (I agree with him on it btw 😝, but you seem incredibly disciplined and intelligent so I get your pov.) I subscribed and you have walked me through some incredible lessons. Between you and Dave I might even become a Finance guy..lol. God bless you man!

[@nielsvandecasteele5964]

Hey Marko, I like your videos a lot. Would it be possible to do a video about creating a higher cash flow for students with a low amount of resources to invest?

[@lorenaitzelmartinez1685]

Thanks for all your content im really learning all about finance during this pandemic lol. Do you have any recommendations on a channel similar to yours that’s easy to digest for accounting ? Id like to learn more about the tax differences on scorp, inc, sole proprietor etc..

[@Rowdyrigs69]

Would you make a video on why you recommend not to day trade?

[@VinnieRodriguez1188]

How do taxes come into play with cash flow and capital gains?

[@NickSkye]

Great video Marcos! Super informative and to the point. Makes me want to get a whiteboard for my videos lol 😂

[@FlamingBasketballClub]

What's your channel about?

[@NickSkye]

Flaming Basketball Club all about investing and how to grow your net worth and increase your passive income

[@curlyvanya]

I first read Macros 🤭

[@wesmoto2550]

What exactly is considered young? Ill be 27 in February of 2020.

[@thesammuthusamy]

Rental income minus expense and mortage interst is considered income and tax need to be paid on it

[@WhiteBoardFinance]

Depreciation

[@minhhongle4597]

Thank you so much

[@Dieselprescott]

Great video! Thank you

[@dougz2855]

Thanks for the info. Subscribed and shared!

[@jeffreygoss8109]

Marko I am in need of your sage wisdom. I have recently refinanced multiple 7 year car loans at 4%. My question is, with these low rates and the fed pumping money into the system which has to lead to inflation at some time am I better off paying off the loans early or attempting to beat 4% ( a good dividend paying stock ) and let the loan payment be inflated lower?

[@Cryptoworldfinance]

Great video marko really good clear points many thanks :)

[@WhiteBoardFinance]

Thanks

[@ADAMREES-GRITGYM]

Am I accurate in the thinking that all of us are always invested it’s just a matter of what medium? For instance, if you have no real estate, no stocks, no heavy metals, etc. but you do have cash. Then your 100% invested in the USD. And when you use USD to buy other assets then you’re diversifying away from the dollar. Is this at all on par with how to think of investing?

[@jonnymartinez5803]

When are we having a blackboard finance video?

[@GHOST-hp2ji]

Thanks for all the great information, greatly appreciated, now would you please tell us what are the best apps to buy/check investments and stuff like that please.....

[@drey6361]

yes, where can i find these resources?

[@Xgo45]

Investing makes me feel good. Great content 👍

[@jaidancraig]

Me too! It gives me more confidence for my future :)

[@Reason_over_Dogma]

Marko - if I may ask, can you make a video about espp?

[@scumpuppies]

7:22 Investing for capital gains

[@toufang-hmongwealthbuilders]

Why pick? I invest for both.

[@averagefern8239]

Love your stuff man! Do you think you could make a video about how to start flipping houses or having rental properties? Or do you already have a video out for that?

[@WhiteBoardFinance]

Already have both of those. Click on videos and scroll down, or go to the real estate playlist

[@averagefern8239]

Marko - WhiteBoard Finance great thanks I’ll take a look.👍🏽

[@3eorygamer]

Love your videos.. but can you use a marker that doesn’t make that screech sound? My head is hearing it like nails on a chalk board.

[@aaamos16]

What's a Ctain?

[@ChosenMan37]

Hey Marko do you what sites or apps to use for beginner investors like my self?

[@WhiteBoardFinance]

It's in the beginner's guide lol

[@ChosenMan37]

@@WhiteBoardFinance thanks lol

[@SainLuke]

Also great video. Bro and I are huge fans. Marko can you do a video pro and cons on Index Funds investments. I've been hearing alot of people talking about it. Thanks bro. Keep doing your thing.

[@VinnieRodriguez1188]

Actually, I noticed there isnt a lot of info here about taxes, maybe a good idea to upload some content about tax hacks or tax advantages as applied to different investements like stocks and real estate?

[@uzah88]

Short answer cash flows are usually better at getting lower taxes

[@Ultimatepiston]

Marko whats your opnion about investing in townhouses? Thnx

[@yaboijuan4052]

I was contemplating about getting one. I spoke to one of my mentors and he pretty much nailed it down to the HOA being the problem. I'm saving for a detached house instead, on it's own land.

[@Ultimatepiston]

@@yaboijuan4052 Even if its a low cost HOA ?

[@yaboijuan4052]

@@Ultimatepiston the cost isn't the only problem but you don't want someone telling you what to do either. I have another buddy who recently sold his house on a HOA, bought land and built his own. An HOA can be a real pain. But I wouldn't discourage you entirely from buying into HOA. You still build equity and thats better then paying someone else's mortgage.

[@Ultimatepiston]

@@yaboijuan4052 Yea I know what you mean. Just trying to find the right property as first time buy..for investment. I get that HOA is gonna take from the cash flow but condo/townhome are way way cheaper than single fam in my area...130-150k for town homw versus 300k for single fam...Playing with numbers but its making sense to go condo route...

[@ChosenMan37]

I got an email saying your free investing guide is coming in a few days, is it out right now?

[@WhiteBoardFinance]

November 16th. Graphic designer is backed up. He's turning it into a nice PDF

[@warrenfulfer35]

Hi Marko, I was looking into do a bit of investing and off the topics you discuss above which series exams would you recommend? I thought the 7 and 63 but do have any better suggestions? Nothing too niche. Thanks.

[@jeffg2217]

It’s healthy to have a mix of both.

[@KishanK1022]

Whiteboard notification!!

[@Smokey-z3e]

What do you do when you come into a bunch of capital gain from stocks

[@DavidEVogel]

Capital gains are only realized when you sell. The good part is that you have cash from the sale. The bad part is that you have limited compound growth.

[@etiancontreras3820]

Pokémon! I flipped those too. I lost a ton on pikachu 😅

[@rzgimena1738]

Marko, what do u think about forex trading?

[@WhiteBoardFinance]

Easily manipulated I don't do it

[@rzgimena1738]

Thank you man. I appreciate you

[@fundingfreedomwithben]

Fantastic job as always. What if someone young did both? Is it worth it or would they be spreading themselves too thin?

[@JakeandOwen]

cool video can you do a video only about hedge funds

[@WhiteBoardFinance]

In what capacity

[@JakeandOwen]

@@WhiteBoardFinance like what it is and how to get involved. Also things like risk vs rewards and what the money goes to and also is it a good thing to get into? Things like that

[@WhiteBoardFinance]

@@JakeandOwen that's dependent on the hedge fund. Most hedge funds are outperformed by index funds fyi 😉

[@JakeandOwen]

So would you do a video on it anyways or think about it?

[@marlonelias]

He's good looking!.!.

[@brettmagnuson8318]

Your upper case G's trip me out bro!

[@she-ra0622]

Excellent video Marco! My Cleveland house is underwater and I'm drowning in debt. I'm working on emergency savings; should I invest that in dividend stocks, keep it as cash with 0% growth or put it towards my debt?

[@RT710.]

Get yo assets up

[@ImVeryBrad]

Haha that ending. Funny thing about it, I have about $30,000 in cards I only paid about $3,000 for in 2009. Should have bought more back then. A certain card that was only $1,000 then is $50,000 now

[@LouisJanYoung]

Predictible cash flow buys you freedom.

[@WhiteBoardFinance]

you sound like you speak from experience Louis ;)

[@LouisJanYoung]

@@WhiteBoardFinance yes! Thanks. Love your videos Marko!!

[@jaidancraig]

What kind of investing do you do to produce cash flow?

[@LouisJanYoung]

Rental property.

[@Papa1P3RCY]

💫

[@og7952]

Disagree with doing only one... focus on buying undervalued stocks, that they have dividends or not.

[@keith-knittel]

"If you're in the hood, Cleveland..." What about Lakewood! Lol

[@WhiteBoardFinance]

Lakewood is preppy now lol. All young hip professionals move to Lakewood.

[@keith-knittel]

@@WhiteBoardFinance I can live with that! Haha. Thanks for making these videos. You have a great way of explaining complex financial terms in a simple way.

[@RT710.]

Hey man can you recommend any personal finance apps for making budgeting and planning easier? What do you use? Thanks for the high-yield content!

[@drizzle0971]

Mint is out there, there are others well.

[@thesammuthusamy]

Positive cash flow in toronto or gta is very tough unless u have bought long ago for low.. Buddy got a house with 880k owing and 2700 rent but pays 1300 from pocket every month to keep it. . Another buddy bought a condo for 600k worth 2300 rent.... but still pays 600 from pocket to maintain even with 2.6 percent interst rate.. The only way these guys can make money is wen the prop appreciates. How ever that's the time cap. Gain would kick in and charge in 50 percent of profit unless u invest again with whole profit That's story from toronto

[@Juan_Hernandez_Jr.]

I prefer the cash flow style. I've been investing in stocks that give dividends.

[@jaidancraig]

That's so smart. Dividend stocks are a great alternative. I started investing in REITs too to get some good dividends.

[@fuzzbutt5500]

Capital gains is better. Just have to know what stock to buy and when. Cash flow is for people that can’t take risks

[@Juan_Hernandez_Jr.]

@@fuzzbutt5500 Exactly! I'm 6 years away from retirement. Not taking any unnecessary risks if I don't have to 😉

[@dondelillo521]

6:48 who told you if the stock price drops the company will continue distributing dividends at all? They will cut the dividends, my dear.

[@WhiteBoardFinance]

3M has raised their dividends for the last 30+ years regardless of what the stock price has been. All depends on how well the company is run. My dear.

[@em9594]

You should upgrade to a "smart board" it's a white board that shows a computer screen... :)

[@jaidancraig]

That would be a good investment haha

[@WhiteBoardFinance]

PayPal me $6,000 and I'll gladly upgrade lol

[@em9594]

775.00$ on Amazon chief. SMART Board SB660 64-Inch Interactive Whiteboard www.amazon.com/dp/B0036743QQ/ref=cm_sw_r_cp_apa_i_.2YXDbA1H3ACG

[@TheTurbinator]

The apartment idea can not work due to housing laws. You can't just buy a property that has live in renters, then kick them out to update the units so you can rent for more. Doesn't work like that.

[@WhiteBoardFinance]

Alex, I worked in commercial real estate for many years. You improve the property over time. These are just examples to get you thinking. Don't miss the forest for the trees.

[@boomsuga]

Fucken right I got value out of this video! @ 31 years old this guy is smashing the financial realm on you tube

[@loboalamo]

Capital Gains. But maybe I'm not forcing in a corrupted fashion like certain car dealerships. Like Cars Unlimited. Maybe my kids still have their Pokeymon cards. ☺️

[@WhiteBoardFinance]

LOL!

[@dafinance22]

real vs financial assets

[@josh47807]

I prefer cash flow. I have had chickens and they peck with laser accuracy.

[@WhiteBoardFinance]

I thought you were vegan?

[@rosseldridge6395]

"For the electric vehicle lovers" lol