8 Best Investments (2024)
Summary
TLDRThe video discusses eight top investment strategies for 2024 to maximize returns. The host, Jeff Rose from Wealth Hacker Lab, highlights paying off debt, investing in the stock market through strategies like dollar-cost averaging and dividend Aristocrats, finding high-yield savings accounts, real estate opportunities, and Bitcoin. He also emphasizes the importance of investing in your health and education, starting side hustles, and creating digital products. Jeff aims to help both new and experienced investors navigate uncertain economic times by diversifying their portfolios and investing wisely.
Takeaways
- π Start with paying off debt: Total household debt in the US is over $17.2 trillion, and paying off high-interest debt is crucial before investing.
- π Stock market investment: Dollar cost averaging is a safer strategy to invest in stocks without worrying about timing the market.
- π° Dividend Aristocrats: These are reliable dividend-paying stocks that have increased dividends for 25+ years, providing both growth and passive income.
- π¦ High-yield savings accounts: Find accounts that pay over 5%, as many standard banks offer much lower returns, often less than 1%.
- ποΈ Real estate investment: Real estate is a proven wealth builder, and crowdfunding platforms like Fundrise offer an entry point without direct property ownership.
- π» Bitcoin: Despite volatility, Bitcoin showed a 155% return in 2023, and new Bitcoin ETFs offer safer ways to invest without relying on exchanges.
- ποΈββοΈ Health investment: Physical and mental well-being are essential for long-term success; therapy, exercise, and healthy eating are valuable investments.
- π Invest in yourself: Whether through education, certifications, or mentorship, investing in self-improvement accelerates personal growth and success.
- πΌ Side hustle: Creating a digital product or starting a content-based business (YouTube, blog, etc.) can generate passive income over time.
- π Automation and digital products: 2024 is ideal for creating scalable digital products using tools like Canva, system.io, and AI tools like ChatGPT.
Q & A
What is the first investment strategy mentioned in the video?
-The first investment strategy is paying off your debt. This is considered a guaranteed rate of return since it helps to eliminate high-interest payments, allowing your money to work for you more effectively.
Why is paying off debt considered a crucial investment?
-Paying off debt is crucial because you cannot effectively invest and grow your wealth if you are drowning in debt, especially with high-interest debt like credit cards. Having a debt payoff plan is essential to financial stability.
What is dollar cost averaging, and why is it recommended for stock market investments?
-Dollar cost averaging is a strategy where you invest a fixed amount of money regularly, regardless of the stock market's highs and lows. It allows you to avoid trying to time the market and helps smooth out the volatility by purchasing at different price points.
What are dividend Aristocrats, and why are they a good investment option?
-Dividend Aristocrats are companies that have consistently increased their dividend payments for at least 25 years. They are considered a safer investment because they offer both potential price growth and regular dividend income, making them attractive for investors looking for steady returns.
What does the video suggest about investing in traditional bank savings accounts?
-The video suggests that traditional bank savings accounts offer very low interest rates, often below 0.5%. Instead, the recommendation is to look for high-yield savings accounts or certificates of deposit (CDs) that offer rates of 5% or higher to maximize returns on your savings.
What alternative does the video offer for investing in real estate if you donβt want to physically buy properties?
-The video suggests using crowdfunding platforms like Fundrise, which allows investors to put a small amount of money into real estate projects without owning physical properties. This offers the benefits of real estate investing without the hassle of managing properties.
Why is Bitcoin still considered an investment option despite the turmoil in the cryptocurrency market in 2023?
-Bitcoin is still considered a valuable investment because of its long-term potential. Despite the collapse of major crypto exchanges like FTX and Celsius, Bitcoin itself has shown resilience, and the introduction of Bitcoin ETFs offers a safer way to invest without relying on potentially unstable crypto exchanges.
How does the video emphasize the importance of investing in personal health?
-The video highlights that investing in your physical and mental health is critical because without it, financial wealth becomes meaningless. It encourages activities like joining a gym, hiring a personal trainer, or engaging in therapy as part of a holistic approach to well-being.
What are some ways to invest in yourself mentioned in the video?
-Some ways to invest in yourself include pursuing higher education (e.g., getting an MBA or certification), hiring a mentor or business coach, and buying courses to accelerate your learning in areas like SEO, social media, or strategic planning.
What is the suggested approach to starting a side hustle in 2024?
-The video recommends starting a side hustle that can eventually become an income-producing asset, such as a YouTube channel, blog, podcast, or creating digital products. The goal is to build something that can generate passive income over time.
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