The 7 Investments You NEED to Own for Life (So You Can Quit Your Day Job)

Summary

This video outlines various investment strategies, including traditional methods like real estate, dividend stocks, and ETFs focused on global markets, as well as speculative assets such as cryptocurrency and startups. It emphasizes the importance of diversification, both internationally and across asset classes, to mitigate risks. The video also discusses the value of investing in physical gold as a hedge and highlights the role of personal and financial education in building long-term wealth. With a focus on consistent, informed decisions, it offers practical advice for both beginners and seasoned investors looking to grow and protect their assets.

Takeaways

• 😀 Quantum computing (QTUM) is an emerging technology that offers potential for massive growth, but it's still in the early stages, making it a high-risk, high-reward investment.
• 😀 Artificial intelligence (AIQ) continues to grow rapidly, and while some see it as a bubble, others believe it has a lot more room for expansion. It's an exciting sector for long-term investors.
• 😀 International diversification is important. Investing in international assets can protect you from recessions or downturns in the U.S. economy. International ETFs like VMI, VA, and EMG can help achieve this.
• 😀 Emerging markets like India (Inda ETF) or Brazil (EWZ ETF) offer high growth potential, but come with higher risk. Developing countries might be more stable investments, while smaller economies offer more growth opportunities.
• 😀 Speculative assets, such as cryptocurrencies, startups, and collectibles (e.g., trading cards), can bring substantial returns but are very high-risk. They should constitute only a small portion (10-20%) of your portfolio.
• 😀 Gold is a traditional hedge against economic downturns. It serves as a form of 'hard money' but doesn’t generate cash flow like stocks or real estate. It’s suggested to allocate around 2% of your portfolio to physical gold for protection during economic uncertainty.
• 😀 Personal development and mindset are crucial for building wealth. Overcoming limiting beliefs around money is necessary for success, as poverty can be passed down generationally through mindset.
• 😀 Financial education is essential for controlling your financial future. Learning how to invest, manage money, pay down debt, and build wealth will enable better decision-making and smarter investments.
• 😀 Good research leads to smarter investment decisions. Whether through self-study or platforms like Briefs Pro, access to quality research will help you identify good opportunities and avoid mistakes.
• 😀 Wealth-building is a gradual process, not a shortcut. Consistent investment, patience, and informed decision-making are the keys to long-term financial success.
• 😀 Tax payments should be prioritized when managing finances, as they are the first 'expense' for households, underscoring the importance of strategic financial management.

Q & A

What is Quantum Computing, and why is it considered important for the future?

Quantum computing is a technology focused on creating chips that are far more powerful than today's classical chips. It is believed to be the next major technological leap after AI, as it has the potential to solve problems that are currently beyond the reach of traditional computers. However, it is still in development and not widely accessible yet, making it a speculative investment.

What does the AIQ ETF focus on, and why should investors consider it?

The AIQ ETF provides exposure to artificial intelligence-related companies. AI has seen significant growth recently, but there is debate about whether it's a bubble. If an investor has a long-term mindset and believes in the future growth of AI, this ETF could offer significant growth opportunities, though it comes with higher risk.

Why should investors consider international investments during a U.S. recession?

During a U.S. recession, domestic assets like stocks and real estate might decline, but international markets, such as those in countries like India, might experience growth. Diversifying internationally can protect investments and provide opportunities for growth during downturns in the U.S. economy.

How does the VMI ETF differ from VA and EMG ETFs?

VMI focuses on high-dividend international companies, providing exposure to cash-flowing assets outside of the U.S. VA targets developed foreign markets, investing in established companies in more developed nations. EMG, on the other hand, focuses on emerging markets, offering higher risk but also the potential for greater returns.

What is the role of speculative assets in an investment portfolio?

Speculative assets are high-risk investments that may provide high potential returns, but they are also highly volatile. Examples include cryptocurrency, startups, and collectibles like trading cards. While they can yield significant gains, they can also lead to total losses. It’s recommended to limit speculative investments to a small portion of one's portfolio, especially for beginners.

Why is gold considered a protective asset in an investment portfolio?

Gold is viewed as a form of hard money that has stood the test of time. It is often considered a hedge against economic downturns, inflation, and financial instability. As a physical asset, gold tends to retain its value better than cash, especially during periods of economic uncertainty.

What percentage of an investment portfolio should be allocated to speculative assets?

The speaker recommends starting with zero speculative assets, gradually increasing exposure as wealth grows. A reasonable target could be around 10% to 20% of the portfolio, but no more than that, especially for those just beginning their investment journey.

What is the importance of personal and financial education in wealth building?

Investing in personal development and financial education is crucial for long-term wealth building. Developing the right mindset and understanding how money works can lead to better investment decisions. Resources such as books, podcasts, and online content can help improve financial literacy and investment strategies.

How does the speaker suggest protecting investments during financial downturns?

The speaker suggests investing in physical gold as a way to protect assets during economic downturns. Gold is considered a safe-haven asset, and owning physical gold can provide a form of insurance against inflation and market crashes.

What are some examples of niche international ETFs mentioned in the video?

The speaker mentions ETFs like 'Inda', which provides exposure to Indian companies, and 'EWZ', which focuses on Brazilian companies. These ETFs allow investors to gain exposure to specific countries without directly investing in their stock markets.