If I Started Investing in 2024, This is What I'd Do

Summary

In this insightful script, the speaker emphasizes the importance of making smart investments in 2024 to avoid financial pitfalls. They advocate for index funds as a stable, low-fee investment, real estate for its tangible and cash-flow benefits, and collectibles as a passion-driven investment with potential for appreciation. Intellectual property is highlighted as a lucrative avenue for leveraging knowledge, while self-investment is deemed the best investment one can make to enhance personal value and marketability. The summary encourages strategic financial choices and continuous personal growth.

Takeaways

• 🔮 Avoid speculative investments based on crystal ball predictions; instead, focus on long-term, stable investments.
• 📈 Index funds are recommended as a low-risk investment with a low cost fee structure, suitable for those who want a hands-off approach to investing.
• 🏦 Dollar-cost averaging into index funds can reduce the impact of market volatility and is a strategy endorsed by investment gurus like Warren Buffett.
• 💰 Be cautious of mutual funds with potentially high fees that can erode investment value over time due to compounding costs.
• 🏠 Real estate is highlighted as a multifaceted wealth-building vehicle with benefits like cash flow, tax advantages, and inflation hedging.
• 🛠 The 'buy, rehab, rent, refinance, and repeat' method in real estate is a strategy for building wealth through property improvements and refinancing.
• 🎨 Collectibles can be a fun and profitable investment if you invest in rare items that appreciate over time, combining passion with financial gain.
• 📚 Intellectual property, such as books, courses, and consulting services, can be a lucrative way to monetize your knowledge and expertise.
• 🤓 Investing in yourself through education and skill development is the best return on investment, as it increases your market value and adaptability.
• 📚 Prioritize 'just-in-time' learning over 'just-in-case' learning to focus on acquiring knowledge that has immediate practical application in your life or business.
• 💼 Fundamental business principles and personal development are key areas to invest in, as they provide a solid foundation for long-term success.

Q & A

What does the phrase 'eat shattered glass' imply in the context of investments?

The phrase 'eat shattered glass' is a metaphor suggesting that those who try to predict the future and make investments based on speculations or emotions end up with losses and disappointment, much like someone who would literally eat glass and suffer the consequences.

Why did the speaker choose index funds as one of the best investments for 2024?

The speaker chose index funds because they offer a low-cost investment option with minimal emotional involvement. They allow for dollar-cost averaging, which reduces the risk of making investment decisions based on market timing, and they have historically provided a stable return over the long term.

What is the 'stability bucket' mentioned in the script, and how does it relate to index funds?

The 'stability bucket' refers to an investment strategy where a portion of one's earnings is placed in a secure investment, like index funds, to ensure that the principal is not at risk. It's a way to build wealth without the need for constant monitoring or emotional decision-making.

Why is Warren Buffett's opinion on index funds significant in this context?

Warren Buffett's opinion is significant because he is a highly respected investor. His endorsement of index funds as a sound investment strategy for long-term growth adds credibility to the speaker's recommendation.

What are the advantages of investing in real estate according to the speaker?

The speaker highlights several advantages of real estate investment, including the ability to build wealth through various means such as buy, rehab, rent, refinance, and repeat; tax advantages; cash flow generation; inflation hedging; and the potential for appreciation.

How does the speaker view collectibles as an investment vehicle?

The speaker views collectibles as an investment vehicle because they can appreciate in value over time, especially if they are rare or unique. Investing in collectibles that one is passionate about can also add enjoyment to the investment process.

What is the 'buy, rehab, rent, refinance, and repeat' method mentioned in the script?

The 'buy, rehab, rent, refinance, and repeat' method is a real estate investment strategy where one purchases a property, renovates it, rents it out, refinances it to pull out equity, and then repeats the process with the new funds to continue building wealth.

Why is intellectual property considered a valuable investment according to the script?

Intellectual property is considered valuable because it can be a product of one's knowledge and expertise, which can be packaged and sold to others. It can generate passive income and has the potential to scale without the need for additional physical resources.

What is the importance of investing in oneself according to the speaker?

The speaker emphasizes the importance of investing in oneself as the best investment one can make. By improving one's skills and knowledge, an individual becomes more valuable in the market, which can lead to increased earning potential and personal growth.

How does the speaker define 'just in time' versus 'just in case' learning?

The speaker defines 'just in time' learning as studying something that will have an immediate impact on one's life or career. 'Just in case' learning, on the other hand, refers to acquiring knowledge without a specific application in mind, which may lead to information being stored but not utilized effectively.

What is the speaker's advice on how to approach learning to maximize its impact on one's life?

The speaker advises focusing on 'just in time' learning, studying the fundamentals, and applying the knowledge to one's life or career immediately. This approach ensures that the learning is relevant and can be translated into tangible results.