Here’s my exact investment strategy for 2019, and precisely where I’ll be investing my money – enjoy! Add me on Instagram: GPStephan
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When it comes to investing, I ALWAYS think to myself: where can I get the MOST opportunity, long term. What is going to give me the highest return, with the LEAST amount of risk? And also, how much risk do I need to take, how hard do I need to work for that, and what’s going to get me the best value?
Here’s my thoughts when it comes to what I want to do in 2019:
First, I’m planning to use about 60% of my income this year to diversify and strengthen my stock market portfolio. This is something I pretty much see as a lower risk, lower time commitment, and yes…lower return investment. I think a more beefed-up well balanced portfolio would insulate me from anything outside my control and give me a little more liquidity, in the event I ever needed it. This move is really about spreading out my risk and also taking a more passive approach when it comes to investing this year – just for the sake of rounding out my investments.
So when it comes to doing this, because everyone just wants specific information, I’ll likely be investing a significant portion of my income between three funds – this strategy is also known as the “Three Fund Portfolio”:
First, I’ll be investing about 70% in Vanguard’s Total Stock Market Index – VTSAX.
Second, I’ll throw about 20% in Vanguard’s International Stock Market Index – VTIAX.
Lastly, I’ll just throw 10% remaining in the Vanguard Bond Market – VBTLX.
This strategy is more about investing in something completely hands off, zero work, just set it and forget about it…and this way, I’ll have the peace of mind knowing that I’m investing in something I consider 100% passive income.
Now my SECOND investment will be back to real estate…in previous years, this was my priority…but this year, it’s taking the back seat, but it’ll be a fun one. About 30% of my income this year will be saved up, cash, in high interest savings accounts earning about 2.2% or so. I’ve been somewhat casually looking at real estate to buy this year, but I just can’t find anything that’s worth getting…
And when I look at real estate, I look for VALUE…I buy places I’m 100% sure I can make money on…and from the properties I’ve seen so far, I just can’t find anything that’s a sure thing. So instead, here’s where I’m starting to realize there’s a lot of opportunity: DEVELOPMENT. This is where my cash is going to come in handy.
For instance, I have one unit where once the tenant moves out, I can spend about $60,000 fixing it up, and I’d be able to make an extra $1100 per month in rent. This is over a 20% CASH RETURN ON MY MONEY.
Also, like I mentioned a few months ago when I did the house tour of the new place I just bought, I’d eventually like to spend about $200,000 and create what’s called an ADU on the property – this is an Accessory Dwelling Unit, and this is just a fancy term for a guest house. Basically, I can build a $200,000 guest house and rent that out for about $1600 per month. That works out to be nearly a 10% cash return on my money – pretty much risk free, especially if I paid for this in cash.
So right there, with about $260,000 spent…I can make a guaranteed $2700 per month EXTRA with no additional debt, and no risk. To me, that’s the IDEAL scenario, and I can’t imagine any other investment I could possibly make right now that would give me those numbers.
So between those, that’s pretty much where most of my money is going this year. Balanced Index funds and save up cash for some development to increase existing cashflow…I see this as lower risk, more diversification, while still increasing value at the same time.
Hope that makes sense – this move is all about more diversification, spreading out my money a little more, focusing on investments that might be slightly more passive, and trying to be a little less heavy in real estate – just because that would be the smart thing ANY investor should do.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
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Have you used Vanguard Personal Advisor Services? I manage my account currently, but vanguard is encouraging me to use them
What are good alternatives to Vanguard? I’m not allowed to invest on those. Thanks
I like that you share actual tips and aren’t just advertising a paid training.
Love the video but heads up guys it all ends at like 9 min 30 sec because after that is just gloating about his cars.
Love the advice you give. Keep the videos and tips coming.
Studying his body language makes me not like him. It’s a manipulation tactic used by politicians. Literally go watch any politician make a speech, then come back here and compare the hand/arm movements.
Are your Vanguard index funds in a traditional IRA?
No it is in a Roth IRA
); Ally. 2.2% interest.
Those were the days.
I know 🙁
Graham what benefit do you have investing on vanguard admired shared mutual funds instead of etf? I have seen that expenses ratios of etf are lower
Great video. Thanks for information.🙂
Graham why make 6-8% when you could be making 16% or more see FMAGX 15.74% average since 1963 the S&P average was 10.65% https://research.tdameritrade.com/grid/public/mutualfunds/profile/profile.asp?symbol=fmagx&fromPage=profile&display=&fromSearch=true there are several funds that beat the S&P check out how much difference you could have. https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php $100,000 invested @ 8% over 30 years is $1,093,572.97 or $100,000 invested @ 16% over 30 years is $11,771,678.71 witch would you want to have & I am not counting on any monthly investments you might make and you still get over 11 times the amount.
How do you determine how much to put down? I have plenty saved up and want to buy a historic Victorian in Washington, D.C. that is a two-unit building. Do I only put down what would ultimately result in a mortgage that would equal what I would charge in rent?
Hello graham i checked vaguuard and it states ‘closed to new investors’ does the time to invest come annually or am i just out of luck. Please advise
Which Vanguard mutual fund states that it is closed to new investors?
Love how open he is about investments. Huge help!
Thank you
I just wanna make bank BRO.
Lmao who leaves a comment on Grahams video saying “you are a fucking moron” 😂😂
So do you do classes or what I’m in San Diego 👀 gimme all your knowledge lol
Hey Graham, what would you do with 75K on a fixed income of $2700. , renting in Carpinteria, CA and saving 1K/mo.. This is a word problem. I need your advice. I don’t have a lot of time since I’m 61 years old. I’d like to own one rental property but don’t know where to start.
Any advice you can give would be greatly appreciated
I don’t have enough money to invest with vanguard yet at this time being 16 and their high minimums, but I just opened up a Fidelity account with no minimums and I definitely plan on using this strategy on their equivalent funds. I love your videos. Keep it up!
From San Bernardino here! Really happy to hear you even mention the city in your video! Lol
Hey Graham,
I recently received $20,000. I also have about $8,000 in credit card debt. I’m wondering if you recommend paying that off right away, or doing something like the chase slate card and transferring it over to take advantage of the 15 months no interest period. I have an account that pays 1.9% and I was thinking doing either that 100% or split between that and acorns for that 8k. I have 10k tied up for 90 days in the chase new account offer for $150. After that I have no set plans. Any advice and as much detail as you can spare would be appreciated. If you can give me suggestions I will do some research.
Thanks
VASGX will automatically rebalance your portfolio.
Hi! I’m watching this video for the second time. I know you don’t care about what happens in a year, but I’m just curious. Now that it’s close to the end of the year, how did your investments work out?
Could you make a video on investing in USD when you’re not a US citizen? is it something that’s worth to consider, or essentially problematic because of the currency exchange? would you only make an investment / savings account in local currency? thanks!
6:15 LMAOO! 😂😂😂😂😂
What will it take for you too teach me your ways 1v1???
cool, heres for the algorithm
yes, Graham get the mercedes its a nicer car, thats the car I want when I go back to work, right now I am taking care of my son, but hopefully I’ll get a good job, I do have a finance degree so I hope so, but Ill be getting a mercedes too.
Graham do you have any suggestions for me, I am a homemaker and also want to do realestate but don’t know if I should try to get a realestat liscense or not, my husband says he doesnt want to spend any money on it and says I don’t need one. What do you think?
At the very least you should be contributing *$6,000* to your 2019 Roth IRA and *$6,000* to your 2020 Roth IRA.
Hulk smash the like button.
Hey Graham, I haven’t seen a video for this one yet if you need new ideas. Choosing between a Roth 401k or a Roth IRA?
Hi Graham,
Nice channel, lots of good information. Quick question regarding this video, Is this strategy only about your future income? Or will you sell your current real estate and put into index funds to reach the 60% 40% allocation ?
I stopped investing for couples of years, because i made some wrong choices of investment, until i met Linnea Wilma, we boarded the same Airline, after my encounter with her, she became my Investment adviser , since then i have been connected to hot deals and i made profits from $200,000 to a million dollars in a short time.
Oh great, i work with Linnea Wilma as well, she is
definitely one of the best investment advisers I’ve ever worked with and i don’t think i’m ever gonna stop working with her anytime soon.
This is amazing, How can i find her?
well, if you ask me, i don’t think it’s a bad idea to learn how to trade too, i have about $350,000 investment handled by Linnea, she’s really a good investor, that is why am also learning how to invest with her assistance.
@Mr_niceguy you can contact her on LinkedIn, you can find her with her name, I believe she would be of great assistance to you.
This woman is very good, she has helped many investors stand their feet, I’m lucky I met her earlier.
Thanks for helping people Graham. Most of us were lied to most of our lives & no nothing about real estate. You were Really lucky you fell into this when you were young. Tho gs turned out good for you.
Get the benz
u r awesome man
This is definitely not a “beginners” video.
Can you do a review on this Vangaurdist.com advertisement I have been seeing online? Is this a scam or what?
Hey Graham, you are a huge inspiration my man (especially to anyone in their 20s). You are an absolute genius, I’ve literally never seen anything like it. It’s like an art form the way you educate and inform. I inboxed you about a week or so ago on Instagram, but to my dismay you did not reply. No biggy though. I wish you the best on all your endeavors! P.s- I turn 26 in 5 days and I desperately want to make wiser decisions in life. Your videos have been helping, but all the terminology is frying my brain a smidge. Haha…hope to hear from you soon. #blessings
GRAHAMMMMM PLEASE RESPOND!!!!
PLEASE MAKE A VIDEO ABOUT VANGUARD NOW OFFERING $0 COMMISSION IN TRADING STOCKS JUST LIKE ROBINHOOD!!!!!!!!!!!! PLS PLS I HAVE A ROTH IRA WITH VANGUARD BUT I WOULD LIKE TO KNOW MORE ABOUT VANGUARD RECENTLY DOING $0 STOCK TRADES!!!!! PLSSS MAKE A VIDEO. I WOULD LIKE YOUR INPUT!
– by the way i am smashing the like button every time I post this comment lol 🙂
Why is it that you don’t plan to put your real estate funds in an index fund until you find a property?
Hey Graham, wondering if you could give us an update on your 3-bond portfolio and if you’ve adjusted your allocations or made any significant changes? Looking forward to your update!
Nice video dad!
Can you believe my vtsax went up 30.8% in 2019!!!! Is that too high? Should I be worried!?
Thanks graham for the video but I love you to called Alexander Bodgan a great hacker who helped me in any kind of hacking business he removed all inquires without remaining any debt contact him at hackingjesusisreal @gmailcom
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I enjoy seeing your videos. Can you please cover how to determine your profit on a rental? The rate of return.
Graham, could you please address if you recommend purchasing index funds other than the ones mentioned in your 3-fund portfolio method? Or do you just keep buying more shares of the same three??
I look at the etf stuff, what’s a broker
Make a video on how to use fidelity. Or consider making a video walking us through all the apps and accounts that need to be made to start investing. Im very interested in investing but I am having a hard time setting everything up to start.
First place to start is with your company 401(k) if you have one and if they offer a company match. Do you have a 401(k) with a company match?
2700 a month? So about a 12.5% return. But what about vacancies, and possible damage due to bad tenants, weather, accidents etc? Wouldnt that essentially eat into and make it more similar to index fund investing but with a greater time investment?
Hey Graham,
I noticed VTSAX requires a minimum investment amount of 2500$. Assuming this is how most funds work and I’ve only put about 1000$ in my Roth IRA do you recommend I continue to add my weekly 125$ until I have accrued enough money to toss in a bulk amount to a stock? Thanks for the content and I enjoy supporting the YouTube algorithm!!
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) —- Minimum investment *$3,000*
Vanguard Total Stock Market ETF (VTI) —- current share price ~$171
Vanguard Target Retirement Fund 20XX — Minimum investment *$1,000*
.
You can buy the EFT VTI. Or a Target Retirement fund and once the account balance reaches $3,000 exchange it for VTSAX.
I love your videos!!!!!!
10k
Graham Stephan just helping the youtube algorithm
I would really like to hear what you think about Charles Schwab’s Intelligent Portfolio.
Update video for 2020?
Great strategy very informative. I can still build the third ADU on your lot with new guidelines.
I wish there was a super like button for your videos
As of March 2020, your inbox is probably blowing up LOL
it’s crazy!
expeditetools,com made a transfer of $50,000 directly to my bank account.
Hey Graham, what do you think about the vanguard real estate index fund?
When $60,000 turns into more than $100,000 😖
I’m 20 years old and I have been able to plan for grad school completely debt-free without taking out any educational loans. I opened my first credit cards at 18 yo and I have you to thank. Today I’m opening up my Roth IRA with fidelity and I’m so excited! thank you for sharing all this information, you’ve been the reason for my financial literacy and having a savings mindset. 🙏🏼❤️🙌🏼
60 in index funds and 40 in real estate? Wait isnt that all your income? What about savings?
Your channel is fucking awesome, Graham.
And how do I invest in these?
Oh boy did it go down the next year ha ha… Three func lazy portfolio still the way to go. You lost less than most other strategies lol
I make $15k every 7 days with Sir Raphael Samuel as my broker
.
Fluctuation in price doesn’t stop him from making huge profits, he is a genius
..
Hi Graham hope you well. All way from South Africa. I looked at Webull to start trading but you need to be a European or US resident. Could you recommend another platform for me to use to trade in NY stock exchange!
Will appreciate your assistance
I can’t say anything that hasn’t already been said other than THANK YOU and I wish I applied this when I first heard the video but I thought I didn’t have enough money to invest at the time. The truth is, now I see I couldn’t afford not to. Also can you do a video explaining how a roth 401k is not the same as a roth IRA. Initially I didn’t know the difference which is why I just started my first roth ira this year. Luckily I could still contribute to 2019 and 2020!!!
Well, the market went down lol! Good prediction room, Graham.
vanguard has a 3000 minimum what else can i invest in index fund wise that has no mimimum requirement
Hi Graham, I have a direct debit every month for S&P 500, I have due to come into a windfall $400-600K on stocks as our company is going public, what would your advice be? Put most in index? Or split between index and property? Thanks
Will the financing cost of the SLS justify your returns in a few years’ time?
What if I want to invest all of my money into these stocks until I can retire early? Invest 100k a year and retire at age 30-40 for example? I’m 22. Would I invest outside of a roth ira and 401k? (im maxing out roth ira and 401k im taking minimum match reguardless). Where would I invest outside of these so that I can live off the interest?
Hey Graham! You’re seriously such an inspiration. I hope they use your videos in school in the future cause you give out more financial advice than anything i’ve ever learned in school. High school of course, not college lol
For VTSAX, there’s a $3000 minimum for initial investment. I was pretty bummed to see that since I was so excited to invest my first $875 in a 3 fund portfolio within my new Roth IRA account.
Just invest in the etf equivalent
I just did that
got me really looking forward to investing and finding ways to become financially free
You’ve gotten excited about index funds. Haha
what is the sound effect at 6:17 ?
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Saving your money and investing into stock market will be the wisest thing to do,to ensure success.
Totally agree it’s by far the easiest to assess and does not involve physical labour.
Graham “and if you use my strategy and the market goes down don’t be upset”
My god if you only knew what was going to happen in 2020
I think you should try using a regulated broker to trade or you can also reach out to Mr Thomas Rodriguez with <>> to assist you
6:16 that’s hilariously accurate 😂
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Lo and behold the market went down a year after this video was uploaded 😭😭😫😭😫
I think I watched 300 of your videos in the last two weeks… 😂 Thank you Graham !! 🙏
What doyouthink of fidelitys free index funds?
I like them a lot!
Just came from the future and Graham sold his Lotus, didn’t buy the Mercedes, but he bought a Tesla model 3 and his YouTube channel exploded to 2 million subs and he is moving to Nevada 😎
AMAZING 🙂
Graham your videos have been so educational, but I so wish I could hire you for a 1-on-1 financial advising session *cries*
Can you donate me the lotus 😂 I’m an MR2 fanatic and that’s pretty close 🙂
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