What Dave Ramsey Doesn’t Like About Investing In ETFs
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Mutual funds have bad tax implications. I had to pay taxes on losses in down markets. ETFs don’t have that problem if you ride out the downturn.
Mutual funds tend to have higher fees and you have less control overall
I like investing in close-end funds that pay monthly dividends. The trick is to hold long term and reinvest the monthly dividends plus buy more shares on a monthly basis or whenever you can afford to. This can be easily done because close-end funds are bought and sold on the stock market just like regular stock. That'd be enough to create a portfolio that would pay you between $50k to $70k in dividend income
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What Dave Ramsey doesn't want you to know is that an ETF has very few fees, is Tax efficient and an ETF that tracks the S&P 500 outperforms up to 90% of managed funds investors. He likely wants people to invest in mutual funds so he can keep earning profits from "Ramsey Smart Vestor" fees and commissions.
I have ETFs and I never sell them either they are not going to be touched for decades. Mutual funds are a rip off.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family….
My friend told me that USMART SG supports trading, and you can use your ID to open an account. Plus, there's no buying limit. I'm thinking of giving it a try!
Any person who suggests a Mutual Fund nowadays should be questioned. Mutual funds are horrible tax vehicles.
I believe it was Fidelity that did some research and found that the account that outperformed belonged to someone who was deceased and so their account hadn't been touched in years. I can attest, buying and selling, buying and selling did not get me the returns I would have had if I'd just had hold back in 2021.
Stats show (search yourself), that most of mutual funds don't beat ETFs/Index investing, plus you will pay a higher commission. Some mutual funds just buy ETFs. That's definitely unfair not to mention commissions.
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Victoria Taylor
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
Etfs give you to the opportunity to sell cash secured puts. Collecting a premium (money) to purchase 100 shares of the underlying asset at the price you want. You literally get paid to purchase at a cheaper price. The counter party pays that premium for the right to sell to you at that price. There is nothing speculative about that, nor is it timing the market. You’re getting paid to open a position at a cheaper price. This is why the spy and qqq will always be top dog in liquidity, Because of its active option chain.
It is also super easy to hedge with etfs as most etfs have an inverse counterparty like SH, 1x daily inverse the S&P and leveraged etfs like UPRO with 3x daily return of S&P. Also inverse and leveraged equity etfs, like x3 tesla or x1.5 apple in both directions for example. And the grand daddy of them all, TQQQ, the 3x of the qqq. That has a 36.76% 10 year average annual return. But of course all of those are speculation. I don’t recommend timing the market but people should know these financial tools do exist to serve them. (This is just scratching the surface you should learn more about the markets on a far deeper level than just mutual funds if you’re participating in them)
There are also many inverse and leveraged fixed income etfs, and etfs that sell coved calls like JEPI. It owns the S&P and sells covered calls on it for income. So if you’re interested in that proven income strategy you can reap the benefits without doing any of the work. It’s all baked in. Bond and treasury etfs like BIL or TLT for example are great too because you get to collect a monthly yield from the bonds or treasuries held in the etf while still retaining the liquidity to sell at any time. Though I wouldn’t recommend those to anyone who doesn’t understand the basic mechanics of the bond market in this current economic environment.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
No one comes higher for me, than DR, when it comes to getting on a budget, getting out of debt, and spotting the phone in client who are in dangerous domestic situations. But he is not an investment manager, that is not where his expertese lie, as he would admit himself. One man who is, is Andrew Craig who, like Dave, wants to help people with money. In his case, with investing. He set up plainenglishfinance web site, and wrote " How to own the World" I used to have the impression that investing was like gambling ( because you always get told " investments can go down as well as up) and than only rich people could invest. I had no idea it's a way to get rich ! If I had read his book when I was younger I would be a lot better off now, but he has still helped a lot. I now understand about investing small but regular and ignoring the ups and downs, plus the wonders of compound interest. I know what to look for in an investment company, a fund, etc, and how to protect from tax as much as possible.
Ramsey Stuttering a little bit, he does not know what a ETF is.
My biggest irk with ETFs is the lack of optimization. Large changes in any given stock in the ETF can drag your portfolio down. But in general, ETF or not, I think the stock market isn't showing any sign of slowdown. Investing now instead of parking money in the bank would make thousands of dollars in ROI if done right.
This wasn't a video about ETFs, it was about frequent trading (with a lot of self-referential commentary). You can buy and hold an ETF just like a typical mutual fund. What was not discussed (among other things) was how much lower the expense ratios are on ETFs compared to other retail mutual funds. That should have been brought up.
Real Estate has not ALWAYS gone up.