WEBVTT 00:04.260 --> 00:09.930 You know an average millionaire has around seven sources of income in order to achieve wealth. 00:09.930 --> 00:17.600 Having multiple streams of income is important but building multiple income streams is not an easy job. 00:17.880 --> 00:22.230 That's because most of your time is spent on maintaining your first stream of income. 00:22.380 --> 00:24.230 That's your job or your business. 00:24.630 --> 00:30.430 And it's even harder when you have to work long hours and get tired when you get home. 00:30.450 --> 00:33.840 It's not an excuse but we're all human beings. 00:33.960 --> 00:41.520 We have our own limits and incapacities and we cannot ignore the fact that our time is limited as well. 00:41.850 --> 00:50.460 That's why I decided to make this video to show you the best and easiest way to grow your wealth safely 00:50.700 --> 00:53.050 and effortlessly. 00:53.060 --> 00:57.860 So how can you easily create four streams of passive income. 00:57.860 --> 01:00.620 The answer to this question is simple. 01:00.800 --> 01:04.850 You just need to invest your money in four different types of paper assets. 01:05.060 --> 01:10.880 And if you do everything right those investments will be consistently putting the money back into your 01:10.880 --> 01:12.110 pocket. 01:12.230 --> 01:18.080 You can increase your income without any extra effort and you can easily make a lot of money while you 01:18.080 --> 01:19.280 sleep. 01:19.310 --> 01:20.860 Interesting right. 01:20.870 --> 01:24.430 So what are those paper assets. 01:24.600 --> 01:30.510 Now I'll dive into four different types of paper assets that I've been using to multiply my money and 01:30.510 --> 01:33.450 create multiple streams of passive income. 01:33.480 --> 01:42.900 They are ETF or exchange traded funds value stocks dividend paying stocks and Rietz or real estate investment 01:42.900 --> 01:47.640 trusts in order to create four distinct sources of income. 01:47.640 --> 01:53.310 You just need to put your money into these types of investments and then let them do all the work for 01:53.310 --> 01:53.830 you. 01:54.630 --> 02:01.710 Now let me dive into each type of investment in turn so you can see exactly how you can use money to 02:01.710 --> 02:03.030 make more money. 02:04.940 --> 02:08.510 OK first of all I'll talk about ETF. 02:08.720 --> 02:18.290 So what exactly is an ETF ETF stands for exchange traded fund an ETF is simply an investment portfolio 02:18.290 --> 02:26.090 that contains various types of investments such as stocks bonds or some kinds of funds normally are 02:26.090 --> 02:31.100 designed to track the overall performance of a particular stock market or sector. 02:31.100 --> 02:34.400 A bond market or even a real estate market. 02:34.460 --> 02:40.730 So when you buy an ETF This simply means that you're investing in a diversified portfolio that includes 02:40.730 --> 02:42.850 a number of different investments. 02:44.010 --> 02:49.180 For example you invest in DNA which is often known as Diamond ETF. 02:49.350 --> 02:54.490 It's an ETF that's designed to track the overall performance of the Dow Jones index. 02:54.540 --> 02:59.910 For those who don't know about the Dow Jones the Dow Jones Industrial Average has a stock market index 02:59.910 --> 03:04.570 that consists of the 30 largest businesses in the United States. 03:04.590 --> 03:10.330 So when you buy this ETF This simply means that you're investing in those 30 largest businesses. 03:10.440 --> 03:17.250 And the cool part is your money will be diversified and invested into many different markets sectors 03:17.700 --> 03:24.240 such as financials health care technology energy consumer services et cetera. 03:24.750 --> 03:30.360 And that's the reason why investing in AFP's is the best way for you to build your long term wealth. 03:30.360 --> 03:36.030 You don't need to buy a lot of companies by investing in a single ETF you're investing in different 03:36.030 --> 03:39.300 businesses in different market sectors. 03:40.400 --> 03:47.060 Basically are the same as mutual funds or some kinds of index funds but there are expense ratios are 03:47.060 --> 03:48.260 much lower. 03:48.260 --> 03:54.500 For example if you buy a mutual fund you'll have to pay one to 5 percent of your return in management 03:54.500 --> 03:56.190 fees every year. 03:56.240 --> 04:02.990 While if you hold an ETF you'll only have to pay from point 0 1 percent to less than 1 percent in management 04:02.990 --> 04:04.340 fees. 04:04.340 --> 04:12.520 That is to say investing in an ETF is 10 to one hundred times cheaper than investing in a mutual fund. 04:12.570 --> 04:18.900 If you invest in ETF you can easily make a 10 to 15 percent return every year. 04:18.900 --> 04:21.150 It still requires some strategy though. 04:21.210 --> 04:28.440 The fact is that not every ETF is worth investing in some ETF come up with bad performance high management 04:28.440 --> 04:34.740 fees and a high level of risks so you'll need some strategies or some kind of knowledge to pick the 04:34.740 --> 04:36.520 right investment for yourself. 04:37.360 --> 04:42.400 Ok one more useful tip to take away before we dive into the next type of investment. 04:42.730 --> 04:49.530 Always make sure that you stay away from mutual funds and Wealth Management Services. 04:49.540 --> 04:55.870 That's because buying an ETF is much cheaper and you can easily manage your portfolio by yourself. 04:55.870 --> 04:59.800 There's no need to waste your money on any wealth management services. 04:59.890 --> 05:01.960 You are an investor. 05:01.960 --> 05:05.830 So do it yourself and take full control of your money. 05:07.750 --> 05:08.310 OK. 05:08.410 --> 05:12.060 The second type of investment value stock. 05:12.220 --> 05:14.770 I bet you've heard a lot about value investing. 05:14.770 --> 05:17.300 So what exactly is value investing. 05:18.070 --> 05:23.830 Value investing simply means you buy something that's worth $2 for only one dollar. 05:24.010 --> 05:27.060 Well not exactly but you get my point here. 05:27.070 --> 05:32.860 Value Investing means you buy a company when it's cheap or undervalued and then sell it when it becomes 05:32.860 --> 05:35.880 more expensive or overvalued. 05:35.890 --> 05:42.980 So how do you know if a stock is undervalued or overvalued to determine whether stock is cheaper expensive. 05:43.030 --> 05:46.240 You'll need to estimate its intrinsic value. 05:46.330 --> 05:52.180 A company is undervalued when its intrinsic value is greater than its current market value. 05:52.240 --> 05:58.540 Intrinsic value is simply a real value or true value of a business and market value is simply the price 05:58.540 --> 06:01.230 at which the stock is currently selling. 06:01.240 --> 06:06.580 So to put it simply if the true value of something is greater than the price at which it's selling this 06:06.580 --> 06:09.970 means it's cheap undervalued we're underpriced. 06:10.330 --> 06:12.490 So when you buy a stock that's undervalued. 06:12.610 --> 06:18.550 There will be a high chance that its value will increase over the long term and you'll make a profit. 06:18.790 --> 06:25.010 That's all value investing is about buy something that's now cheap and sell it later for a profit. 06:25.450 --> 06:31.810 Similarly a company is considered overvalued when its intrinsic value is lower than its current market 06:31.810 --> 06:33.080 price. 06:33.100 --> 06:38.930 The fact is that not every stock is worth investing in even if they're blue chip companies. 06:39.250 --> 06:44.500 If you frequently perform intrinsic value calculation you'll find that 90 percent of companies you're 06:44.500 --> 06:47.140 evaluating are overvalued. 06:47.350 --> 06:51.380 There will be a very low chance that you'll make a profit if you buy these stocks. 06:51.550 --> 06:57.530 And of course there will be a very high chance that you'll lose your money if you picked the wrong investment. 06:57.530 --> 07:05.350 Now I'm not scaring you but just like any other businesses investing involves some kind of risks. 07:05.360 --> 07:11.080 But some of these risks are controllable and can be easily avoided if you equip yourself with enough 07:11.080 --> 07:12.430 knowledge. 07:12.430 --> 07:20.960 If you master the art of value investing you can easily make a 15 to 25 percent plus return every year. 07:21.000 --> 07:26.760 Actually when you do everything right you can easily make 20 percent or more in just a few months. 07:26.830 --> 07:30.000 Just like I and many of my students did. 07:30.070 --> 07:33.900 There are thousands of opportunities to make money in the stock market. 07:33.970 --> 07:36.310 There are thousands of stocks out there. 07:36.310 --> 07:44.350 So the only thing you need is a real strategy to pick the best ones to invest in OK. 07:44.400 --> 07:51.210 Now I'll talk about the third source of income dividend paying stocks investing in dividend stocks is 07:51.210 --> 07:54.360 the easiest way for you to profit from the stock market. 07:54.720 --> 08:00.270 Dividend Stocks are simply companies that pay good dividends to their shareholders and investors like 08:00.270 --> 08:07.410 yourself a stock dividend is an amount paid out by a company usually in the form of cash to investors 08:07.470 --> 08:09.720 who hold shares of their stock. 08:09.780 --> 08:15.630 So investing in this type of investment is very easy but profitable because you just need to find a 08:15.630 --> 08:21.720 good company put your money into it and wait for it to put the money back into your pocket. 08:21.720 --> 08:24.100 Most companies pay dividends quarterly. 08:24.240 --> 08:29.880 So you can collect the money four times a year just invest in a stock that pays good dividends. 08:29.880 --> 08:30.840 Forget it. 08:30.840 --> 08:35.680 And three months later collect the money without really putting in any effort. 08:35.700 --> 08:39.520 That's exactly what dividend investing is about. 08:39.570 --> 08:44.360 The most interesting thing about dividend stocks is that they're a hybrid investment. 08:44.370 --> 08:49.050 This means you invest once but you can profit twice. 08:49.050 --> 08:51.060 Sounds interesting right. 08:51.060 --> 08:57.540 Dividend Stocks allow you to share in company profits while also retaining ownership of your investment. 08:57.930 --> 09:04.590 When you invest in a dividend stock you can earn a 5 percent to 12 percent plus return every year paid 09:04.590 --> 09:10.170 out by the company in the form of cash dividends and because you own all the shares you bought when 09:10.170 --> 09:14.330 those shares increase in value you'll make more profits. 09:14.340 --> 09:19.800 Normally a good dividend stock will potentially grow at 5 percent or more every year. 09:19.800 --> 09:25.140 So if you put your money into this type of investment you'll potentially earn it 10 percent or more 09:25.140 --> 09:29.160 return on your investment every year without any effort. 09:30.000 --> 09:37.350 However similar to eat and value stocks not every dividend stock is worth investing in some lousy businesses 09:37.350 --> 09:41.630 tend to attract outside investors by offering a high dividend yield. 09:41.700 --> 09:47.220 So you'll need to evaluate them carefully to find out if they're actually a solid company. 09:49.340 --> 09:49.890 OK. 09:49.980 --> 09:53.860 The last type of investment that we're going to talk about is right. 09:53.970 --> 09:56.830 Reed stands for real estate investment trust. 09:57.090 --> 10:03.210 Arete is a company that owns multiple rental properties such as office and apartment buildings hospitals 10:03.390 --> 10:07.460 shopping malls hotels resorts and so on. 10:07.560 --> 10:14.920 Similar to arete is more like an investment portfolio that includes many income producing real estate. 10:14.970 --> 10:20.250 So when you buy or read this simply means that you're buying a small part of the portfolio and the cool 10:20.250 --> 10:26.140 part is you don't need to have millions of dollars to become a landlord by buying a single rate. 10:26.160 --> 10:33.050 You'll become a part owner of many rental properties reads make a profit from renting out their properties 10:33.320 --> 10:39.620 and they're legally required to pay out as much as 90 percent of their income to unit holders or investors 10:39.740 --> 10:42.260 like yourself every year. 10:42.260 --> 10:47.300 So investing in rates will bring you a stable stream of passive income and the more interesting thing 10:47.300 --> 10:51.950 is that your money is now diversified into the real estate market. 10:52.250 --> 10:57.260 Just like investing in dividend stocks investing in Rietz is very simple. 10:57.260 --> 10:59.400 You just need to find a good company. 10:59.510 --> 11:04.230 Put your money into it and wait for it to put the money back into your pocket. 11:04.250 --> 11:11.120 Investing in rates will potentially bring you a stable return of 6 to 12 percent every year. 11:13.110 --> 11:16.580 So how can you start investing your money now. 11:16.680 --> 11:20.070 The first thing you'll need to do is to make an investment budget. 11:20.130 --> 11:24.310 You should save 10 to 30 percent of your current income to invest. 11:24.330 --> 11:27.310 You don't need a lot of money to start investing. 11:27.330 --> 11:32.250 You may start with small investments of just a few hundred bucks every month and frequently add more 11:32.250 --> 11:34.720 money into your portfolio. 11:34.770 --> 11:39.430 The more money you save to invest the more wealth you can achieve. 11:40.570 --> 11:46.070 In order to build your investment portfolio you may allocate your money as follows. 11:46.120 --> 11:49.100 Put 40 percent of your money into ETF. 11:49.300 --> 11:56.020 Invest 25 percent in value stocks and the remaining 25 percent in some income producing assets like 11:56.020 --> 11:58.390 dividend stocks and Rietz. 11:58.390 --> 12:03.960 Investing in ETF is very important because they'll bring you a stable long term profit. 12:03.970 --> 12:08.760 Make sure that you'll invest at least 40 percent of your money in this type of investment. 12:09.720 --> 12:15.520 Investing in value stocks will help you grow your portfolio faster as well as maximize your profit. 12:15.900 --> 12:21.510 If you can master the techniques of value investing you can easily double or even triple your money 12:21.510 --> 12:23.280 in just a few months. 12:23.310 --> 12:29.450 However investing in value stocks is much riskier than investing in other types of investments. 12:29.490 --> 12:35.040 So if you're just starting out you should not invest more than 25 percent of your money in this type 12:35.040 --> 12:41.300 of investment investing in income stocks like dividend stocks and Rietz We'll bring you a good stream 12:41.300 --> 12:43.070 of passive income. 12:43.070 --> 12:46.030 This is the easiest way to profit from the stock market. 12:46.220 --> 12:48.170 You just need to find some good companies. 12:48.260 --> 12:51.810 Put your money into them and collect dividends. 12:51.920 --> 12:55.710 You can easily make a few thousand dollars extra every year. 12:55.790 --> 12:58.720 You can use these earnings to supplement your own lifestyle. 12:58.730 --> 13:06.020 Schedule a vacation for your family saved by some luxury stuff do charity or do whatever you want. 13:06.020 --> 13:09.530 Investing in ETF will bring you a stable long term profit. 13:09.740 --> 13:13.480 Investing in value stocks will help you grow your money faster. 13:13.490 --> 13:19.300 Investing in dividend stocks and Reith's will help you create a good stream of passive income. 13:19.310 --> 13:26.450 Now you have a robust investment portfolio in order to get wealthy. 13:26.470 --> 13:29.260 You must find ways to increase your income. 13:29.260 --> 13:31.000 It's all about income guys. 13:31.060 --> 13:33.920 You must create multiple streams of income. 13:34.180 --> 13:39.640 In this video you've learned four different investment vehicles that you can use to grow your money. 13:39.910 --> 13:43.480 Investing in apps will bring you a stable long term profit. 13:43.720 --> 13:47.110 Investing in value stocks will help you grow your money faster. 13:47.110 --> 13:52.130 However they often come up with a higher risk and require a lot of expertise. 13:52.390 --> 13:58.150 And if you want to make easy money investing in dividend stocks in Rietz may be the best option for 13:58.150 --> 13:58.920 you. 13:59.690 --> 14:02.220 Okay that's enough for today's lesson. 14:02.220 --> 14:09.500 Now you know exactly how to use money to make more money you see. 14:09.500 --> 14:11.180 Investing is easy right. 14:11.180 --> 14:12.830 It's not rocket science. 14:12.920 --> 14:18.530 You can easily create an extra stream of income that you can use to improve your lifestyle or support 14:18.530 --> 14:20.060 your family. 14:20.060 --> 14:25.700 Make sure you keep an eye on your inbox because things are getting more exciting in the next video. 14:25.790 --> 14:31.610 I'll share with you my simple yet powerful technical analysis technique that you can start using today 14:31.940 --> 14:37.410 to make over twenty point three one percent return in just a few months. 14:37.520 --> 14:43.970 I'll teach you step by step how to setup the technical indicator and how to use it effectively to determine 14:43.970 --> 14:47.900 if a stock's price will go up or down in the near future. 14:47.900 --> 14:53.180 I'll also give you my best investment tips such as how to choose the right stockbroker for yourself 14:53.570 --> 14:58.070 how much money should you have to start investing and a lot more. 14:58.100 --> 15:02.330 So make sure you don't miss the next video. 15:02.350 --> 15:06.040 Glad you enjoy it here and I'll see you in the next video.