원문 보기
Hello everyone! Meet Kevin with you , and today we're going to get naked. Let's undress financially. I think this goes without saying, but most of you know that I'm a big fan of real estate investing. So why the hell am I even investing in stocks? If I can make so much money in real estate, why even keep any money in stocks?
Let me give two reasons. The first is reserves. What this essentially means is that when I apply for a loan, lenders say, "Okay, Kevin, you have so many properties. You have to show a certain amount of money in reserves." And for some stupid reason they take stocks into account at 90-100% of their face value , even if it's a retirement account or something.
So, in other words, by having money in stocks, I can qualify for more real estate. And the second reason: while I'm waiting for a good deal, I usually keep my money in index funds because I don't expect them to fall much while I'm looking for options. And if they do fall, I might not want to buy real estate until the market stabilizes.
And I don't mean " tanking" in World of Warcraft. I mean the rapid decline in the market. Without further ado, let's log into my old Scott Trade account , which is now a TD Ameritrade account. This is my main personal brokerage account. And when I say " stock trading," know that I don't actually trade them.
I'm too lazy to sell anything. So I just buy. I usually buy on down days, but I have to say that there haven't been any days like that in the last 60 days , so it's a little disappointing. So, the first position on my account is Apple. I have 178 shares of Apple for, I think...what's this here? The current price is $280.
My cost is $21,547. The market value is just under $50,000, which yields a profit of about $28,000, or about 131%. Obviously, I don't think anyone could have made a mistake buying Apple over the last 10 years. So I don't feel special, but Apple is the first stock I've ever bought in my life. And, I must say, it affected my perception of stock picking.
This brings us to the second stock—Amazon. I actually only bought Amazon recently. They seem to be sorted alphabetically. I bought this maybe a week or two ago. I purchased this for $17.92. And while I won't go into the in-depth technical analysis I do before buying any stocks, I'll just be blunt: I'm an avid user of Apple and Amazon products.
You'll also see some other stocks and realize, "Oh yeah, these are all things Kevin uses." So yes, I may be biased about the companies I frequent, but know that I read the financial statements before buying any stock. I'm trying to understand everything about the company's positioning and its development strategy.
One of the things I like most about Amazon right now is their move to free one-day shipping, which is a big expense for the company but will be a game changer for retail and food delivery. I know it sounds crazy, but when you have two kids and you're running out of milk, a two-hour delivery from Whole Foods is a godsend, even if it's a little pricey.
Even though I just bought these stocks, it looks like I made $1,000 on that bet , or $950. Well, that's fine with me. Class. If I only had them for about a week. Okay . The next promotion we have...Oh, I probably shouldn't have shown that one, but yeah. So I actually bought some Redfin stock . I'm a little embarrassed about this.
That's a total of $14,600 that I invested in Redfin. Market value— $17,000. I must say , I honestly bought this, having a 17% profit here. I honestly bought Redfin as a kind of insurance because I thought: if Redfin takes my job as a real estate agent away, then Redfin stock is probably up 1000% and it's worth owning at least a small stake as a hedge.
So hopefully I don't look like a traitor for owning a small amount of Redfin stock. By the way, a quick shout out to Alex Chen who says, " I don't usually write reviews on things I buy, but the real estate investing course I bought from you, Kevin, was extremely worth it." I find the most valuable aspect of the course to be how to interact with people, understanding the psychology of motivation, and developing the right mindset to solve situations.
Real estate knowledge is the second most valuable thing in the course, but the art of communicating with people is the most important lesson you can learn for life. That was a really cool response, because yes, it's true. The art of real estate investing is not just about entering a capitalization rate into some stupid app.
This is psychology. Interacting with people, working with tenants— that's how they make money in real estate. It's not at all like the stock market, but whatever, see you there. Use this promo code. It is valid until December 20, 2019. So, I hope to see you there. Okay, next one. I have Starbucks because I really drink Starbucks, and I'm not ashamed to say that I'm willing to spend money on lattes and coffee, and I'll treat my friends to it too.
Uh , okay. So, I have 220 shares of Starbucks, worth 15 thousand, market price about 19.2 thousand. Uh, I thought I had more Starbucks shares. Well, okay. The next favorite promotion is Target. Target is generally my favorite dividend stock right now. Dividends are just over 2%. My Target expenses are around $15,000, and the market value is around $25,000.
Well, then we have, of course , Tesla. I bought Teslas fairly regularly . The lowest price I got a Tesla for was around 185 this summer. I wish I could say I bought all the shares then, but I didn't. I invested $86,000 in Tesla , and the current market value is $130,000. So, obviously, Tesla performed quite well next to Apple.
Uh, one of the best results here. So , I have $283,000 in my personal stock trading account . in this portfolio. And that's all there is to the individual stocks I choose. I'll show you my retirement accounts now, but first I'll go to the index fund. It may not be the smartest thing to do, but I recently moved a bunch of money into a Wealthfront index fund because I'm going to use it to buy real estate.
But I'm too...I guess you could call it FOMO. I can't stand it when money just sits around, even in a high-interest savings account. So instead of keeping the money in a Wealthfront savings account, I moved it into a Wealthfront index fund . Quick warning , I need to clarify. When I say “Wealthfront index fund, ” I mean the Wealthfront investment account.
I only say this because when you put money into a Wealthfront investment account, their robo-advisor software automatically allocates those funds among many different index funds. So I just call it a Wealthfront index fund , even though that's technically incorrect. It's just the most logical name I can give it.
So, sorry. Here he is. You see, I recently invested a fairly large amount in a Wealthfront index fund . I recently invested about $300,000. And what's interesting about this is, you see that I deposited a total of $298,000, but I actually have $305,000 in my account . Uh, that shows you, well, actually $306,000.
This shows that the index fund has recently grown enough to give me about $6,000, or even more, in return on the money I hold in that fund, which is of course much better than what I would get in a savings account. Of course, the market could crash tomorrow, and then I'd be crying because those short-term gains I made would turn into losses pretty quickly.
However, there are two things here that are really interesting to look at. The first is how they automatically distribute your money. You see, Wealthfront is like a robo- advisor, so they automatically do all this work for you. You see they invested $106,000 in American stocks. That's where most of the profits were made.
And if I click on that, you'll see that they use—oh my God, they use a bunch of different things. Honestly, I don't even know what it's all about. I know most of the ones we see with the letter V are Vanguard funds, but there's also this WF100, and I think it's supposed to mimic or be similar to Vanguard index funds.
And the reason they do this is something called tax optimization through loss carryforwards. Essentially, they are trying to save me money on taxes. They even have a little report page that says they've recorded a total loss of $576. So that would be a tax break for me. Sounds pretty cool. I didn't even know they were doing all this.
And they automatically reinvested almost $400 in dividends . Since I keep my money here for the short term. I don't even care what they do. It's just cool that everything is automated. And I know I sound like I'm promoting Wealthfront, but I'm not. I promise you. I'm just lazy and don't want the money sitting in a savings account.
And so far so good. It looks like they invested 9.3% in foreign stocks, mostly VA. This is one of Vanguard's ETFs for foreign developed markets. Remember, even if you cancel Wealthfront's 0.25% fee through referrals. You still have to pay the basic fees. So for VA I still pay a 0.05% fee to Vanguard, but I pay nothing to Wealthfront.
Next, we have emerging markets , it seems, the funds are invested in EMG and VWO. These are iShares and Vanguard. Then they invested some money in dividend growth funds . They also have a bit of Vanguard there. Bonds , some cash, risk parity. Okay, never mind. You can look at this image for yourself and press pause if you want.
Another cool thing about the Wealthfront app is that I like the portfolio line of credit. If I want to borrow up to $79,200, I just need to click " borrow cash." And you scroll through a few screens here. No statements, nothing like that . How much do I want to borrow? Well, let's borrow it. I do n't know.
That's it. $25.79. Continue. We will send this to my personal checking account. I could click "yes ", send the funds, and they would appear immediately. Now let's move on to my first retirement account. The first retirement account I opened was a self- employed IRA. Basically, a SEP IRA. I know it's not exactly IRA, but sometimes people pronounce it that way.
Anyway, SEP is cool because let's say you're self-employed and you have an S corporation. You pay yourself a small salary. You can save 25% of your income. And, of course, consult your accountant. This is getting very difficult. But anyway, there is a certain amount of your income that you can contribute to a SEP, it seems to be around $56,000, which is just great.
And you get a tax deduction for such a contribution. I know many may be thinking, "Oh, but Kevin, you should use a Roth." Forget about the tax deduction. The reason I prefer retirement accounts where I get a tax deduction—even though I'll have to pay taxes later, I'm not too concerned about that —is because I want to buy more real estate.
Because I have more money in my tax-deferred retirement accounts , I can use more money as a reserve, show more equity for real estate purchases, and therefore qualify for more properties. So I'm not too concerned about saving on taxes in the future. I'm not interested in an uncertain future. I prefer to save on taxes today.
That's why you'll see me only show retirement accounts where I get a tax deduction when I invest. That's because I don't use a Roth. And I don't want you to think I'm criticizing Roth. I think Roth is great, especially when you 're in a very low tax bracket where tax breaks won't help you anyway. But for my purposes, since my primary investment vehicle is real estate, and despite the fact that stock returns have been pretty cool so far, I prefer to invest more money where I know I can get consistently high returns.
And this is buying " wedge" deals, which is what I teach in my real estate investing course, the link to which you will find below. Oh, and remember that the coupon code expires today. It's 1220. Use it before it expires, or the price will go up a bit. Okay, here's my SE IRA account. You see that the total value of this account is $46,500.
And look at the profits here. First of all, Yelp was a complete failure. I don't have much money at Yelp. It looks like I have about $10,600 in Yelp, but my Apple stock has grown to $34,000, even though I only invested about $10,000. I have one...no, two Tesla shares, and they've obviously done well too , but most of the money in that account has grown thanks to Apple.
So, thank you, Apple. Maybe I should buy a Mac Pro now. No. I couldn't use an SE IRA in 2018 because I had a lot of employees in 2017, '18, and most of '19. So I had to use something called a Simple IRA. And I did it for Lauren as well as for myself. We financed it, and Lauren...well, I actually did it for her.
She spent all her money on Tesla stock, and I spent all my money on Apple stock. So, let's go. Here's what the Simple IRA looks like in the one year I've been using it. I plan to use it again this year. Although, perhaps, I will choose a different strategy. We'll see. I'm talking to my accountant now.
It's the end of the year, so it's time to get everything sorted out right now. But anyway, here it is . Honestly, I feel like some kind of Apple advertiser right now, because there's too much Apple here. But as you can see, I spent $12,865 buying Apple shares, which is essentially the maximum contribution amount I was able to make in 2018.
I think it was $12,500 plus the employer added another $300 or $400, something like that. I don't remember exactly, but in any case, their value increased by more than $10,000. Honestly , I think it's just a coincidence. Well, you know how it happens? I can't say I'm some kind of outstanding investor because of this.
It was literally like a dart throw, and I hate Apple. Just kidding, I decided to check Lauren's Simple IRA retirement account, from which she made purchases for the same amount on the same day as me, except she chose— or rather, I chose for her—one share of Apple and the rest in Tesla shares. And she now has $17,679 compared to my account, which only had Apple, of $22,976.
Yes, the winner. Yes, I won. Winner. Yes, that's exactly the kind of competition we organize. I also opened a health savings account (HSA). To be honest, I don't know very much about HSAs. You can see here that the Pafrats' family HSA received a contribution of $6,900. It was, I think, for the 2018 tax year, $6,900.
This was the maximum contribution we could make . It was another tax deduction, so I did it. But the other cool thing is that now it can be spent on medical expenses, think of it this way. With our second child, we needed fertility help for Lauren. And when we went to the doctor, we had to pay them.
And the money we paid them was not tax deductible. However , now that we have money in our HSA, we can actually take the infertility treatment bills, pay for them from that HSA account, and it's like we're spending money on medical services and getting a tax deduction for it . So as you can see, we contributed $6,900 to our Pafrat family HSA .
And if you look here, you 'll see that the investment value is $9,200. I probably put everything into just one stock because that's what I usually do. And it seems like I literally put everything into Tesla. Yes. Well, that explains everything. So, uh, okay, class. Now I only have one last place left where I hold shares, and that's Robin Hood.
I hardly keep any money here. I really only signed up here for the hype. And I'm tired. Forgot to remove the limb. So get this. Follow my Instagram. Until the next meeting.
댓글 0