61: Your Stock Market Return is 0 %. Yes, 0 %.
Get Rich Education
Keith Weinhold
4.3 • 602 Ratings
🗓️ 11 December 2015
⏱️ 35 minutes
🧾️ Download transcript
Summary
#61: Learn why your long-term rate of return from stocks, as measured by the S&P 500 Index, is 0%. Learn how to act to overcome this “zero-return investing.”
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Listen to this week’s show and learn:
01:10 Keith is back in the United States for today’s show.
02:04 The S&P 500 historically returns 10% per year. Your return is 0%.
02:51 When the Federal Reserve raises interest rates, how that impacts you and your tenants.
04:50 How inflation, emotion, and fees make your stock market return 0%.
11:25 This regards the very long-term. If you plan to live for the very long-term, then this approach makes sense.
13:24 Knowledge and rationale in stock investing vs. real estate investing.
19:27 Real estate still hasn’t returned to its 2006 national price peak.
20:30 Powerful education: how 25%+ returns are common with leveraged, cash-flowing income real estate in investor-advantaged geographic markets.
25:19 Harvesting & re-deploying accumulated equity results in better RE returns in an appreciating environment.
25:56 Keith’s take: Return ON Equity (ROE) vs. Return FROM Equity (RFE).
28:02 “Market Agnostic.” You’ll often want to invest in RE outside your home market.
30:15 People invest in “out of market” stocks, but curiously they doubt investing in “out of market” real estate. That’s nonsense.
Resources:
How human emotion makes you lag the stock market:
Longer article from Wall Street Journal.
Shorter article from BP Wealth Advisors.
MidSouthHomeBuyers.com or call (901) 217-4663 for Top-Notch Turnkey Rental Properties.
NoradaRealEstate.com or call (800) 611-3060. Your Premier Source for Nationwide Turnkey Cash-Flow Investment Property.
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Transcript
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| 0:00.0 | Get Rich Education is brought to you by Norrata Real Estate Investments and Mid-South Homebuyers. |
| 0:10.8 | Welcome to Get Rich Education with Keith Weinhold, giving you information and ideas on the investment that has turned more ordinary people into millionaires and billionaires |
| 0:22.7 | than anything else and can provide you with more wealth and happiness than you ever thought |
| 0:28.2 | possible. Now, here's your host, investor, entrepreneur, business owner and educator, Keith |
| 0:36.2 | Weinhold. |
| 0:43.1 | Welcome to Get Rich Education, Episode 61. |
| 0:44.7 | I'm your host, Keith Weinhold. |
| 0:49.0 | I am going to wire your mind for wealth today. |
| 0:53.2 | I'm also going to tell you why your return from investing in stocks, |
| 0:55.8 | as measured by that broad stock measure, the S&P 500 index is zero. That's right. Your return from the S&P 500 has been and will be zero. |
| 1:04.4 | Some of you are going to learn some things in a completely different way today. |
| 1:09.1 | My slackjot act is back in the United States after a long |
| 1:12.8 | foreign trip. You know, Central America is a fun, varied place in the world, but there are some |
| 1:20.2 | days where I embrace the slower pace of life that's ingrained in Latin American culture. |
| 1:26.3 | And then there are other days where after dinner, I have a hard time waiting and waiting |
| 1:31.8 | and waiting for my restaurant check to arrive. |
| 1:35.2 | I mean, really, it's like that was a great meal that we just had, but I cannot afford to |
| 1:39.8 | spend 4% of my entire lifespan waiting around for the dinner bill check to arrive. So please bring it now. |
| 1:48.1 | Today I am in beautiful and pristine Anchorage, Alaska. My wife and I spend more than nine |
| 1:53.7 | months per year here in this city of 300,000 people. And I consider this home. Yes, I'm back to |
| 1:59.8 | help provide you with new ways to think about your |
| 2:02.1 | wealth building. The S&P 500 index historically returns 10% per year, but I'm going to tell you that |
... |
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