News on Youtube Feb 10 2018

hey guys it's Joseph and Tasha from one big happy life so the stock market took

a bit of a dip over the past two weeks and so we are going to be talking all

about that and how much money we lost in this video

before we start talking about

the stock market let's talk about our giveaway as most of you know we are

celebrating reaching 20,000 subscribers by giving away two free personal

coaching sessions one for personal finance and the second one for starting

your YouTube channel the links for those will be dropped down in the description

box but you can also pop on over to our website one big happy life calm and

enter there okay what is the stock market well generally it is the place

where stocks bonds everything like that is exchanged bought and sold so if you don't

know what stocks and bonds are be sure to check out our investing 101 series

where we explain all that so what is a stock market crash and why does it

matter so there's no official definition for stock market crash and what's

happened over the past couple of weeks is more properly termed as a stock

market correction and that's where the market drops ten percent within a short

period of time and the idea behind a correction is that sometimes the stock

market gets a little too hot grows too fast and stocks become overvalued so

what a correction does is bring those stocks more in line with their actual

value unless you are very close to retirement or dependent on the stock

market for your income then it's probably not going to matter a whole lot

to you how much did the stock market drop and why so the market as measured

by the S&P 500 index and if you don't know what that is check out our

investing 101 videos dropped seven point two percent in February and as far as

how much we lost so we lost about five point six percent or fifteen thousand

dollars and the reason why we did not lose as much as the market drop is

because we have a diversified portfolio that includes a mix of stocks bonds and

REITs r e i t s's which are real estate investments why did the drop happen this

is one of the instances where too much good news can be bad news

so employment is good wages are going up and that can lead to prices going up as

well that's inflation and if the economy goes

too fast and gets too much inflation we're gonna get higher interest rates

and to tap the brakes on the economy and that's what everybody is afraid of those

higher interest rates the same is true for the bond market interest rates are

going up there which starts making bonds look good as an investment compared to

the stock market because they're safer and so some people are saying well hey

I'm just gonna sell the stock market and then buy some bonds because those are

safe and they're earning a pretty good rate right now now these reasons are

basically speculation so the takeaway that we want you to have from this is

really no one really knows why so don't really worry about the headlines too

much okay that's the true secret and to help ease your mind about those crazy

headlines we're going to talk about the instances when these market dips don't

matter so number one when you plan for these market dips to happen which you

should be doing when you're doing your projections about how much you need to

save for retirement and your expected rate of return you want to use a rate of

return that accounts for historical market fluctuations so for example we

use 8% as our expected rate of return over the next 30 years which is how long

we have until traditional retirement age now historically the market has grown at

an average has had an average rate of return of 10% to put that 8% into

perspective the S&P went up approximately 12% in 2016 and almost 22%

in 2017 so you can see that that 8% accounts for those crazy high years by

2017 and then also these drops like what we recently experienced that were just

7% and for reference our portfolio went up 10% in 2016 and then 18 percent in

2017 and they're a little bit lower than the S&P because we have a mixture of

stocks bonds and real estate so the second reason why these kinds of

fluctuations aren't doom and gloom scenarios is because of dollar cost

averaging and so that is where we're all making these investments over a long

period of time normally with our paychecks so that's

like every every about every month right and so when the stock market is high

we're buying fewer shares of stock because it's expensive and then when

it's low we're buying more shares because we're using the same amount of

money and it's cheaper well so that means that

average those together the price that were paying for stock is somewhere in

here and so as it goes up well then we make money and as it goes down we're not

losing as much so it all helps out even if the stock market goes up and down and

doesn't actually go any higher we can still make money just because of that

buying fewer high more low now here are where dips can cause problems number one

when people panic because they see the market dropping and so then they're

trying to beat the market and time the market and they end up buy high and

selling low that's how you lose money another reason is if you're close to

retirement or you are in retirement and depending on actually selling parts of

your portfolio to pay for your living expenses well that means that a huge dip

like this is going to really hit how much money you make in the year and if

you're about to retire well you're about to be living on that value of the

portfolio so this is why as you get closer to retirement you should start

transitioning to safer investments that are not so volatile all right so now

let's go through a list of ways that you can make investing less risky

number one start early the earlier you start the longer your investment

timeline the less money you'll have to save in the long run and the easier it

is for you to weather the fluctuations because your dollar cost averaging will

have a longer period of time to work next is you want to make sure that

you're participating in your employer's retirement plan and get all of the

employer matching to your contributions that you possibly can

because that's a hundred percent rate of return instantly third you'll want to

keep as much of your money as possible so take advantage of tax advantage

investment vehicles like your 401k or Roth IRAs also pay the least amount in

investment fees that you can that means no high front and back end loaded mutual

funds you are going to also want to diversify so you when you're young you

might have a hundred percent stocks but it's always a good idea to have broad

market exposure stocks bonds real estate so that dips in one area or the other

won't hurt you overall next you will want to use conservative estimates for

your projections as we mentioned before we use 8% for our rate of return and we

use 4% for our withdrawal rate for our nest egg now some people argue for even

more concern numbers than that like a 6% average rate

of return and a 3% planned withdrawal from your nest egg and the one good

thing about being conservative is it's great because you might end up hitting

your goals faster than you expect it if the market outperforms but if it you

know stays on course with your conservative estimate then you're still

good and you also want to save more than you think you might need so let's say

that you're thinking hey well I need a million dollars there is absolutely

nothing wrong with the saving up enough money to get to 1.2 million dollars or

if you say hey well I need to say $500 a month go ahead and say 550 because that

gives you a little bit of cushion just in case lastly do not suffer through

life just waiting to get to your golden years to retire I see a lot of people

doing that like just kind of saying well I'll just buckle down and I'll just

sacrifice now and then I'll reap the rewards later you don't have to do that

you don't have to live that way like for example Joseph and I we plan on

having enough a big enough nest egg in our early 40s to be able to retire

early at a lower cost of living area so that is a possibility for us but in the

meantime just in case the markets don't perform the way we want them to we are

both in jobs that we love in a house that we love in an area that we love so

we are creating lives that we love now even while planning for a different

lifestyle that we also want to have in the future so do not settle for just

suffering through life right now take the steps today to make your life

something that you enjoy today so that if something does happen with the

markets and you're not able to retire right when you want it to it's not going

to be the absolute end of the world well we hope our video put some minds at ease

over the this little tiny dip so don't even worry about it alright guys see you

next time right okay Oh thumbnail we gotta look like

do I have a cute cry face on it that's definitely gonna be an out take

What is this? I don't know. It's my. . . Bad markets. Ninja chop.

For more infomation >> Stock Market Crash 2018 - How Much Did We Lose? Friday Finances & FAQs - Duration: 8:55.

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How big can you grow your Amazon business - Duration: 5:45.

Hey guys this is Ted with OAXRAY and today I just want to talk about how big your business

can get on Amazon.com

So I was reading the Wall Street Journal publication and they do a lot of statistics and they tell

you you know just kind of different facts and they look at it in the past in what's

going on, the trending.

And it's actually an interesting article in it says that nearly half of the 30 olds earn

more than their parents do.

And whenever you look at the graph it starts off at almost all …. people during the 1970s

earned more than their parents did by the time they're were in their 30s, late 30s just

because I mean they learned different skills and then your parents did one thing they would

help you pay for college or whatever it is and by the time you're their age you're actually

doing a little bit better for yourself than they were at the same age and it's kind of

like a building process over the years, over the generations but now we are down to 50%

or less are actually making more than their parents are and it just kind of brought me

to an interesting point because when I was on the cruise I met somebody and I think it

was Freeport, Freeport we're on a beach and I talked to a guy next to me and he was

like I've been at my job for 26 years and I'm just stuck I can't make any more money,

so I'm just here tell me a little bit about Amazon.

And 1 thing that I say to everyone who wants to start Amazon is this is 100% based on what

you input into it and they're essentially is no cap.

When we look at Jeff Bezos he started in his garage actually about 20 years ago in 1998

and I know a lot of people here starting in their garage, I know I started in my kitchen,

I didn't have a garage.

So I had stuff packed up all around me, all these different items when I was just you

know trying to feed the family make enough money to take care of my daughter at the time

and that's kind of how things got started.

But really the message I want to convey in this video is there really is no cap what

you can do on Amazon.

There is no maximum, it's not like are there is no maximum, it's not like one day you're

going to be selling and you're going to hit 100,000 sales a month and then it just stops

or you can't go any higher and that's one of the things I liked about Amazon.

I mean I've had jobs and no matter what job you have eventually you get better, you get

better, you get better, you get lower raises and then you kind of hit the top pay for whatever

it is you're doing and you can't go any higher.

And I mean if you've been at a job for 5 or 10 years and you just can't make it bigger

you know you always had that kind of wall at any job so that's why I like Amazon because

you can always get a bigger warehouse, you can always sell more books, you can always

sell more you know do a retail arbitrage or hire someone to do it for you.

So really this problem that we have of 30 year olds not making more than their parents

I think whenever you're selling on Amazon it's all based on what you want to do and

how much time you want to put into it.

So you can start from your kitchen, your basement, your garage and 2, 3, 4 years down the line

you might have a 5,000 square foot warehouse, 2 years form there might have a 50,000 square

foot warehouse.

I know people who started 3, 4, 5 years ago who now have warehouses, multiple employees

and you know they thought like I did at the beginning.

My goal at the beginning was to make $100 a day which is about a little less than $40,000

a year.

That's kind of where I wanted to be, I wanted to stay home with my kids and after actually

selling for a while and realizing that hey I can attain this goal and that I can actually

do better than the goal that is when things got really exciting.

So when you're building your business set a short term goal whether that's I want to

make 2, 3, 4 thousand bucks on the side or even 500 bucks on the side but once you hit

that goal just keep raising it every year because your skills are going to go up, your

skills are going to increase and as your skills and your knowledge base and the people you

know increases you can increase the amount of money that you're making.

And the cool thing about selling on Amazon is I have a 8-year-old and a 4 year old I

bring them into it, they will they help me label, they learn that the more things that

we're able to find that are profitable the larger the business gets and if you can teach

your kids how to sell an Amazon maybe in 10, 20 years Amazon doesn't exist but if they

can learn those foundational steps they can actually move up to whatever the new platform is.

But everyone can make their Amazon business as large as they want based on the amount

of time they put in and base on the amount of research and skills that they're learning

as they are doing it.

That was my message for today, thank you guys very much.

Have a great day.

Make some money using OAXRAY.