Starting Your Investment Journey With Andy Tanner
We all know we need to invest.
We are told to start an IRA (we get to pick Roth or Traditional wahoo!) and people think you're crazy if you don't invest the full amount into your employer's matched 401k.
That being said, most people do not really understand how to invest.
The best piece of advice I can give you is to learn as much about money as you can.
You have to understand money and where your money is invested before you can make an educated decision on where and how to invest.
Once you have even a basic understading of money you will then have the knowledge and confidence necessary to make big financial decisions.
I do want to mention a few pieces of advice to help you get started.
1. Accumulate assets that produce money
Whether it's a piece of real estate or a business, you need to have assets in your portfolio that produce money. Always remember a stock isn't an asset. You don't own it.
2. Invest In the systems, not the product
A product is worthless without a good system to back it up, and an average product can become highly successful with a successful business system. If you want a real life example think of a brand you like. Can you make a product that is comparable to it? Sure, but where would you start marketing, producing, selling, etc? That is the system. That is the most important part.
3. Invest only where you can influence transactions
Many people rely on the direction of their broker. I want you to take the opposite approach and use your broker to direct your investment in and out of transactions. It's foolish to rely on someone else's knowledge when you are puttting your retirement on the line. Back to what I said before. Understanding money and how your investments work is key.
4. Control You Investments
If a guy walked up to you and asked you for your life savings and in thirty years he will do the best he can to get you a nice percentage back, but there are no guarantees and he doesn't know what that percentage will be... would you give it to him? Of course not. So don't be so quick to invest in soemthing you don't understand and that you cannot control. Pick investments that you are in total control over and that you fully understand.
No matter where you choose to invest you can’t reach financial independence simply by working hard and saving money. You need to make your money work for you.
Full transcript below.
That's a great question. People say I want to invest, I want to be an entrepreneur or make money and Robert Kiyosaki he'll often teach that there's four different asset classes or places people could learn or focus their attention and they're investing. First ones business segments seconds ones real estate third ones paper assets like stocks and options then the fourth ones commodities just like gold silver you know soybeans oil stuff like that. It's funny the yeah side question because you will hear people debate on which one's best and that's a silly debate if you look at business people say well you don't want to go into business because three out of four businesses fail and you know three years whatever the statistic is right and you got employees headaches guy like Richard Branson maybe Mark Cuban you've got to prove that they're wrong. Someone says you know real estate you're gonna be you know cleaning toilets and tenants and gonna call y'all that well you're gonna have to go to people I can and prove he's wrong and I've heard that if a guy's gonna frill estate or where that real estate investor we like I'm not you me even be the president United States I've heard that somewhere. So you know regardless of the asset class and you look at commodities like energy and oil and gas someone says oh it's too risky you drill a dry hole t boone pickens it's done okay and when it comes to paper assets you have Warren Buffett who has bought stocks under every US president since nineteen you know forty whatever it is and so really the idea of which asset class is better worse or one better than the other is not the issue
The question I ask is how do I decide which one I want to go into? I think one of the first steps is learn a little bit about each one. Read a book on business, read a book on real estate like Kenny's ABCs Of Real Estate Investing and read books on stocks. Read a book on commodities and start to get a feel in a short as short as I can make and I would say that the advantage of business well the advantage of real estate is OPM right other people's money debt great tax you have a bet as a lever been business you have ope other people's energy other people's effort other people's education other people's expertise other people's everything. So business helps us leverage the talents of other people give value stocks have some nice advantages in that they're liquid and they're very agile probably the easiest way to make money in a crash would be in the stock market you know guys like George Soros do this all the time and then commodities tend to hold their value dollars can go up and down euros can go up and down. So those are some of the basics and so you find something you like you find something that's attractive to you something that's interesting to use you learn a little and maybe learn a little bit more through mentors and books and you know other other places those are the four asset classes now that none of them are better than the other but all produced billionaires they've all produced people have gone bankrupt depending on what they know and how hard they've worked.
The reason I like real estate and I wish I had more of it. I'm on the hunt currently to get more. It's not just about paper on the business of all the asset classes and so even though I'm known for paper I'm interested in any asset class they all appeal to me and the thing that's interesting about stocks is it's very difficult to say well you know Apple computers going up or Apple computers going down or you know Tesla's going up or down or anything companies you hear about. But the one thing I feel very confident the one prediction I think I would make with more confidence than any other would be the value of the dollar since we went off the gold standard in 1971. The dollars lost a value and even if you go back before then you know things have gotten more expensive all the time. If there was one bet I'd be willing to make you know twenty years from now and feel confident. I'd say the dollars gonna be less twenty years from now than it is today. So what does that mean for a real estate investor? Well if I if I borrow some money that doesn't increase that's a set amount that will go down as payments are made. If I get a fixed if I get a fixed payment a fixed rate I know the expense won't change and so if the dollar loses value rent would go up and the value of the house would go up to me that's a that's a formula now people might not under and what shorting means you know you can . I have other videos that people can learn about that but the idea of going short is really when you're saying look I think something's gonna go down and I want to use a technique to profit from it going down. In my opinion there is no better vehicle than real estate to short the US dollar even more than finding an inverse etf on the dollar in shorting it, real estate produces cash flow to do that so yeah.
I love the idea of using debt. There's a way to short the US dollar as inflation grows. So people often ask you know what's the first step? How do I get started in business or pay for it? We have great resources for people that want to get involved with paper or you know if you Google Andy Tanner's and you wind up somewhere with either a book or a resource or class and so that's not hard to find there isn't a better place that I can think of than Ken McElroy to invest in real estate and learn your first steps. This guy has done thousands upon thousands of doors and units. So if you want to learn how to do something for the first time it would make sense to me to hop over to www.KenMcElroy.com and learn from someone who's done it a thousand times. Besides that Ken's just the best he's solid!