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In this episode of the Rich Habits Podcast, the hosts answer listener questions about index funds, investing in ETFs, rolling over a 401k, margin trading, gaining marketing experience, starting a business during a recession, and investing for cash flow. They provide valuable insights and advice to help listeners make informed financial decisions and achieve their goals.
Johann’s question is about index funds like VOO and QQQ and compounding returns. Robert explains that letting gains compound is the most powerful investment tool. Stock prices move in percentages, not whole numbers, due to unit economics and compounding efficiency. It’s fine to invest in Fidelity equivalents of Vanguard ETFs like VOO and VTI. VOO is often recommended due to its lower expense ratio and better performance. Rolling over a 401k into a traditional IRA is recommended to avoid tax liability.
Coleman, a recent graduate looking to gain marketing experience, seeks advice on additional learning opportunities outside of work. Marketing is a promising field with high income potential, especially in the current creator economy. Experts in the field are essential for helping with email strategies, websites, marketing, and branding. Learning AI and using software to automate marketing strategies and DM strategies is important. Consider finding a big company for a free internship to learn and immerse in the field without paying for courses. Follow successful marketers on social media, TikTok, Instagram, and podcasts to immerse yourself in the field and find your niche. Take LinkedIn seriously, create and consume marketing content, and connect with people in the marketing industry. Reach out to five people on LinkedIn every day and ask about their favorite things about working in the marketing department to initiate conversations and potential mentorship. To gain experience, observe successful individuals in your desired field and engage in the same conversations and spheres as them. Utilize LinkedIn as a valuable networking tool and don’t be deterred by others’ opinions. Direct messaging (DM) strategy is a powerful marketing tool when done right, focusing on authenticity, value, and honesty. When reaching out to professionals, offer value upfront and seek to learn from them, demonstrating a genuine interest in their work. Proper DM strategies are important when reaching out to potential business opportunities. Building relationships and showing authenticity is key to landing opportunities. Don’t focus solely on money; aim to get your foot in the door to change your life and gain experience.
Starting a business during a recession without much investment is possible. An idea and willingness to work are essential. Examples include buying headlight restoration kits and charging for the service, and buying and delivering Christmas trees for a profit. Starting small and simple can lead to making money from day one without needing a large investment. Mindset is essential for finding financial opportunities. Starting small and being resourceful is key to financial success. Hustle and tenacity matter more than experience or passion. Various ways to earn money include walking dogs, delivering groceries, driving for Uber, flipping car headlights, and building and selling websites. Being resourceful is crucial – free online resources and tools are available to learn new skills. A mindset block can hinder one’s ability to find ways to make money. Being resourceful and thinking outside the box can lead to new opportunities to make money. Example: Making coasters from free flooring samples and selling them on Etsy for profit. Encouragement to be resourceful and tenacious in finding ways to make money.
A listener asks about investing $40,000 for cash flow and financial goals. The hosts suggest buying a small business using owner financing as a way to generate cash flow and growth. Many business owners are selling their companies with owner financing due to the lack of a succession plan. Buying a cash-flowing existing business with owner financing is a viable option, requiring a down payment of around $20,000 to $25,000. The new Fannie Mae 5% down program allows for investment in real estate properties with a 5% down payment, providing long-term appreciation and cash flow, as well as tax benefits. After investing in real estate, considering cryptocurrency and other investment options such as SPYI, a dividend-paying ETF, can provide additional passive income. The level of involvement in generating cash flow can vary, from actively managing vending machines to hands-off monthly passive income through SPYI, depending on personal preferences and lifestyle. SPYI or real estate are potential options for passive income. Stay tuned for an upcoming episode on three ways to add yield to portfolios. Aim to retire before 59 and a half.
Whether it’s investing in index funds and ETFs, gaining marketing experience, starting a business during a recession, or investing for cash flow, this episode of the Rich Habits Podcast provides valuable insights and advice. Listeners are encouraged to take advantage of compounding returns, be resourceful, and think outside the box to achieve their financial goals. By following the strategies and tips shared in this episode, individuals can make informed financial decisions and work towards financial freedom and rich habits.
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