What's up cousins, how are you? Today's video is very important because I'll help those people that want to improve their investment as well as those who are taking their first steps into the business. So, usually we want to know where to invest and also we want to know how to invest, but what solve all these problems is knowledge, right?
So let's go to the video. "Rich Cousin" Before anything else, if yous still didn't know the channel Primo Rico don't forget to subscribe. Click on the bell icon to receive notifications and if you're already part of the Cousins Crew don't forget to click on the like button because that helps the video reach more people and that helps me to reach my goals.
Today's video's purpose is to teach you step by step what you can or must do to invest your money correctly. So let's begin with the first one: the first one is pretty obvious and maybe you won't even need it. First step is to pay off your debt, but I won't focus on that in this video because I have already made a video telling you exactly what to do to pay off your debt, so I'll leave the link if you want to know abou that subject but if you're not in debt you can go to step 2.
What is the second step? Is to change your approach, because you're not in debt but we need to check our mindset too, because it's our mindset that will make money. Not our money that will make our mindset positive and a positive and correct mindset in investments is to look at the yield, see profitability as something solid, as something perennial.
We can't look at profitability thinking about a huge income on a short period of time, those who invest like this usually have a short path, usually this person loses money and restart the cycle all over again. So you must be carefull and adapt your mindset, you'll have solid profit on mid-term and long term, but that is the correct mindset and once you know that this is how it works you need to understand what knowledge you'll need to star investing. And when you invest what is your first priority: present or future?
Your first priority is the present, because if you don't go through it you won't reach the future, if you don't climb the first, the second, the third step you won't get to the fifth, right? So you must see the present. As we may have unpleasant surprises we must turn those events from unpredictable to predictable our only certain is that the unpredictable is predictable.
Don't you know a lot of people that have been through unexpected rough times? A car crash, someone gets sick, you get unemployed, you have to spend more than you should or you don't even realize you did it. Don't you know people like this?
I do and I have been there too. The difference is that people who are prepared for these moments don't need someone else's money they don't need a loan, they have the money and how do we do to be ready to these moments? We create our emergency fund or our oportunity fund.
What's the engine for that? Before thinking about the investment I must think about the strategy. My investments will help me wiht my needs, my goals.
What is my first goal? To save six months of my monthly cost. So if my monthly cost is.
. . I don't know Caique, tell me a monthly cost 1.
200 reais? So if my cost is 1. 200 reais per month I'll need six times that, so I need to save 7.
200 reais, ok? Why? because if something happens I can live at least another six months the same way I do, but if you are an enterpreneur or self-employed your income is much more unpredictable, right?
Sometimes you increase, sometimes you decrease your income, so it's important that we prepare ourselves more carefully, so instead keeping six months of your monthly cost, the idea is to save 12 months of your monthly cost saved. So if you cost 1. 200 reais per month we're talking about 14.
400 reais, you must have this value saved so you can chill on the mid-term, but what is this monthly cost? It's an amount that if something happens to you, you can keep eating as always going out the same way you do, paying your health care and having the privileges you do. You keep your way of life through this period and that is the first stage, there's no use thinking about the second before we accomplish the first onde, right?
It's the stairwell example: I won't reach the second step if I don't climb the first one, even if I fly over it I'll have passed through it so that's what I got to do. Alright: having reached my first stage, I'll think the next one, do my investments supply my first stage? Let's think I must be able to withdraw my money any moment, right?
It must be low-risk because it's an emergency money and not a money to make me rich. Now, if the liquidity ratio is high - liquidity is how fast I can turn my investment into money - if it's low-risk my profitability won't be high, because there isn't such application. It yould be like the joker of the investments, that doesn't exist.
Which investments fit that description? You have many: Selic Treasure, DI Fund and also a high liquidity CDB (bank loan) Those are the main applications that fill up our needs. If you want to see me investing my money in emergency funds I'll leave the link right here so you can watch it.
So Thiago, I've been through the emergency fund, what's the next step? The next step is retirement because our first priority is the short-therm the other one is the future. And the sad news is that only 1% of the people retire with the same way of life they had so think about it: out of 100 people you know one will retire with the same way of life because they don't think about their retirement, but how do you think about yours?
To prepare yourself? To make your money yield until then so you get there your money provides you enough profit so you can, if you want to, stop working? Here it is: Caique, how much would you like to earn per month to retire in the future 7 thousand reais?
Ok, this is what you do: you take these number, 7 thousand, times 300. It's really simple: 7 thousand reais times 300 is 2. 1 million reais.
So whoever wants to retire earning 7 thousand reais monthly may aim for 2. 1 million reais. But how did I get to these number?
Well, I'l leave that on the description because it's not the idea to leran the mathematics, but you can take your desired income, multiply by 300 and you'll have a number that is very close to the reality, ok? if you had 2. 1 million reais you could retire earnin 7 thousand reais, so remember: first goal is the emergency fund, so it was 12 thousand reais?
That is my number one goal. Having reached what is the next one? retirement.
What is it's purpose? 2. 1 million reais.
Ok, every month I'll aplly to get there. Now, let's do some math here: Caique, tell me something. How old are you today?
- 24 At what age would you like to retire? - 50 0:09:00. 520,0:09:04.
040 50? So we're 26 years away, right? 26 years.
312 months away for Caique's retirement So Caique wants 2. 1 million reais. Caique, how much do you have today?
1 thousand reais. Caique already has 1 thousand reais If Caique had a 1% per month income he would need to invest 975 reais to retire in 50 years. Each month, you need to live through x months.
Now look how interesting: if you chose to retire when you're 60 years old, we would be 36 years away. 36 years times 12 months. Now it's easy.
For you to retire when you're 60 you would need 279 reais. Easy, right Caique? You only need to stop eating pizza.
Stop spending all your lunch money, right man? Then you'll get there. Now cool, how will you invest your money?
Because it's long term, what are the long term applications' characteristcs? Simple: three important things, ok? Profitability, risk and liquidity.
What is your desired profitability? You want it as high as possible, because we're talking about long term. But in order to have that profitability the risks are goint to be high as well, because that's obvious.
There is not a Joker in investments. Now, how about the liquidity? Liquidity is the speed that your investment turn into money.
Your investment won't be very liquid, because you don't need to withdraw the money. Caique doesn't need. He is 24 and will retire when he's 60, so this share of his portfolio will have long term investment.
He doesn't need to withdraw right now, ok? Which applications have theses characteristics? Well, stocks, real state funds, debentures, funds and foresight and also treasuries.
These are some of the long term applications, so you can create your investment portfolio, diversify, study more so you can understand a lot about those markets and you will feel much more safe to invest in debentures or real state funds, because I believe that the more knowledge you have the less scared you will be and your choices will be the best possible, so sometimes you don't need to know everything about investments, but you can study the ones atract you the most from these options. And then you invest every month, 0:11:41. 220,0:11:46.
350 create your foresight portfolio, your retirement portfolio and get closer and closer to your goals. Now, what you must have in mind? Who will provide the best options for your investment?
If you talk to your bank manager today what is he going to say? Caique, what does your manager ask or say when you're with him, having the World's most expensive coffee? você está lá com ele tomando o café mais caro da história?
- Would you like to invest in a CDB (loan to the bank) that pays 96% of the CDI (loan between banks)? No way, to you it's probably 80%, I know that. But doesn't he offer consortium?
- Yes, always Capitalization? - No, but consortium yes No? You know what happens?
the bank will always offers his own investments, you know? It's not that the bank is evil, the bank is a company. If you had a company, what would you like to do?
To make more money, right? That's how the company thinks. How about the employee, wouldn't you like him to think about the company?
So you hire the employee and you want him to have a goal, right? he is not evil, he is just doing his job, right? And that's where our error is, it's in our head, we are wrong and not the ohter person that offers you a product that's not the best because we must have knowledge to understand what is good and what is not good for us, so what do we want?
we want freedom, so instead of going to a bank that won't offer other banks' options, for example, you can go to a broker. The broker will gather almos all products available on the financial market and using your login you have access to the product that will give you the best results, that make more sense to you. You are free to choose and you can open an account at any broker, all of them are free, but this channel has a partnership with Rico Broker, ok?
So you can click on the inscription link you register for free and you can access an infinite list of investments, you can compare profitability, terms, you choose. But you must be carefull because you're a begginer. If I have 100 reais and will start investing.
I open an account and when I invest with a broker I have costs in some applications. Let's imagine I'll buy stocks, I'll buy 100 reais worth of AmBev stocks. Every brazilian loves beer, so let's use AmBev as an example Then you pay 10 reais to transfer from your bank to the broker and then you pay more tax for brokerage.
Let's say you paid 35 reais. If you bought 100 reais e paid 35 for taxes you're starting your investment life losing 35%. In order to recover these 35% do you know how much does your investment need to yield?
You would need AmBev to yield 70%, because you have 10 reais. Your investment decreases 50%. How much do you have now?
5 reais. If you want 5 five reais to turn into 10 reais your investment must yield 100%, understand? So you must be very carefull with taxes and costs, but obviously those taxes are usually I used as example are closer to the banks' ones, because they charge much more.
The brokes usually charge less. Some of them don't even charge you like in Rico, our partner, the brokerage for real state fund is 0. Treasuries is 0, anyway there are a lot of them, you can check it on their web site.
So, I talked about somethings here: first these taxes, a broker usually make your life easier and the other charge, the transfers one is a little bit harder to avoid, because the banks usually charge you, but the fourth step to invest, specially if you are a begginer, is to register at a digital bank because they usually don't charge your trasnfers. So I simulated comparing the investor with regular bank account and the investor with digital bank account that doesn't charge transfers, so I considered that this investor transfers money every month to the broker and invest. I considered that the investment will start at 1.
000 reais on both scenarios and then he will invest 100 reais every month in Selic Treasure. The person with an account at the regular bank will have 15. 956 reais in ten years.
If you choose the digital bank, 18. 444 reais. In 20 years 43.
769 reais. In 20 years 50. 883 reais.
In 30 years 95. 000 reais. In 30 years 111.
000 reais. The 15 reais difference from the transfer tax that I considered resulted in almost 16 thousand reais in the future. !
5 reais worth of transfer tax. 16 thousand reais in the future, you see how important this decision is, right? That is what I wanted to teach you.
Let's review? First step: pay off debt. I left another video explaining this.
Second step: change your thoughts and create your investment portfolio. Third step: register at a broker and fourth step: register at a digital bank. I hope you liked today's video.
I'll see you on our next one, a hug for you.
