Shouldn’t less efficient capital markets with greater information asymmetries offer more alpha opportunities?
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Author: Andrew Green
The Crypto People and the Gold People agree on a lot of things
Another week of big downloads for The Compound and Friends podcast. You can also watch the highlights above or on our YouTube channel as always.
Thanks JC, thanks Tyrone, what an episode!
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BiggerPockets Money Podcast 239: The Side Hustle Queen’s Guide to a 100% Saving & Investing Rate
If you and your sweetheart want to get married, rent a truck in a Colorado ski town, and have your dog watched while you’re doing so, Stephanie Warner is the […]
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https://diyinvestorresources.com/?p=398
The Best Real Estate Markets For 2021-2022: Why You Need To Invest In The Austin Housing Market Right Now!
MARKET OF THE MONTH: If you are wondering what the best real estate markets are to invest in over this upcoming year—then you are in the right place! In this […]
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Why More Hispanic Americans Should Be Investing In The Stock Market
For the Hispanic American community, home ownership is commonly seen as one of the few ways to build wealth.
One reason may be the tangible nature of home ownership; a home is an asset you can both see and touch. Another reason may be the perception that owning a home ensures the wellbeing of your family. Yet, even with this focus on real estate assets, the Hispanic home ownership rate—at 50%—is still far from that of white Americans.
As of 2019, the wealth gap between Hispanic and white families stood at $0.21 per $1 of white American wealth. In this article, I’ll cover some reasons why Hispanic individuals may want to consider investing in the stock market alongside real estate as a path to building sustainable generational wealth.
Two reasons why investing in the stock market can help the Hispanic community.
I can relate to the instinct that home ownership should be “Item No. 1” on the financial checklist. I was 21 years old when my mother and I bought our first home. We needed at least $5,000 for a down payment, which might as well have been $50,000. After making some sacrifices, we finally saved enough to buy our first house for just under $150,000. It was all the money we had.
Reflecting back today as a financial planner with over 20 years of experience, I realize how risky our investment was. We achieved our goal of home ownership, but had no equity or savings with which to cover unexpected expenses.
Be prepared for emergencies.
What would have happened if one of us had gotten sick or injured? The expenses could have bankrupted us and cost us the house we had worked so hard to buy.
One of the most common tenets of financial stability is building an emergency fund. An emergency fund consists of your fixed expenses—like rent, food, childcare, etc.—saved in an account that you keep separate from your checking or savings account.
Typically, a robust emergency fund is three to six months of expenses, but starting off with a smaller goal that’s more motivating to you may help you reach it faster. You should also consider saving for your emergency fund in a low-risk investment account, since this will help your money’s value keep up with, or even surpass, inflation.
Build generational wealth.
Access to investments has changed dramatically over the past 20 years. Companies like Betterment now offer low cost investment options with low minimums and fees, offering young families the ability to use the money they already have to build wealth—all while mitigating the kind of financial risk that my mother and I took by putting every penny we had into buying a house.
Investing even a small amount and adding to your investments over time can be a great way to build wealth. If and when you finally decide to purchase a home, a portfolio of diversified investments alongside real estate is an ideal foundation from which to build solid, sustainable wealth for future generations.
Don’t be afraid to get started.
Today, there are few houses available for under $150,000. Young Hispanic Americans are earning more on average than previous years, but they face new barriers to home ownership. Many are burdened by student loans, lack of affordable housing, and limited inventory, among other factors. This does not mean that young Hispanic people will never purchase a home or build wealth. It just means that we have to be open to planning, saving what we can consistently, and investing in the stock market.
Betterment strives to help its customers build wealth more sustainably, so that families can achieve their financial goals—including home ownership—while helping to account for financial risks.
Get started today
Join Betterment>
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Bogle in the streets, Batnick in the sheets
Welcome to the latest episode of The Compound & Friends, a new podcast from your favorite financial and investing commentators. This week, Michael Batnick, Dan Egan and Downtown Josh Brown discuss:
►Where delta fades, growth returns
►Oh look, another bubble. This one has vampires.
►When Do Investors Freak Out?
►Beijing’s Behavioral Finance
►Fractional shares
►Target-date Funds
►What is the office good…
The post Bogle in the streets, Batnick in the sheets appeared first on The Reformed Broker.
BiggerPockets Money Podcast 236: Finance Friday: Enjoy Life Before FI with Simple Investing Strategies
Strong frugality is hard to come by. Not many people would write off their solar system as a business expense and use bitcoin mining to provide heat to their house, […]
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When Assets “Disappear,” Climate Risk and ESG Data Needs Remain
Once sold by major public firms, fossil fuel assets don’t disappear. Neither does the need for relevant, reliable risk disclosure.
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BiggerPockets Podcast 512: From Losing $150k at the Blackjack Table to 7-Figure Profits in Real Estate
Back in 2004, Jude Bernard was sitting at a blackjack table in Vegas. This wasn’t his first game of the day, nor his second, or even his third. Jude had […]
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Rookie Podcast 116: Rookie Reply: Can Agents Help You Find Off-Market Deals?
This week’s question comes from Mel on the Real Estate Rookie Facebook Group. Mel is asking: When working with agents, do your agents help in finding off-market deals, or do […]
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