61: Your Stock Market Return is 0%. Yes, 0%.
Released Dec 11, 2015
Learn why your long-term rate of return from stocks, as measured by the S&P 500 Index, is 0%. Learn how to act to overcome this “zero-return investing.” Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn:
01:10 Keith is back in the United States for today’s show.
02:04 The S&P 500 historically returns 10% per year. Your return is 0%.
02:51 When the Federal Reserve raises interest rates, how that impacts you and your tenants.
04:50 How inflation, emotion, and fees make your stock market return 0%.
11:25 This regards the very long-term. If you plan to live for the very long-term, then this approach makes sense.
13:24 Knowledge and rationale in stock investing vs. real estate investing.
19:27 Real estate still hasn’t returned to its 2006 national price peak.
20:30 Powerful education: how 25%+ returns are common with leveraged, cash-flowing income real estate in investor-advantaged geographic markets.
25:19 Harvesting & re-deploying accumulated equity results in better RE returns in an appreciating environment.
25:56 Keith’s take: Return ON Equity (ROE) vs. Return FROM Equity (RFE).
28:02 “Market Agnostic.” You’ll often want to invest in RE outside your home market.
30:15 People invest in “out of market” stocks, but curiously they doubt investing in “out of market” real estate. That’s nonsense.