George Kamel - Stock Market Hitting All-Time Highs: Do This Now!

Starting point is 00:00:05 Well, looks like Snoop Dog isn't the only one hitting record highs this year. The S&P 500 recently topped its previous record, and experts are predicting a pretty good year to come for the stock market. Pretty good. But what does this mean for you? Should you invest now? Should you wait? Or is it too late?

Starting point is 00:00:23 In today's video, we'll talk about why these record highs are a big deal and what you can do right now to make sure you're not missing out on great returns. But first, smash those like and subscribe buttons, and share this video with all of your friends who think the S&S. The S&P 500 is a NASCAR race sponsored by Salt and Pepper. They need some financial literacy. Okay, so the stock market is having a bigger year than Ozempic. And luckily, without the digestive side effects.

Starting point is 00:00:45 Just take a look at these recent headlines. And at the time of this recording, the S&P 500 is at a record high four different times already in 2024. So why is that such a big deal? We'll get to that in a moment. But first, I want to tell you about something else that's a big deal, and that is protecting your privacy online. And for that, I recommend Delete Me, one of the sponsors of today's video. Delete me finds and removes data about you from hundreds of data broker websites, and they send you an easy-to-read report outlining exactly what they did.

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Starting point is 00:01:34 All right, back to stonks. So at this point, you might be wondering, what even is the S&P 500? Well, here's a quick explainer for those of you who aren't Patagonia vest-wearing finance bros. The S&P 500 is a stock market index that tracks the stock performance of 500 leading U.S. companies. And it's used as a benchmark to determine the overall performance of the stock market. So, for example, if you hear someone say that a particular mutual fund has outperformed the S&P 500, that means that it's making better returns than the market as a whole. From the time the S&P 500 was trading in 1957 through the end of 2023, its annualized average rate of return was around 10.26%.

Starting point is 00:02:11 I mean, even Larry David would have to admit, that's pretty good. Pretty good. Pretty good. And if you look at just the last 10 years, the average rate of return is even better at just over 13%. And this shows us that over time, the stock market has very solid returns. And there are down years for sure, but the market's rebound game is almost as good as Kareem Abdul-July. bars. Be quiet, little man. So back to our original question. Why is it such a big deal that the market is breaking records? I mean, it's obviously a good sign for investors if the market is up, so why all the fuss about this? Well, when the S&P 500 hits a record high, it usually indicates

Starting point is 00:02:46 a year of great returns. And this ain't some Punksitani Phil predicting six more weeks of winter. This is legit. According to Ned Davis research, quote, the S&P 500 has tended to post double-digit gains in years with record highs. In fact, they found that when the S&P 500 hits at least one record high in a given year, the year's median return is about 15%. What we've seen over time is that the strength in the stock market tends to lead to more strength. And on top of that, stocks don't typically crash immediately after an all-time high. Unlike toddlers, who crash hard after one too many juice boxes at Chuckie Cheese. Then again, I would probably crash hard after that.

Starting point is 00:03:21 Based on what we've seen in the first quarter, it looks like this could end up being a great year for the stock market. Which brings us to the ultimate question, how do you make sure you're not missing out on these big gains? Well, the answer is relatively simple. You need to invest and invest as soon as you can. If you've been waiting on the sidelines because you're afraid or you're trying to time the market, now's the time to trade that stupid plan for a good one. I mean, think about it.

Starting point is 00:03:41 If you've got $10,000 to invest, but you're waiting for a downturn or some other ideal time, and this does turn out to be one of those years with a 15% return, you'd be missing out on $1,500 of growth. That's almost enough to get an Osaka OSaki OS3D Aspire massage chair at Costco. Just saying, that's massage chair money. I've got to get me one of those. So get your money all up in that market as soon as you can and keep it in there for the long haul. But I want to be clear, there are some caveats to as soon as you can.

Starting point is 00:04:09 Specifically, two things you need to do before you ever start investing. Number one, make sure that you have zero consumer debt with the exception of your mortgage. That includes student loans, car loans, credit card debt, medical debt, and even the Venmo request from Tiffany for the time she spotted you $25,000 so you could order the endless shrimp at Lobster Fest. Pay all that junk off first. And here's why. Let's say you have a car payment of $500 and you have a student loan payment of $350. If you got rid of those payments alone, that would give you an extra $850 that you could invest. That's $10,000 a year.

Starting point is 00:04:40 So if you're wondering, where am I going to get $10,000 a year to invest, George? Well, look at your freaking payments. So it just makes sense to get rid of your debt before you start investing. Because you can't invest money you don't have. That's good wisdom right there. Now, once you've got the consumer debt knocked out, the second thing you need to have is three to six months of expenses saved up in an emergency fund. And don't sleep on this one.

Starting point is 00:05:00 Because if you jump the gun and start investing without emergency savings, and then your mechanic tells you that your digital converters leaking ice cream, and you go into debt again to pay for a new cross-piston muffle cap sensor, well, you're just going to start this cycle all over again. So once you've checked those boxes, no debt with the emergency fund, you can roll up your sleeves and start investing. Actually, just, you know what, leave the sleeves down. Investing doesn't require a lot of forearm strength.

Starting point is 00:05:22 So where should you invest, you might ask? Well, the answer is simple. George Coin. I'm kidding. It's still not a thing. But for real, would you buy it if we did it? We'll take the lot. The real answer is way more boring and way more safe. Like the CPA, you keep trying to convince your friend Stephanie to marry. He's the safe choice, but he's the right choice. The best way to invest in the stock market is in a tax advantage retirement account,

Starting point is 00:05:47 like a 401k or a Roth IRA. This is the simple, proven path to building wealth. In fact, the number one investment vehicle to become a millionaire is a company 401. plan. So ignore single stocks and crypto and precious metals and start investing 15% of your income into retirement accounts. And then once you retire, I recommend tying sweaters around your shoulders while playing pickleball to make you look and feel even wealthier. And you want to know the craziest part of all this? Even if the S&P was down right now, I would tell you to do the exact same thing. You see, investing is a long-term play. It's always going to be a roller coaster. There will be downturns. There's going to be negative news stories. You can't get spooked by those. When the market is down,

Starting point is 00:06:26 media tends to be the loudest. And when the market's up, you hardly hear about it because it doesn't incite fear and get clicks and views. So don't listen to the fearmongering news anchors. Have some faith in the U.S. economy and let your investments keep slowly growing over time. Remember, it's not about timing the market, it's about time in the market. So get in the game. This is the proven, reliable way to build real wealth. Now, I do want to say the 401k isn't the only money maker out there. There are some other great accounts that you can use that also have tax advantages, but you want to make sure that you use them in the right order. So check out this video for my five-word investing strategy that will help you know exactly

Starting point is 00:07:01 when and where to invest your money. Thanks for watching. We'll see you next time.

George Kamel - Stock Market Hitting All-Time Highs: Do This Now!

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