WealthFast Podcast

As we mentioned in last week's episode, you need to research stocks thoroughly before you start investing. Don't make the rookie mistake of buying a stock based on some "hot tip" you heard at the office water cooler. Stock-picking with research is investing; stock-picking without research is gambling. But HOW do you do research? Everyone tells you about the importance of doing your due diligence ... but how do you start? What's involved with that? What websites can you go to? What data should you be sifting through? Learn the answers to all these questions and more in this week's episode of the WealthFast Podcast. As a bonus, you'll learn a great new word: "scuttlebutt." What does it mean? Listen to the podcast to find out! Mentioned in this episode: ValueLine.com How to Invest Using a ValueLine Report Free Value Line Report of Exxon Mobile Investopedia.com

Are you ready to invest in stocks? You might find that ETF or mutual fund investing is more your style. We talk REITS, common and preferred stocks and cheesecake! Investing is no easy game. It does take time and effort to do the research that you need to be a talented stock investor. You need to be prepared to dig deep to find the story behind the company. But before we get into the details of investing in individual stocks, we need to cover the basics. Typically, investors begin with mutual funds or exchange traded funds. These are pre-made portfolios with the benefits of diversification. Do you think stock investing is for you? Check your knowledge with today's episode of the WealthFast Podcast!    

Someone once asked us if they should bother investing, given the fact that they have a lot of student debt. Wouldn’t it make sense for them to tackle their debt first, they asked, and then only start investing for the future? Our answer? It’s complicated. In this episode we explain everything you should consider when you’re contemplating at that age-old question: should you pay off debt or invest? Paying off debt gives you the guarantee of saving a particular percentage. For example, if you’re paying 4% on the student loan, you’re guaranteed to “save” 4% by paying off that loan. But if you invest, you might earn returns that are far in excess of your interest rate. Or you might lose money. In this episode we discuss everything you should consider, ranging from interest-rates to inflation. (If you’re carrying fixed-rate debt, inflation is your friend. If you are issuing loans to other people, as you do when you hold bonds, inflation is your enemy.) We also discuss how tax benefits play an important role in the debt-versus-invest question. Finally, we share one tried-and-true way to get a risk-free 150% return on one particular type of investment. What magical investment are we talking about? You’ll just have to tune in for the answer! Discussed in this episode: U.S. stocks have returned 9.5% annualized since 1926 (Source: Morningstar’s Ibbotson)

People say that your home is the biggest investment you’ll ever make. But is that really true? In this week’s podcast, LaTisha and Paula discuss why your home isn’t necessarily an investment – even if you expect its value to rise. In fact, your home may be a giant consumer expense that drains cash from your pocket each month. Even if you sell your home for a significantly higher price than you paid, you may be shocked to learn how large of a bite transaction costs take from your gains. But don’t worry. You can choose the right home that will protect you against the many possible downsides of home ownership. In this episode, you’ll learn how to do quick, back-of-the-envelope calculations to see how much rental income your home could receive. (I know, I know --  you’re not planning to rent out your home. But you’ll be glad to have this “Plan B” in your back pocket if you get transferred to a job in another state and discover that you can’t sell your house. Plenty of people are forced into landlording against their will. If you fall into this boat, wouldn’t you rather be earning more than you’re paying?) If you do want to become a landlord, this week’s episode will also teach you ways to evaluate rental properties for cash flow. You’ll learn the pro’s and con’s of single family residences versus multi-family dwellings, and you’ll learn pro’s and con’s of renting homes near college campuses versus homes in standard communities. Enjoy the episode and don’t forget to call in with questions!

Sometimes, the way to wealth is the slow and steady path. Just kidding! We are all about multiplying your way to wealth the fast way. You have a rich uncle that wants to help you! In this episode we also talk about... Efficiency versus Effectiveness Would you rather ‘Spend less than you make’ or ‘Make more than you spend’? Wealth is a mindset. Don’t make the mistake of thinking that your income is capped. Billions of dollars are created daily and all you need is a small portion compared to what is available. This week on the WealthFast Podcast we talk about a gift from your rich uncle, Uncle Sam. You can invest in more than just stocks and bonds inside of an IRA. Did you know that you can also invest in Real Estate? Find out how on today’s episode of the WealthFast Podcast!

What comes to mind when you hear the word “risk”? When it comes to investing, many people only consider one type of risk: losing the money that you put in. This is called “principal loss,” and it’s certainly the most attention-grabbing, emotionally-draining type of risk that most investors endure. But it’s not the only risk. In this week’s episode, we discuss other types of investment risk, which include: Inflation Risk – Inflation is called the “silent killer of wealth.” It gradually dwindles the purchasing power of your money. Inflation risk describes the risk that your so-called “safe haven” won’t allow your money to keep pace with rising costs. Liquidity Risk – Cash is king, as the saying goes. The tougher it is to convert your assets into cash, the more liquidity risk you suffer. Default Risk – Anytime you loan money to someone, you suffer the risk that they won’t pay you back. When you buy a bond, you give a loan to a government or a company. Each time you issue a loan, there’s a risk that the borrower just won’t pay you back. But not all bonds are created equal – some have greater default risk than others. What other types of investment risk do we discuss – and how can you manage these? Check out this week’s podcast for more.

Have you ever screwed up an investment – or do you know someone who did? Was the mistake a “textbook” example of a common error? In this week’s episode, we discuss the most common mistakes investors make, which include: Not Accounting for Time Horizon – Some investments are born to be long-term, while others are designed with immediate liquidity in mind. When evaluating an investment, make sure you account for how long you’re keeping that capital tied up. Remember, if your money is tied up in one investment, you can’t reinvest those funds in something else. Long time horizons bear an opportunity cost. Misusing Leverage - Leverage can propel performance upward as quickly as it can downward. Leverage should be used with prudence. Confusing Trading with Investing - This is a mistake that new investors make. Trading is more of a game while investing is done with care. Fear and Greed – We all know we shouldn’t let emotions cloud our decisions. But that’s easier said than done. What other classic mistakes do many investors make? Tune into this week’s podcast for more.

Welcome to the inaugural edition of the WealthFast Podcast! We’d like to start off by answering those two vexing questions, “What’s this show about?” and “Who on earth are you?” We’ll take the first question first. The WealthFast Podcast, as the name implies, is a weekly half-hour podcast that focuses on ways to build wealth. We’ll discuss stocks, bonds, mutual and index funds, real estate, rentals and small business. We’ll talk about how to weigh reward against risk. We’ll help you set up multiple streams of income. Here’s what we’re NOT: We’re not a stock-picking show; we’re not going to recommend buying or selling the stock of any particular companies. We’re not a frugality show; we’re not going to tell you to cut your drier sheets in half to save 50 cents a month. We focus on the big-picture. We teach you how to seek and recognize opportunity, how to act quickly when a great deal is staring you in the face, and how to think rich. Who are we? We’re the hosts, LaTisha Styles and Paula Pant. We’re fun, goofy and a little offbeat, but don’t let the jokes fool you – we know what we’re talking about. LaTisha has been investing since the age of 18; in the coming weeks, she’ll be leading the discussion on evaluating stocks, bonds and other trading devices. She’ll explain what all those complex ratios and acronyms are, and she’ll say it in words you can understand even before you’ve had your morning coffee. Paula’s personal money-managing savvy allowed her to travel to nearly 30 countries across the Middle East, Asia, Europe and Australia. She’s a licensed real estate investor and agent, managing five rental units spread across three buildings and searching for her next housing deal. She’ll discuss how to evaluate housing deals, how to set criteria based on whether you’re flipping or renting, how to check comps and how to evaluate returns. We hope you’ll become a subscriber to this free weekly podcast. Enjoy! Mentioned in this episode: The Intelligent Investor Young Adult Finances  Afford Anything The Market Technicians Association How to Invest Like an Extreme Couponer guest post Time Value of Money