How to get started with real estate investing (Buy first rental property)
I have no money or have little money, I have no knowledge or little knowledge but I want to buy rental property
then follow this steps
1. Understand the process – you do that by
Read books or watch videos or attend seminars and grab coffee with people who owns Properties
2. Figure out what strategy fits your current situation
No money –
Once you understand the process and figure out the strategy the find the deals and take it the people you trust you the most who can lend you money and get mortgage
Like your 1. parents 2. Best friends or girl friend or boy friend
If you don’t have no way get that money then first focus on making money by saving and working extra or get into selling
If your working full awesome all you need 5% down in Canada
In USA less than 5% down for owner occupied
if your still lost don’t know what to do then reach out to me –
On social media
1. Real Estate Investing in Canada: Creating Wealth with the ACRE System (
2. Rental Property Investing by Brandon Turner (
Social Media Websites that can help you regarding Real Estate
(Real Estate Investing Network Canada)
Remember: Formula for Success RAN(do RESEARCH, take ACTIONS and NETWORK with right people)
I’m currently living and Investing in Windsor Ontario Canada
I have no idea where to start but I want to buy my first rental property I have some money for little money I have some knowledge or little knowledge that is this something your situation than this video is for you Namaskar ah de bercy's recall when I come good morning good evening everybody this is Aditya welcome to my channel if you haven't hit that subscribe button please do so right now for an awesome content regarding my real estate investing and realtor journey so without any further ado today I wanna help you if you haven't purchased any rental properties then this video is for you if you're wondering where to start from then this is the first step for you I'm gonna share particular things in this video watch till the end make a notes if needed follow that has this I promise you you will have a rental property within a couple of months it could be you can buy if you are like really aggressive you can buy it in one month if you are like a little bit slow and steady it still you can buy it in next three to four months but stick with me with the process and follow what I'm gonna suggest in this video so step number one you have to understand the full process that involved to buy a property you know how to write offers so what is mortgage what kind of things involved in it you have to understand those whole process obviously I'm not going to detail those steps because I already made a video you can check out here thus 10 steps involve in order to you know understand the process so that's the first step go check out that video second get on to books which are specific about rental property how to invest in rental properties there are a couple of books if you're Canadian and the best book I love about rim written by I don't remember the author name but I will pop in the picture here I will put a link in the description and also a couple of other books they're like really gives you a solid knowledge on what are the you know what is the process involved and what are the type of strategies that involve you you can understand a overall picture of about rental properties so check out that then also get on to social media platform that is specific to the rental properties that is specific to real estate investors which is bigger pockets that's really really a useful resource just get on to it go meet local investors on on that group you will see people who are investing in your location if you don't find any just you know pick up a phone and call a realtor in your local area or find a realtor who is a investor specialist and ask him for suggestions so if you go through the steps and also get on to bigger and bigger pockets podcast or a couple of other podcasts who are like talk about investor stories so when you go through this multiple stream of sources you will first understand the process so that's really important before you buy a property once you understand the process in that simultaneously second thing will happen which is you figure out a strategy that fits your criteria because this is really important where many people fall aback because you know they look at some people who are like they preach that hey buy six unit building ten unit building or some people preach that buy a property which neat enough work drin you a tit and refinance your money and some of people will taste that just buy a turnkey property which has good cash flow or some of them will tell you that buy student rent out oh my god what the heck there's many strategies but if you understand the process if you learn from other people who are doing this now you know what are the strategies are available out there now take a step back and look from your point of view because everyone is made differently me and you are different no matter what it may you might have some commonalities but we might be starting from a different point I'll give you some examples for example you have no money at all you're a young kid you are like 22 or 23 but you're really enthusiastic about it you already in the process of learning about the process now where do you start from so for you the best option is to go talk to your parents ask if they can joint venture which to you if they can give you some money like 20% down so then figure out and if you want to get out from if you don't want to do any job just take the investing as a main source then find the properties that cash flows so that might be your criteria or for example if you are working full time you already have a solid job which is your active income but you want to build some passive income for your family you know to have a solid return on your money then that's a different scenario you have to look for something maybe you don't have enough time to you know find the contractors or do the renovations then just go find a property which is already a turnkey in a good location in a good you know which can appreciate well but at least it will sustain by itself you know without any negative cash flow so that might be a criteria for you or you might be someone who just started working full-time you you have a little money maybe like you know ten thousand or five thousand or twenty thousand then you can go look for property that with a 5% down with a price range whatever makes sense to you maybe you can live in one bedroom and rent out the other bedrooms like I used to do before so who how do I know or how do someone who is talking about specific strategies know your situation so what I'm trying to tell you is it's really important figure out what situation you are in right now are you with money or without money or with credibility what I mean by credibility credit history are you do you qualify for mortgage or you don't qualify for a mortgage so figure out your situation and find a strategy that fits your criteria because this is where many Falls now if you have a specific criteria based on your scenario now go start looking for properties so the third step is go start looking for properties keep on making offers keep on making offers until you get it and find the people to you know work with because if you have done the step one and step two already now you're in inner circle with the different people to work with hooray just keep with it buy the first property this will help you if it doesn't then reach out to me on social media or let me know in the comments below if you have like you know if you couldn't figure out why that way the hack to start from just reach out to me I will help you too and there are many other people who can help you too so reach out to people find out the solutions for your problems and with that thank you so much for watching this video if it's helpful let me know in the comments below if it sucks still let me know in the comments below because comments can give me an idea what you how I can help you so that way I'm not wasting your time with that have a wonderful life
Here’s exactly how the tax system works and how much I’d spend on taxes throughout my 7 incomes sources – enjoy! Add me on Instagram: GPStephan
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The subject of TAXES is one of those topics that’s SO important for you to understand, because this is the stuff they don’t teach you in schools. So hopefully this brings some clarification to everyone watching – and answer your own curiosity as to how much my tax bill is..
You first have whats called your federal tax bracket, which is how much you owe the IRS, depending how much money you make.
In addition to that, we’ve got state income taxes depending on how much net income you have.
Third, the income I make may be considered “self employment income,” meaning it’s subject to self employment taxes…which, here in the United States, is an ADDITIONAL tax rate of 15.3%.
The REALITY is that self employed business owners have the benefit of getting a LOT of tax deductions and write offs available to them to bring down their taxable income.
This encourages business owners to not only continually re-invest back into their business to reduce their tax bill, but also give them more PROFIT left over that will *hopefully* circulate back into the economy, whether they invest in real estate, buy stocks, spend more on avocado toast and 20 cent coffee…
I think this also ENCOURAGES people to start their own businesses, because you can fully utilize the tax code as its meant to be used.
In addition to that, if you’re self employed, you can chose to open up what’s called an S-Corporation. I have this setup, where all of my income and expenses first go through the corporation, and then to me SEPARATELY as an employee of that business.
So in terms of how much money I’d pay in taxes…It really depends on what my gross income is at the end of the year, and how much of that I chose to re-invest back into the business as a write off. At a certain point in my tax bracket, it makes sense to purchase a better youtube studio, buy better equipment, and purchase things that will improve this channel in such a way that also lowers my tax liability.
And if there’s any take away from this entire video, it’s this:
The reality of making money and becoming wealthy FIRST begins with saving money.
But when you get to the point where you cannot feasibly save ANY MORE MONEY, THAT is when you need to begin MAKING MORE MONEY.
But THEN you get to a point where you’re making a sizable income, and TAX REDUCTION becomes just as important as SAVING MONEY. These are strategies to KEEP the money you make, because the money you KEEP can be GREATER than the money you earn.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at [email protected]
what's up you guys it's Graham here so as most of you probably know I don't have a life because I'm constantly sitting here reading and replying to all the comments and it's a good thing I do that because anytime I see a recurring question or any sort of comment it just gets liked all the way up to the very top of the video chances are I will make a video answering it and no joke I either got a few hundred comments on my previous video going over my income breakdown about how much money I pay in taxes so of course I'm going to break it down for you guys and share with you exactly how much I pay in taxes because yeah for anyone wondering the income I listed of a hundred and sixty three thousand eight hundred dollars per month was before I've paid taxes on it which means that after I pay taxes I am left with a considerably smaller amount because I pay a lot in taxes but before I answer exactly how much I pay I just want to say the topic of taxes is something that is so important for you to understand and this is the stuff they will never teach you in schools and most of the time you have no idea how it works until it's too late either when you see a huge bill from the IRS and you're sitting there pulling your hair out wondering how you're gonna pay all of it or you just hire a really good CPA who handles all of it for you but usually by then it's a little bit too late and it's so important just to understand the basics so hopefully this video brings some clarification to everyone watching and answers the question of how much I pay in taxes because I gotta say when it comes to the tax code it is so unbelievably complicated and when it comes to me I would not have learned any of this if I didn't get to the point where all of a sudden I was looking at my tax bill and realizing that I was paying over fifty percent of my top and income on taxes and I realized I gotta learn how this stuff works so I can save some money so if you just watch this video to the very end you will learn how the tax code works you'll also learn how much I pay in taxes and you'll also learn how to smash that like button if you haven't done that already because this video takes me forever to do a video like this so if you just wouldn't mind for the YouTube algorithm hitting a like button it does help out the channel tremendously if you just do that I'm good and here's all your your information so here in the United States you first have what's called the federal tax bracket which determines how much money you owe the IRS depending on how much money you make in 2019 here is how this works so as you can see here from the charts if you're unmarried when you make under ninety seven hundred dollars a year you won't owe any federal income taxes once you take the standard deduction after that you'll pay twelve percent tax on all income between that and thirty nine thousand four hundred and seventy five dollars then you'll pay a twenty two percent tax between that and eighty four thousand two hundred dollars this continues until you make over five hundred ten thousand three hundred dollars in a year in which case all further income is taxed at a federal tax rate of thirty-seven percent now it's really important for me to mention this that it does not mean if you make one dollar above a certain threshold that now all of your income is being taxed at the new higher rate like I've seen stories about people who are fusing to take a thousand dollar raise because they're concerned it's going to bump them into a higher tax bracket and they'll lose more money than they gain because they'll suddenly pay more in taxes that's not how this works you only get taxed on the little bit of higher income in the higher tax bracket not the entire thing it's just that the more money you make that money is taxed at the higher rate not the entire thing this is how that works now the thing is in addition to federal income taxes if that is not depressing enough we have what's called state income taxes and here's how that works almost every state has what's called state income taxes and this is completely separate from what you would owe the IRS as you can see from this chart on the screen some states have zero income tax like Nevada Tennessee Florida Washington and so on and other states range anywhere from a few percent of your income all the way up to 13.3% and of course lucky me guess which states I live in that's right it's the one with the highest state income taxes of anywhere in the United States it's California just like the federal income taxes that you would pay the IRS there are tears to how much you would end up paying to the state like here in California you'll pay 1% in state income tax up to the first eighty two hundred and twenty two dollars that you make then you'll owe two percent from Nats up to nineteen thousand four hundred and ninety four dollars and so on all way to 13.3% for tax on all income above a million dollars your own state tax rate will vary and will chances to heart be a lot lower than this but wait there's more if you think it doesn't end there if you think it can't possibly get any worse than that it does because the majority of the income that I make is considered self-employment income which is subject to self-employment taxes which here in the United States is 15.3% this covers both Social Security and Medicare taxes and here's how that works if you work for a company as a w-2 employee that company is responsible for paying 7.65 percent of those taxes and then you are responsible for paying the other half of those taxes but the thing is if you're self-employed then you are responsible for paying all of those taxes because you act as both your employer and your employee so that means if I had a million dollars worth of net self-employment income I would basically pay a lot in taxes to start I would owe the IRS three hundred and thirty thousand for a hundred and seventy four dollars in federal income tax I would then owe the state of California one hundred and seven thousand six hundred and eighty dollars in state income tax but of course we're not done yet I would then owe an additional 150 three thousand dollars in Social Security and Medicare taxes that means in this hypothetical scenario if I had 1 million dollars of net self-employment income I would owe five hundred and ninety one thousand one hundred and fifty four dollars in taxes that's right over fifty nine percent of my income would go towards taxes so for every $100 that I make I only get to keep about forty-one dollars of that that's left over but don't worry it's not all bad news here's where the good news comes in the reality is that here in the United States self-employed business owners have the advantage of having a lot of write-offs and tax deductions available to bring down their taxable income and save on taxes whether or not you agree with the tax system this is how it works and this is how it's meant to be followed this is meant to encourage business owners to not only continually reinvest into their business reduce their tax bill but also hopefully give them more profit left over to reinvest back into the economy in a sense of hiring more employees buying more equipment buying $0.20 iced coffee and so on I think it also incentivizes people to start a business and hire employees because it means they can fully utilize the tax code as it's meant to be used and when it comes to me I've been self-employed since 2008 working as a real estate agent meaning that any expense I have relating to the business it's considered a business expense and therefore a tax write-off like if I go and lease an office space to work from that is a tax write-off if I go and lease a $5,000 a month Lamborghini to drive clients around in style from house to house that is a tax write-off same thing applies to also making YouTube videos if I go and purchase new camera equipment or lighting equipment or new sound equipment all of that is a business expense and is considered a tax write-off or even if I go and get an office space to make youtube videos from that is considered an expense of the business and therefore I will out less in taxes and the reality when it comes to this is that the more money you end up making the more valuable the tax write-offs become because you're reducing that income from your top tax bracket so if someone is making a million dollars a year and writing off a hundred thousand dollars as a business expense that money is worth a lot more money back than from someone earning a hundred and fifty thousand dollars a year that's exactly how it works for me I'm in a very high tax bracket so when I do have a tax write-off its reduced a lot further than from someone who's earning less money here's an example of how this works I'll throw this up on the screen right now if someone is self-employed making six hundred thousand dollars a year their top income bracket would pay thirty-seven percent in federal income tax fifteen point three percent in self-employment tax and about eleven point six percent on average to the state of California that means that sixty three point nine percent of all income between 500,000 and 600,000 is lost to taxes which works out to be sixty three thousand nine hundred dollars and after taxes you have only thirty six thousand one hundred dollars left over but if instead that person spent a hundred thousand dollars is a business expense that one hundred thousand dollars is not counted income that money is not taxed so they can get $100,000 worth of value while only spending thirty six thousand one hundred dollars because that's what would have been leftover had they just paid taxes on the money without reinvesting it that's just the reality of some benefits of being self-employed and running a business here in the United States and this is really how the tax code is set up to operate all of this is legal none of this is breaking the law none of this is evading taxes now in addition to that though if you're self-employed you also have the option of opening up what's called an S Corp I have this set up where all of my income and expenses go through the corporation and then to me separately as an employee of that corporation now without getting too complicated here the way this works is that I take a salary from my S corporation and then what's remaining in the S corporation after all of my tax write-offs is given to me as what's called a distribution now the thing is when you take a distribution from an S corporation that distribution that you get is not subject to Social Security and Medicare taxes meaning I could save about fifteen point three percent of taxes by doing that but still whatever money you do takeout from that S corporation is still taxed at your normal federal income tax rate now I do realize that this topic is way beyond any other video I've made in terms of nuances and complexity but I will just say this I make sure to hire the best CPA who handles everything for me I basically know enough about this to run my own calculations and kind of figure out which might potentially be the best route to take and then I pay someone thousands of dollars every single year to make sure everything is done correctly I don't break any laws I follow everything as it should and therefore I make sure that I am in the clear I want to always stay aboveboard and make sure I am doing everything to a tee exactly as I need to so really in terms of how much money I would owe in taxes it really just depends on what my gross income is at the end of the year and then how much of that I choose to reinvest back into the business as a write-off like at a certain point to my tax bracket it just makes sense to continually reinvest back into the business in terms of better equipment maybe a better YouTube studio and other things that will improve the channel in such a way that also where's my tax liability but of course to answer everyone's question how much will I pay in taxes if let's just say I make hypothetically 1.6 million dollars worth of gross income in 2019 well the thing is if I run this through my S corporation with no tax write-offs whatsoever I would first start by paying about five hundred and sixty-five thousand dollars towards federal income taxes in addition to that I would probably also have about one hundred and eighty-seven thousand dollars that I would owe for state income taxes and then roughly I'm guessing around another eighteen thousand dollars in Social Security and Medicare taxes that means if I don't write off anything for the business I would about seven hundred and seventy thousand dollars in total taxes in 2019 which would work out to be about half of my income now running it through an S corporation saves me about two hundred and twenty thousand dollars but still I am just in a very high tax bracket in a very high income tax state and that's all there is to it now yes I do have the option to move out of California into another state without state income taxes and I won't say I won't ever do that but at the same time I do really like Los Angeles so we'll see but if there's any takeaway from watching this video let it just be this the reality of making money and becoming wealthy first begins with saving money you must save your money and invest it wisely if you ever want to be financially independent or wealthy later on there's no other way around it but then you'll eventually get to a point where you cannot feasibly save any more money it's at that point that you should begin to focus on making more money now it's at this time that you keep your expenses the exact same but as you increase your income you're just able to save the difference but then you get to a point where all of a sudden you're making so much money that all of a sudden tax reduction has a better impact than making more money or also saving more money in fact the more money you make the more time you should be spending on tax prevention then you shouldn't making more money because that's going to be your highest ROI this is exactly why Grant Cardone went and bought a Gulfstream 550 jet it's also why you see many multimillionaires buying a 6,000 pound cars like the rolls-royce Colin in or like the Tesla Model X to take Vantage of what's called the section 179 deduction those are all just strategies to help keep the money that you make because at the end of the day no matter how much money you make what's really important is how much of that you get to keep now I don't usually cover topics like this because most the time it's extremely complicated it's very nuanced and for people in this situation they usually just end up hiring someone to handle it for them but for anyone wondering how the tax system works or how much money I pay or whoever hopes to be in a position one day where you have to worry about how much money you're paying in taxes at the very least I hope this video was able to provide some level of clarification for you and maybe it gets you interested in taxes because it's something not a lot of people talk about it's not really that interesting until they see how much money they can save by utilizing it so with that said you guys thank you so much for watching if you guys enjoy videos like this please hit the like button please subscribe please hit the notification bell so YouTube notifies you anytime where hosts video which is three times a week also add me on Instagram I post it pretty much daily so if you want to add me on there just go ahead add me on there thank you again for watching and until next time
Unfortunately, if you have any amount of cash whatsoever, most likely you’re losing money without even realizing it…here’s why, and 4 alternatives to prevent this from happening. Enjoy! Add me on Instagram: GPStephan
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Ok, so first things first: Holding cash is bad. Now when I mean “holding cash,” I don’t mean like you’re actually just holding cash…don’t take that term literally. Instead, I’m referring to either keeping a ton of cash laying around under couch or a mattress because you don’t trust banks or something, or maybe you just keep your money in a checking account or regular savings account – which, unfortunately, is what most people do, and that ends up unknowingly costing them money. Don’t do that.
And this is why you should avoid that: INFLATION. This means that the value of your money DECREASES every single year, because…summed up…the country prints more money than there is value. In 99% of situations, when you just keep cash as cash…you lose money. If you keep money in a checking account, you lose money. If you keep cash in a normal savings account earning .1% interest, you lose money. This is bad. And that’s where most people make the mistake of losing money without even realizing it. So with that said, here are 5 options so you can avoid this:
The FIRST place you can put your money is a high interest, FDIC-insured savings account:
Ally Bank: 2.2% Interest on their savings account
Marcus by Goldman Sachs: 2.25% on their savings account
PNC bank: 2.35% on their savings account
CIT Bank: 2.45% interest for accounts that have a balance above $25,000.
SECOND, if you want a SLIGHTLY better return and don’t need the money immediately, your next option is a CD.
Ally Bank 12-month No Penalty CD: 2.3% interest
Capital One 360 12-month CD: 2.7% interest
Marcus By Goldman Sachs 12-month CD: 2.75% interest
Syncrhony Bank 12-month CD: 2.8% interest with $2000 minimum deposit
Third: TREASURY BILLS.
This is basically a short term “loan” you give, and in return for lending them money, they pay you back with interest. The good thing about Treasury Bills, and a HUGE advantage over anything else, is that they’re not subject to local or state level taxes…so for people in high tax states like California or New York, this could save you a TON of money in taxes!
So the way this works is you can go on TreasuryDirect.gov, make an account, and then purchase 4-week treasury bills, which currently pay 2.428% interest annually. You can also set this up to re-invest every 4 weeks, so that way you’re constantly getting a high rate of return – tax free on the state level – without thinking about it.
Fifth Option: buying a bond.
For instance, we have the Vanguard High-Yield Corporate Fund Investor Shares (VWEHX)…this pays a whopping 6.1% right now, which works out to be 5.87% after fees. Now this is NOT a risk free return, the price of the bond COULD go down, the payout of the bond COULD go down…or they could both go UP and you make more money. But for someone willing to take a little more risk with their money, this is a decent way to take a LITTLE risk with some decent upside.
Or, you have the total bond market index VBMFX…after expenses, you’re looking at about a 2.9% annual return. And this one is much less volatile.
Nonetheless, this could be a decent option if you want to take on a little more risk with your money, while still maintaining liquidity in the event you need it immediately.
So there you go…don’t hold on to cash, because if you do, you’re gonna have a bad time and you’re going to lose money with inflation, which is EASILY avoidable if you just put your money in a few of the options I mentioned here. And ALL of these options take you under 10 minutes to setup…it’s really simple, and a great way to PRESERVE your wealth and keep it liquid until you need it for other investments. Like avocado toast.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at [email protected]
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what's up you guys it's Graham here so this is one of the few videos out there that literally applies to everybody watching that's that's right even you have the reason why is because if you have any amount of cash whatsoever most likely you're losing money without even realizing it so if you just watch this video to the very end two things are going to happen first I will hopefully convince you why holding cash is one of the worst things that you can do besides bit connect and buying avocado toast and how this actually ends up costing you money and secondly I'll give you four much better places to put your money that'll actually make you money for the most part completely risk-free okay so first things first holding cash is bad now what I mean holding cash I don't quite literally mean holding cash don't take that term literally instead I'm referring to either keeping a ton of cash under like your couch or a mattress or something because you don't trust the banks we're putting all of your money in a checking account or regular savings account which is unfortunately what most people end up doing that unknowingly ends up costing them a lot of money don't do that and this is why you should avoid that it's one super scary word and that word is inflation this basically just means that the value of your money decreases every single year because summed up the country ends up printing way more money than there is value every year so basically each and every year your money is worth less and less and the purchasing power of your money over time starts to decrease with inflation and as we can see from this chart right here I'll go ahead and put it on the screen right now inflation generally averages about 2% per year sometimes it's slightly higher and sometimes it's slightly lower so if we just go with their average of 2% inflation this means that if you keep a hundred dollars in cash let's say under a mattress or in a checking account in one year on average the purchasing power of this money for one year it's only gonna be worth about 98 dollars we can fold this back 98 bucks then the year after that another 2% inflation now it's only worth well there we go 96 dollars and that just means that you're losing a little bit of money every single day that goes by thanks to inflation until eventually down the line your $100 has the same purchasing power as $20 has today anyway point being in probably 99.999% of situations out there if you just keep your cash sitting around doing nothing chances are you lose money if you just keep your cash in a checking account chances are you're losing money if you keep it in a normal savings account chances are you're also losing money so anyway with that said these are the best four options for you to be able to avoid that awful money draining trap I'll start off with the lowest risk accounts first and then end with the highest yielding accounts to get the best returns possible while still giving you access to your money when you need it so let's get into the video the first place you can put your money is in a high interest FDIC insured savings account pay attention there note I said FDIC insured savings account hint hint yeah that was just a pretty dumb jab at Robin Hood if you didn't catch that but anyway lame jokes aside there's some pretty decent offers going on right now with high interest savings accounts now since I last made a video on this topic about a month ago rates ahead they ended up going up and I found the 4 best current high interest savings accounts free to choose from and this is what they are first we have a lie bank offering a whopping 2.2 percent return on their savings account zero minimum zero fees just sign up for the account and get that sweet sweet 2.2 percent this is the account I personally use for myself for last few years and I absolutely love them and allied by the way if you're watching this I've given you a lot of free promotion lately so if you're interested in sponsoring the channel here I am any any day now alright so anyway now the second option beats a lie by just a little bit and that is Marcus by Goldman Sachs offering two points to 5% interest and again just like a lie bank there are no minimums there are no account maintenance fees there are no like crazy weird fine print just put in your money and enjoy that 2.25 percent return now the third option goes even crazier than that and is as usual PNC Bank which is offering two point three five percent interest on their savings account again as the last two no minimums know crazy fees nothing weird about this account it's you know pretty straightforward now of course the only downside I found with this account is that it's only available to people who live in a state that does not have physical PNC branches in it this two point three five percent interest rate is really meant as a way to gain customers in other states where they're not located and for anyone who is located in one of their own states unfortunately you you can't get this account so depending on where you live this may or may not end up working for you and fourth I found one that's even crazier than PNC Bank which I didn't think was possible but here you go CIT Bank is offering two point four five percent interest on their savings accounts with accounts that have more than $25,000 in them that's right two point four five percent interest with no crazy monthly maintenance fees no weird fine print just keep a minimum balance of twenty five thousand dollars and I got to say from all the research I did this seems like the best cleanest account out there without having to worry about like not having a good bank we're having the rate change on you as soon as you put your money and it seems like this one is pretty legit as long as you have the $25,000 to deposit so secondly if you want a slightly higher return and you don't need immediate access to your money the next option would be using a CD no this doesn't stand for a compact disc this is just certificate of deposit and this is basically just a savings account with a fixed date for withdraw and most CDs that you see out there have fixed terms of one to five years which means you'll end up locking up your money for that amount of time if you're the type of person who knows you're not going to be really needing the money for the next 1 to 5 years this could be a pretty good option and these are the four best highest yielding CDs that I could find right now as of February 2009 first we have the almighty ally bank CD rate which again here we go free promotion for Ally they're offering right now two point three percent on a no penalty eleven months edy this means that you can withdraw your money at any time after six days without any penalty whatsoever and still receive the interest that you're owed so for the way I see it this is pretty much just a risk-free return and offers a slightly better return than what you would get with the ally bank savings account but by thinking with this is that if you're doing an ally Bank CD you probably just may as well go with CIT bank or PNC Bank which is giving a slightly higher return on a savings account and you won't have to spend a time opening up a CD but secondly we have a much better option than that and that is the Capital One 360 CD they're offering right now two point seven percent on their 12-month CD it's not bad it's a fair option but there are other better options out there the third option to this is Markus by Goldman Sachs who loves beating out their competitors just by a little bit and they offer two points seven five percent on their 12-month CD and I gotta say this one looks pretty good if you know you're not gonna be needing your money and the next year this is probably one of the best options out there and of course as you guys all know I always save the best for last and right now synchrony Bank is offering a 12 month CD at 2.8% with the $2,000 minimum deposit and from all the research I ended up doing this looks like probably the best option out there for a 12 month CD so next we have our third option out there that very few people know about very few people discuss but it's probably one of the best options out there and that is smashing that like button if you haven't already just kidding but if I fold you to still make sure to hit that like button okay no but for real though the actual third option here that not many people know about is putting your money in what's called Treasury bills this is basically just a loan you give to the government and in return for loaning your money they pay you back with interest and because you're lending money to the government it's pretty much a risk-free return because they can always just print more money to go and pay you back yay for government printing money but the really amazing thing with doing this that not many people know about is that with Treasury bills the income you get from this is not taxed on a state or local level so for my fellow people here in a high income tax stage like California or York this could end up saving you a ton of money so the way this works is that you can go on Treasury Directgov make an account and then purchase four week Treasury bills which currently pay about two point four to eight percent Interest annually you can also set this up to reinvest your money automatically so you're constantly getting the highest rate of return possible without paying taxes on a state or local level on the money you make without even thinking about it and yes with doing this you'll tie up your money for four weeks at a time but worst case scenario you just got to wait four weeks to get your money back it's not really the end of the world and you'll get it all back with a pretty high rate of return when it comes to making a risk-free return it doesn't really get much better than that or wait or does it introducing our last option out there this has the highest return from everything I've listed so far but it comes with a little bit of a risk not a lot of risk but still a little risk and that is putting your money in a bond a bond is pretty much just an IOU from a government State City business or anything else like this and for the most part it's relatively safe for instance we have the Vanguard high-yield corporate fund investor shares that's a lot to say this pays a whopping 6.1 percent right now which works out to be five point eight seven percent after fees now of course this is not a risk-free return because the price of the bonds could end up going down the payout could go down or the payout could go up and the price goes up I mean it could go really in either direction but for someone out there who's willing to take on a little bit more risk for a slightly higher return on their money this could be a pretty decent option you also have quite a few other options out there like you have the Vanguard total bond market index after expenses are looking at about a two point nine percent annual return and this one is much less volatile but like I mentioned bonds can change in price just like investing in the stock market although for the most part they tend to be relatively stable it's just they could go down in price but nonetheless this could still be a really good option for anyone who wants to take a little bit of risk to get a slightly higher return well still also having access to your money immediately when you need it so there you go don't hold on to cash because you will lose money to inflation and instead use a high interest savings account a CD use Treasury bills or invest in a bond so that way you don't lose any money whatsoever to inflation while still having access to your money when you need it and all the options that I mentioned here are really easy to do and they'll take you under 10 minutes to go and set up and do so that's a small little price to pay to preserve your wealth and that way you will have more money left over anytime you make other investments like buying avocado toast before people start complaining because no joke in the last video I made about savings accounts I would have people in the comments getting very triggered and they would write but Graham why would you ever invest your money for 2% a year with when I could trade penny stocks and make 50% returns every single week just like I'm so burning 2.45 percent of your money is not about trying to get the highest return possible or trying to squeeze the most amount of value from each dollar as you possibly can for instance this strategy works perfectly if you're saving up a few years to buy a house or if you're saving up to make a larger investment or maybe with your emergency fund or anything like this and yes you know what I totally agree with this that about 2% of your return is going to be eaten away by inflation and that really only leaves you with like 0.2 to 0.45 percent return after everything is said and done but again this is more about preserving your wealth and not losing 2% per year because doing this and actually making a little money is a lot better than losing value every single year so with that said you guys thank you so much for watching I really appreciate it as always if you make it to the very end and you have it too already smash that like button make sure to do that now and also if you've not already subscribed yet just click the little subscribe button it takes you like a millisecond to go and do that and you know you enjoy videos like this I post three times per week also feel free to add me on the Instagram I post here pretty much daily so if you want to be a part of it there too feel free to add me there thank you again for watching and until next time