5 Best Investments For 2021

Hey everyone, welcome back to the channel. My name is Nate. And in this video. I'm going to share five Investments that I'm holding for life and I haven't made a video like this in quite a while. I tend not to talk about too many personal Investments that I make but because the demand was there we thought let's make this video here today and share with you some of these Investments that I'm holding for life and maybe you want to consider as well. Now a couple of quick disclaimers here. I'm just a random guy on the internet. I'm not a financial advisor. So don't take this as advice just use it for

Entertainment purposes. I don't know. Okay, that doesn't matter and also I think we're going to hit a million subscribers sometime this week. So if you haven't subscribed already and you want to help push us over the edge, I would really appreciate that. Okay, so let's get started here with these different types of Investments. But I first want to preface this with some of the things that we take into consideration here when I think about Investments that I might want to hold for 20 or 30 or 40 years. One of them is the potential longevity of certain industries or companies. So what you're going to find.

That these five different types of Investments. It's probably going to be comprised mostly of different types of funds like exchange-traded funds or mutual funds will explain that in just a minute here and it's not so much speculative penny stocks or companies that I think are going to go to the moon tomorrow or something. It's more so companies that I see a lot of long-term growth potential with but of course, like I said, I'm not an advisor. Okay, I think we got that one cleared out. Alright, so the first one that I'm invested into that I'm probably gonna hold for a pretty long time..

NG time is the Vanguard Healthcare ETF. So the ticker for this is vht and there's a couple of reasons why I like investing into the healthcare industry. Now, I think some of these are pretty obvious like the fact that Healthcare is always going to be something pretty important to most people but also, you know thinking about different types of Industries. I think the healthcare industry has the best chance of surviving for a really long time, right? We think about the priorities in our lives Health Care is certainly up there..

Actually, like investing into healthcare companies more than say energy companies because I feel like there's less of this possibility of becoming totally decentralized with health care if that makes sense, for example, if I'm investing to in energy ETF or in energy fund that owns a lot of different types of energy stocks. Well, I don't really know where this is going in the future. I don't know how oil and gas companies are going to be looking in 20 or 30 years, but also it could be something that I could see being totally decentralized where people just.

have their own solar panels and there's no massive energy companies that are sort of making money off of this. So this is why I think that the healthcare industry really has a lot of growth potential for it. But also when I think about the Aging population not just of America, but of most of the world most of the world is getting older and if we look at one of the largest demographics, it's Baby Boomers in America turns out baby boomers have some money not to say that I want baby boomers to have bad health. Of course, that's not the point there, but my point is that.

As Baby Boomers get older. They also have a lot of money. They're going to be spending a lot of money on health care. They're going to be opening up their wallets and making sure that they are in good health, which is going to cost money whether it's physical therapy or different types of medicine. There's a lot of money in healthcare overall and I can see that Trend continuing in the future and another reason why I like the healthcare industry and something like this Vanguard Healthcare ETF is because it does offer a decent amount of stability because you know when you think about for example looking at.

Last year thinking about what happened with the recession and the economy Healthcare was still very prioritized on our list among everything else. And so some of these different companies that aren't within this Vanguard Healthcare fund. You probably recognize companies like Johnson & Johnson and Pfizer and Merck a lot of companies who made vaccines for covid but also, you know a number of different biotech companies and it's pretty made up of a lot of different companies rights. We have over 400 companies that are within this.

ETF and ETF is an exchange-traded fund. It's basically just a big basket of stocks. If you're not familiar with that. I was just doing a quick Google search, but let's look at a couple of different criteria within this Healthcare ETF. One of them being that the expense ratio is point one percent. So as 1/10 of 1% this is what I would consider to be a very low expense ratio. You always want to take these into consideration when you are looking at different types of funds or Investments that you are getting into. So with the one tenth of a percent.

Expense ratio. This means that if you had say $1,000 in this fund over the course of a year, you would probably be paying about one-tenth of a percent to Vanguard as their fee to basically make the fund for you and to manage the fund for you. So if you had a thousand dollars in that it would probably cost about $1 per year in order to run and operate that so it's pretty low. When I see expense ratios over half a percent or over one percent. That's when you start to think, you know, is this really worth it, but what point one percent is.

Relatively low, let's take a look at overall performance over the past ten years or so and we can see that it's done pretty well since 2004. It has performed quite well and just remember that, you know past performance does not mean future performance. Just make sure you don't see something and say oh, well this one up twenty percent. So it's going to go up 20 percent next year. That's really not how the stock market works, but overall. Yeah. I really like the Vanguard Healthcare ETF. I think has a lot of stability. It's something I'm personally invested into but please if.

You invest into it, please invest your own risk because stocks go down funds can go down don't think that you can't lose money. You certainly can but it's something that I'm going to be holding for probably a couple of decades. And also if you're wondering how to invest into some of these like Vanguard, for example, if you don't have a Vanguard account, that's okay because this is an ETF you can most likely by this through almost any brokerage firm that you might have even if you're not in the United States there are ways to get into this. So if you have Robin Hood or M1 Finance or a variety of different other types of brokerage,.

Arms or whatever app you might be using to buy and sell stocks. You can probably buy this Vanguard ETF through there and some of the other ones we mentioned as well. So just keep that in mind because sometimes we'll be talking about Vanguard funds or Schwab funds but you can probably find these on the market regardless of who actually puts that fund together. Alright, so that leads us into the second one that I wanted to discuss here, which is investing into real estate. But look, I don't really want to be a landlord. I figured this out for myself that you know, I don't want to be somebody who actually owns property..

Properties I don't want to have to deal with tenants. But also I don't want to have to deal with property managers if I buy a property and then somebody else is running it and taking care of it. There's still things that come up still things that I have to deal with. So I wanted to think about how I could get into real estate without actually having to own a physical property and this is when I looked into something like the Vanguard real estate ETF now you can get into wreaths this this Vanguard ETFs right? Here is the NQ. That's the ticker for it if you're.

Stayed in it, but I like having some exposure to real estate and there's a few reasons for this what is because real estate is very much a tangible asset meaning that something that I really worry about a lot in the economy, especially in today's world is inflation and I think about the possibility of having hyperinflation. I think about the fact that more than 22 percent of u.s. Dollars were printed in 2020. Basically what's happening right now in the economy is the government is saying hey, let's make more stimulus packages. It's.

gonna get us more approval right doesn't matter Democrats. Republicans doesn't really matter who you're looking at when the government's pumping out money and they say we're going to provide a one point nine trillion dollar stimulus package. Yeah. This is actually really much needed not to get too far into politics here. But yes, people need money people need help. A lot of people are struggling because of the pandemic, but the problem is that we're basically just saying, hey, let's do a one point nine trillion dollar stimulus package and let's just pull it out of thin air. We're not saying well, we need to balance the budget. We're not saying while to get this one point nine trillion..

Maybe we should maybe cut maybe defense spending or cut different types of spending within the government. We're not doing that at all. We're just saying let's just make more money. And so we're making more money and the concern that I have is that holding cash the US dollar if I just had a million dollars sitting in my bank account. I think in 10 years that's going to be worth a hell of a lot less. So I went off on a little bit of a tangent there but circling back here on how this affects you and me. This is why I like to invest in real estate or have some exposure to real estate because I know.

That real estate will probably keep up with inflation. I shouldn't say that as a fact, but I hope that it keeps up with inflation historically it has because we're not making any more land and then a lot more people coming out of this our everyday and so that's the reason why I like to invest into real estate a couple of different ways. You can do this for me. I just like to go for the Vanguard real estate ETF, but maybe you want to actually buy physical properties yourself and be a landlord. I have lots of friends who do that, especially good if you have some time on your hands too, and maybe you have a job, but you're looking for something..

On the side. This could be a great way or you can get into specific REITs. So REITs are real estate investment trusts and you could get into specific reads that focus more. So on specific areas, right? You could buy a Reit for a company that is specifically focuses on maybe apartments in Texas or apartments in California or New York apartments, right? And so you can invest into those specific companies as well if you think those are going to Boom or do really well long-term one thing..

I will caution you on is personally I'm not too bullish on Commercial Real Estate. I'm not really sure about where that's going to go in the future with Office Buildings and even with retail. So I try to focus on some type of residential real estate people always need a roof over their head. They always need a place to sleep. And so for me that provides some level of stability this Vanguard real estate ETF do does hold a number of different types of real estate. So they own residential they have a lot of different reasons within this ETF, but it gives you a broad sort of.

Of way to invest into something like that and the expense ratio on is point 1 2 percent. So also what I would consider to be a very low expense ratio, so the fees on it are pretty low. And once again, you can buy this on Robin Hood or anywhere else that you think about wanting to invest into it. Okay. So we talked about some of these different Vanguard funds. Let me switch it up a little bit and share the next one with you, which is a great way to get a lot of exposure to the Thousand largest companies in America that a publicly-traded which is the Schwab..

Thousand fund okay. So this is probably my favorite one and I think actually thinking about my portfolio. This is probably the largest one that I own. Once again. You don't need to have a Schwab account in order to invest into the Schwab 1000 Index Fund. But this is the 1000 largest US companies and you can see here that it covers approximately 90% or more of the total US Stock Market Cap. So I feel pretty safe being in something like this. Of course. There are times when this fund goes down, right?.

If you look at it back in March, it went down just like the rest of the stock market did back in March of 2020. So this is something that of course. I'm holding for a very long period of time let's just take a look at their top 10 Holdings within this fund its Apple Microsoft Amazon Facebook Tesla alphabet, which is essentially Google and all their Holdings Berkshire Hathaway, which is a company that Warren Buffett is is running and then Johnson and Johnson, which is obviously medical and then JPMorgan Chase so they do own or they are.

our kind of having hands in a lot of different types of companies throughout America, but this gives us an overall just kind of Broadway to invest into America into American companies, but let's say that maybe you don't have too much of a bullish feeling about American companies. Maybe you think that America is on the downfall and there's not a lot of growth left in America. I don't know. I'm sort of on the fence. I think there's still room for growth, but regardless, maybe you don't want to be so exposed to American companies. Sometimes I get that feeling and so more so lately. I've actually been.

Think outside of American investments in looking for someone's in emerging markets in different parts of the world. And so that's why the next one that I'm going to share with you is what is known as the Vanguard emerging Market ETF. So this the ticker for this is vwo and this is going to hold a lot of companies from different areas in the world like China Brazil Taiwan and South Africa. So a ton of different areas. This is what would be known as an.

Alors Global ETF and expense ratio on this is point one percent. So once again, very low, I like Vanguard funds as you probably know but let's take a look at some of the different Holdings that this ETF owns and so you might notice some of these companies and you might recognize them especially looking at their top 10 Holdings here like Ali Baba and maybe you recognize JD.com or Neo, which is the popular stock that a lot of people have been investing into so just looking at this right here you can see.

Probably a good amount of these are actually based in China, but there are other ones with in here as well. So this fund is comprised of 5048 different stocks. It's one of the largest most Diversified ETFs that I've seen out there most other ETFs that I'm investing into might have 400 companies or 500 companies, but this one has over 5,000 which is a lot which has both good and bad the good thing about a fund that holds 5,000 different companies. Is that maybe there's some companies.

He's within there that can really boom and really take off and beat the next Amazon and but the problem is there's also going to be kind of crap companies in there as well. That might be mixed in the bag. So this is why it gives us a lot of exposure but it gives us some level of stability historically though. You know, these Emerging Markets actually haven't been performing as well as some different us ETFs that I've seen in the past 10 or 15 years, but nonetheless, I still think that there's a lot of room for growth for the next couple of decades, especially.

In areas where maybe their GDP per capita is still one third of America's and they still have a lot of room to run to catch up to the GDP per capita in some of those countries. And so maybe their growth rate is a lot faster. Right? Look at a place like India, for example where the growth rate seems to be a lot faster with their GDP growth same for a lot of other areas within Asia and Africa as well. Their GDP growth can be a lot faster growing accelerating a lot more than maybe some more. I guess we could say developed countries like in America..

Or the United Kingdom where it's almost not been stagnating but not growing as quickly in some of those countries. Okay. So the last one that I want to mention here, it's going to be pretty brief because it's not my favorite but maybe for people who want to be a lot more risk-averse and they're worried about maybe valuations of certain companies. We have something like the Vanguard Total Bond Market ETF the ticket for this has b and d and as you can see, I'm kind of a fan of Vanguard funds. I don't buy them through Vanguard, but I still get the Vanguard funds..

This isn't my favorite, but I still want to include on this list because like I said, not everybody wants to be exposed so much to stocks and maybe they want something that's seen as traditionally safer than the stock market which is bonds now bonds have not been a favorite for most investors in the past couple of years. And this is because yields on these bonds have been pretty low. I mean, sometimes these yields can be below one percent. So it's really not that attractive, especially when I factor in the fact that you know, if you're getting a one percent yield.

On certain types of bonds, but they also have the risk of defaulting on those loans. Is it really even worth that 1% When you average it out, especially when you get some of these different bond market ETFs when some of these companies fail and they can't pay then you end up losing money, right? You don't get your money back. Look what happened with Puerto Rico back. I forget what year that was when they defaulted on a lot of loans and so it happens. So don't just think that bonds are totally safe. It's one of the biggest misconceptions people have thinking that bonds are guaranteed..

That it's safer than stocks. It's not always safer. It depends on who's issuing this Bond, right? If it is it apple. Is it a company that is highly reputable or is it something you know, like some company that's a small cap company. They're a little bit risky because if they're issuing a bond the yield better be a lot higher than a company like apple or I think actually ExxonMobil has one of the highest credit ratings as well. But this actual Vanguard Total Bond Market ETF is comprised. Mostly actually of.

Government bonds, so this is probably just what I would say is like a kind of a safe bet if you want to spark some money in there, but you're not going to really see a lot of growth in this. I mean, it's kind of almost fixed like your if you are getting a bond for a 2% yield, you know, you're not gonna be getting more into percent on that and kind of worst-case scenario you can end up losing a lot of that money. So I actually am not really sure why I include it in this video, but I think it's mostly because I know there's a lot of people who maybe are in their 50s who are watching this video and they want to play it safe because stock value.

Since are pretty lofty right now. Let me just show you the the other PE again just to show you that valuations are getting pretty crazy. A lot of people are buying on. Margin. You guys been hearing me talk about this a lot. Just be careful with investing in individual stocks. Especially penny stocks. Please don't just go and watch like Tic tocs and then dump your life savings into some random penny stock or some random nft or something else like that. So thanks for watching the video. I appreciate it. And if you found value in it, make sure you drop a like subscribe to the channel and let me know what video you want to see next if you like these..

Five different Investments that I'm personally am in and I'll see everybody in next week's video..