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ACCOUNTANT EXPLAINS: The Optimal Order of Investing Your Money

Nischa 716 views

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Great video I am retired, having applied this thinking for three decades, as a consequence, I have more money than I can ever spend What I have lost is the financial clarity I had while building my wealth and this is something I am uncomfortable with A also recognize that Inheritance tax distorts my thinking, in that I focus too much on minimising my IHT liability, rather than living my best life and maximising the benefits to my decedents I feel this could be a great topic for a genuinely useful video
Comment from : @rayperkins8560

you always wear the same outfit
Comment from : @ToddlerKat

You explain step by step and exemplify things which are abstract for me as a non finance person helps massively! Thank you for the video
Comment from : @samiramammadova8662

1 high-risk gambling 2 low-risk gambling 3 aggressive investments 4 safe investments
Comment from : @chunkymilk

I think investors should always put their cash to work, especially In 2025, we'll start to see more market diversification I'm hoping to invest about $350k of my savings in stocks against next year Hope to make millions in 2025
Comment from : @Peterl4290

This is interesting advice if you're flying solo, I wonder if your advice or order would change if you factor in having a family?
Comment from : @danieljpowley

Fantastic piece of content for people who (like myself) are fairly illiterate when it comes to their personal finances Thank you
Comment from : @diogoatadini

You talk so fast slow down
Comment from : @coolbreeze8008

I don't agree with setting aside an "emergency fund" with 3-6 months of expenses prior to putting your money to work in the market Here's why: let's say you earn $60k a year after taxes And let's say that you're able to save 10 of your annual income To reach your goal of even 3 months of living expenses will take you 2-1/2 years; 6 months of living expenses will take you approximately 5 years to accumulate That's 2-1/2 to 5 years of missing out on potential 10, 15, or even 20 percent returns in the market Instead, imho, it's far wiser to invest that "emergency fund" into a brokerage account that allows for margin Invest the money into low beta stocks like utilities, consumer defensive, conservatively run banks, etc, That way you're getting some growth on your money And if something happens, you can borrow against your investment portfolio without selling your securities And unlike a credit card, with a margin account you don't have to start paying off the margin debt right away Margin debt is also usually only about 9 or 10 so far less expensive than a credit card Having 3 to 6 months of living expenses in a savings account earning 1 or 2 real return after inflation will take you a long time to accumulate, will provide you with next to no growth, and will cost you the opportunity to earn a greater rate of return in the market without really any added security than what a margin account would provide
Comment from : @chrisburnett9618

Interesting video I'm in my 50s and I'm more interested in investments that could set me up for retirement , I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?
Comment from : @NicholasBall130

Can you please do a video on systematic withdrawal plan for UK?brThis is something have seen in Indian mutual funds and curious how it may work out in UK please
Comment from : @chaitratilak7544

Realising that I live in a country that does not offer any tax advantages or saving or investing 🥲
Comment from : @kathrinkaefer

I came across your channel through this video—case studies are incredibly valuable, and I'm eager to see more in the future! Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments
Comment from : @AidenLiamf7q

i just sold a house and i want to invest around $200K now, is it a good time to buy stocks? I just want my money to keep outgrowing the inflation rate!
Comment from : @Veteran2002

What's the best strategy fora business owner?brbrThe pensions part is quite confusing for me
Comment from : @Biggiebohbie

what woule be the equivalent of an ISA or Roth IRA in other countries such as Germany?
Comment from : @17potterhead

This content is for education and entertainment purposes only Nischa does not provide tax or investment advice The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors Past performance is not indicative of future results All investing involves risk, including the possible loss of principal br GOOD ADVICE
Comment from : @davidjohn-xy1mm

You did a GREAT job prioritising my financial goals God bless you
Comment from : @samyafawz3695

Hi Nischa, I would like to know your thoughts and what would you do? I have a mortgage and my emergency fund is on offset account lowering the interest rate of my mortgage Would it be better to put my emergency fund into high yield savings account or keep it in my offset account? brbrPlease let me know your insightsbrbrI am from Australia brbrThank you in advance
Comment from : @dantaguinod5117

When you're talking about choosing to pay off the mortgage, is this primarily with regard to making overpayments? It sounds like you're choosing to pay less than what was originally agreed, which obviously does make financial sense if the mortgage rate is low and there are higher interest rate savings available (and also standard time value of money principles apply for similar reasons), but I don't think this is a very easy option to choose unless it is in the mortgage terms?
Comment from : @daemonk756890

8 is too low a threshold for "high interest debt" to justify paying this in priority to matched pension contributions The value of your contribution, plus the tax man's, plus your employers all of which would be expected to earn 8 would make that a much sounder financial play And nobody is paying only 8 on a credit card so what actual debt is this referring to? car finance taken out in a short window in 2023?? most consumer debt is either 4-8 or 12-20
Comment from : @TopHat_247

Hey, what would your advice be if your employer doesn't match your contribution of your pension?
Comment from : @_thehappyhomemaker_

Hey, I am unable to download your template for the budget Is it possible you can email it to me?
Comment from : @LakenAmberg

" I am the least Tech savvy person" Lets' see- professional lighting that makes her skin look so good, high tech camera, high tech sound system, excellent us of IT and media, in fact the best use of the latter I have ever seen I never watch investment videos but I can't stop watching her's I'm learning a lot here and I thought 'old dogs can't learn'
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Comment from : @ikramOzge

My work has a pension and 457b Wish they matched!
Comment from : @appleztooranges

Your videos are amazing Better off putting more into the pension beyond the match or more to the ISA ?
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Just generic content here
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Comment from : @YusufMehmet-fw6vg

Is emergency fund the same with sinking fund? Or is it the safety net fund? There are so many terms out there im getting confused
Comment from : @Yoyo-gf1jc

I decided to pay up my debt quicker before i launch my business
Comment from : @snenhlanhlamashile6398

In the UK, just remember that if this video matters to you, that legally binding yourself to a partner (marry) is effectively signing over half of all gains you make and your own efforts (time) - that applies to everything you’ve gained to date, including time before you knew your partner And you’ll be liable for half their debts By legally binding, you wholly pair as one for taking & sharing pluses and minuses
Comment from : @Scoupe400

Hi Nischa, I’ve been interested listening to your videos lately Just wondering if you have podcasts channel?
Comment from : @ivannahestacio7756

Do you recommend paying off student debt? (If in UK)
Comment from : @Kojofojo

Thank you so much for sharing your knowledge! I've been on the path to financial literacy for a little while now I'm finally going to stop procrastinating and make my money work for me and not the other way around Your guidance has definitely inspired me and boosted my confidence to do so Thank you so much again for your selfless servicebrbrDo you offer virtual consultations? Please let me know when you get a moment!
Comment from : @a1smith455

Safety net also includes having insurance for people staying at places without a government-backed comprehensive healthcare National healthcare in my country covers most things, however newer (more expensive) treatment options are not covered 6 months salary savings plus insurance definitely give a psychological benefit and avoid prematurely selling equities that you own for emergencies
Comment from : @ckwkta88

Mail not yet received even after submitting the data😶‍🌫️
Comment from : @sriraghavaperuri1086

Practical advice from an expert! Nischa's breakdown of the optimal order of investing money is invaluable for financial planning Can't wait to implement these strategies!
Comment from : @soscreativity

Eh?you want people to pay toward their student loan before paying extra on their mortgage? That's insaneI guess anybody can become an accountant nowadays🤷‍♂️😂
Comment from : @kw12784

10 anually and after inflation adjustment 8brYou lost me there You can't teach anyone anything about money when you don't understand simple math
Comment from : @Matty_Matty_Matty_Matty

Thanks
Comment from : @samsmusichub

Paying off a mortgage is another psychological thing most people will benefit from, even if it doesn't make financial sense Knowing you can't be homeless allows you to invest in higher risk, higher return ways that you'd never do otherwise
Comment from : @SeanArcherXXX

Thanks Nischa! Binge-watched most of your videos, very enlightening!
Comment from : @FlavioMuggianu

In the Philippines, we call the tax-advantage account either the SSS or the Pag-IBIG fund
Comment from : @singaporeancrab718

Love your videos You break it down in a way that anyone can understand Thank you so much! Already subscribed about a week or so ago
Comment from : @KarenCooley

What if your employer doesn't match the amount you put into your retirement fund? x
Comment from : @_thehappyhomemaker_

Does anybody know what is the tax advantaged account in Germany?
Comment from : @matskivm

This is brilliant! Thanks Nischa
Comment from : @j9_njoroge

Successful investing is hard work because it means disciplining your mind to do the opposite of human nature Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action Investing is 5 intellect and 95 temperament
Comment from : @deratibaszeibasze

Thank you, what category does Help to Buy come under UK ?
Comment from : @nls1809

man why is the system so complex and also you have to trust so many parties with your money
Comment from : @bafian

For the average investor, the stock market is the best tool for long-term wealth creation Still, many people can’t take advantage of it because they are trying to make quick money from the stock market I put about $200k into the market and held good positions
Comment from : @NoahAnderson3000

Did you skip monthly bills like rent?
Comment from : @percynelson7726

I would argue that a person should take the 401k match before paying off high interest debt That match is a 100 return on investment while the high interest debt is 30 annualized interest
Comment from : @CainBuckler

Thank you so much for tailoring your video to UK and US!
Comment from : @Chikou14219

This advice for saving 3-4 months emergency before investing is trash That is an opportunity cost right there Start investing immediately
Comment from : @ManoElMacho

bLaughs and cries in student loan debt/bbrbrI don't make enough to get rid of that
Comment from : @Spoonless_Plays

A Roth IRA is advantaged but it’s post tax contribution Might just want to say IRA or 401k and not specify Roth or Traditional
Comment from : @abetts123

Dave ramsey??
Comment from : @Skullmonkey456

I just found you and I'm gonna get right on this I have a one month savings but it's not in high yield bc I've been scared to move it since seeing some sites recommended were not FDIC insured I have the 401k match but have messed up on the past cashing them out in tough times I really want to get my shit together bc I don't want to die dirt poor and struggling to keep housing like my parents 😢
Comment from : @msKita43

401k cuts taxes at your marginal tax rate and therefore should be higher up on your last
Comment from : @z135210

these are the dave ramsy baby steps
Comment from : @omerblau2391

"if you have a credit card that is charging you 20 than, by paying off that debt you're making a guarantee return of 20 on that[]" brThat is wrong on so many levels miss
Comment from : @FZerbinatti931

Why no mention of AVCs or salary sacrifice?
Comment from : @TheCatkillz

I've been making overpayments on my mortgage, but knowing that I could be making 8 interest in a stocks and shares ISA completely blows the wisdom of doing so out of the water ! Just that one piece of information alone makes this video worth it's weight in gold!
Comment from : @richardmcgreary6368

Great video! Was particularly interesting about tax advantegeus accountbrAnd there is always point #0 for financial stability If you live close to a Russian border, move out to another country
Comment from : @IgorBagayev

HAHAHA when your largest expenditure per month is your morgage enlighten me how this changes your strategy And when 50 of ppl making over 100k per year are living paychecks to paycheck Seems a little out of touch Since In the graph It look like its your smallest expenditure dont feel thats typical anymore
Comment from : @dreadpirates_

you explain your ideas very clearly, thank you for a great video
Comment from : @anto_runs

The problem with workplace pensions is the shit they're invested inbrbrOpt out Open a SIPP DIY Learn
Comment from : @Noallegiance

I saved up a 12 month safety net plus an emergency fund Took a few years, but I got there I cannot express the peace of mind I feel from having that security - like a warm blanket around me 😊
Comment from : @Sonia-rn1zz

I LOVE how you get straight to the point ughgh such a relief fr so many people waste so much time the first few minutes
Comment from : @saverasavera3652

Beside strong accounting expierience , beauty is beyond compare
Comment from : @SGH-rt6ci

First of all i have to thank you in advance, your channel is so informative Im only starting out with my own finances and your channel will definitely help me in the future, your one of my favourite financial YouTubers I do have questions for this plan, whats the difference betweeen the small emergency fund and large emergency fund? Why not have one account thats an emergency fund? I am planning on opening more than one savings accounts for different purposes, one for emergencies and one for big financial goals like buying my first house or first car Should i open up another one for wants(mainly becuase i dont want my money sitting in a bank account) and another one for investing in myself things like skills i can learn etc? Also i am planning on opening an isa account, how much should go towards that and my other savings accounts? brbrbrCould you also make a video on pensions in the uk, and whats the earliest age to make contributions in one?
Comment from : @uhbhhhh5867

Given that a mortgage is cheaper than rent This is not correct I am literally only able to invest and save because I have a mortgage half the rent rate
Comment from : @CrazyRocks29

This is finally something logicall and reasonable Most others say to invest or buy gold, but that s really not helpful if you dont have saving nor anything to invest with You first need a stable basis NOW before thinking about 30y later
Comment from : @xristinarose2409