September 23, 2020

If you are starting to invest in your 40s, don’t be concerned that you are late (Tip #1). Watch this video to learn more. Everyone starts somewhere. Most of my students are between 35 to 65 years old. Earlier in life, you focus on building income and you career. Now you have achieved peak income, It’s time to start thinking about investing. For example, Mike is 40s years old American and he joined Investing Accelerator earlier this year. After learning one proven and profitable strategy, he made 111% from SWKS in 10 weeks. In this video, I have prepared 3 more tips for you to consider when you are investing in your 40s so that you can be wealthy in your 50s.

90% correct transcript

So in this video, we're going to talk about the four tips to help you invest when you're in your forties. So then you can be wealthy in your fifties. First tip. I just want to say you don't need to be too worried if you're late to the game. Now, everyone starts somewhere. And most of my students in investing accelerator are actually somewhere between 35 to 65 years old. And I even have a student that is 74 years old. And when you are in your forties, I think it is totally okay to start thinking about investing now and start taking some action. Because earlier in your career, you focus on developing your career, trying to get a promotion, have a family, have kids, and now you're finally saved up a good amount of capital. So then you can invest in the market and you shouldn't wait, wait, because the earlier you start, the more you can get compound interests in your favor.

So here is an example. In Investing Accelerator One of my students, his name is Mike, and he's a 40 year something old in America. And he started investing when he's around 45 plus. After he has gone through the program, he made 111% from SWKS in 10 weeks. And that is fairly important because at the age of 40 something, he mastered one single investing approach and that worked for him and it's proven, and he's able to immediately start making good investment decisions and get his capital to work for him instead of just sitting in a savings account. So you can see that it is never too late to start. And I think it is totally fine that right now you're 40 something years old to start investing today. Now the second tip is really to determine the kind of investor you want to be.

And the best way to understand that is to look at the return you're trying to get. And obviously this will be dictated on how much money do you want to, how much money you plan to save up, or you can save up on a monthly basis. So then you can determine the kind of investor you want to be and how much effort you want to put in. Now, the first is really the typical kind of investor, which I suppose 90% of the population will be classified under is index fund or mutual fund investors. Now you are investing in mutual or ETF funds. Then chances are, you're getting somewhere between seven to 10% return. Now I have seen some people investing in mutual funds can get up to 12% return per year. But that is kind of sporadic and it happens some year. It doesn't happen in another year.

So I would say if you're investing in ETFs and mutual funds, you're getting around seven to 10% a year. Now, if you think about that for the next 10 years, you're getting somewhere around 7%, then chances are, you're going to double your money in 10 years. So if you work backwards and today you have a hundred dollars and you invest that in neutral fund in 10 years, you'll get $200,000. So then you can ask, well, is that enough for you to retire? And this is a calculation you must do in order for you to become a financial independence and potentially retiring. Now the second type of investor is slightly more active. You know, you put a little bit more effort in when you're researching, you try to pick a good company in the market and you were mainly investing using stocks. Now, if you're doing that, then chances are, you can get somewhere between 10 to 15% return a year.

So that is pretty good. You're beating the markets by a couple percentage points. And when you look at some of the most successful mutual funds in the markets, they can generally beat the markets by around three percentage points. So somewhere between 10 to 15% a year is what you'll be aiming for. Now, when you look forward for the next 10 years, with a 10 to 15% return, you're really looking to quadruple your account in 10 years. So that means if you put in a hundred thousand dollars today, you leave that alone. You invest, you actively manage your accounts and get 10 to 15% per year. You get $400,000 at the end of 10 years. Now, again, you can work backwards to see if that is enough for your retirement and be wealthy when you're 50 something years old. Now the third type of investor is we really leverage investing.

And that is where you aim for around 20 to 30% return. And I would say there's a higher amounts of risk, and there's also a higher amount of skill required if you're using leverage investing. Now, personally, I'm a leverage investor. And the leverage I use is called stock options is an advanced topic that a lot of investors don't know about. Another type of leverage investor is real estate investing. So when you're investing in a real estate, buying a property, you're going to the bank to get a mortgage, obviously, depending on the kind of vehicle or investing vehicle, you use mortgage or stock options or margin accounts. The amount of risk you're taking is different. And there are certain pros and cons associated with each of them. But if you're aiming for approximately 30% a year, that in 10 years, you will 10 times your account.

So that means if you invest in a hundred thousand dollars today, and for the next 10 years, you get 30% a year on average, then you'll have a million by the end of 10 years. And you can see from what I just told you, investing is really a longterm activity. You're not just thinking about today. You're not thinking about tomorrow or 30 days from now. You're really thinking about 10 years. So when you're in your forties and you want to invest and retire in your fifties or become wealthy in your fifties, then you really need to look at what is your longterm objective. So earlier I shared a case study with you for Mike, where he made 110% from SWKS. Now you might think that is an outlier. So here is another case study from Mike. So he made 39% from three M in three and a half months.

So that is fairly close to so that is fairly close to the targets of leverage investing, which is around 30% a year. So 49% from 3M in three and a half months, that is pretty good for using stock options in this case, which is what he learns in investing a celebrator. The third tip is to learn an investing strategy. Now, this might sound obvious to you. Well, duh, you got to learn an investing strategy. That's why you're on YouTube, watching, investing videos right now, it is very important to learn a single investing strategy. Because when you're Googling, when you're reading books, they often give you a lot of different strategies are not cohesive and not put together properly. So for example, if you go to and you go search for X strategies, you're going to find books that have 54 X strategies, 104 X strategies.

Like you don't need that many strategies. If something works, you just need one strategy and you need to know when to use it. And when not to use it. And as long as you know that, then you will be in a good shape. So when you're learning about investing, when you're following different mentors, what's important is that you follow one proven and profitable investing strategy. Now, oftentimes when you're learning a strategy, they don't tell you what kind of return you're supposed to expect. Like they just tell you, Oh, buy here, sell there. And it don't tell you what kind of return you should expect. And that's very important because in tip number two, I told you, you need to determine the kind of investor you want to be. Because if you're learning an investing strategy that only gives you a 5% return a year. Well, forget it.

You can just invest your money in an ETF fund. And it would just work just as well, if not better. So why bother going through the trouble of learning an investing strategy for 5% a year, if you can just invest in an ETF fund for seven to 10% a year. So you've got to think about that when you're learning a strategy, a lot of times they don't tell you what kind of return you can expect, because they will say it varies per person is different. It depends on how much risk you take so on and so forth. And you must know this number is the return you can expect. And if you don't know, then you can't really plan. And if you can't really plan, then you can't really be wealthy in your fifties. Right now, the fourth tip is to really start learning today.

You didn't start learning, investing in your thirties. You didn't start learning, investing in your twenties. And that is okay. Everyone starts somewhere. I have a student that started in her seventies. She mastered investing in a month, and then she made her first successful trade in four. You hear that case study sometime in the future. And what's important is that you start today and there are two paths you can take. The first path is you choose to learn by yourself without a mentor. Now, when I first started investing 12 years ago, that's what I did. I don't recommend it is very time consuming, especially in your forties because you're looking to get wealthy in your fifties. So you really need to get it right fast. If you do decide to learn by yourself, because some people like to, then you need to be prepared to boil the ocean.

And there's a lot of information on the internet. There are a lot of conflicting strategies on the internet. So you need to figure out what is true and what is not. You need to figure out what works and what doesn't, and you need to, we have some very efficient system for you to figure out what works and what doesn't. So for me, I use a simulator where I take 10 years of data and I programmed a strategy and a goat back and a test, a strategy in a very short amount of time. So normally, if you are using some sort of demo accounts to trade, it will take you at least three, six, 12 months to test your strategy. Okay? Depending on what kind of a timeframe you're using, if you learn programming, and if you have a similar, you can test the strategy in approximately one to two hours, so you can figure it out what works and what doesn't in one to two hours.

So that's really the bonus tip for you is to get some sort of simulator and a good data feed. So then you can run different strategies over and over again, because you're going to find a lot of not useful content on the internet that is not proven. And you don't know what kind of return you expect. Now, if you decide to choose a mentor, then that is great. And I think that is the right path to follow. And when you are learning from mentors or mentor, make sure you follow one mentor at a time. You don't want to follow five to 10 mentors because everyone has a different strategy. So for example, my strategy is all about longterm investing. My strategy is all about leverage investing, but you might learn from somebody that is focused on short term investing without using options. Just looking at penny stocks, that's actually very common and you don't want to be learning from two mentors at the same time, because that's going to confuse you because in order to execute at investing strategy successfully, you need to have the right mindsets.

And from my experience, it's really hard to hold on to two opposing mindsets at the same time and be successful with it. And let me explain. So let's say you're learning from someone that is day trader and he invests in penny stocks and day trade stuff, fairly straightforward. And you also learn from me who is a longterm investor. And on average, I only invest five to seven times a year and I use stock options. So here you can see that there are two extremes, two different coaches, two different mentors you can follow. And if you try to follow both at the same time, then that is actually gonna work against you instead of working in your favor. So for example, for the day trader that you're going to follow. You're probably going to spend somewhere between 30 to 40 hours in terms of following the market, the stock screening techniques are gonna use is going to be different. You're going to be a lot more on the edge. You're going to focus and basically be glued in front of your screen day in, day out. So that's what you should expect. If you follow a longterm investing approach. For example, myself, I spent about an hour a week on investing. So if you, you end up being glued in front of the computer and looking at the markets day in and day out, that is actually gonna work against you when using disinvesting approach. So if you apply to mindsets of a day trader to my investing strategy or vice versa, it's actually gonna work against you. And you're not going to be able to get the results you want. So if you are going to follow a strategy, then you got to make sure you only follow one strategy at a time until you prove that it doesn't work for you.

Now, obviously everyone is slightly different. Some people want to be a short term trader. Some people want to be longterm investor. It's up to you to decide who you want to be based on the amount of return you want to get. And that goes back to tip number two as a first step. Yes, you need to decide who you want to be. What kind of role attorney want to get. And from there, you need to find a mentor that can teach you when you find a mentor for investing. It generally doesn't take that much time. I have seen two day courses, free day courses, one day courses, those are more face to face. Once you go through the course, he asked some questions and that's it. There's no more continuous supports for investing a celebrator. Most people complete it in four weeks or so.

So I would consider my course takes more time than others. And generally my students spend around four hours a week to go through the learning materials. And once they finished the learning phase, then it's around an hour a week to manage their portfolio. So once you finish learning, if you're following an investing approach that as longterm, it should take you one to two hours a week. And if you end up spending like 10 hours a week, 20 hours a week on long time term investing, then it means that your strategy right now is not efficient. So there's an opportunity for you to become more efficient, save some time, and you can use it to spend with your family. Once you find a more efficient strategy, maybe there are certain parts you can automate. Maybe there are certain parts that you can change in terms of the sequence.

So then it will work better for you. So that's pretty much it. Those are the four tips to invest in your forties. So then you could be, you'd have become wealthy in your fifties. So I'll see you in the next video. And in the next video, I'm going to talk about about three steps to invest a hundred thousand dollars in your forties. So then you can tire by 55. So that's pretty exciting if you are interested in learning more about my investing strategy, remember to click, subscribe to this YouTube channel. And I do have a free webinar on my website, which is the very first link in the description. And if you click on that, then you can watch the free case study, where you can learn more about my investing strategy and how I make 30% a year as a leverage investor. Once you watch that webinar. And if you're interested in learning more, you can schedule calls me to see if you are a good fit for investing accelerator. And after I interview you and ask you some questions about investing, then I can help you get started. So that's pretty much it. And I'll see you in the next video. So thank you for watching and I hope you enjoyed the video. Please help support me by like subscribe and you can watch the next recommended video here as well. So I'll see you next time.

About the author 

Eric Seto

Eric Seto is an investor with over 10 years of experience. He travelled around the world to help with auditing, accounting, purchase and sale of companies.

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