September 19, 2019

9 Investments That Made Higher Return Than Index Funds (+11% return)

– It’s no surprise. If you want to make real money, if you want to build wealth, you have to invest into the stock market. Most financial analyst
and experts would agree that the stock market has
averaged over 10% return since its beginning, since it opened. Even financial experts like Dave Ramsey claim that you can expect
to average 12% return by investing into quality mutual funds. Don’t get mad at me! I didn’t say 12%. Dave’s the one that said 12%. Even though many people know this, they still don’t invest
in the stock market. Primarily because they
don’t know how to start. They don’t know where to invest. So a lot of people, a lot of financial experts will recommend to buy an index fund. – Buy an index fund. – Put it in an index fund. – You should have some
money in that index fund. – Even some financial
YouTubers that I respect that I know that you watch also recommend the same advice: invest into index funds. – Invest in index funds. – Invest in what’s called an index fund. – I talked about this in a previous video about Warren Buffett and
how Warren built his wealth. Warren says, as I’ve already shared, he encourages everybody to
buy an index fund right now. But the truth is is that
Warren didn’t build his wealth buying index funds. The whole point of that video
that I wanted to drive home and I wanna drive home in this video is just to open your eyes to other ways that you can invest outside of the stock market. In fact, I wanna share
nine different things that I invested my money into that has made me more than index funds. And make sure you stick
around to number nine because number nine is something that I’ve never shared publicly. So find out what these nine
investments are right now. (upbeat pop music) What’s going on, y’all? Welcome back to the channel. This is Wealth Hacker Labs, a channel dedicated to teaching
you new ways to grow wealth that is not taught to you in
schools or by your parents. I am your gracious host, Jeff Rose. And what we are talking today is investing because I love to invest. I love to make money. Now, as we were talking about, a lot of financial
experts would recommend, would suggest to buy an index fund. Now, is this horrible advice? – [Machine Voice] No! No, N-O. No! – Absolutely not. Investing into index fund
is not a bad investment. In fact, if you are
investing into an index fund and it’s all you’re investing into, you are already far ahead of the curve because most people just don’t invest. So give yourself a golf clap. (claps hands) One of the most common index funds that majority of the
population invest into is the Vanguard S&P 500 Fund. This thing is so big. It has over $492 billion invested into it. I’ve shared previously how the stock market has averaged over 10% and how Dave Ramsey says
that you’ll make over 12% investing into high quality mutual funds. Well, the Vanguard S&P
500 Fund has averaged just over 11% since inception,
since this thing was created. So the nine investments that
I’m sharing with you today, they would’ve had to make me over 11%, and that’s why I’m excited
to share these investments because they’ve made me way more than 11%. Some have made me like two
billion percent, two gajillion, or maybe not that much,
but you get the point. Right, the first investment is my blog, So with that blog, with that investment, that was buying a domain, that was buying a WordPress theme, that was buying a logo and then
a pretty header for my site. All in, I think I invested
under 700 or maybe $800 at the beginning. But the whole point is
like I invested into it. I had talked to so many people that want to start a blog like mine. They wanna start a website. They wanna start an e-commerce store, and yet they don’t take any steps to do anything about it. You know, one of the simplest
things that you can do if you wanna start blog is buy the domain. Go to, buy
a domain, spend 10, $12, and least you’ve taken that first step. Because if I hadn’t have done
that many, many years ago, I wouldn’t have made the
millions, that’s what I said, millions that my blog has made me. And the reality nowadays is that you can buy a domain,
a theme, a hosting plan for under $200 to get going. If you don’t believe me, check out the link below. I’ll have a link to Bluehost. This is a popular hosting company that allows you to get a
domain and your hosting plan for dirt cheap. No more excuses. The second investment has
made me more than index funds are online courses. I’ve spent anywhere from 47, $97 a course on up to $3,500 for one course. That’s right, $3,500. On the lower side, one of the best courses
I’ve bought was $197. It was from Michelle,
Making Sense of Cents. She has a blog where she’s
making six figures per month and she made a course that shared how she made $50,000 a month from affiliate marketing. Her course, Making Sense of
Affiliate Marketing was $197, and it showed everything that she did to get to that point where she was making five, six figures a month from her blog. It was $197, and it was filled with tons
of helpful information. Now, right now, you’re
watching my YouTube channel, and YouTube is something that it took me a long time to figure out. But I didn’t figure it out on my own. I invested into courses
to help me understand how YouTube works, the
cameras, the lighting, everything that you
need to do to stand out from other content creators. On YouTube courses alone, I’ve invested over $6,097. Some of the best courses I bought were James Wedmore had a course. This was a very. I think one of the first
courses that I bought called Video Traffic Academy. And it outlined everything I needed to get started producing
videos for YouTube. From there, I bought a YouTube course by Brian Dean from Backlinko. He also has an awesome YouTube channel. It helped me when I reemerged
my channel couple years ago. Most recently, I bought a
YouTube course from Dan Lok. If you’re watching one of my videos, chances are you’ve watched
one of Dan’s videos because his YouTube channel has
exploded the last few years, and this guy’s doing somethin’ right, so I’m going to invest the
$2,500 or so into his course to just learn some of his trade secrets that I can apply to my YouTube channel. All right, the third investment that has made me over that
11% ROI is Facebook Ads. Now with Facebook Ads, my first introduction to running them was to promote my course, The Online Advisor Growth Formula, that is targeted to financial advisors that are trying to grow an
online marketing presence and also grow their business
through online marketing. So with that, I didn’t have
a lot of email addresses from financial advisors. So one of the ways I sought to reach them was through Facebook Ads. Now, at a time, I can’t remember exactly how much I was spending but it was anywhere from
25 to a $50 per day, trying to drive leads
to either a live webinar or a lead magnet that would
then get them on our email list so that we could promote
an upcoming webinar. What I do know is that
course went on to make me over $225,000, and with Facebook Ads, I didn’t spend but a fraction of that. What I do know is that for every dollar that we were spending, we were getting back two to $3 on return. Like it was just like printing money. If you have a product
that you want to market, you want to sell, you’ve got
to look into Facebook Ads. Two other guys that I featured
on the channel before, Mike and Bobby from Laptop Empires, actually have a course where they show you how to run Facebook Ads and how you can grow a Facebook Ad agency, trying to target small businesses that are doing like I was doing
and growing their business but using Facebook Ads primarily. So if you’re looking for a side hustle way to make good money, you should take a look at their course ’cause they will show you exactly, not just how to run a
successful Facebook Ad campaign, but also how do you find new clients, how do you find small businesses that you can market your services to. Right, the fourth investment is one that I’m a little
embarrassed to talk about because if you’ve been on
the channel for a while, this is an investment that I used to kinda badmouth a little bit. I used to say like it’s not just anything you should mess with. But all these people were saying like, oh you’ve gotta invest in these because you’re gonna miss out. You could’ve made so much money. You’re gonna retire when you’re like 17 because you’re gonna just, you’re gonna become a multi-millionaire. I had a lot of fun with
these people in the comments, just going back and forth, but this is something that
I finally put some money in when I started the Grow
Your Dough challenge where I was investing into
different investment platforms. So number four is cryptocurrency. Yes, cryptocurrency, yes. It has made me more
than the stock markets. It’s made me more than index funds. So I put $1,000 into a Coinbase account. I split it up between some Bitcoins, some Ethereum, some other cryptos. This is how much I don’t
know about cryptocurrency. But I do know is that the
thousand dollars I’ve put in has more than tripled, and
we’re not even a year into it. So it’s up over 300% return, which last time I
checked is more than 11%. So yes, I made more thus
far in cryptocurrency than in index funds. I’ve said it, right now. It is public. Can’t take it back now. All right, investment
number five, lucky five, is investing into my street
cred, into street cred, which I mean is my
professional designation, which is a certified financial planner. Most people just assume that I when became a
certified financial planner that my old company paid for that, like no, I paid for it. Paid for it out of my own pocket. And what people also didn’t know is that once you pass the CFP exam, which is the hardest test
I’ve taken in my life, people just assume that I got
a pay raise because of it, and that is entirely not true at all. False, not true, that is a lie. But what the CFP designation did do was that it gave me street cred. It’s just kinda like if
you’re going to an accountant, would you want to go to
a ordinary accountant or would you want to go to a CPA? Now, for me, I wanna go to a CPA because that just sounds
more important to me just like the CFP designation. Now, earlier on in my career, the CFP designation helped
me land more clients over some competitors that were not certified financial planners. Now, in the online space with my blog, the CFP has allowed me to
get featured into sites, such as CNBC, Forbes, Fox
Business, Business Insider, a slew of these major media sites that only wanna talk to
you if you are a CFP. There’s no question. I’ve got back all the
return on my investment of getting the CFP designation. I mean this thing has
opened up so many doors that otherwise wouldn’t have had I not gone to the effort
of taking that stupid test that I just don’t even
wanna think about anymore. So we’re moving on to number six. So number six is actually
investing into the stock market, we’re just not buying index funds. But what we are buying
are individual stocks. Now, most of my stock market investments are individual stocks. That’s just the way that I roll. I used to buy mutual funds. I still have some mutual funds, a few ETS, but a majority of what I own right now are on individual stocks. Now, I haven’t bought a lot of stocks. I don’t want to pretend like I’m a professional stock trader. Actually, it’s been a year since I have purchased my last stock. Some of the stocks I’ve invested over time are Under Armour, Facebook,
Visa, just to name a few. and I have purchased these in my Roth IRA. I’ve purchased these in my
joint account with my wife. And when I looked at the return
on these individual stocks. So in one account, I am double
what you’d expect to return on an index fund. The other account, I’m up almost triple. Now, do I make money on every
single stock investment? Absolutely not, but the ones that I
have picked the winners have made me more than the losers. And for me personally, I’m comfortable purchasing
individual stocks because I can stomach the risk whenever the stock market
goes into the crapper. Now, if you can’t handle that, then that’s why index funds
might be good for you. But for me, I like
buying individual stocks. Number seven is one that I
often have to kinda laugh about because it’s just something
that I would never, I just never imagined I would
spend this amount of money on this thing. So number seven is a website design, or I guess I should
say, a website redesign. So with my blog Good Financial Cents, I mentioned at the
beginning of this video, that the initial investment
was about 500, $600 that I spent on the domain,
a blog header, a logo, all that good stuff. Well, after growing the
blog for several years, it got to a point where
it needed a face lift. It needed something that was just fresh, that was modern looking, and at the time, my book, “Soldier of Finance”, was getting ready to come out. So I wanted a site that really represented who I felt I was at the time, so I met this website designer, and the quote that he
gave me was around $8,000 for a website redesign. Now keep in mind, that is a lot of money, and in fact, that is more money than both of my first two cars combined. Granted one was a 1998 Chevy Lumina. The other one was a Grand Am, but that’s a whole other story. But still, $8,000 for a website redesign. Like that just, was something
really, really hard to digest, but I knew it was something that I needed. And the cool thing was
after that design went live, I just remember all these
opportunities coming to me, whether it was because
of being found in Search or just the fact that I
had a site that looked like I was legit. So that design was live for several years, and it got to another
point, where guess what, I needed another website redesign. So on that website redesign,
it also was around $8,000. So we’re talking about $16,000
on just the look of a site. So yes, that is a lot of money, but the return on that investment,
as I mentioned earlier, the blog has made me millions. So investing $16,000 on
something that is returning that much more in return,
I mean, it’s just, it’s not even an issue. Wanna give a quick
shout out to Greg Wilnau from Wilnau Designs. Greg was the brain child
behind the second redesign on Good Financial Cents, and he’s also behind the
design on Wealth Hacker Labs. Check out Greg Wilnau at Wilnau Designs, so big shout out Greg. (sighs) All right, number eight is
something I’ve mentioned before and something that I’m a big believer in is investing into coaching or in this case, investing
into a business coach. This was about eight or nine years ago. I invested, I think it
was around seven or $8,000 in my first business coaching program, which was called The Strategic Coach. Now that was the most amount of money, I guess besides the website design, that I ever invested
into something that was not really tangible. Like it was coaching. It wasn’t anything I
could sink my teeth into. I couldn’t put it in a pretty
box and put a bow on it. I was just paying for somebody to tell me what to do and what not to do. That took a little getting used to. And for many, they just,
you just don’t get coaching. Like why would I invest into coaching? I’m already self-motivated. Like, I’m already energized. I got this. I don’t need a coach. So what is the ROI? So with the ROI on that
business coaching program, within three years, I more
than three X my revenues. When I joined that coaching program, I was making about $250,000,
and within three years, I more than tripled it. Now, seven years later,
I have more than 10X what I was making. Like that’s how much of an
impact, how much of an ROI that coaching has had on
my life and my business. So yeah, I’m kinda a believer in coaching. It is well worth the investment. All right, we’re to the last one. This is number nine. And number nine is the one that I shared at the beginning of this video. This is something I have
never shared publicly. I don’t really know why. Just something I guess I
never felt the need to share, but I’m sharing it now. So what is number nine? What is the investment that I made? Number nine was investing
into a ghost writer. That’s right. So I have a book called
“Soldier of Finance”. You can see the nice
pretty poster behind me. Do you see it? Do you see it? There it is. There it is. Right there. Now when most people hear ghost writer, they immediately conclude that
you didn’t write the book, it’s not your stories, it’s all made up, it’s not real life, and that
is furthest from the truth. And it took me a while
to truly understand that. So for me, I was already
working on the book. I was, I wanna say about 40% done, but I got to a point where I
just didn’t have the expertise, the ability to tie it all
together, and I was stuck. I must have been working on the book for like almost two years, and I feel like I wasn’t
making any progress. And I started talking to
other business entrepreneurs that I respected, and
everybody was saying, you need to hire a ghost writer. Somebody that’s going to help you take your thoughts, take your ideas, and put it into your book,
into your life story. So I was referred to a ghost writer and invested $8,000
into finishing my book. And when I had struggled
to finish this thing, like in two years, it was
within 90 days, so three months, the book was done. So how’d that look like? Like how did it work? What I did was, with this ghost writer, we would get on Skype and
we had, I think it was, like say, seven or eight calls, where we would talk for
about an hour and a half, maybe two hours, and he would just ask me a lot of questions about my story, my beliefs, my experience, and then he took all that, and he took what I already had and he finished the manuscript, where I finally had a book done. So once again, it took me
two years to get 40% done, and then three months, 90 days later, the book was complete
because I invested $8,000 into a ghost writer. And nowadays, there are
done-for-you services that will help you finish a
book and get it published. There’s a site called
scribewriters that will, I think you can pay anywhere
from $10,000 on up to $100,000 depending on what your goals
are, what your budget is, and whether you have a book
that you need to get it done. And I’m really grateful I
had the financial resources to invest the $8,000
into that ghost writer because if I hadn’t,
all I would’ve had then was a really, really good book idea, instead of having the published book. And being a published author,
just like the CFP designation, has once again opened up so many doors. Now you’re just not a
blogger or just a CFP, but you’re also a published author, and it’s still a big deal nowadays. So if you’re interested,
you’re thinkin’ about it, and you’re stuck, consider hiring and investing
into a ghost writer. So which of these nine
investments intrigues you the most on how you might be able to
invest your money or your time? Is it starting a blog? Is it investing into business coaching? Is it a ghost writer? There are so many different ways that you can accelerate your wealth, and that’s what we love talking
about here on the channel is hacking your wealth, how
do you build your wealth, how do you grow your
wealth exponentially faster than everybody else out there. Well the first thing that you do is that you invest into different things other than index funds. I hope these nine different options, these nine different things
that I’ve invested into has opened the door to other things that you can invest your money into to help accelerate your wealth. Until next time, this is
Jeff Rose reminding you that it’s your money,
your life, and all you can make it awesome. Peace. (explosion sound)

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