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Did you know that the majority of Americans do not own any stocks? According to Tiktoker @bettyimages, more than 80% of the stocks in the US are owned by the wealthiest 10%. Fact-checked by the National Bureau of Economic Research & stock market expert Peter Ricchuiti, this is true – but experts say it may now be even higher.
Today on The Baller on a Budget podcast, Camilo Maldonado from The Finance Twins & I are discussing the world of stocks in a simplified way. For the longest time, investing education has been kept away from the working-class & middle-class, keeping them overworked, underpaid, & barely scraping by. The only way to become proficient in investing is to spend thousands on a high-dollar investing course or network with the elite.
Many believe that being successful in investing is only achievable for the wealthy, but that isn’t true. Camilo challenges this by encouraging the remaining 90% of US citizens to invest in stocks, which you can start with as little as $1. Like saving money, investing your money is a muscle that must be exercised often. The generations ahead will thank you for starting.
Camilo & I also dive into the socioeconomic impact of the stock market, how BIPOC are shut out from participating, why investing is the quickest vehicle to building wealth, & how, even in the midst of a global pandemic, we must start safeguarding our financial futures, now more than ever.
Camilo’s course “How to Start Investing” was designed for people like his mother, a working-class Colombian single mother, in mind. It covers everything you need to know to get started & is also priced at $179, which, compared to other investing courses, is far more accessible to the people who really need this info. The Baller on a Budget readers & listeners can get 25% off the course by using coupon code “BALLERS25” at checkout. Enroll here.
Camilo has 10 years of experience with the stock market, starting his 1st job on Wall Street as an investment banking analyst at the age of 22. He moved on to other finance jobs, including JP Morgan, Chief-of-Staff at Bonobos, & more. Using his experience on Wall Street, he started The Finance Twins with his twin brother, Francisco, where they offer free resources that make personal finance exciting & approachable.
In This Episode:
- Camilo Maldonado’s background (2:15)
- Investing to prepare for financial emergencies (6:09)
- The 1st basic step to start investing (7:26)
- The Finance Twin’s How to Start Investing Course (10:16)
- Why you should invest in stocks & bonds instead of other financial products (11:20)
- Why racial, class & gender divide are causes of wealth inequality (15:36)
- Should you use your COVID-19 stimulus check to invest? (20:59)
- Is it possible to invest in stocks & create systemic change? (28:24)
- Getting started with a 401k (32:31)
- Investment options for self-employed or non-401k employees (34:12)
- Is maxing out your investment portfolio important? (36:07)
- Stock portfolios vs. high-yield savings accounts (38:57)
- Camilo’s predictions for 2021’s economy & how it will affect our finances (40:25)
- Why you shouldn’t “time the stock market” (45:22)
- Why “striking big” in the stock market actually involves luck (48:45)
- Buying index funds, exchange-traded funds, & mutual funds vs. individual stocks (51:18)
Do you currently have a stock portfolio? Are you thinking of opening one up? Let’s chat in the comments! Don’t forget to follow me on Instagram and subscribe to my newsletter below for more money tips & tricks. If you liked this podcast episode, share it with someone you know and leave us a review on iTunes so new listeners can find this podcast too.