Stock Market vs Real Estate: Where Should Your Wealth be Allocated?

When it comes to wealth, is someone that has most of their wealth in the stock market better than someone with most of their wealth in real estate? Is the stock market a better investment than real estate?

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[OhhHellNoYouWont]

Stocks + Real Estate!
That’s how you do it.
Combination of both options is worth considering to reduce risk in your portfolio!

[emoney]

I'd much rather be 100% stocks than 100% real estate. You can still be very flexible, even with 100% stocks. Roth, tax-deferred, taxable. International, domestic. Large-cap, mid-cap, small-cap. Real estate, tech, helathcare, energy. It's also easy to buy $100 of stock, but not $100 of real estate.

[klunnikov]

I think investors should always put their cash to work, especially In 2024, 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 2024

[habbadabbado]

Stock and real estate are both good, although real estate is more involved. Real estate is more illiquid, requires a lot of baby sitting and has demands on auxiliary capital for taxes, insurance, marketing, etc. With that being said, depreciation is a strong advantage.

[alex]

Crazy renters, closing costs, maintenance, property management fees, vacancies, insurance, a loan, interest on the loan, taxes. Did I mention crazy renters? No thank you!

[stevedecker]

3:00 Brian says "boiling point" instead of "bowling point" and Bo smiles and glances at Rebie. I'm guessing they've had a conversation about his pronunciation?

Personally, I think "bowling point" has a certain amount of southern charm

[noone-umhk]

I do both, i invest in sp500 and i currently have 3 rentals. My goal is to have 5-10 rentals, and then just ride it out until retirement while buying stocks and letting the principal pay down and appreciation grow.

[Ryan-qoos]

I like stocks more because they are much more passive than real estate

[Dividendsmattertoo]

Stocks all the way for me but yes it’s best to own a 2 unit live in basement and rent the top floors and if you have a family home Goodluck but stocks pay growing dividends and appreciate and are diversified and they don’t bother you with late night calls that something is broken

[vjmjf]

In your net worth what blend works for stocks vs real estate?

[WinstonBoogie]

I don't agree with Brian. It looks good on paper? What does he mean by that? That you have a MASSIVE liability? That you can't sell it if you need the money for some reason? Where it may not appreciate? Tax write offs of a property yes because it's a business write off. If the area is for some reason becoming less livable through maybe increasing crime or whatever other reason. With stocks I don't have to worry about overhead. With dividends my taxes are at capital gains bracket rather than with rental income that is at the income tax bracket. With stocks it is true passive income unlike real estate. I want to purchase real estate but only to have a different asset class, but stocks I think are the better choice.

[anniealexander]

Real estate! You can get rent and appreciation.

[duneme]

It’s called Diversity!
Own Both!
If the Stock Market is Down pull what money you can (Rents) from Real Estate! Let the Stock Market Recover!
Get the idea?!!

[ATMOSK]

You can get leverage in stocks through derivatives. Not something I'd recommend for everyone, but the sophisticated investor probably does better with stocks then real estate.

[chaddsullo]

There isn’t liquidity in the stock market if the money in comparison is inside a retirement account

[pepeinno]

You are the best mathematical communicator I have ever seen, but still not completely breaking out of the silent and secretive mind adopted in mathametical exercise. It is vital to go completely naked and reveal the full process of the mind in approach and execution. Reveal the principles, the traps, and direction of travel out loud. The problem with maths is that it never reveal the fears, the concerns, is a silent work where you only see the tip of the iceberg. To fully transmit maths means having the full picture, the 'without the number' aspect.

[GeorgestraitStriat]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing below the $100k mark and in the first 2 months, my portfolio was reading $234, 800. Crazy right!, I decided to reinvest a huge percentage of my profit and it got more interesting.! For over a year we have been working together making consistent profit just bought my second home at the beginning of summer.

[alberts]

Nothing is better than free and clear real estate purchased in growth locations. Do not rent to tenants with bad credit history and you will survive.