How do you get the highest our wise without all the risk? I mean the reality
is you and I, we would love to get a greater return on our investments. We
would love to make more money if it didn't mean all that extra risk. But does
it have to be there? My name is Kris Krohn and over the last 15 years, I've
learned how to get really, really high returns on my money without all the
added risks. Today, I'm going to share with you some of the most common
investments out there. I'm going to share with you some startling information on
the investments that you might think are good that aren't. And the ones that you
don't know about that you would crush it with. Check it out.
Today, I want to hold and crack open one of the biggest misperceptions out there
about ROI. If I want to make more money there must be more risk. And you know
what? That is often true. But if you think that that is truth, you'll miss out on
some of the best investments. I mean how did we become a people anyway that made
so many dumb decisions with our money? It's crazy to me.
I mean, think about it. We all go to college. We get career training and then
someone else writes our check and then we're told what we can or can't do with
that money. We're told where to put it and
who to give it to. And put it in this and put it in that. And we forfeit
all of our control. And I've always thought that that was dumb like, "Let me
hold on to my money and let me learn how to leverage it." Most of us don't have
that training that's why you're a subscriber on this channel because I'm
giving you that training so you can be the financial ninja and Jedi in your
life to make the life of your dreams. Let's talk about some of the most common
ROIs out there and how we balance it against the game of risk. Let's start
with some common understandings. First one is s&p, right? This is an index on the
new york stock exchange that takes the top 500 companies and says that if you
were to spread your money over the top 500, you're going to average 9% at the end
of the day on your money. Now, that's a very high. That's the highest
single-digit ROI that you can actually get. And in a moment, I'll show you how I
evaluate that. 401Ks, you're looking at more like an average
of 5%. An IRA can also be 5%. Annuities are between 3 and 4 percent. And before I get
into these next 2, let me tell you how I feel about these. Many times you
probably see me on camera if you're a subscriber here saying that I hate these
things. These things suck. But let me tell you more truthfully how I really feel
about them. The reason why I say I don't like them is not because they're
inherently bad it's because this is what people will do with most of their money.
And when you have all of your money earning single-digit ROIs, you can't
multiply your money in a working life enough to get where you want. Like this
is the math that has not told us. And some of you are like, "Kris, I've heard
you say that a million times." Is it getting in there? Because if it is,
you're going to change your behavior. So, you're start looking at the world different and
it starts with today's video on understanding ROI. Real estate I know how
real estate can absolutely give you a negative ROI all the way up to
consistently a 30% ROI. Now, my deals produced 25 to 30% pretty
religiously. But the fact is you could do real estate the wrong way and you could
lose money. Business. This one's going to kind of blow some your minds away. This
is anywhere from a negative ROI as in... Again, I lose everything up to... I want to
call this one believe it or not, realistically 1000% ROI. Now,
a thousand is a whole lot bigger than 30. And it doesn't mean that bigger
is best. The reality is that business has some of the greatest risks. If you find a
great business with an awesome margin and a great marketing plan and you learn
how to do it effectively, you know... Listen. Business... I think everyone should be an
entrepreneur. Everyone should have a side hustle. Everyone should be doing
something to further themselves more than a company is designed to. And so,
there's great risks though, right? You can lose everything, it can go downhill.
Businesses get lost every single day but there is upside. Remember, yes, high return
can equal high risk but that doesn't mean it's bad. Let me tell you what is
bad. Let me reframe risk. This is bad. Why? Because it's guaranteed to not be
enough. Like to look at your income. Average American makes 44
thousand dollars a year. You get yourself married or hooked up with someone else
and you have a combined income of $88,000 a year. And if you
guys are saving in the way most Americans do and popping in here... Dude, I
already know what your story of your life looks like by the time you're 50
years old, 60 years old and 70 years old. And I'm telling you, it's not enough
money by a long shot. So what makes this bad is the fact that it just doesn't
work. You've got to get outside. Now, real estate I can consistently do about
30%. Now, to some of you you're like, "Kris, I'm not a numbers guy. Like
I'm about to shut the video off. Will you say something I can understand?"
Listen. Rule of 72 says that if you take... If you want to know how long it takes to
double your money, that alone will help you become a freaking ninja. Pull out your
calculator and type in the number 72 ÷. And that's it. If you do that math over
and over again and say, "Well, what's 72 divided by 9?" It'll tell you how long
it takes to double your money. And I want you to get this. Like, right now, just
pulling up my calculator. I've done this in some recent videos because it's like
you've got to possess this knowledge. 72 divided by 9 equals 8. It means that I
can double my money in 8 years. How many working years do I really have?
Well, watch this one. My 401K. If I take 72 and I divide it by 5, its 14.4
years. Okay. So, if I work 40 years, I can only double my 401K 2 and
a half times. And by the way, that's why in your 60s, the average person has a
$172,000. The median is actually 62
thousand dollars. That's a pathetically small amount of money. That's like a year
of living. IRA, 5% is also going to be 14 years. An annuity at
4% gets really bad. If I do 72 divided by 4, 18 years.
Sucks. Not good. [Speaking foreign language] Real estate, 30%. 30, so 72
divided by 30. Oh! I double my money in 2 and a half
years. Hellooo! What about... What if it it's 20%?
72 divided by 20. 3.6 years. Hellooo! My goal is
to double my money every 5 years through real estate. And then of course,
in business, we don't have to calculate that. That's awesome. So, these are things
that I highly recommend that you run with. But more importantly, I want you to
be thinking. Think in terms of ROI. It's the ultimate equalizer. I want you
to ask. What am I thinking about doing with my money and what's the ROI? And
then do the rule of 72. 72 divided by the rate of return will tell you how long it
takes to double your money. And listen. If you're saying, "Kris, I like you dude.
You're freaking young. You figure it out young. Like, you've been financially free
for...." Like... Well let me see. Since that's 26 years old, I just turned 40. So,
I'm in my 15th year of being financially free. That means that I've
travelled to so much of the known world. It means that I'm sick and tired of cars
because I've driven all the nice fancy ones. Means that I've lived in beautiful
homes. But remove all the materialism. It means that I've had opportunity. Like
I'll tell you 2 of the coolest things I've ever done with money. The first one,
my parents decided... You know my dad's a German immigrant. And they decide to get
married and have 9 kids. And I'm number 4. And kids are expensive, right?
And my parents often thought about money. I knew as a kid that the coolest thing I
could do if I ever had money was to help take care of my parents. And now for
almost a decade, I've taken care of their housing living expenses sent them on
multiple trips and that has brought me so much joy. Because dude, my parents that
gave me life. They gave me everything. And they gave me a beautiful childhood.
Wasn't perfect. But the sacrifice that a parent gives to give child life and get
them set up in the world... Dude, compared to the animal kingdom where... I
had a litter of puppies, 3 months, they're out of the house, right? Like, it's
fast in the animal kingdom. You know, for us, 5 years from now still
pooping ourselves some of us. You know, it takes us a while like grow up. Parents make
a huge sacrifice. And so, you know be able to do that for my parents has been
super meaningful. Dude, the other one, you know a lot of parents are trying to set
money aside for their kids college. And I'm like, "Dude, you know what? College...
Maybe it'll still be relevant when my kids get to that age. I
really don't know." But here's what I do know: They're young and impressionable
now. They're in their formidable years. Youngest is 8, oldest is 13. I want to
invest in them now. So, we set up our own private school and we bring in a private
teacher and other teachers and and we're taking our children around the world.
We're doing some cool stuff like it's such a blessing and privilege for me
that I'm able to do that. It's so meaningful to me. You know, you learning
this base... These principles and then making different choices because of this
information is what leads (in my opinion) to a much better life financially. And
more money means more opportunity. And dude, who doesn't want more opportunity
to live the life on their terms the way that they want? It's freedom. Time freedom.
It can be emotional freedom. And basically freedom of choice.
Like today, I freaking got my black belt. Like I've been working on it for a
decade and this was like 2... I got one last test next month. But like... I did it. I
pour immense time and energy into that. And it's like, "Kris, why would you do
that? You could make so much more money if you were putting your time into
business." It's not about that. It's about fulfillment. It's about living a better
life. You know, a lot of people take money the wrong way. There's a lot of negative
beliefs and ideas around rich people and people with money and takes money to
make money. We've got all these weird notions. Reality is every one of you,
you should be striving to become your own financial genius. You should be
striving to be understanding the world of money in and out. Why? So, you can get
better at earning it and making it. And then better investing it. So, that you
can have more options. More options better life. You know, I also recognize
that we're in a world where we're looking for easier ways to make things
happen. And then the game of real estate, I will select and find people that watch
me on YouTube that want to partner with me. In the link below, you have a chance
to actually get my newest book. It's my track record on my last 4,000 homes. And
it's entirely free. It's a way for you to learn about what I'm up to and my track
record of success that I've had in the game of real estate. So, click the link
below. Get a copy of that book. It'll absolutely get you kind of geared up for
understanding more about this. And then talk to my team and ask them, what it
looks like to actually become one of my real estate partners. So, that we can turn
you into a real estate Jedi going out there and freaking crushing it. So, thank you
so much for watching today. Make sure that you slam that like button. It tells
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