WhiteBoard Finance

06/17/2024

Happy Father’s Day! 👧👧

05/21/2024

05/12/2024

Happy Mother’s Day to my beautiful wife, my mother, my mother in law, and all the mothers in our family! 👰🏻‍♀️👩🏻👩 We appreciate you very much and are grateful for everything you do!

03/04/2024

Remember your “why”.

02/26/2024

Interesting times 🤔🧐

11/17/2023

Today is the 6th anniversary of posting my first video on the WhiteBoard Finance YouTube channel.

In 6 years, WhiteBoard Finance has:

- 970,700 subscribers
- 303 videos
- 61,271,439 views

This was all done organically through high-value, long-form content. No shorts. No ad spend.

Thanks again to everyone who has tuned in and shared my content over the years!

11/30/2022

In today's video, I will teach you how to invest in a bear market. More specifically, how wealthy people invest during a bear market.

At the time of this email, the S&P 500 is down 17.6% year-to-date.

Just a few weeks prior to that it was down over 20%.

A bear market is usually defined as a stock market decline of 20% or more.

Since we were technically just in a bear market, I think that this video is an important one to make.

The reason is that new investors could easily get spooked seeing their $1,000 turn into $800, or their $10,000 turn into $8,000 since the beginning of the year.

If you're under 30 years old, you have never felt the pain of an extended bear market as an investor.

Yes we are technically in one, and yes we did have the crash from cerveza sickness in March of 2020, but none of you young bucks have truly seen a painful recession or prolonged bear market in your investing lifetimes.

As I've mentioned over the five years that I've been on YouTube...low interest rates, cheap debt, and unprecedented money printing have made everybody think that they are the love child of Warren Buffett and Peter Lynch.

Newsflash: you’re not.

A lot of you have learned a lot of bad investing habits over the past 14 years of easy money. What do I mean by this? I mean that a lot of you have forgotten to maintain a holistic overview of your financial health and perspective and have gotten used to “number goes up”.

Instead, you getting enticed by the next meme coin or meme stock that will 500x your portfolio overnight.

Investing is a get-rich slow game, and to play the long game, you need to have a strategy in place that you will stick to and not waver from every time market sentiment changes.

This video is going to boil down to essentially three things.

1. Big Picture Investing
2. Diversifying your portfolio with alternative Investments
3. Having a long-term plan and sticking to it

This sounds easy in practice, but not so easy when you see your net worth dropping by 30 to 50% like many did in 2008.

Watch the video until the end to learn more!

11/23/2022

In today's video, I will teach you how to pick the best credit card for you and your situation, based on your needs.

There are a few people that say credit cards are the devil and that you should stay away from them completely. However, for anyone with common sense and financial self-discipline, credit cards can be a great way to build your credit score and also get some rewards back for spending money on things you were going to buy anyway.

Here are 4 quick steps to make sure you're getting the best credit card for you.

Step 1 is to Check your credit score and understand where you are from a creditworthiness standpoint. Some credit cards will simply decline you just because of this, so it's important to understand where you're at before you even begin the process.

Step 2 is to understand why you're even getting a credit card in the first place. Are you trying to build your credit score? Are you trying to earn rewards? Typically credit cards fall into a few specific categories.

Step 3 is understanding what criteria to look for outside of just the interest rate, credit limit, and potential Rewards. Here are some critical questions that I would be asking before I signed up for any credit card. Watch the video to see what these questions are.

Step 4 isn't really about the credit card itself, but it's just about understanding what you're getting yourself into...

Watch the video until the end to learn more!

11/16/2022

In today's video, we're going to explore the topic of how much money you need to live off of dividends.

In my opinion, getting paid dividends from stock that you own is one of the purest forms of passive income.

I know that phrase gets thrown around way too much on YouTube and social media usually from gurus trying to sell you something, but dividends truly are passive income.

In today's video we will learn:
1. How to calculate the amount needed to live off of dividends
2. How to calculate dividend yield
3. Show some common real-world examples of how this can work for you

I will also touch on other dividend-related topics such as taxes, dividend reinvestment plans aka DRIP, and understanding how important it is to invest in companies that grow and don't cut their dividends year after year.

Stay tuned!

10/20/2022

In this video, I will teach you exactly how to buy Treasury Bills from both Charles Schwab and Treasury Direct.

A Treasury Bill aka T-Bill is a U.S. government debt obligation backed by the Treasury Department, with a maturity of one year or less.

U.S. Treasury securities are issued by the federal government and, because they're backed by the "full faith and credit" of the U.S. government, are considered to be among the safest investments you can make.

This means that the U.S. government is expected to repay its bondholders.

They’re also among the most liquid—or actively traded—investments in the world.

Stay tuned until the end of the video to learn how to buy using a brokerage and also via Treasury Direct.

10/03/2022

The USA is in a debt spiral. Federal Debt has cranked up to nearly 130% of GDP.

When you max out your credit card, you could either:
1. Pay it back with cash or
2. Take out another credit card, at a higher rate because your creditworthiness is now lower. (Your Debt to Income ratio is higher)

The United States Treasury has been choosing Option 2 for over 50 years now (through issuing new debt rather than practicing austerity).

The interest rate on that debt is rising fast…as US Treasury rates are rising across the curve.

It is growing TOO EXPENSIVE for the US Government to repay its debt obligations!

The United States government is in a debt spiral.

The interest expense on debt issued to pay down our $30 trillion deficit would EXCEED current tax revenue.

So, what now?

Option 1: Lower the number of reserves the bank must keep on hand to encourage lending and lower rates, or...

Option 2: Monetize the debt, i.e. printing money (pay back debt with cheaper dollars). Money printer go brrr?

This would entail directly injecting banks with reserves to encourage lending.

Direct fiscal stimulus to mailboxes, pushing dollars to become cheaper, thus making US government debt cheaper to pay down!

Instead of an explicit default on debt, this is an implicit default on debt, essentially passing off the debt burden to US citizens.

One caveat: This will not be on the table until CPI inflation is back down to normal, 2-3% levels.

Watch until the end of the video and click the like button if you haven't already!

09/26/2022

In this video, I'm going to teach you how to sell cash secured puts for passive income, in any market conditions.

Selling a put option allows an investor to potentially own the underlying security at both a future date (the option expiration date) and at a price lower than they would have paid for it at market price.

Selling cash secured puts immediately creates premium (income) to the seller, who keeps that money whether the put is exercised upon or not.

An investor who sells put options in securities that they want to hold long-term anyway benefits in two ways.

One way is that they collect the premium no matter what (if the contract is exercised or not).

The other way is that if the contract is exercised, they are receiving shares of a security that they wanted to hold anyway at a lower price than the market price at the time of writing the contract.

This video will show you exactly how to sell cash secured puts on the Charles Schwab platform, but you can do this with almost any other brokerage that allows options trading.

Watch until the end of the video and click the like button if you haven't already!

09/19/2022

Inflation Has Peaked For 2022. We can expect price inflation to slow down from here on out, but why exactly?

CPI - the consumer price index - is a basket of goods comprised of several different components.

The biggest mover of these components, energy, is rolling over.

Last month it accounted for the entire drop in CPI from 8.5% to 8.3%.

But it’s not just the energy component that’s falling. It’s food, commodities, and services.

Every single component in CPI is topping out and primed to roll over. How do we know this?

We can watch live price charts of every single component.

The Food & Agriculture Price Index has fallen from its peak.

Crude Oil has fallen from its peak.

The CRB Commodities Index has fallen from its peak.

With every component of the Consumer Price Index falling, CPI inflation has peaked for this economic cycle.

BUT - Disinflation means slowing inflation, prices don’t ‘decrease’ - just increase at a slower rate.

Central banks will actively fight deflation, and target 2% yearly price inflation.

Inflation is slowed for now, and we’re potentially moving into Stagflation (elevated inflation, slow/no growth).

What assets perform well during stagflation, and what can you allocate to NOW to prepare yourself for the next inflationary impulse?

Watch until the end of the video to find out!

09/13/2022

5 Simple Habits To Make You A Millionaire, without making your coffee at home.

1. Committing To Yourself

Having a vision and sticking to it is one of the most powerful mental frameworks you can set yourself in. Building your net worth is about building a castle brick by brick.

The exact plan can change along the way, but the unwavering commitment cannot: an intrinsic will, irrational optimism, and low-risk aversion are your best assets.

Discipline and good behavioral habits need to be established first, before you build your cash flows, and establish your wealth over time.

Bottom Line: Your habits, emotional control, and discipline are the foundation for building your net worth, so make them robust.

2. Increase Your Marketability

You need to build a skillset worthy of the life you want to lie. Marketable skills, line items, degrees, and accolades that will warrant the job, position, and salary you are aiming for.

A set of accomplishments, sought-after skills, accolades, and recognition, make you hirable, but they also make you worldly.

Raising your worldliness and toolbelt of abilities makes you not just employable, but self-employable too - maximum job security.

A multifaceted individual is worth their weight in gold.

Bottom Line: Use your discipline and vision to leverage resources at your disposal to build your overall skill set.

3. Build Your Cash Flows

Cash flowing assets, side-hustles, contract work, online businesses, YouTube channels.

Turn yourself into a productive asset, then turn your returns into productive assets.

“Passive income” is really quite active, and only comes after YOU make a concerted effort.

It starts as a 9-5 followed by a 5-9, but through effort, these assets will minimally impede your lifestyle.

Bottom Line: Leverage your marketability to build multiple streams of cash flows.

4. Structuring The Right Portfolio

Now, it’s time to put those cash flows to work. Investing is based on risk tolerance, age, time preference, urgency, and financial security.

Bottom Line: Invest your cash flows properly into vehicles that will store and appreciate your levels at different risk/return levels.

09/08/2022

In today's video, we'll talk about how to budget your paycheck so you know exactly what to do when you get paid.

One of the biggest takeaways from watching my channel is that you need to pay yourself first so your money works for you and not someone else.

One of the biggest mistakes that people make is not paying themselves first and before they know it, their entire paycheck has already gone to things other than themselves and building their wealth.

Watch until the end of the video for my thoughts!

08/23/2022

I had the please of speaking with arranged by my friend and Head Coach

We spoke about personal finance, investing, ways to increase your income, side hustles that can turn into full time incomes, money traps to avoid in your 20s, and my own 5 year journey on YouTube.

I was very impressed with this group of young men. They asked excellent questions and were very engaged.

Best of luck this season boys!

08/22/2022

The European energy crisis has begun.

As Europe gets closer to the cold winter months, its energy prices remain sky-high.

In this video we will focus on a few countries that are affected by this energy crisis, and how it got to this point.

Natural gas supply from Russia to Germany has been slashed by 80% for 4 weeks, with prices increasing by over 10x in 1 year!

The war going on in Ukraine exacerbated this problem, but this has been an ongoing issue even before the war started, going back to 2021.

46% of Germany's energy mix is comprised of renewable resources, however, they are still heavily dependent on Russian gas.

Unfriendly regulations towards fossil fuels, despite having a heavy reliance upon them, have caused Germany and other countries within the EU energy dependent on foreign imports.

Watch until the end of the video for my thoughts!

08/16/2022

In this video, I’m going to help you understand the Inflation Reduction Act, briefly explain what's in it, and touch on the Penn Wharton Budget Model and the conclusions that came from that.

As always stay until the end of the video for my thoughts and how to benefit from this.

What is it?

The Inflation Reduction Act of 2022 is designed to reduce the deficit and lower inflation while investing in domestic energy production and lowering healthcare drug costs.

In essence, the legislation is a scaled-down version of the Build Back Better Act proposed by the Biden administration in 2021.

According to Senate Democrats, the proposed legislation would raise $737 billion, require total investments of $437 billion, and result in a deficit reduction of more than $300+ billion.

I will break these numbers down a little later in the video.

According to the White House, the Inflation Reduction Act would make "the single largest investment in climate and energy in American history."

Spending is designed to lower energy costs, increase cleaner energy production, and reduce carbon emissions by 40% by 2030

Some say this is essentially just a climate Bill under a different name.

Watch the entire video to find out!

08/08/2022

DEFLATION is the general decline in prices for goods and services.

It usually occurs during a deep recession, when there is a sustained fall in demand and output.

Why do we think this is happening?

Because Commodity Prices Are Rolling Over.

The Bloomberg Commodity Index has peaked and fallen sharply.

Commodities are leading indicators of inflation and the state of the economic cycle.

Dr. Copper (insider lingo for Copper) is the bellwether for economic activity - it’s an input in so many end products.

A hawkish Fed and concerns of a slowdown in the global economy have pressured Copper prices to fall sharply since June.

Lumber prices have experienced a major landslide – a clear signal that cyclical activity is grinding to a halt.

Notice the sawtooth pattern of rises and falls in demand?

Gasoline Prices Are Declining Quickly.

One of the most popular gas-derived end products is falling in price - signaling demand destruction.

More deflation! Oil prices falling, that’s one slippery slope. (pun intended)

Treasuries Say The Fed Will Be Done Soon…

The 2-year Treasury yield represents the market’s expectation of the Fed Funds rate.

Every time the 2Y falls below Fed Funds Rate - the Fed’s hike cycle is over.

What Happens Next, And What Can You Do?

Watch the video until the end to find out!

08/01/2022

The housing market correction has begun, with more and more big price cuts coming.

Here’s how we know it’s coming, and what you can do to benefit.

Mortgage payments are skyrocketing.

The average 30y fixed-rate mortgage payment rose by more than 40% last year – this is unsustainable and unrealistic for the average American homeowner based on current prices.

Prices became too elevated – too quickly.

The Case-Shiller U.S. National Home Price Index is rising at the same pace as before the Great Financial Crisis. When prices are too elevated – too quickly, demand deteriorates.

Mortgages and home prices are both lagging indicators – usually about 18 months behind.

What leading indicators have been pointing towards this correction?

The National Association of Home Builders shows us that potential home buyers are disappearing rapidly.

Each time prospective buyers have dropped precipitously – home prices collapse the following year.

New Home Sales seem to peak 12-18 months before a major housing downturn.

Building Permits top-out shortly after New Home Sales – what do you notice today?

We seem to be topping out in permits, with sustained declines in reported levels over the last few months.

The icing on the cake.

More price drops on homes up for sale than any time since 2015 indicate a STRONG reversion to the mean for the housing market.

With all of these price cuts happening in the housing market – how can you position yourself to benefit?

Watch until the end of the video, of course :)

🔥 WBF University - Join My School Here:
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07/29/2022

Your thoughts?

07/25/2022

The $7 Trillion Chinese Mortgage Market Is Imploding.

Why does this matter, and how can you structure your portfolio?

It all started with Evergrande, China’s largest property developer.

Their series of debt troubles was the bellwether for a distressed housing market, and now the entire Chinese real estate market is on the brink of collapse.

Unfinished properties were sold en masse to Chinese buyers from now-defunct real estate developers.

$297 BILLION WORTH of these mortgages are being boycotted – with additional protests erupting across the country. This is 4.2% of the total Chinese Mortgage Market.

With Chinese real estate speculated to be the largest asset class in the world, the knock-on effects of a meltdown would have consequences for the global economy.

Deteriorating People's Bank of China (PBoC) liquidity slows world business activity.

Stay tuned and watch the entire video for all of the details!

07/23/2022

3 years ago when this came in the mail! How quickly time flies! ⏰

I’m blessed and grateful for the loyal fans that still watch my content. 🙏

I hope to keep providing value for many years to come! 💪

Thank you for the years of support and viewership.

07/18/2022

The 2022 recession is upon us.

Here’s how we know it’s approaching, and how YOU can prepare and profit.

A recession is defined as two consecutive quarters of negative GDP growth.

Q1 2022 saw a -1.6% contraction, but how do we know Q2 will likely also be a contraction?

There are some telltale signs.

The Atlanta Fed GDPNow tool predicts a -1.5% contraction for Q2 2022, but what data does it use to make this prediction?

The Atlanta Fed GDPNow model also mimics the methods used by the BEA to estimate real GDP growth.

The GDPNow forecast is constructed by aggregating statistical model forecasts of 13 subcomponents that comprise GDP.

Here are some other charts that support that the recession is here...

Small Business Optimism is the lowest EVER.

In the history of this index by the University of Michigan, respondents have never surveyed this negatively about their business outlook.

Manufacturing PMI is in a downtrend towards the recession midline.

Purchasing managers are also surveying quite poorly, signaling an economic contraction.

The 2-year 10-year Treasury Curve has inverted below a critical recession level.

Avoiding the technical jargon of why this happens - the 2-year 10-year Treasury yield curve inverting below the 30 basis point level precedes every major recession.

We’ve dropped and channeled below this level for some time now.

Growth expectations, represented by the 10Y Treasury Yield, are topping out - just like prior to every significant recession.

Unemployment is a lagging indicator that bottoms out before every major recession.

We’ve just bottomed out, at a level that has not been broken since the late 1960s.

The labor market is beginning to roll over in many headlines.

This is signaling to us that a major economic slowdown, maybe a recession, is right around the corner.

We know a major economic contraction is ahead.

So, how can YOU position yourself to not only defend yourself but also move offensively and potentially profit?

Watch the entire video and find out!

07/14/2022

The true rate of inflation is much higher than CPI, which was reported at 9.1%.

Consumer Price Inflation came in hot at 9.1% - past the 8.8% expectation, and it’s accelerating.

This is the highest CPI measure since 1981!

At least it’s not in the double digits, right?

At a rate of 9.1%, it only takes 7 years to slice your wealth IN HALF in regards to purchasing power. By year 50 at this rate, you’re left with the purchasing power equivalent of just $847.61.

It may not seem like a big number, but inflation is a HUGE stealth tax that most people don't even realize.

In this video, I uncover what the TRUE rate of inflation is, and it's much higher than 9.1%.

Please share this video.

07/13/2022

💶💵💪

07/13/2022

🙈🙉

07/12/2022

Bow before me, peasants.

07/11/2022

The Car Loan Bubble just popped, which is normally a BIG recession indicator.

Car repos are exploding which usually signals the start of a recession. This is a leading indicator, not a lagging indicator.

“Loan-to-value ratios, or the amount financed relative to the value of the vehicle, are around 140%, versus a more normal 80%”

There are $1.42 Trillion in auto loans, making it the 3rd largest consumer credit market in this country.

Average credit of borrowers has declined which is increasing the risk of default on these car loans.

46% of loans are underwater, meaning people owe more on the car than what it is actually worth.

New auto loans skyrocketed after multiple rounds of stimulus, which brought Q2 of 2021 up to $220 Billion worth of total originations.

There are three big factors to understand why the car loan bubble popped, which we will get into this video.

Thanks for watching and please share this video!

07/11/2022

The Car Loan Bubble Just Popped...watch until the end.

Full video will be out soon.👀