Buying Legos is Better Than a 401K

Legos outperforming the stock market? Are
you kidding me? Dude, check this out. The 2007 millennial
Falcon was selling for like 400 bucks. And now is selling for over $4,000? Like,
no joke. Today’s video, you know that I (Kris Krohn) am all about ROI and I
compare 401Ks and stock market and different stocks to real estate
investment. And today, I want to talk about Legos and crazy phenomenon that’s
happening. And whether may be or not there’s another reason why you shouldn’t
be involved in a 401k IRA or even the stock market. So, Russia’s higher School of Economics
did the study on Lego starting in 1987 all the way to 2015. And they showed that
investing literally in these Lego kits produce an average return of 11%
a year. Like what a crazy insane world we live in. I mean you look at something
like Legos and I’m here on my channel… If you’re a subscriber, you know I’m always
talking about how much I love real estate because I love double-digit ROI.
And I hate single-digit ROI. If it’s single-digit, it’s broken if that’s your
core strategy. Because single digits can’t multiply enough in a 40 year
working life to get you where you need to go. Real estate, if it’s producing 25%,
30%, 35%; that can flip itself so many times that in a short period of time, you
can actually be financially free. So, yes. Today’s video is a little bit of a joke.
And yet there’s something to this Lego phenomenon. So, let’s get real with each
other. Like I want to break this down for you. Because I want to make sure that you
really understand what we’re talking about here. In life, if you’re going to be
saving a percentage of your income –10, 15, 20 percent. I always think you need to save 20% of every check. And when your investments start capturing up, you got
to be able to get that to a 40%. If you do that, then ultimately your investments
can produce investments. And that’s when you get the snowball effect that just
gets so crazy, so big, so fast. If you’re out there P-Y-F-ing, paying yourself
first, what you’re doing is you’re saving money. And let’s talk about the Legos.
Literally, if you went and bought Lego strategically an average in 11% ROI, you
would actually be outperforming the stock market. You would be outperforming
the S & P 500. An average of the top 500 companies on the New York stock exchange.
Like how freaking wild is that? That’s crazy. Thank You Legos. And yet, as
ridiculous it is, every one of us needs to learn how to become our own certain
level of financial ninja Jedi. Like, you need to be the financial planner in your
life not these other people that are saying single-digit IRA, 401K, stock
market kind of stuff. So, even though it might be Legos as reduce as that sounds,
I’m interested in anything that realistically implausibly can actually
get me financially where I need to go. I want to talk to you for just a moment
about the rule of 72. Here’s what this rule means: If I take this number 72 and
I divide it by the return on investment, in this case, it’s 11%. It’ll tell me
how long it takes for me to double my money. In this case… Shoot! Let’s just do
it, right? I mean, if I take my calculator here, I want to show you a simple it is. I
take 72 and then I divide it by 11, I’m going to double my money. On and they goes in
6.5 years. If you’re getting a 4 or 5 percent return… Like… By the way,
pretty standard in 401K, IRA land. If you’re earning like 5%, I go 72
divided by 5, it’s 14.4 years. It takes more than twice as long
to double your money in traditional investments than Legos. Now, am I saying
that you should go out and like all the sudden start buying tons of Legos? Well,
actually I might be. That’s how much I hate some of these single-digit ROI
investments. But what I would say is, it’s an opportunity for us to wake up and say,
“Let’s get more intelligent.” if it can be that dumb that’s simple. That’s why I’ve
got myself into the game of real estate. My average deal produces a 25% ROI. And I do a deal just about every single day. Let’s see what that
does on the rule of 72. If I take the number of 72 and divide it by 25, it’s
2.88. That means in less than 3 years, I can actually double
my money. Now, by the way, for those of you that have a job that you may not like
because a lot of us don’t like the jobs that we have, if it doesn’t bring you a
lot of joy, doesn’t ring you a lot of passion, you’ve got to be asking yourself…
By the way, especially if you don’t like your job. You need to be saving money,
number 1. And then number 2, you’ve got to be investing money. And higher
return can mean higher risk. So, you also need to learn how to mitigate a higher
ROI from risk. Real Estate’s my perfect medium where I feel like I’ve got way
less risk than most things that are out there but way more ROI than most things
out there. You need to be focusing on saving and you need to be focusing on
investing. And you know what? If you’re saying, “Kris, I don’t got a lot of money.”
I bet you have enough money for millennial Falcon.
I bet you got enough money to buy one of the most recent Lego toys that
are out there. And watch what that does. Because right now we have like a 30-year
track record showing this 11% gain. And if you don’t want to fill your house
with toys and you want to be more serious, then consider the game of real
estate where you’re not doubling your money every 6 and a half years but
3 years. We kick the trash out of 401Ks and IRAs. And if you’d actually
like to see a track record on my last 4,000 homes, it’s close to about a
billion dollars worth of real estate. There’s a link below where you can
actually… Like my team we’ll send you our track record on 4,000 homes. It’s a book
that will tell you my entire strategy of how I do it all day long and how you
can too. Rip me off. Rip off the strategy. That’s why I encourage everybody to do
is you find something that works and you haul and you run with it. So, get that and
if you want, my team will even reach out. You can opt-in for a free game plan
consultation to say, “Hey, if you’re serious about outperforming the stock
market, if you’re serious about outperforming Legos, then here’s what it
would look like and here’s how you do it.” Whether you have $40,000 to dump in a
property or whether you have $400 to dump in Legos. Or if you’ve got no money
at all. For me, there’s always a way to get in the game and basically cheat this
whole takes money to make money idea. And ultimately learn how to leverage your
time differently so that you can skyrocket. My journey for those of you if
you’re new to the channel, you’ll want to subscribe every day you get a video for
me on how to become financially free. My journey started with $8,000 in debt. Every month climbing deeper having a job that couldn’t pay
all the bills and affords colleges I was putting myself through. And that’s when I
discovered that I could get into real estate with little to no money. And I
could build massive wealth. So that by the time I was 26 years old, I was
financially free. Quit my job and then basically started living life on my
terms. didn’t take very long. When I look back
4 and a half years… Today, I could do it in half the time and I can show you
how to do the same. So, if you want to actually learn how to do that, click the
link below. Otherwise, I’ve got a video coming up next that we think that you’re
really going to love and enjoy. Check this out. And we’ll see you tomorrow’s video.

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19 thoughts on “Buying Legos is Better Than a 401K

  1. Oddly enuff video games are an investment too people are always sentimental about that stuff…vid games are ageless as we finding out

  2. Retail Arbitrage legos will always be in. can get 30% return on legos. 401ks depends on what you invest in. Opportunity cost my people!

  3. S&P does over 10%… this video is interesting, but "traditional" is significantly higher than the 5% he uses. Also, legos aren't "qualified"

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