Hi Bull - At this point is it just advisable to go and buy a house and take a mortgage out in a high demand tax free state(Dallas, Nashville, Miami) vs continuing to Rent?
If you're handy, renting is almost always the less ideal option, particularly in inflationary times like these. I can do plumbing and electrical and flooring and general construction (normal male skills), so that drastically reduces cost of ownership. I recently took out a $550K mortgage for a house in TN, kept original $450K house in CA. Using a $500K (3% interest) SBA loan to invest in capital equipment and grow business. Mortgage for each house is $34K/year, but value of each home is appreciating $60K/year, and also have the novel value of providing shelter and studio space for my business. All this may sound indulgent, but this is my first year of investing...spent the last 10 building my business, skipping vacations, putting money back into my work, to the point where now my monthly revenue covers the year's mortgage...so having essentially 3 mortgages really isn't that crazy...especially when it's a good time to have debt. I had plenty of money in savings and could've paid down the mortgages, but instead I just put it all into computer coins, figuring BTC/ETH growth would outpace my 3% interest rates. I don't need 10x returns. I don't do all the fancy stuff y'all smarter folks do...I just need to do better than -4.5%. BTB is very much right about income being king...I didn't realize it when I was doing it, but building my business was the right move. If you can cover a mortgage with just 1 or 2 months' income, for sure wanna consider buying property in a free state before the normies snatch up all of it. No GPU on earth can mint new land.
Post request: Updated breakdown of various wallet options.
Could include security features of each option and ranking of specific options, How to utilize wallet options with various chains, Secure purchases/trading, breakdown by asset level when to utilize each option, Process of actually funding a wallet, etc.
And what do you think about real estate with locked in loan? We have a house we’re no longer living in with 30-year fixed at 2.5%. Have another house and plenty of btc. Don’t really want to rent it out, still visit the city at times. Considering selling it, but then I wonder what’s the point when the rate is so low and we love the house. Maybe would want to move back in the future. Would end up with a couple mil of profit after tax but wouldn’t dramatically change our life (family of 4).
That's how we're feeling right now. Even with 1.25% property tax, utilities, maintenance, etc on top of the 2.5%, it should still beat inflation. And my bitcoin doesn't have a swimming pool
"You don’t even need to believe in crypto to invest in it. Simply take a step back and look at how many users the industry has and ask yourself “Are users going to go up or down?” If you answered “up” then you’re forced to buy since the supply is capped."
- The supply of bitcoin is capped, the supply of crypto is potentially unlimited.
"Take a step back and ask yourself what the guiding principal was for every single good investment. It wasn’t “P/E ratio” it wasn’t “Value Investing" it was the following: will more people use this?"
- This is gold. So glad I grew out of my value investing phase after $AMZN and $TSLA performance forced me to reassess my priors rather than just dismiss those runs as irrational.
You mean just do enough to be average? Yeah once your progression/reward options are limited… seems like the thing to do. Like you grind a bit to get senior engineer at faang, making like 350k? Then just cruise for a couple years.
Infinite banking has been around for a long time -- often rebranded and repackaged, but essentially the same concept. DYOR. Like autist-level research. You're relying on an individual (insurance agent) who has no fiduciary obligation to structure a solution in your best interest. I would argue that it's an exercise in futility to estimate the prior of the actual/realized tax, liquidity, wealth transfer, etc. benefits of a whole life product used in the "be your own bank" concept. I would, however, wager that someone other than the policyholder is making a nice profit and encouraging/incentivizing high net worth influencers to tout its benefits. Call me skeptical; then again, I've never seen this actually provide a tangible net benefit in practice. Now, when you say family trust, I'm assuming you're talking about an ILIT, which would lead me to believe you have some estate planning challenges (read: size/taxes) to overcome. That may be a different discussion altogether... or if you were a business owner looking at a split dollar solution for key man insurance, then the policy may serve multiple purposes at the business and individual levels.
Thanks for linking Google's 10k. I've never really taken a look at a document like that, so that was interesting. Is there a way to estimate how much of that was profit?
Fixed low interest rates are a strange beast to me. How is it that even if inflation spikes up there is no mark-to-market on the rates for 30 years. Who subsidizes this? I mean if inflation stays high for the next 10 years, someone is taking the L between market-related interest rates and the 2-3% borrowing fixed rate. Is the subsidy from the taxpayer since banks blow up if market rates and inflation stay higher from here?
Housing, yes the taxpayer subsidizes it - in the US at least, as 30-year fixed interest rates are almost unheard of in the rest of the world.
For other industries, a lot of retail will just blindly buy bonds, including negative-real-rate corporate debt, because "they are less risky" or "gotta have that 60/40 allocation". Pension funds, insurance, etc. also will rebalance into bonds, even negative rates, in order to manage cashflow needs. More liabilities (i.e. retirees) means more demand for bonds, lower rates.
Agreed. But that is a disaster waiting to happen for pension funds. Seeing what happens in Europe, Japan (and US to follow) with ageing demographic, lower tax generation from young folks and negative real rates. How do you balance liability cashflows with negative bonds... you move into shi77ier bonds that still pay. Eventually that party will stop.
Either the pensions default, the taxpayer bails out the zombie bonds/banks with higher taxes, or you have war.
I guess the low fixed rates can't last forever especially now that inflation is here? Exit for something like Degen island indeed.
Interesting that the Fed chairman literally came out and said
"I mean, for people who are economically well off, inflation isn’t good. It’s bad. High inflation is, is bad, but they’re going to be able to continue to eat and keep their homes and drive their cars and things like that"
January 26, 2022 Chair Powell’s Press Conference FINAL
Page 21 of 28
Surely the Fed chairman Mr Powell wouldn't just like to us like that would he ??? /s
Honestly they are so fucked up it is unbelievable.
For newbie (me) - if something is multisig in L2 - is there risk for the admins who can add/remove nodes etc to impact the space? Idk if I’m saying this right. I understand why this would not be financially beneficial I’m just thinking of ways parts of this space can be controlled.
It varies among the L2s, but usually the most that can be done by attacking L2 nodes is freeze funds, usually for a limited time. The state reverts to some state that is recorded on ethereum L1. That's a very general high level statement and each L2 has different caveats. We're really early, L2s are really beta, and even different implementations of a given strategy (e.g. Optimism vs. Arbitrum) vary on the specific guarantees.
The Canadian mess has trouble makers from America sticking their noses where it does not belong,those same folks said the black folks should not protest ignorant racist cops bs and the folks who let them slide
It wasn't the issue with the protest, it was more of burning the city and business's down. Also hypocritical that the left wanted lockdowns to stop the spread but protests were fine.
No city got burned down plus they caught right wing trouble makers out there doing damage to discredit the protests,those folks know how racist folks are in America plus you think those business owners will not torch their own business? Do not be naive
I was in a large US metro watching people loot, burn businesses and cars. I’ll even argue that what was on TV wasn’t even as bad as what I witnessed. It hasn’t recovered since.
Businesses boarded up, less activity, graffiti, crime.
Nobody said anything about burning cities to the ground but let me tell you these protests were not peaceful - I’ll give you this - a lot of the violence and property crime seemed to be pent up anger, crowd psychology, and opportunism.
My neighbor was taking his son to the hospital and had a group of protesters block his truck and throw rocks and other items at it.
But folks like you side with the racist ignorant cops who have been the root of every urban riot,again folks behind on car payments set car on fire blame protesters, same with business owners,
This post should be compulsory reading for 10 year olds and over
Hi Bull - At this point is it just advisable to go and buy a house and take a mortgage out in a high demand tax free state(Dallas, Nashville, Miami) vs continuing to Rent?
Wondering same, already live in one of these states thinking I should lever up and get some more property
If you're handy, renting is almost always the less ideal option, particularly in inflationary times like these. I can do plumbing and electrical and flooring and general construction (normal male skills), so that drastically reduces cost of ownership. I recently took out a $550K mortgage for a house in TN, kept original $450K house in CA. Using a $500K (3% interest) SBA loan to invest in capital equipment and grow business. Mortgage for each house is $34K/year, but value of each home is appreciating $60K/year, and also have the novel value of providing shelter and studio space for my business. All this may sound indulgent, but this is my first year of investing...spent the last 10 building my business, skipping vacations, putting money back into my work, to the point where now my monthly revenue covers the year's mortgage...so having essentially 3 mortgages really isn't that crazy...especially when it's a good time to have debt. I had plenty of money in savings and could've paid down the mortgages, but instead I just put it all into computer coins, figuring BTC/ETH growth would outpace my 3% interest rates. I don't need 10x returns. I don't do all the fancy stuff y'all smarter folks do...I just need to do better than -4.5%. BTB is very much right about income being king...I didn't realize it when I was doing it, but building my business was the right move. If you can cover a mortgage with just 1 or 2 months' income, for sure wanna consider buying property in a free state before the normies snatch up all of it. No GPU on earth can mint new land.
Post request: Updated breakdown of various wallet options.
Could include security features of each option and ranking of specific options, How to utilize wallet options with various chains, Secure purchases/trading, breakdown by asset level when to utilize each option, Process of actually funding a wallet, etc.
Expecting this in the PDF - requested it on Twitter, and got a bit of traction. Sth crazy like 8 likes
And what do you think about real estate with locked in loan? We have a house we’re no longer living in with 30-year fixed at 2.5%. Have another house and plenty of btc. Don’t really want to rent it out, still visit the city at times. Considering selling it, but then I wonder what’s the point when the rate is so low and we love the house. Maybe would want to move back in the future. Would end up with a couple mil of profit after tax but wouldn’t dramatically change our life (family of 4).
Always depends if your rate is that low you can keep it.
That's how we're feeling right now. Even with 1.25% property tax, utilities, maintenance, etc on top of the 2.5%, it should still beat inflation. And my bitcoin doesn't have a swimming pool
I'm staking LOOKS token at 200% APY and my bank just sent me an email proudly telling me they were increasing APY to 1.00%. Lol.
"You don’t even need to believe in crypto to invest in it. Simply take a step back and look at how many users the industry has and ask yourself “Are users going to go up or down?” If you answered “up” then you’re forced to buy since the supply is capped."
- The supply of bitcoin is capped, the supply of crypto is potentially unlimited.
"Take a step back and ask yourself what the guiding principal was for every single good investment. It wasn’t “P/E ratio” it wasn’t “Value Investing" it was the following: will more people use this?"
- This is gold. So glad I grew out of my value investing phase after $AMZN and $TSLA performance forced me to reassess my priors rather than just dismiss those runs as irrational.
lmao autist note works in tech as well -- 80/20 rule applies for even FAANG
join the 80 portion for best $:wlb ratio and work on outside career income
You mean just do enough to be average? Yeah once your progression/reward options are limited… seems like the thing to do. Like you grind a bit to get senior engineer at faang, making like 350k? Then just cruise for a couple years.
you have the right idea, it's exponentially harder to go from 350k to 450k than 150k to 250k
strategically "cruise" to build up other income streams
Besides crypto, I'm looking at overfunded whole life insurance which would go in a family trust
Do you recommend it?
It looks like average return is low (4%-6%), but it's liquid, has tax benefits and seems like a good way to pass wealth onto heirs.
I'm seeing more and more high net worth people recommend overfunded whole life as a way to "be your own bank"
Infinite banking has been around for a long time -- often rebranded and repackaged, but essentially the same concept. DYOR. Like autist-level research. You're relying on an individual (insurance agent) who has no fiduciary obligation to structure a solution in your best interest. I would argue that it's an exercise in futility to estimate the prior of the actual/realized tax, liquidity, wealth transfer, etc. benefits of a whole life product used in the "be your own bank" concept. I would, however, wager that someone other than the policyholder is making a nice profit and encouraging/incentivizing high net worth influencers to tout its benefits. Call me skeptical; then again, I've never seen this actually provide a tangible net benefit in practice. Now, when you say family trust, I'm assuming you're talking about an ILIT, which would lead me to believe you have some estate planning challenges (read: size/taxes) to overcome. That may be a different discussion altogether... or if you were a business owner looking at a split dollar solution for key man insurance, then the policy may serve multiple purposes at the business and individual levels.
tl;dr: Autist-level DYOR required.
Seems interesting to me also. I'd like to see the BTB opinion on this as I haven't come across it yet.
Thanks for linking Google's 10k. I've never really taken a look at a document like that, so that was interesting. Is there a way to estimate how much of that was profit?
Fixed low interest rates are a strange beast to me. How is it that even if inflation spikes up there is no mark-to-market on the rates for 30 years. Who subsidizes this? I mean if inflation stays high for the next 10 years, someone is taking the L between market-related interest rates and the 2-3% borrowing fixed rate. Is the subsidy from the taxpayer since banks blow up if market rates and inflation stay higher from here?
Housing, yes the taxpayer subsidizes it - in the US at least, as 30-year fixed interest rates are almost unheard of in the rest of the world.
For other industries, a lot of retail will just blindly buy bonds, including negative-real-rate corporate debt, because "they are less risky" or "gotta have that 60/40 allocation". Pension funds, insurance, etc. also will rebalance into bonds, even negative rates, in order to manage cashflow needs. More liabilities (i.e. retirees) means more demand for bonds, lower rates.
Agreed. But that is a disaster waiting to happen for pension funds. Seeing what happens in Europe, Japan (and US to follow) with ageing demographic, lower tax generation from young folks and negative real rates. How do you balance liability cashflows with negative bonds... you move into shi77ier bonds that still pay. Eventually that party will stop.
Either the pensions default, the taxpayer bails out the zombie bonds/banks with higher taxes, or you have war.
I guess the low fixed rates can't last forever especially now that inflation is here? Exit for something like Degen island indeed.
Interesting that the Fed chairman literally came out and said
"I mean, for people who are economically well off, inflation isn’t good. It’s bad. High inflation is, is bad, but they’re going to be able to continue to eat and keep their homes and drive their cars and things like that"
January 26, 2022 Chair Powell’s Press Conference FINAL
Page 21 of 28
Surely the Fed chairman Mr Powell wouldn't just like to us like that would he ??? /s
Honestly they are so fucked up it is unbelievable.
For newbie (me) - if something is multisig in L2 - is there risk for the admins who can add/remove nodes etc to impact the space? Idk if I’m saying this right. I understand why this would not be financially beneficial I’m just thinking of ways parts of this space can be controlled.
It varies among the L2s, but usually the most that can be done by attacking L2 nodes is freeze funds, usually for a limited time. The state reverts to some state that is recorded on ethereum L1. That's a very general high level statement and each L2 has different caveats. We're really early, L2s are really beta, and even different implementations of a given strategy (e.g. Optimism vs. Arbitrum) vary on the specific guarantees.
Thank you
I was specifically thinking of chain link.
Chainlink is not an L2.
Thank you
The Canadian mess has trouble makers from America sticking their noses where it does not belong,those same folks said the black folks should not protest ignorant racist cops bs and the folks who let them slide
😂 😂😂 Canadians getting what they deserve, all downhill from here
what did we do?? :(
How? america has done way more jacked up mess than Canada
It wasn't the issue with the protest, it was more of burning the city and business's down. Also hypocritical that the left wanted lockdowns to stop the spread but protests were fine.
No city got burned down plus they caught right wing trouble makers out there doing damage to discredit the protests,those folks know how racist folks are in America plus you think those business owners will not torch their own business? Do not be naive
I was there. You don’t know what you’re talking about.
Where? What city got burned to the ground?
I was in a large US metro watching people loot, burn businesses and cars. I’ll even argue that what was on TV wasn’t even as bad as what I witnessed. It hasn’t recovered since.
Businesses boarded up, less activity, graffiti, crime.
Nobody said anything about burning cities to the ground but let me tell you these protests were not peaceful - I’ll give you this - a lot of the violence and property crime seemed to be pent up anger, crowd psychology, and opportunism.
My neighbor was taking his son to the hospital and had a group of protesters block his truck and throw rocks and other items at it.
Ok man we had a good debate haha
But folks like you side with the racist ignorant cops who have been the root of every urban riot,again folks behind on car payments set car on fire blame protesters, same with business owners,
I need to work on smile, nod and agree obviously.