My autism would like for you to refer only to Treasury maturities of less than 1 year as Tbills and anything longer as either 'Treasury Notes' (typically used for 2-5y maturities) or 'Treasury Bonds' (typically used for 10-30y maturities). Thank you
A lot of people like to talk shit on investing in Bitcoin when they know nothing about it. They instead think it's prudent to invest in the S&P, make their 7% gains, just like everyone else.
It seems to me that the vast majority of people are just straight up pussies with next to zero level of risk tolerance. But what they don't seem to understand is that 7% is not going to cut it. Inflation is increasingly getting out of control and the percentages on the most essential things like housing and food is going to continue to outpace 7%
Personally, I think it's crazy to not be taking higher risk investments. You're going to need to be getting returns of >15% if you ever want to get ahead.
Getting ahead and protection are very different. 7% is probably fine for money you intend on using for food/gas etc. But if your goal is to increase purchasing power, 100% agree, no shot if they continue to print
Depends where you are in net worth. I own a home and have 7 figures of investments (stocks/bonds/real estate/crypto). I save more in a year than >99% of the population makes in pre-tax income. Not trying to brag but with S&P and bonds >5% alone I can cement my standing and make it impossible for most to catch up. For low net worths trying to come up I agree you probably need to take more risk.
I'd love to see opinion on investment allocation by liquid net worth. When do you start buying crypto? BTC seems both volatile and illiquid if you have it in a wallet, which to me means you invest only if you are hnwi. And then maybe not even then? I mean if you diverted $200k to put into it, it's not nothing, but it's also not exactly life changing if it doubles. A $1M investment on the other hand, well maybe. So maybe this is where the $7-8M net worth comes in? Or invest in BTC earlier?
Normally respond but you didn't read anything it says right there BTC is fully liquid you just send to exchange and sell so your entire comment is crazy talk
rough crowd. I admittedly don't know anything about crypto and should. (i know). You can buy an all about crypto training from jungle folks, and the fact that a "course" even exists suggests it would take some time to learn it all on your own, assuming you found reliable sources.
There's a reason people would buy a crypto EFT: it's because people like me know NO ONE personally invested in it but would like to get the foot in the door and an EFT it makes it easy. (not thinking that's how I'd buy it, but I understand where new demand may come from and make BTC and ETH boom- covered in prev BTB post). I also understand your point about crypto liquid vs illiquid based on volume. (obvious) Anyway, back to the point - If it's super easy to sell from a wallet and there's no risk there, ok, gotcha. Retract that then. Do you have thoughts on my questions?
you have valid points. Insane shit happens in crypto daily like sending to wrong address (lose it all, no arbitration, no one to sue, literally no recourse lol), hacks, kindnappings, violence, more. No, you can't easily sell in any wallet for the most part. Need an exchange.
I believe it should be at least 5-10% of liquid NW. Having said that I have way more than that because I can stomach the volatility and don’t need to sell anytime soon. I will though rebalance during the bull market what I have on my retirement accounts without selling what I have in cold storage.
The questions and background info for asking them are extremely broad concepts and not a short answer. Big asks of time. Reading the book listed in the post probably not a bad place to start
Yeah I would totally agree with you. Once you make it then you can take your foot off the gas. But the vast majority of people are not there and they never will be because they don’t have the guts to try.
I used to think this way before I realized that if inflation is truly staying at 7% for many years this cuts money to less than half in less than a decade which causes societal collapse so it would necessitate a monetary reset anyway prior to that happening so who cares. Crypto can get hacked in insane ways you can't imagine. Agree fully with taking more risk though but how about in ways you can influence more - build enterprise value in a biz e.g.
Good. Any talk of investments at this point probably should include a discussion of inflation. Pointless otherwise. I'm not sure if 50% in a decade is societal collapse, but it certainly is not pretty. And in which case that 5.5 20yr is sort of useless. Should have just bought gold or some other asset, or take on debt (and watch the debt get devalued, while the asset behind it holds value). Not arguing against treasuries btw.
A side note - we need a third party private inflation index, like Moody's does for businesses. The whole CPI run by BLS "based on a total basket of goods and services" is garbage. Can't make good decisions with bad data.
What do you mean by scale tips? As in at 7-8M of liquid net worth you have enough to fund expenses with low risk / risk free assets and can take massive risk?
I infer he means the point at which general investment advice is not as relevant. Eg it makes perfect sense for someone with 7-8m to own a 7 figure home since they can also live off the cash flows from their investments without eroding principal. It can also double as diversification.
What do you mean by scale tips? As in at 7-8M of liquid net worth you have enough to fund expenses with low risk / risk free assets and can take massive risk?
Collectables that fit in a suitcase line reminded me of that scene from the movie “the Accountant”, when Affleck hit up his Bug Out Trailer that had rare comics, sports cards and gold lol.
My autism would like for you to refer only to Treasury maturities of less than 1 year as Tbills and anything longer as either 'Treasury Notes' (typically used for 2-5y maturities) or 'Treasury Bonds' (typically used for 10-30y maturities). Thank you
Ha must have missed one, got tired of it and just started saying "treasury" so people don't get confused will fix.
Bills are issued at a discount and do not pay a coupon payment vs anything >1y receive semi annual coupon payments
A lot of people like to talk shit on investing in Bitcoin when they know nothing about it. They instead think it's prudent to invest in the S&P, make their 7% gains, just like everyone else.
It seems to me that the vast majority of people are just straight up pussies with next to zero level of risk tolerance. But what they don't seem to understand is that 7% is not going to cut it. Inflation is increasingly getting out of control and the percentages on the most essential things like housing and food is going to continue to outpace 7%
Personally, I think it's crazy to not be taking higher risk investments. You're going to need to be getting returns of >15% if you ever want to get ahead.
Getting ahead and protection are very different. 7% is probably fine for money you intend on using for food/gas etc. But if your goal is to increase purchasing power, 100% agree, no shot if they continue to print
Depends where you are in net worth. I own a home and have 7 figures of investments (stocks/bonds/real estate/crypto). I save more in a year than >99% of the population makes in pre-tax income. Not trying to brag but with S&P and bonds >5% alone I can cement my standing and make it impossible for most to catch up. For low net worths trying to come up I agree you probably need to take more risk.
This is the jist
I'd love to see opinion on investment allocation by liquid net worth. When do you start buying crypto? BTC seems both volatile and illiquid if you have it in a wallet, which to me means you invest only if you are hnwi. And then maybe not even then? I mean if you diverted $200k to put into it, it's not nothing, but it's also not exactly life changing if it doubles. A $1M investment on the other hand, well maybe. So maybe this is where the $7-8M net worth comes in? Or invest in BTC earlier?
Normally respond but you didn't read anything it says right there BTC is fully liquid you just send to exchange and sell so your entire comment is crazy talk
rough crowd. I admittedly don't know anything about crypto and should. (i know). You can buy an all about crypto training from jungle folks, and the fact that a "course" even exists suggests it would take some time to learn it all on your own, assuming you found reliable sources.
There's a reason people would buy a crypto EFT: it's because people like me know NO ONE personally invested in it but would like to get the foot in the door and an EFT it makes it easy. (not thinking that's how I'd buy it, but I understand where new demand may come from and make BTC and ETH boom- covered in prev BTB post). I also understand your point about crypto liquid vs illiquid based on volume. (obvious) Anyway, back to the point - If it's super easy to sell from a wallet and there's no risk there, ok, gotcha. Retract that then. Do you have thoughts on my questions?
Don't even know what your question is? We've covered the basics over 100 times here so not sure what it is.
If you have more than $100K and own no crypto you're basically insane at this point
you have valid points. Insane shit happens in crypto daily like sending to wrong address (lose it all, no arbitration, no one to sue, literally no recourse lol), hacks, kindnappings, violence, more. No, you can't easily sell in any wallet for the most part. Need an exchange.
NFA.
I believe it should be at least 5-10% of liquid NW. Having said that I have way more than that because I can stomach the volatility and don’t need to sell anytime soon. I will though rebalance during the bull market what I have on my retirement accounts without selling what I have in cold storage.
I expect crypto allocation to vary widely depending on liquid net worth, don't you think?
jesus, hard to believe there are people who have an opinion when they have absolutely zero understanding. Nothing you said makes sense
I really don't have an opinion. Just stating what impressions I have. Happy to be wrong. I know my weakness and trying to get smarter there.
The questions and background info for asking them are extremely broad concepts and not a short answer. Big asks of time. Reading the book listed in the post probably not a bad place to start
Yeah I would totally agree with you. Once you make it then you can take your foot off the gas. But the vast majority of people are not there and they never will be because they don’t have the guts to try.
Only way to get ahead is start a biz and invest in private placement offerings. Everything else is just value preservation.
I used to think this way before I realized that if inflation is truly staying at 7% for many years this cuts money to less than half in less than a decade which causes societal collapse so it would necessitate a monetary reset anyway prior to that happening so who cares. Crypto can get hacked in insane ways you can't imagine. Agree fully with taking more risk though but how about in ways you can influence more - build enterprise value in a biz e.g.
Good. Any talk of investments at this point probably should include a discussion of inflation. Pointless otherwise. I'm not sure if 50% in a decade is societal collapse, but it certainly is not pretty. And in which case that 5.5 20yr is sort of useless. Should have just bought gold or some other asset, or take on debt (and watch the debt get devalued, while the asset behind it holds value). Not arguing against treasuries btw.
A side note - we need a third party private inflation index, like Moody's does for businesses. The whole CPI run by BLS "based on a total basket of goods and services" is garbage. Can't make good decisions with bad data.
Scale tips at 7-8m net worth or cash?
Means liquid so if you owned $11M in real estate. Then that would work because you discount it 25%+ and then you are still at 7-8
What do you mean by scale tips? As in at 7-8M of liquid net worth you have enough to fund expenses with low risk / risk free assets and can take massive risk?
I infer he means the point at which general investment advice is not as relevant. Eg it makes perfect sense for someone with 7-8m to own a 7 figure home since they can also live off the cash flows from their investments without eroding principal. It can also double as diversification.
Accurate
What do you mean by scale tips? As in at 7-8M of liquid net worth you have enough to fund expenses with low risk / risk free assets and can take massive risk?
Yes
Thanks
I'd love to see YOUR opinion on investment allocation by liquid net worth.
Collectables that fit in a suitcase line reminded me of that scene from the movie “the Accountant”, when Affleck hit up his Bug Out Trailer that had rare comics, sports cards and gold lol.
Any tips on finding a good broker to help sell illiquid investments?