All Things Personal Finance

[computerwiz]

17 hours ago, jdcarlson said:

I know there is a lot of "buzz" around crypto investing in recent years. I would NOT recommend that. It is not based on any "backed" medium of exchange (i.e., the dollar which is backed by the US, or the pound sterling which is backed by the UK).  It is based solely on what public opinion thinks it is worth.

 

That mentality is what sets us so early as investors.  You think it is just about the value.  That's not it at all...

 

It's the technology that has the appeal.  That's where the value lies.  It's not set to any specific nation.  There's no middleman that dictates whether I can send you money or not.  It can be banned, but not stopped.  You'd have to take down basically the entire internet to effectively take it down.  No worries about a storm taking your bank down.  Bitcoin in particular has been around 16 years and has not been hacked.  Etc. etc. etc.

 

All that being said, I don't apply it to other crypto.  Other crypto is similar, but they are more akin to stocks than coins.  The majority of the rest have companies behind them.

 

However, I would further argue that they're superior to stocks, because they are generally locked to their code.  In stocks, you have to worry about companies doing reverse splits or releasing more shares or having bad earnings reports or making one stupid decision (talking about you Bud Light) and tanking their shares.  I find that stocks are MORE risky than coins.....as long as you know how to do your research into crypto.  There's lots of tools...you just need to learn them.

 

I've dabbled in both the stocks & crypto world.  I have had WAY more success in crypto than stocks.  It just takes time, careful research, and understanding.  In stocks, you can just throw your money at big name companies (like Apple) and be alright in the long-term.  In crypto, 99% of coins fail.  Which is why careful research is needed.  One can easily argue that JWs don't have time for that.  Thankfully I have a job where I can afford to do that.  😬

[jdcarlson]

One's approach to investing will determin how one makes selections.

 

There is a defference between an "investor" and a "speculator".

 

An "investment" entity will look at a potential investment and analyze its potential for future earnings. An "investor" looks at things with a five or ten year horizon. A prime example of an investor is Warren Buffett (Berkshire Hathaway). His portfolio does not "churn." He analyzes a potential investment to see what it might earn in the next decade. Based on that, he makes his investments.

 

Few investment companies have built the long term success as Mr. Buffett with Berkshire Hathaway. Although the value of an investment in Berkshire Hathaway will vary up or down, over a 20 year period is has seen increase in value matched by few other companies. Berkshire grows based on the earnings of the entities in which it invests, not on someone else's idea of what it might be worth.

 

Bitcoin is a medium of exchange, not an entity the produces anything it can "sell" to someone else. It does not generate income or revenue on it's own. The income from Bitcoin (or any crypto currency) will depend on other's idea of what it is worth.

 

A good investment will generate income from something it does (as in a service company) or something it makes (as in manufacturing), or something it sells (as in a store). 

 

The following URL link will demonstrate the volitality of Bitcoin (which principles will apply to any crypto investment).

 

https://www.investopedia.com/articles/forex/121815/bitcoins-price-history.asp

 

Thanks,

 

Jim

[computerwiz]

6 hours ago, jdcarlson said:

Although the value of an investment in Berkshire Hathaway will vary up or down, over a 20 year period is has seen increase in value matched by few other companies.

 

I bet their returns didn't look anything like Bitcoin's. 

 

 

 

Well, stick with what you know. But it blows my mind how we've had 16 years to look at Bitcoin and how it works and the results (which speak for themselves) and how the cycles work and yet it's still scary. 

 

You got company after company opening ETFs for Bitcoin. What do they know?

 

You got countries adopting Bitcoin as legal tender. What do they know?

 

You got places spending millions on Bitcoin farms. What do they know?

 

You got a potential president that wants to have a Bitcoin reserve. What does he know?

 

Just saying...

[computerwiz]

 

Probably nothing....  😉

[computerwiz]

This is why I get into crypto. 50% profit in 45 days.

 

[Tortuga]

Total portfolio YTD as of 11/6/24 is 17.9%

[computerwiz]

19.8% in my Wealthfront.  

 

Just wait till next year, we're not done yet!....    After elections are over, the markets go up by about 20%, on average, the year after.  👀

 

[bobby]

how much did you put on crypto  and what a trading bot is that an app

Edited November 7 by bobby

[computerwiz]

11 minutes ago, bobby said:

how much did you put on crypto  and what a trading bot is that an app

 

There's a few people in here that I know in person, so I'm not saying a specific number.  But I have literally 40% of my savings in crypto right now.  10% in the regular stock market.

 

Trading bot is via Pionex: https://accounts.pionex.us/en/signup?ref=rGmbhu74

[bobby]

ok i just sign up with pionex 

[computerwiz]

3 hours ago, bobby said:

ok i just sign up with pionex 

 

Cool deal. Lemme know if you need any help with it. 

[computerwiz]

[Cushi]

 

[Cushi]

21 minutes ago, Cushi said:

 

 

This is how much you would have 44 years later if you invested $6,500 in a Roth IRA at a 10% rate of return instead of 8% 😳

Edited November 25 by Cushi

[computerwiz]

4 minutes ago, Cushi said:

 

This is how much you would have 44 years later if you invested $6,500 in a Roth IRA at a 10% rate of return instead of 8% 😳

 

Looks insane, but true!  The math checks...

 

BTW - Wealthfront can get you that 10% (or more) yearly.  

[Witness1970]

I don't have any risky investments.  I have been frugal with my expenses over the years.  If the next few years are a terrible economy, I guess I will be able to survive.  Actually, I know I can survive with Jehovah's help.

 

I have my 2025 budget ready to go.  I plan to update my balance sheets very soon.  I have one balance sheet that shows my balance at the end of each month for the entire year and one that shows the balance at the end of each year over a 10-year period.  I have a lot of financial spreadsheets set up on my computer.

 

I do a lot of projection for the future.  It is actually entertainment for me.

[Witness1970]

I am presently working on getting all the information in case of my death or disability.  The Healthcare Power of Attorney was renewed recently at the kingdom Hall.  I used the same basic template for a Finacial Power of Attorney, but I still need to get it signed and notarized.  I am also doing a Last Will and Testament and a Living Revocable Trust in the hopes that if I died none of my property will have to go through probate.

 

I plan to have all these documents in my folder, along with insurance forms and a list of the web pagers and passwords that my executor might need and of course instructions for my funeral wishes.  I hope to have everything ready soon.  I have done most of these years ago, but I plan update everything and to make it more extensive this time.

[daydream]

33 minutes ago, Witness1970 said:

to go through probate

When my mother passed away without making a will, I had to get a letter of administration in order to inherit the house which was under both our names. Rather tedious affair as I had to get my brother to go to court to confirm no contest with regard to the said property. So as for myself, I got a lawyer to draft my will and last testament for about USD 18. Normally it would cost $50 or more for a simple will. 

 

Thanks Brother Randall for listing all the documentations that one should prepare well in advance in the event of any unforeseen circumstances. 

 

Edited December 2 by daydream

[Cushi]

Great advice for future retirees concerning credit cards. Please excuse the thumbnail…

 

 

Edited December 5 by Cushi

[Cushi]

19 minutes ago, Cushi said:

Great advice for future retirees concerning credit cards. Please excuse the thumbnail…

 

 

I forgot to mention that this wouldn’t apply to those who are near retirement and receive a decent amount of passive income via investments. But if you’re near retirement age and won’t receive a large pension, or have little to no income from investments and want a credit card, listen carefully. 
 

If you fit that category, I would be very careful with a credit card, as it could become a big problem.

Edited December 5 by Cushi

[Tortuga]

1 minute ago, Cushi said:

I forgot to mention that this wouldn’t apply to those who are near retirement and receive a decent amount of passive income via investments. But if you’re near retirement age and don’t receive a large pension, or have little to no income from investments and want a credit card, listen carefully. 
 

If you fit that category, I would be very careful with a credit card, as it could become a big problem.

What about Social Security income?

 

BTW: Does WTF? stand for Wednesday, Thursday Friday? or What To Fund?

[Cushi]

22 minutes ago, Tortuga said:

What about Social Security income?

 

BTW: Does WTF? stand for Wednesday, Thursday Friday? or What To Fund?

I think he’s saying that once a person retires and receives the social security pension payment the average retiree gets, credit card companies look at you as more of a risk and will deny you. One person in the comment section said another reason they are quick to deny a retiree and not someone working is because they can’t garnish social security payments, hence more risk. 
 

Like he said, this would usually apply more to cards with a hefty annual fee. Simple cash back cards with no annual fee would be easier to get approved for, but the credit limits would be low. Credit cards are a good way to build credit and maintain things like cheap insurance that a high score can give you, but it’s not a good idea for a person to get a credit card because they think it will carry them through retirement because they’re low on funds. Nothing should ever be spent on a credit card if it’s going to mean carrying over a balance.

Edited December 5 by Cushi

[Witness1970]

I am very frugal with my credit cards and bills. I am retired, have been retired for almost 15 years, and I have around an 825-credit score.  The highest credit score possible is only 850.  I pay the full balance on my credit cards each month, but by the time the credit score is calculated I have a balance due to charges after the statement date.  That keeps my credit score from being even higher.  But I can do OK with an 825-credit score, so why worry.

[Witness1970]

5 hours ago, Tortuga said:

BTW: Does WTF? stand for Wednesday, Thursday Friday? or What To Fund?

or Whiskey Tango Foxtrot, the movie?

[computerwiz]

Despite what you see here....it's not too late to get into crypto.  

 

 

 

Believe it or not, this is where we are....

 

 

 

 

 

Listening to the AMA of one crypto company I'm heavily invested in....lots are waiting until after Jan 20, once Trump gets sworn in.  Cuz something very bad could still happen until then.

 

So that being the case, after Jan 20, we should see the huge leg up in the market psychology.  It's crazy to think that what we are seeing right now is with some big players still on the sidelines, waiting.  👀

 

CryptoCasey said it best when she said this would be the biggest bull run ever!  And quite possibly the last hugely profitable one.  Though we have our own reasons for thinking it will be the last.   😁