All Things Personal Finance

[Hotteok]

Now that bitcoin is considered as one of securities, how will this change its future? 

[Cushi]

8 minutes ago, Hotteok said:

Now that bitcoin is considered as one of securities, how will this change its future? 

Are you talking about Fednow/digital currencies?

[computerwiz]

10 minutes ago, Hotteok said:

Now that bitcoin is considered as one of securities, how will this change its future? 

 

It is basically a safe investment.  Don't have to worry considering that label that they gave it.

 

1 minute ago, *Jack* said:

Are you talking about Fednow/digital currencies?

 

Completely different things...

[Cushi]

19 minutes ago, computerwiz said:

 

Completely different things...

Yeah, I know. Fednow is just the payment system. But I believe wholeheartedly that it’s gonna lead to a U.S. digital currency. I don’t believe a word the federal reserve said in its statement about it not leading to a digital currency. I’ve seen proof in writing that the U.S. government is planing on rolling out a digital currency. Right now 130 countries are exploring/working on implementing a digital currency and the U.S. definitely isn’t gonna be left behind since it’s supposed to lead the economy. 
 

Some say it won’t affect crypto currency, some say it will. But I personally don’t see the government continuing to allow a form of currency they can’t control like Bitcoin sticking around much longer. When digital currency comes out, I believe they will find a way to make it obsolete.
 

[computerwiz]

8 hours ago, *Jack* said:

But I believe wholeheartedly that it’s gonna lead to a U.S. digital currency. I don’t believe a word the federal reserve said in its statement about it not leading to a digital currency.

 

Ripple (XRP)

 

^^^ and that was before their legal victory.  Much more have jumped onboard since then.

 

8 hours ago, *Jack* said:

I personally don’t see the government continuing to allow a form of currency they can’t control like Bitcoin sticking around much longer.

 

They can't stop Bitcoin.  No one can.  See China for an example.

 

They can stop other coins, because there are centralized institutions behind them.  But Bitcoin is P2P, like Limewire or Bittorrent or other programs where you could share files illegally.  Best thing they can do is embrace it and jump onboard using it before other countries scoop up a majority.  It's like digital gold.

[Hotteok]

What about blackrock now being investigated because it invested in Chinese companies that deal with weaponry? Will it act unfavorably against bitcoin and bitcoin etf?

[computerwiz]

1 hour ago, Hotteok said:

What about blackrock now being investigated because it invested in Chinese companies that deal with weaponry? Will it act unfavorably against bitcoin and bitcoin etf?

 

Same as all the other crypto companies being investigated and whatnot.  It will cause a temporary dip, and then resume it's course.  Blackrock isn't even "in the game" yet.  They're trying to get into the game.  So it will be minimal impact.

 

Bitcoin can get as low as 26k and we'd be fine.  That's just how it moves.  Below that would be worrisome.  But we probably won't be going below 28k.  It's been hanging around this range for quite a while.  Has lots of support.

 

If you're looking to buy, now is a good time.  Save a little funds for later, in case it comes down more...  But I wouldn't be in 100% cash.  It can take off at any time.  Not sure when the next ETF approval will be.  But when that happens, I'm sure it will skyrocket.  There's at least 5 awaiting approval.  5!!!!

 

[computerwiz]

 

[Hotteok]

9 minutes ago, computerwiz said:

 

 

Could there be a one-in-a-million chance that things will be different this time?

I mean, statistically, it will go up but due to all the variables in this chaotic era.. 

 

[computerwiz]

1 minute ago, Hotteok said:

Could there be a one-in-a-million chance that things will be different this time?

I mean, statistically, it will go up but due to all the variables in this chaotic era.. 

 

I seriously doubt it.  If chaos ensues globally, I actually have more faith in Bitcoin than any other money.  Bank accounts can be frozen, cash/gold can be stolen, but the P2P nature of Bitcoin makes it nearly untouchable.  You'd have to take down the whole internet to break it.  I think those who know feel the same way as me.  But the again...if the world gets to that point, I don't think money will matter at all.  I think it will be GT time when things get that bad.  So putting money (a reasonable amount) in Bitcoin now is a safe bet in any case.  Either money will matter and it's gonna be good, or money won't matter at all no matter where you have it.

 

And the most dangerous phrase in investing is "this time its different".  Doesn't mean it can't be true...but most of the time it isn't.

 

If currency collapses in individual countries, Bitcoin is actually a good way to protect your money.  Look at these countries:

 

https://tokenpost.com/Bitcoin-Hits-31000-Reaches-New-Highs-in-Venezuela-Argentina-and-Lebanon-10256

[Cushi]

 

[Cushi]

This is so true!

 

 

[Cushi]

On 8/1/2023 at 9:48 AM, *Jack* said:

This is one of several finance books I ordered a few weeks ago. I kept hearing good things about it so I decided to see for myself what it was about. I’ll be letting you guys know what I think of it when I’m done 😊

 

 

I finished this book last night. It’s a must read. Besides talking about the psychology of money, it offers practical advice on managing finances. This was the first finance book to ever read. I plan to read more and will be giving my opinion on them. 
The author, Morgan Housel, is young but I was amazed at his knowledge and worldly wisdom. I thought this book would kind of sway me towards investing in the stock market but it didn’t. It did the opposite. He talked about how for some people there’s never such a thing as enough money and how their greed caused them to lose everything. He also talked about how some lost everything in the stock market.
I feel like it would be an act of greed to invest in the stock market, because with no debt I’m able to save a substantial amount of money every month. Saving for retirement isn’t a problem and wouldn’t be the goal for investing in the stock market. It would be to have more money. 
 

He also talked about how many of some of the best investors make most of their money on less than 10% of their stock portfolio. He talked about how Warren Buffet said he owned 400-500 stocks throughout his life, but achieved most of his money with only 10. 
Hearing stuff like this scares me because I’d be afraid all of my investments would turn out to be bad choices and lose all my money. In the book he said “a small minority of things account for the majority of outcomes.”

[computerwiz]

9 hours ago, *Jack* said:

He also talked about how many of some of the best investors make most of their money on less than 10% of their stock portfolio. He talked about how Warren Buffet said he owned 400-500 stocks throughout his life, but achieved most of his money with only 10. 
Hearing stuff like this scares me because I’d be afraid all of my investments would turn out to be bad choices and lose all my money. In the book he said “a small minority of things account for the majority of outcomes.”

I have 16 tips to live by when investing (focused on crypto, but most apply to stocks as well), and this is why Tip #6 exists: Don't put all your eggs in one basket!

Its also why I don't believe in picking your own stocks.  Better to put your money in ETFs that align with your principles, and/or invest in the S&P, Russel, Dow itself.  I'm pretty sure you can do that (I don't), that way you're exposed to the entire market instead of just a small group of stocks.  But in any case, the point is the same: diversify.

[Hotteok]

18 minutes ago, computerwiz said:

I have 16 tips to live by when investing (focused on crypto, but most apply to stocks as well), and this is why Tip #6 exists: Don't put all your eggs in one basket!

Its also why I don't believe in picking your own stocks.  Better to put your money in ETFs that align with your principles, and/or invest in the S&P, Russel, Dow itself.  I'm pretty sure you can do that (I don't), that way you're exposed to the entire market instead of just a small group of stocks.  But in any case, the point is the same: diversify.

ETF or S&P... aren't they quite slow? 

[computerwiz]

Just now, Hotteok said:

ETF or S&P... aren't they quite slow? 

Yes, but they are safe options.  He said:

10 hours ago, *Jack* said:

Hearing stuff like this scares me because I’d be afraid all of my investments would turn out to be bad choices

So I was offering the safe idea to follow.  You can definitely make more money & have faster returns by picking your own investment options.  But you better make sure you do your research!  But still diversify....you never know when there will be a Bud Light situation...  👀

[Cushi]

3 hours ago, computerwiz said:

I have 16 tips to live by when investing (focused on crypto, but most apply to stocks as well), and this is why Tip #6 exists: Don't put all your eggs in one basket!

Its also why I don't believe in picking your own stocks.  Better to put your money in ETFs that align with your principles, and/or invest in the S&P, Russel, Dow itself.  I'm pretty sure you can do that (I don't), that way you're exposed to the entire market instead of just a small group of stocks.  But in any case, the point is the same: diversify.

Of course, I would never put all my eggs in one basket. I would only invest 15% of my income in the stock market as long as I have a minimum of 100K in liquid cash. The author of the book talked about how he personally has a large stash of cash and not all his money in investments because that prevents him from having to cash out his investments in case of an very expensive emergency. I have always felt this way as well. I don’t want to lose any money. Even if it’s 15% of my income. I also would diversify.

My gut is just telling me not to invest in the stock market. Every time I didn’t follow my gut something bad happened. I just want to park my money in high interest CD, savings and checking accounts and forget about it. I don’t want to spend so much of my time concerned with the stock market. 
I once had a friend whose dad was an investor in the stock market. Every time I went to his house, he’d be glued to the computer screen watching the stock market. How the stock market performed dictated his mood. He’d be nice when it was performing good and be difficult to be around when it wasn’t. I don’t want that to be me. I wouldn’t want stuff like that to affect my mood. I could possibly make more money investing in the stock market but peace of mind is far more important to me than money.

Maybe I feel the way I do because I have very little knowledge of the stock market. I have more finance books to read so if I ever change my mind in the future, I would probably invest in something like the S&P 500.

Edited August 14, 2023 by *Jack*

[computerwiz]

36 minutes ago, *Jack* said:

but peace of mind is far more important to me than money

Always

36 minutes ago, *Jack* said:

Maybe I feel the way I do because I have very little knowledge of the stock market.

Maybe.  Or maybe you are a perfectionist that prefers things that are 100% in your control?  Hope it's not offensive to say that, just offering another perspective...

I have about 35% of my money in stocks & crypto, and am completely emotionally disconnected from it.  I check briefly every morning during the work week, just to see how things are going.  But I have an investor mindset, not a trader.  I am playing long-term.  The little ups and downs throughout the year do not bother me.  I've even stopped listening to MeetKevin as I am satisfied in his advice, which has not changed in a long time.  He believes in a "bumpy Nike swoosh recovery", and he has believed that all year, and so far he has been spot on.  He was spot on with selling in January of last year...though he did get back into the market a little too early.  Love his advice though!

I know how crypto cycles work, I know how market cycles work.  I plan on cashing in big in 2025.  Only thing that could change the momentum of the market is a new large-scale war.  Right now, the market itself is boring & mostly flat, with an overall trend up.  Now is the time to be buying and stacking.  That's what I'm doing.  35% is my comfort level and I'm adding monthly to both savings & investment.

If for some strange reason things turn very south and stay south, I have time to make up for it.  Don't know how old you are, but I'm only halfway to retirement.  I got a ways to go and can afford to "just hold for better days" or take a loss & forget about the market.

Sounds like you have a lot saved up.  And I can tell you right now, emotionally speaking, your best bet is to put NEW money into the market.  Don't pull from your savings.  If you have that much hesitation, that much concern, don't even touch your savings.  What you could do instead is stop saving in regular savings, and just dump as much as you comfortably can from NEW money into the market.  That's a lot easier to digest, considering your savings isn't even getting touched.  Just a thought, but do whatever gives you peace of mind, even if that's "nothing".

Did I (or the book) tell you about counting losses on your taxes?  You get about 30% of it back.  Knowing you have that "cushion" helps with just diving in and letting things play out.

[Cushi]

8 hours ago, computerwiz said:

Always

Maybe.  Or maybe you are a perfectionist that prefers things that are 100% in your control?  Hope it's not offensive to say that, just offering another perspective...

I have about 35% of my money in stocks & crypto, and am completely emotionally disconnected from it.  I check briefly every morning during the work week, just to see how things are going.  But I have an investor mindset, not a trader.  I am playing long-term.  The little ups and downs throughout the year do not bother me.  I've even stopped listening to MeetKevin as I am satisfied in his advice, which has not changed in a long time.  He believes in a "bumpy Nike swoosh recovery", and he has believed that all year, and so far he has been spot on.  He was spot on with selling in January of last year...though he did get back into the market a little too early.  Love his advice though!

I know how crypto cycles work, I know how market cycles work.  I plan on cashing in big in 2025.  Only thing that could change the momentum of the market is a new large-scale war.  Right now, the market itself is boring & mostly flat, with an overall trend up.  Now is the time to be buying and stacking.  That's what I'm doing.  35% is my comfort level and I'm adding monthly to both savings & investment.

If for some strange reason things turn very south and stay south, I have time to make up for it.  Don't know how old you are, but I'm only halfway to retirement.  I got a ways to go and can afford to "just hold for better days" or take a loss & forget about the market.

Sounds like you have a lot saved up.  And I can tell you right now, emotionally speaking, your best bet is to put NEW money into the market.  Don't pull from your savings.  If you have that much hesitation, that much concern, don't even touch your savings.  What you could do instead is stop saving in regular savings, and just dump as much as you comfortably can from NEW money into the market.  That's a lot easier to digest, considering your savings isn't even getting touched.  Just a thought, but do whatever gives you peace of mind, even if that's "nothing".

Did I (or the book) tell you about counting losses on your taxes?  You get about 30% of it back.  Knowing you have that "cushion" helps with just diving in and letting things play out.

No, I’m not a perfectionist and don’t always feel the need to control things. I’m a very laid back person and am ok with things not going according to plan (I have a type B personality). 
I also have more of an investor mentality than a trader. I think long term when it comes to money. It’s really not the market going up and down that’s the main concern. It’s losing everything I’ve invested without the hope of gaining it back. I spent the first part of my childhood in poverty so I may view things differently. That’s one thing that was mentioned in the book The psychology of Money. He mentioned that our upbringing, culture and the things we’ve experienced like poverty, stock market crashes, riches and economy growth will affect how we view money and behave with it. I also think about things like the great tribulation. I would hate to have a considerable amount of money tied in the stock when that happens because imagine the stock market will crash. I think we’ll still have a functioning economy… but folks will no doubt lose money in the stock market. I see the great tribulation coming before I get a chance to retire. I listen to MeetKevin too. He has good content. 
 

I’ll be 37 in October. Yeah, I would invest from my earnings, not my savings. Yeah, you mentioned being able to claim losses on your taxes. I forgot about that.

[computerwiz]

11 hours ago, *Jack* said:

It’s losing everything I’ve invested without the hope of gaining it back.

Don't put money you care about in the market.  You have to be completely disconnected from it.

Anything you actually "lose", consider it payment for learning the markets.  

 

11 hours ago, *Jack* said:

I spent the first part of my childhood in poverty so I may view things differently.

That might be it.  Though considering your age (I'm 35, BTW) & savings, you're doing quite well.

I'd argue that given your current financial situation, you'd be well off to spread your money around for safety.

1. Checking at one back
2. Savings at another
3. CD(s) at yet another
4. Stocks for higher yields
5. Crypto for safety & crazy high yields

Keep in mind the recent bank failures.  Putting all your trust in cash might feel good, until it isn't.  Talk to anyone who had money at those banks.  Sure they may have gotten their money back, but how long were their funds frozen?  Or the ones that failed in 2008?  Diversity isn't just important for stocks, its also regarding the types of assets you have.

 

11 hours ago, *Jack* said:

I would hate to have a considerable amount of money tied in the stock when that happens because imagine the stock market will crash. I think we’ll still have a functioning economy… but folks will no doubt lose money in the stock market.

When that time comes, money will be the least of our concerns.  Remember, they will be throwing it in the streets.  (Ezek. 7:19)

With the US still printing money and handing it out to Ukraine like its candy + BRICS + growing distrust in the US dollar....I'd be more concerned about holding cash.  If the dollar dominance continues to decline, the stock market may not be a safe haven either.  Which is why I have more trust in crypto.  See earlier post with news link about other countries & crypto booming.

Gold & silver might be a wise investment...if the system continues despite the dollar losing its value.  Though I'd argue if things get so bad in the US that the dollar is worthless, we'd have much MUCH bigger concerns.  Remember how many guns are in the US?  🤔  Our finances will be the least of our concerns...

In that scenario, again, I can only come to one conclusion: either crypto is gonna be the safest option (as a hedge against inflation & closure & freezing assets & theft) or you're gonna need your Go Bag ready & as much supplies and survival gear as you can handle, because our home & assets will be taken from us.  Even then, we may just have to rely on Jehovah and forget about ALL our stuff.

 

11 hours ago, *Jack* said:

I see the great tribulation coming before I get a chance to retire.

Most likely.  That being the case, I've started being a little more free with my money lately.  And I've made it a goal to learn how to hunt.  2 months ago, I've started buying things that I will need, and started practicing shooting.  Never know if that skill will be needed, and since I've got the money, I'm "investing" in that....

This October (or so...depending on when it gets cool around here), I will go with my brother-in-law and learn how to hunt rabbits.  😁

[Cushi]

24 minutes ago, computerwiz said:

Don't put money you care about in the market.  You have to be completely disconnected from it.

Anything you actually "lose", consider it payment for learning the markets.  

 

That might be it.  Though considering your age (I'm 35, BTW) & savings, you're doing quite well.

I'd argue that given your current financial situation, you'd be well off to spread your money around for safety.

1. Checking at one back
2. Savings at another
3. CD(s) at yet another
4. Stocks for higher yields
5. Crypto for safety & crazy high yields

Keep in mind the recent bank failures.  Putting all your trust in cash might feel good, until it isn't.  Talk to anyone who had money at those banks.  Sure they may have gotten their money back, but how long were their funds frozen?  Or the ones that failed in 2008?  Diversity isn't just important for stocks, its also regarding the types of assets you have.

 

When that time comes, money will be the least of our concerns.  Remember, they will be throwing it in the streets.  (Ezek. 7:19)

With the US still printing money and handing it out to Ukraine like its candy + BRICS + growing distrust in the US dollar....I'd be more concerned about holding cash.  If the dollar dominance continues to decline, the stock market may not be a safe haven either.  Which is why I have more trust in crypto.  See earlier post with news link about other countries & crypto booming.

Gold & silver might be a wise investment...if the system continues despite the dollar losing its value.  Though I'd argue if things get so bad in the US that the dollar is worthless, we'd have much MUCH bigger concerns.  Remember how many guns are in the US?  🤔  Our finances will be the least of our concerns...

In that scenario, again, I can only come to one conclusion: either crypto is gonna be the safest option (as a hedge against inflation & closure & freezing assets & theft) or you're gonna need your Go Bag ready & as much supplies and survival gear as you can handle, because our home & assets will be taken from us.  Even then, we may just have to rely on Jehovah and forget about ALL our stuff.

 

Most likely.  That being the case, I've started being a little more free with my money lately.  And I've made it a goal to learn how to hunt.  2 months ago, I've started buying things that I will need, and started practicing shooting.  Never know if that skill will be needed, and since I've got the money, I'm "investing" in that....

This October (or so...depending on when it gets cool around here), I will go with my brother-in-law and learn how to hunt rabbits.  😁

It’s just that I don’t like to lose or waste money. The more I read about the stock market, the more I think it’s just not for me. Yeah, I know we should rely on Jehovah during the GT. It’s just that I don’t want to be working a secular job during that time because of all the civil unrest and craziness that will be going on at that time. I want to focus my time and effort preaching the judgement message. We don’t know how long the GT will last, so I want enough money to take care of myself and my brothers and sisters in need during that time. It’s true that our bank accounts may be frozen, but I want to do what I can. I can’t control what the authorities do.

[computerwiz]

35 minutes ago, *Jack* said:

It’s just that I don’t like to lose or waste money. The more I read about the stock market, the more I think it’s just not for me. Yeah, I know we should rely on Jehovah during the GT. It’s just that I don’t want to be working a secular job during that time because of all the civil unrest and craziness that will be going on at that time. I want to focus my time and effort preaching the judgement message.

Understandable.

36 minutes ago, *Jack* said:

We don’t know how long the GT will last, so I want enough money to take care of myself and my brothers and sisters in need during that time. It’s true that our bank accounts may be frozen, but I want to do what I can. I can’t control what the authorities do.

And this is why I'm learning how to hunt, as much and as fast as I can.  Which, as I'm learning, is an expensive hobby.  We know Jehovah will take care of us.  Through what means, we shall see.  It might be through brothers like us who have the financial means or the skills needed to provide.  Or it might all just be handed to us somehow.

My dad can tell you all the plants you can eat from your backyard.  But I want to be able to provide meat!!  😁

[ChrisW]

23 minutes ago, *Jack* said:

It’s just that I don’t like to lose or waste money. The more I read about the stock market, the more I think it’s just not for me. Yeah, I know we should rely on Jehovah during the GT. It’s just that I don’t want to be working a secular job during that time because of all the civil unrest and craziness that will be going on at that time. I want to focus my time and effort preaching the judgement message. We don’t know how long the GT will last, so I want enough money to take care of myself and my brothers and sisters in need during that time. It’s true that our bank accounts may be frozen, but I want to do what I can. I can’t control what the authorities do.

I understand your feelings.  Right now I work for a financial advisor.  Small company (father, son, and daughter and me) it's just us 4.  I'm not sure what the market is doing and what the future holds.  My boss (the son) has reduced my hours by one day this quarter.  He says in October he may have to reduce me some more.  I'm not sure if it's because the market is that bad or if he is wanting to make things look a certain way so I leave myself. (not that I'm a bad worker but I think one less employee makes it easier for him, plus I'm not family) It's stressful and I have to pray to not become anxious about it, because I can't control anything.  In the GT how do you plan?  How do you know all of the things you are focusing on to prepare (with regards to money) are going to help when the time comes?  I do what I can, but there's only so much you can do. 

[Cushi]

4 hours ago, ChrisW said:

I understand your feelings.  Right now I work for a financial advisor.  Small company (father, son, and daughter and me) it's just us 4.  I'm not sure what the market is doing and what the future holds.  My boss (the son) has reduced my hours by one day this quarter.  He says in October he may have to reduce me some more.  I'm not sure if it's because the market is that bad or if he is wanting to make things look a certain way so I leave myself. (not that I'm a bad worker but I think one less employee makes it easier for him, plus I'm not family) It's stressful and I have to pray to not become anxious about it, because I can't control anything.  In the GT how do you plan?  How do you know all of the things you are focusing on to prepare (with regards to money) are going to help when the time comes?  I do what I can, but there's only so much you can do. 

I’m sorry to hear. I imagine that’s stressful. I’ll mention it in my prayers 🙏🏾 I don’t know if my efforts will make a difference during the great tribulation. I just want to make wise decisions now. I would feel better during that time knowing I did all I could to save money and now it’s out of my control than to not have any because I squandered it. Proverbs 21:20 says:

“precious treasure and oil are found in the house of the wise, but the stupid man will squander what he has.”

The Bible encourages us to save money if we’re able. Not necessarily for the great tribulation, but in general. Like they say, it’s better to have and not need than to need and not have. I’m not just saving for the end of this system of things. I think very long term when it comes to things like this. What if I get hurt or sick and can’t work anymore. Will I be able to support myself on top of any disability payments I may get? 
I live deep in tornado alley and several twisters have landed just blocks from me. What if my house gets severely damaged and I survive? Will I be able to put my money on top of any check I get from the home owners insurance company and buy a new house cash? I have zero stress in my life and want to keep it that way. I avoid potentially stressful situations by doing what I can to avoid them. If things don’t go according to plan… we’ll, that’s life 😊

[ChrisW]

2 minutes ago, *Jack* said:

I’m sorry to hear. I imagine that’s stressful. I’ll mention it in my prayers 🙏🏾 I don’t know if my efforts will make a difference during the great tribulation. I just want to make wise decisions now. I would feel better during that time knowing I did all I could to save money and now it’s out of my control than to not have any because I squandered it. Proverbs 21:20 says:

“precious treasure and oil are found in the house of the wise, but the stupid man will squander what he has.”

The Bible encourages us to save money if we’re able. Not necessarily for the great tribulation, but in general. Like they say, it’s better to have and not need than to need and not have. I’m not just saving for the end of this system of things. I think very long term when it comes to things like this. What if I get hurt or sick and can’t work anymore. Will I be able to support myself on top of any disability payments I may get? 
I live deep in tornado alley and several twisters have landed just blocks from me. What if my house gets severely damaged and I survive? Will I be able to put my money on top of any check I get from the home owners insurance company and buy a new house cash? I have zero stress in my life and want to keep it that way. I avoid potentially stressful situations by doing what I can to avoid them. If things don’t go according to plan… we’ll, that’s life 😊

I get that. 🙂