I fell for the Dogecoin (quick) fad. I don't know bleep about this stuff.
Edit: Other than to do the reverse of Cramer and Wood.
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- Thread starter Warstud
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Edit: Other than to do the reverse of Cramer and Wood.
I have changed my opinion on bitcoin. Its clearly a proxy for global liquidity. If you track it, it follows global liquidity patterns in other assets pretty well.
Also, if you think about your home currency not being the USD, it makes way more sense. If I live in Turkey or Guyana or Sri Lanka, and my inflation rate is perpetually double digits, holding my money in bitcoin makes more sense.
In many ways its like gold or the 10 year treasury, but much easier for private individuals - especially outside the USA - to access and use.
Now the other coins I would not touch.
IMHO.
Also, if you think about your home currency not being the USD, it makes way more sense. If I live in Turkey or Guyana or Sri Lanka, and my inflation rate is perpetually double digits, holding my money in bitcoin makes more sense.
In many ways its like gold or the 10 year treasury, but much easier for private individuals - especially outside the USA - to access and use.
Now the other coins I would not touch.
IMHO.
Makes sense. The "value" of anything is simply based on the fact that we as a society decide to agree it has value. Sure, gold has particular characteristics that make it useful like it's pretty, it doesn't oxidize, it can easily be made into things, and it's rare, but there are other materials that have similar characteristics that we all agree are less valuable.
Like my gold example, Bitcoin has certain characteristics that are useful and if we (all) agree that Bitcoin has value, then by definition, that value is real.
I'm glad I just threw 500.00 at Doge. I actually doubled my money in a week....it was very short lived, when it went to like .56
Have held it for several years; figured I'd clean up that account and bought 2 shares of NVDA with what remained.
Have held it for several years; figured I'd clean up that account and bought 2 shares of NVDA with what remained.
If I may ask, where exactly do you hold your coins?
I’ll also answer for that. I like Coinbase.
I also have some on a hard drive that I have to get off (assuming that the computer will still start up) into Coinbase.
For me personally, it’s just small time stuff that I hold. At one time more significant, but I got out after a 40% gain in bitcoin at $11,000.
the remnants of that are in Coinbase.
I have some ripple on a hard drive that hasn’t gone anywhere, but I haven’t lost anything. Over a decade of more it does bounce up and I probably would’ve got rid of it except it’s on the old Windows computer that I don’t use.
I also have some on a hard drive that I have to get off (assuming that the computer will still start up) into Coinbase.
For me personally, it’s just small time stuff that I hold. At one time more significant, but I got out after a 40% gain in bitcoin at $11,000.
the remnants of that are in Coinbase.I have some ripple on a hard drive that hasn’t gone anywhere, but I haven’t lost anything. Over a decade of more it does bounce up and I probably would’ve got rid of it except it’s on the old Windows computer that I don’t use.
I had opened up a Robinhood account. I don't use it for anything but that purchase. I'm with Schwab now, for how long, I don't know.
Loved Scottrade.
My 401k retirement goal is $2M. I'm at $1.87 currently. My funds are split between S&P 500 index funds and funds more or less Nasdaq index. For the last year or so, both schemes are more or less equal. I'm thinking move all to S&P now. Get out of tech funds. Right or wrong? My plan is to retire in more or less one year. Yes, yes, I know, move conservative...thus my question. Once I hit my number, should I move super conservative? Get out of stocks all together?
I also hit my retirement number and 6 months for me if the earth, moon and sun align….
There is a huge difference between current cash/bond returns and average S&P 500 (or NASDAQ) returns. When you retire it isn't a digital event, i.e. you may have another 30 years in you and you still need to earn a reasonable return on investment. Forgoing that return isn't necessary, nor is it the safe conservative choice.
Rather than pulling it all out of stocks, you can avoid sequence of return risk by putting your retirement funds in "buckets". Cash (money market account) for short term, like in the next year, bonds or bond funds for the next 2-3 years of withdrawals, and stocks/ETFs/mutual funds for the rest long term.
I've seen a lot more retired folk impoverished by inflation than by market crashes. Keep doing what got you in the good spot you are in, with the addition of the buckets.
Be very careful if you are holding digital assets for liquidity purposes. In my opinion and based on what I see in the market, the liquidity is shallow and much if the price movement is driven by the relative lack of depth in the market or outright manipulation and fraud in that market. This is why many of the recent coin based products (eg ETPs) no doubt sought to be able to be related and redeemed in kind but the APs can only use cash to create and redeem. I read between the lines that the regulators don’t want coins in the regulated entity, and without the create and redeem in kind there has been little interest in the product. This means the product was more attractive as a means to get in and out coins into a real currency, and not interest in the underlying. Further, keep in mind that no digital coin has a central bank standing behind it to make markets in a panic. The UST stands behind treasuries and the dollar, ECB stands behind Euro on Euro denominated bonds, etc. Yes these instruments lack the capital appreciation of bitcoin and digital coins but there are many examples in history of liquid asset classes that were liquid becoming illiquid, and suddenly. To me, the underlying distributed ledger technology has promise but the coins themselves I would equate to Vegas, not investing. Nothing wrong with having some fun money just don’t get carried away and forget what it is, we all have to remind ourselves.
Much of the stock market will continue to do well because in the US no political candidate and neither party is serious about the deficit and so Monopoly money will force low interest rates and people will go to the stock markets seeking return. Just stay with companies that actually have some viable business because the valuations will be rich by historical standards.
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I don't own any coins. I have simply stopped seeing Bitcoin as tulip bulbs, I believe its a real thing. All the other ones - Tulip bulbs to me still.
It does seem to correlate with global liquidity, so its a decent indication tool. I would like to learn how to own some in case someday I want to. But yes, no plunge protection team, and heavily manipulated, but what isn't at this point.
I'd keep the S&P 500 index funds but start flipping money into bonds. 70/30, 60/40, take your pick, there seems to be advocates both ways. But I'd be aggressive at moving now--cannot predict the future, but if you want to retire a year from now, you probably want to derisk your portfolio. Keep some money out there to make money, but make it so that if the bottom falls out--you're still on track to retiring in a year. Otherwise you run the risk of a bad year where the market drops 25% and now you feel like it's not the right time to retire, your portfolio is down 25% and now you "bought high to sell low".
30 or 40% bonds, but keep some money in the 500, who knows, maybe it'll keep going good for a few years, and you can rebalance as you go, locking in those returns. But I'd fear going all in on bonds or other super conservative funds, you might trade risk for loss of value due to inflation as the years go by. Some growth is desirable, even in retirement.
Your 401K, bank acct, etc are part of the equation. What are your recurring costs? Once you stop working, cash flow changes.
My plan was to have at least 1 property paid off to minimize the largest contributor to recurring costs and then minimizing the operating costs of those properties.
Make your savings last.
No debt. House paid off. No big worries.
You’re in a very rare situation considering your net worth and lack of debt. The average American retiring today has little saved.
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Boeing hit 52 week low today. They offered 30% raises and $6000 ratification bonuses.
House condition? Energy costs? Vehicles? You just might need that new E-Ray, ya know...
House needs work. I plan to work on it in retirement. Nothing overly expensive or pressing needed.
New car? That's what my kid tells me. My Civic only has 34k miles on it, though.
