Investing General Discussion
- Thread starter Furious
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Big Phoenix
Pronouns: zie/zhem/zer
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Kithani
Blackwing Lair Raider
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I think he is saying that next year AI will actually start to deliver on the "productivity" promises that all the market hype has been about
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Big Phoenix
Pronouns: zie/zhem/zer
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Salesforce just fired 5000 people because of ai. Isn't the productivity already here?
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Aaron
Goonsquad Officer
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A short while ago I was chatting with a friend of mine who has worked for a long time with a company and has acquired some good stock options. He's been thinking about cashing in and it's a good sum, about $4-5 mill or so I think. He asked me what I would do with that sort of money and after thinking about it I told him I'd prolly do something like the following:
Anyway, if anyone wants to chime in, feel free. Always interested in seeing how people would invest their money.
- Buy 2 small apartments to rent out for a monthly income.
- Split the rest into roughly equal parts investing in:
- Physical gold.
- Bitcoin and other "good" crypto such as Etherium and Ripple (though probably 50-75% in Bitcoin).
- A mix of stocks including some relatively safe ones and a few interesting higher risk ones.
- Buying into a mixed stocks/bonds fund that one of the local banks runs.
Anyway, if anyone wants to chime in, feel free. Always interested in seeing how people would invest their money.
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Khane
Got something right about marriage
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If you think the Western world and the US is headed towards demise, move to the US, buy guns and ammunition and then pay ex military to survival train you.
If you aren't a complete psychopath just do most of what you outlined except for the apartments. Fuck rentals.
If you aren't a complete psychopath just do most of what you outlined except for the apartments. Fuck rentals.
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Aaron
Goonsquad Officer
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I am in half a mind to move to the USA to be honest, but my friend says he is not moving anywhere, at least for another 10 years, as he has young children. Although having said what I said above, if I had $4-5 mill burning a hole in my pocket, there would definitely be a little devil on one of my shoulders whispering to me to just say "Fuck it!" and see how long that kind of money would last me while doing hookers and blow, and when it did run out, just suck off a shotgun. When you're middle aged, unemployed, single and childless, planning too much for the future does not quite make as much sense as when you have kids and a job.
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Cad
scientia potentia est
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Lambourne
Bronze Baronet of the Realm
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Suddenly coming into money without any experience in investing is the best way to quickly lose it all. He could do what
Jysin
says and probably do better than most.I'd recommend he reads a lot of FIRE articles (websites like mrmoneymustache have good articles and a forum about wealth management). The main trap is wanting to do too much. Some of the best wealth management strategies are shockingly boring: paid off house, some broad index funds, some bonds, some fixed term deposits.
I'd say fuck no to being a landlord for low income housing, and depending on where you live now, consider moving to a country that doesn't have a punitive wealth tax system. If you have EU citizenship, Portugal is a great choice. No wealth tax, great weather, politically stable.
5 mil is more than enough to retire on if you live a normal life. If you start living like "rich people on TV" do, it'll run out within a decade.
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Kithani
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I thought the entire point of Europe was to be unemployed and let everyone else take care of you without all the social shame of the US
Lambourne
Bronze Baronet of the Realm
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Gravel
Mr. Poopybutthole
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I always say this, people think investing has to be complicated. "I need to diversify into 20 different asset classes. I need real estate, bonds, stocks, crypto, gold, silver, domestic, international, etc."Suddenly coming into money without any experience in investing is the best way to quickly lose it all. He could do what
I'd recommend he reads a lot of FIRE articles (websites like mrmoneymustache have good articles and a forum about wealth management). The main trap is wanting to do too much. Some of the best wealth management strategies are shockingly boring: paid off house, some broad index funds, some bonds, some fixed term deposits.
I'd say fuck no to being a landlord for low income housing, and depending on where you live now, consider moving to a country that doesn't have a punitive wealth tax system. If you have EU citizenship, Portugal is a great choice. No wealth tax, great weather, politically stable.
5 mil is more than enough to retire on if you live a normal life. If you start living like "rich people on TV" do, it'll run out within a decade.
Why? Why would it be any different when you have $100k vs $10M?
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Cad
scientia potentia est
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I think they're copying what they hear the mega-rich do but not understanding why the mega-rich do it. If you have 5M you need to get income off that 5M, you need to live off that income without touching the principal. If you have 50M, you probably don't need that much income off it, even a really rich person can usually live off 2-3M/year. At that wealth level you're really trying to make sure that no serious crash can cause you to be poor again, so you want to have your assets in a bunch of different classes so that a real estate crash or a stock market crash individually doesn't make you poor.
With 5M you're middle-class rich, you're certainly rich but probably can't live like it, you need to use your assets to get you a nice upper middle class income for life. With 50M you're thinking about never being poor again, the goal with your assets is just different.
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