Search found 136 matches

by Intrepyd
Fri Feb 09, 2024 5:37 am
Forum: Investing - Theory, News & General
Topic: New article casting doubt on index investing
Replies: 51
Views: 6533

Re: New article casting doubt on index investing

Is US market cap really up to 70%? How does that compare with the international allocation of VT or target date funds?
by Intrepyd
Mon Dec 18, 2023 9:28 am
Forum: Personal Consumer Issues
Topic: Is it safe to use TEMU website for shopping? Not the phone app
Replies: 23
Views: 13836

Re: Is it safe to use TEMU website for shopping? Not the phone app

Nowadays, Amazon is just a glorified middle man between cheap overseas manufacturing and the consumer. Haven't you noticed all the alphabet soup non-brands (JOYMOOP, EJEJY, etc)? Temu (and Shien, for example), are skipping the middle man opening up more convenient direct access to these manufacturers to consumers. Prices are dirt-cheap. Product quality is what you'd expect for cheaply manufactured items, and often identical to the stuff on Amazon -- but not always. Quality is hit or miss. If it's a commodity item where quality doesn't matter a ton (LED light strips, laptop bag, hospital badge holder, etc), then I find it's usually worth the gamble to get it cheap on Temu.
by Intrepyd
Tue Dec 05, 2023 11:31 pm
Forum: Personal Investments
Topic: BOXX ETF: Help Me Understand
Replies: 40
Views: 6137

Re: BOXX ETF: Help Me Understand

CletusCaddy wrote: Tue Dec 05, 2023 11:08 pm
muffins14 wrote: Tue Dec 05, 2023 11:03 pm
CletusCaddy wrote: Tue Dec 05, 2023 11:02 pm
muffins14 wrote: Tue Dec 05, 2023 11:01 pm
WhitePuma wrote: Tue Dec 05, 2023 10:57 pm

On BOXX’s website, it says its profile attempts to mimic treasuries.

It holds options, not treasuries, so the return on the box is taxed like 60% long-term capital gains and 40% regular income.
But only upon distribution which it isn’t doing
What does it do?
It increases the share price instead of distributing anything. Perfect for high earners who would otherwise get hit with ~50% tax rates on money market, HYSA, etc…
If you look at the 1Y chart on this page (make sure you click the 1Y chart), it sure looks like they’re making regular distributions.

https://money.usnews.com/funds/etfs/ult ... x-etf/boxx
by Intrepyd
Mon Dec 04, 2023 2:03 pm
Forum: Personal Investments
Topic: Private equity being prioritized by ultra wealthy, but is that the right allocation for a couple w a net worth of 1.5m?
Replies: 35
Views: 6276

Re: Private equity being prioritized by ultra wealthy, but is that the right allocation for a couple w a net worth of 1.

Private equity is still a small fraction of the investable market, and doesn't outperform on a risk adjusted basis, according to Illmanen (AQR guy) in his book "Investing Amid Low Expected Returns".
by Intrepyd
Sat Nov 25, 2023 11:52 pm
Forum: Personal Investments
Topic: Does early retirement change asset location strategy?
Replies: 17
Views: 3063

Re: Does early retirement change asset location strategy?

This is a very sensible approach and useful way to look at it. At the end of the day, your portfolio is $X lighter in bonds and $X dollars are in your taxable account ready to be spent. This is the crux of my concern. i’m not sure you would have the same dollars in your taxable account between the two scenarios. While rebalancing in the IRA after selling stocks in taxable would certainly simulate selling bonds in the first place, it wouldn’t mitigate the risk of depleting the taxable account prematurely because of the stock crash. And depleting the taxable account for an early retiree is a big problem, since the other accounts aren’t available for ~10 years (other than some of the exceptions mention in this thread) without taking a 10% hai...
by Intrepyd
Sat Nov 25, 2023 6:34 pm
Forum: Personal Investments
Topic: Does early retirement change asset location strategy?
Replies: 17
Views: 3063

Does early retirement change asset location strategy?

How does early retirement affect decisions around asset location? Tax efficiency calls for bonds in tax-deferred accounts and stocks in Roth & taxable accounts. This assumes an investor is indifferent about asset location other than for those tax considerations. But, if I retire at an age prior to when I can take penalty-free distributions from 401ks (assume 10 years before 59.5), then I'll be drawing down my taxable account first. In other words, the taxable account has a shorter investment horizon than the tax-deferred accounts. It effectively represents 100% of the retirement nest-egg for the first 10 years of retirement. Should this lead an investor to have a less aggressive allocation in the taxable account, knowing that they will ...
by Intrepyd
Sun Nov 05, 2023 11:28 am
Forum: Personal Finance (Not Investing)
Topic: How to withdraw principal amount from my 3 fund portfolio at Vanguard?
Replies: 26
Views: 3072

Re: How to withdraw principal amount from my 3 fund portfolio at Vanguard?

Taxable funds don't let you sell principle vs gains. They do let you sell specific shares, though. So you'd want to sell shares that have the lowest gains (or highest losses) to minimize your tax. If the amount was a lump-sum investment, it's likely that all the shares have the same gain or loss.
by Intrepyd
Thu Sep 14, 2023 7:31 pm
Forum: Investing - Theory, News & General
Topic: Private Equity Groups and Total Stock Market
Replies: 46
Views: 4757

Re: Private Equity Groups and Total Stock Market

In his awesome book “Investing Amid Low Expected Returns,” Antti Ilmanen argues that private equity does not outperform public equity, and their performance is perfectly explained by well publicized and publicly available factors (value, momentum, profitability, etc). In fact, there is data indicating that an illiquidity discount actually exists in private equity, not an illiquidity premium. The argument is that investors pay for the privilege of not having the returns marked to market, which causes an artificial smoothing of private equity returns—something investors seem willing to pay for.
by Intrepyd
Wed Jul 05, 2023 1:43 pm
Forum: Personal Investments
Topic: Drastic Changes in Roth IRA Investments
Replies: 41
Views: 3817

Re: Drastic Changes in Roth IRA Investments

If the purported explanations for those alternative premia are true, then it might work out. If the alternative premia are artifacts of data mining, then it probably won’t work out. If it does work out, it could still lag the market for multiple decades. If you have the conviction to stay the course with your tilt despite long under-performance, then you may be able to collect the premium. If you think you will likely bail out, then you will do worse off than staying with market-weighted funds. So, I would carefully ask yourself whether you believe in those alternative premia enough to psychologically sustain your conviction, despite possible under performance. For example, would you be tempted to sell a losing tilt if someone argued that t...
by Intrepyd
Mon May 29, 2023 8:51 am
Forum: Personal Investments
Topic: Sell bond funds to TLH, then buy CD's?
Replies: 21
Views: 1524

Re: Sell bond funds to TLH, then buy CD's?

You could. Although you’d run the risk of missing a bond rally if interest rates fall. For your long-dated bonds especially. Maybe treat the two decisions independently. Should you tax loss harvest? Should you re-buy a similar bond fund, or exit bonds for CDs?

Personally, unless I needed to cash in a portion of my fixed income holdings in a year, I probably wouldn’t chase yield in short term investments. If interest rates fall, and the CD rate is no longer attractive when it’s time to roll over, then you’ll be buying back into those same bonds, which would now have a higher price than when you sold.
by Intrepyd
Mon Apr 03, 2023 8:52 pm
Forum: Personal Consumer Issues
Topic: Anyone go case-less with their iPhone?
Replies: 78
Views: 6513

Re: Anyone go case-less with their iPhone?

No case on my iPhone 14 Pro Max. I don’t like the added bulk or diminished aesthetics. I do pay for Apple Care for peace of mind. Incidentally, I’ve dropped it a decent amount with no damage.
by Intrepyd
Sat Apr 01, 2023 2:17 pm
Forum: Investing - Theory, News & General
Topic: Best resources for the decumulation stage?
Replies: 13
Views: 1616

Best resources for the decumulation stage?

I feel like my Bogleheads education has put me in the right place for accumulation. But, I feel like decumulation is a phase fraught with tax traps, sequence of return considerations, health care, etc. not to mention, the FIRE angle, when decumulation occurs prior to age 59.5. Would you recommend any standard-bearer tomes or other authoritative resources to start reading about this?
by Intrepyd
Thu Mar 02, 2023 3:58 pm
Forum: Investing - Theory, News & General
Topic: One AA for all holdings = bad advice?
Replies: 26
Views: 2339

Re: One AA for all holdings = bad advice?

What about an early retiree prior to age 59 1/2? Their taxable brokerage and savings accounts might be the only source of retirement income they can tap prior to “retirement age.” The taxable account might have a completely different horizon compared to the 401k, since only a slice of their portfolio will be accessible to the early retiree. In that scenario, there’s an argument to concentrate some of the less aggressive components of the overall AA into the brokerage account. (The overall AA stays the same, but the first and second buckets to tap may have different AAs)
by Intrepyd
Mon Feb 27, 2023 6:18 pm
Forum: Personal Consumer Issues
Topic: What are your favorite AutoHotkey scripts?
Replies: 3
Views: 599

Re: What are your favorite AutoHotkey scripts?

I have some scripts that map certain buttons (and combinations of buttons!) on my gaming mouse to keyboard strikes. This lets me be completely mouse-driven on my workstation. (I’m a radiologist, so normally I have to use a mouse, keyboard, and a multi-button dictaphone in the course of my work).
by Intrepyd
Mon Jan 02, 2023 7:20 pm
Forum: Investing - Theory, News & General
Topic: Why I Bonds and TIPS?
Replies: 23
Views: 2809

Re: Why I Bonds and TIPS?

Equities can hedge inflation on the longest terms, perhaps longer than a retiree, or a soon retiree is comfortable with. In that case, only real dollar denominated instruments can not only hedge but eliminate the inflation factor.
by Intrepyd
Sat Dec 03, 2022 6:32 pm
Forum: Investing - Theory, News & General
Topic: What's wrong with not staying the course - and buying bonds now?
Replies: 72
Views: 11729

Re: What's wrong with not staying the course - and buying bonds now?

The assumption that macro trends aren’t already priced in before you have a thought experiment is a fallacy, to sum it up in a sentence.

That said, hopping into a risk free bond investment like TIPS when real yields are high isn’t market timing, eg
by Intrepyd
Tue Nov 15, 2022 2:46 pm
Forum: Investing - Theory, News & General
Topic: New Avantis worldwide ETF with value tilt
Replies: 793
Views: 112623

Re: New Avantis worldwide ETF with value tilt

Does anyone have a sense on what the dividend yield is expected to be for this fund? Morning Star should have this information. Last time I checked the yield was higher than average, but this is almost certainly coincidence since dividends are irrelevant to Total return I doubt Avantis would deliberately favor them. Correct, their dividend yield per the Portfolio tab on Morningstar is 3.10%. This is presumably the weighted average dividend yield of the underlying funds, which one could also lookup and weight as AVGE does. Agreed relative to the yield; my guess is it's a product of tilting to Value, not a concerted effort to target dividend stocks. The dividend yield might also reflect the US/international split. International equity indice...
by Intrepyd
Sun Oct 30, 2022 9:42 am
Forum: Investing - Theory, News & General
Topic: New Avantis worldwide ETF with value tilt
Replies: 793
Views: 112623

Re: New Avantis worldwide ETF with value tilt

Theoretically, if you have a portfolio with a mixture of uncorrelated risk premia, then the portfolio overall can be less risky than the risky individual components.

This is the conceit of multi-factor funds.
by Intrepyd
Sun Oct 30, 2022 9:36 am
Forum: Investing - Theory, News & General
Topic: The coming long-run slowdown in corporate profit growth and stock returns
Replies: 18
Views: 1807

Re: The coming long-run slowdown in corporate profit growth and stock returns

Earnings slowdown combined with high valuations means lower expected returns for stocks.
by Intrepyd
Fri Oct 28, 2022 8:17 pm
Forum: Personal Consumer Issues
Topic: Good Modern Science Fiction
Replies: 760
Views: 149465

Re: Good Modern Science Fiction

The Three Body Problem.

The first of a trilogy. Quite amazing.
by Intrepyd
Wed Oct 26, 2022 1:56 pm
Forum: Personal Investments
Topic: Defined benefits plan. What funds should I choose to approximate a 3% return
Replies: 2
Views: 315

Re: Defined benefits plan. What funds should I choose to approximate a 3% return

Long treasuries get you close to that expected return (assuming your withdrawal horizon is > 10 years), but your year-to-year returns could be volatile.

Reasonable ex-ante return projections (in real terms, not nominal) are 4% for US Equity, 6% for Intl Equity, and whatever bonds are yielding right now. You can make a portfolio out of these components, but year-to-year will be volatile.
by Intrepyd
Sat Oct 15, 2022 11:15 am
Forum: Personal Investments
Topic: Best likely return in the short term 3-5yrs
Replies: 4
Views: 664

Re: Best likely return in the short term 3-5yrs

I-Bonds sounds like what you're looking for. They're liquid after 1 year, and you have a guaranteed return that cancels out inflation. On the risk-reward balance, it's better than any nominal fixed-income out there. TIPS are also inflation protected, and currently offer a better expected return, but you bear interest rate risk with TIPS.

$10,000 limit with I-Bonds, unless you have a spouse or another entity (LLC, Trust) to invest alongside.
by Intrepyd
Wed Sep 28, 2022 10:14 am
Forum: Investing - Theory, News & General
Topic: 60/40 vs. Golden Butterfly for Retirement
Replies: 47
Views: 7812

Re: 60/40 vs. Golden Butterfly for Retirement

I've always been so intrigued by the Golden Butterfly Portfolio. Who wouldn't, with decent returns and excellent smoothness? My trouble is with two core assumptions in the portfolio, which are based on historical results: 1) There is a small cap value premium. 2) Gold is a worthy asset because it's an uncorrelated inflation hedge and a safe haven in times of distress. Hypothesis 1 is debated a lot here. If the small cap premium is overgrazed, then is that a good tilt, given the possible tracking error versus cap-weighted market funds? Hypothesis 2 is failing its stress test right now. In a time of inflation and distress, gold is *not* performing the way you'd hope. Personally, I'd have trouble sticking with a portfolio of only 40% equities,...
by Intrepyd
Sat Aug 20, 2022 9:22 pm
Forum: Personal Investments
Topic: IBonds vs taxable brokerage investment in 30s
Replies: 8
Views: 1501

Re: IBonds vs taxable brokerage investment in 30s

I don’t think I would consider “I-Bonds” as a bucket, like a 401k or a brokerage account. I would consider it as an asset class, like “stock” or “treasury bond.”

If your asset allocation calls for you to hold bonds, then I think I Bonds are a great call for some of your bonds. Inflation protection, “callable” since you can withdraw after 1 year, and no principal risk.
by Intrepyd
Tue Jul 26, 2022 9:58 am
Forum: Personal Investments
Topic: Bonds in tax-advantaged even if brokerage is large?
Replies: 9
Views: 966

Re: Bonds in tax-advantaged even if brokerage is large?

Yes, this is a good point I have considered as well. If you need to withdraw from accounts in a specific sequence, then their investment horizon could be quite different. (e.g. early retirement before age 59.5, need to tap taxable accounts first).
by Intrepyd
Sun Jun 19, 2022 9:00 pm
Forum: Investing - Theory, News & General
Topic: What is your age and asset allocation ?
Replies: 1156
Views: 150819

Re: What is your asset allocation and age?

Age 40. I'm currently 73%-27%. My written investment plan is to use Vanguard Target 2035 in tax-deferred and Roth, and to mirror that asset allocation in taxable. 10% of my equity allocation is in private real estate syndications.
by Intrepyd
Tue Jun 14, 2022 6:01 pm
Forum: Personal Investments
Topic: Risk parity portfolio with stock/bond/REIT/Gold simulation
Replies: 12
Views: 1089

Re: Risk parity portfolio with stock/bond/REIT/Gold simulation

When backtests have infinite permutations of possible portfolios, and when they have infinite choices of time interval, there are more than enough degrees of freedom to find many "silver bullets." At some point, it becomes an exercise in data mining and overfitting. It says a lot about what happened before, but much less about what should happen going forward.
by Intrepyd
Fri Jun 03, 2022 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Prenup or Domestic Asset Protection trust or both?
Replies: 53
Views: 5980

Re: Prenup or Domestic Asset Protection trust or both?

I'm sure you saw it coming but...

You will definitely want to take any advice from this forum with a huge grain of salt, and consult with an experienced debtor-creditor lawyer in your state. When it comes to the highest tiers of asset protection, when you are relying on trust code, statutes and case law, and trying to predict what a judge would decide, you just need an expert. Especially when dealing with a super-creditor like a spouse or the IRS.
by Intrepyd
Sun May 29, 2022 2:16 pm
Forum: Personal Investments
Topic: Do you include real estate in your asset allocation?
Replies: 82
Views: 6898

Re: Do you include real estate in your asset allocation?

Personally, I don’t count my residence in my investment portfolio, but I count it in my net worth.

I do have some private real estate syndication investments, which I count as part of my equity allocation in my investment portfolio, for the purposes of asset allocation.
by Intrepyd
Sat May 28, 2022 1:31 pm
Forum: Personal Investments
Topic: FIRE for physician
Replies: 42
Views: 6912

Re: FIRE for physician

White Coat Investor has a new asset protection book.

Regarding asset protection trusts — if this is the main line of defense in your plan, just make sure your state is friendly to these. For example, if you set up the trust in a state that allows domestic asset protection trusts, but you live and practice in a different state that doesn’t allow them, your home court would likely be able to pierce the trust.
by Intrepyd
Wed May 25, 2022 12:26 pm
Forum: Investing - Theory, News & General
Topic: Lessons from this crash
Replies: 290
Views: 34142

Re: Lessons from this crash

Lesson from a high inflation regime:

I Bonds are close to a free lunch, subject to the purchase limits. No principle risk, guaranteed high nominal return during inflation, easy entry and exit. One can buy a slug of I Bonds when rates are good, with the knowledge that they can exit the holding with a minimum penalty if/when the variable rates become unattractive.
by Intrepyd
Wed May 25, 2022 7:09 am
Forum: Personal Investments
Topic: Any thoughts regarding websites that provide consensus forecasts?
Replies: 2
Views: 347

Re: Any thoughts regarding websites that provide consensus forecasts?

The current market price is exactly a consensus forecast, polling the entire market.
by Intrepyd
Mon Apr 18, 2022 8:03 pm
Forum: Investing - Theory, News & General
Topic: Do any high income earners here NOT invest in municipal bonds?
Replies: 43
Views: 9668

Re: Do any high income earners here NOT invest in municipal bonds?

grkmec wrote: Mon Apr 18, 2022 7:50 pm I refuse to invest any money in munis or treasuries because they have a negative real rate of return.
And yet, they have a less negative real rate of return than cash.

Yours is a good strategy if your risk tolerance is compatible with 100% equity.
by Intrepyd
Sun Jan 16, 2022 4:31 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1204026

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Does the 3 month interest redemption penalty subtract the first 3 months of interest, or the most recent 3 months of interest?

The behavior of making interest accrual invisible for the first 3 months suggests that it’s that first 3 months of interest. But, that treatment seems less intuitive to me.
by Intrepyd
Tue Jan 11, 2022 6:33 pm
Forum: Investing - Theory, News & General
Topic: Which state's asset protection laws apply to brokerage accounts?
Replies: 6
Views: 812

Re: Which state's asset protection laws apply to brokerage accounts?

There’s one piece of case law where the judge applied the laws of the state where the bank was located, not where the person resided. In such cases, there is not a bright line determination that you can rely on. It might simply be up to the judges interpretation. But here is one example relevant to your question: Another trap for the unwary exists for people who have established bank or brokerage accounts with financial institutions located outside of Florida. For example, in the bankruptcy case of In re Gillette, 248 B.R. 845 (Bankr. M.D. Fla. 1999), Mr. and Mrs. Gillette, a married couple who lived in California, deposited money in a short term bond fund and a separate money market account with a financial institution located in Wisconsin...
by Intrepyd
Tue Jan 11, 2022 8:01 am
Forum: Personal Investments
Topic: Swap my Bond funds for iBonds?
Replies: 36
Views: 4392

Re: Swap my Bond funds for iBonds?

Series I Bonds are a free lunch, since you can buy a higher coupon (7%) without a higher face value. A marketable bond yielding 7% nominal would be priced far above face value right now.

Yes, the coupon will reset with inflation every 6 months, but you can liquidate with minimal penalty after 1 year.
by Intrepyd
Thu Dec 30, 2021 7:13 pm
Forum: Investing - Theory, News & General
Topic: Is traditional 60/40 equities/bonds model outdated?
Replies: 141
Views: 12170

Re: Is traditional 60/40 equities/bonds model outdated?

rockstar wrote: Wed Dec 29, 2021 2:18 pm It's true. Investment grade bonds don't keep up with inflation. As for protection during a downturn, this is hit or miss. Sometimes bonds are negatively correlated. Sometime they're not.

If you want to pay for protection for a downturn, then options make more sense than bonds right now.
Is this mathematically true? I’m not too experienced with options. Is the strategy to buy some out of the money puts as insurance?
by Intrepyd
Thu Dec 30, 2021 7:07 pm
Forum: Personal Consumer Issues
Topic: Favorite Purchases of 2021?
Replies: 203
Views: 19136

Re: Favorite Purchases of 2021?

Rollerblades (Macroblade 110s) — like it’s the 90’s, baby

Xbox Series X — GamePass is like Netflix for games.

Kindle Oasis — jump started my new hobby of reading time management and productivity stuff. Interestingly, this conflicts directly with purchase #2.

Sony noise cancelling earbuds — travel, work and leisure; these things are great

Oru Kayak Bay ST — a kayak that folds up into a big briefcase

Knackpack travel backpack — this thing is my work bag and my 4-days-or-less 1-bag for travel.

Series I Bonds — I’m all for simplicity, but the yield differential over BND was enough to jump in.
by Intrepyd
Sat Dec 18, 2021 3:58 pm
Forum: Personal Investments
Topic: Willing to share your Taxable Portfolio?
Replies: 381
Views: 57297

Re: Willing to share your Taxable Portfolio?

45% VTI (Total Stock Market)
20% VXUS (Total International)
25% MUB (Muni Bonds)
10% Real Estate syndications

And as of this year, some I-Bonds
by Intrepyd
Wed Nov 24, 2021 11:56 am
Forum: Investing - Theory, News & General
Topic: Asset Allocation Ideas Outdated?
Replies: 57
Views: 7019

Re: Asset Allocation Ideas Outdated?

What is the alternative to bonds? Cash with zero yield? 100% stocks?
by Intrepyd
Thu Nov 18, 2021 1:27 pm
Forum: Investing - Theory, News & General
Topic: Hi! I'm high inflation. Nice to meet you.
Replies: 980
Views: 110514

Re: Hi! I'm high inflation. Nice to meet you.

Regarding active portfolio changes in response to inflation, aren’t Series I Bonds a free lunch, if one is going to hold bonds at all? With a minimal penalty to exit a position in I Bonds, it’s very easy to revert if inflation goes away.

I maxed out I Bonds in my and my wife’s account and in a trust account this year in response to inflation. Sure beats the yield on my Muni and Total Bond ETFs. And they’re risk free.

I think it’s a rational move when the market is pricing bonds at negative real yields.
by Intrepyd
Wed Sep 01, 2021 8:37 am
Forum: Investing - Theory, News & General
Topic: Bonds are keeping up in 2021: why the fear
Replies: 56
Views: 12258

Re: Bonds are keeping up in 2021: why the fear

Bonds may not have good real return, but are they a "terrible" investment on a risk-adjusted basis? They yield better than cash and are less volatile than stocks. What's the alternative? 100% stocks?
by Intrepyd
Fri Jul 23, 2021 8:28 am
Forum: Personal Investments
Topic: Where do bonds and REITs and dividends go? Taxable, tax deferred, or no tax accounts?
Replies: 19
Views: 1578

Re: Where do bonds and REITs and dividends go? Taxable, tax deferred, or no tax accounts?

The “dogma” is that bonds go in tax-deferred and stocks in taxable. However, now dividend yields for stocks are higher than bond yields. Not to mention all the capital gains. So, it seems to me that the dogma is exactly backwards in our new secular era of low bond yields.
by Intrepyd
Sun Jun 27, 2021 2:34 pm
Forum: Investing - Theory, News & General
Topic: Why are you invested (mainly) in US stocks when all long term forecasts are in favour of ex-US?
Replies: 221
Views: 22248

Re: Why are you invested (mainly) in US stocks when all long term forecasts are in favour of ex-US?

Recency bias. Home bias. Assertions that valuation driven forecasts might not be reliable. Mostly recency bias, probably.
by Intrepyd
Mon May 31, 2021 10:08 am
Forum: Investing - Theory, News & General
Topic: Is investing akin to free money? Any risks?
Replies: 28
Views: 3674

Re: Is investing akin to free money? Any risks?

You’re compensated for the use of your capital, and the risk of loss. But on your question regarding passive work, that’s a good point. Part of the economic malaise right now is that most of the recovery is in passive income, while income from work is flat. That tends to benefit the investor class (“us”) rather than the people truly on the bubble.
by Intrepyd
Sun Apr 18, 2021 10:02 pm
Forum: Personal Investments
Topic: Cold feet before dumping 25K into crowdfunding real estate?
Replies: 52
Views: 9882

Re: Cold feet before dumping 25K into crowdfunding real estate?

I read Brian Burke’s book The Hands Off Investor, which teaches you how to vet sponsors, syndications and properties. The book convinced me that vetting the sponsor is the whole ballgame. There are enough tricks a sponsor can pull with underwriting that it would take a very thorough and savvy investor to detect by doing arm’s length due diligence on a property. Unless you’re an expert, better to vet the sponsor’s track record and trust that they themselves are doing proper due diligence.