996: Friday Q&A: Moving Closer to Family, Allowances for Children, Swapping Real Estate for Bitcoin, etc.
Feb 17, 2024
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Topics include rejecting a promotion to be closer to family, giving children allowances, building a vision after children, investing in Bitcoin vs. real estate, self-development through affirmations, and Texas potentially seceding from the USA.
Consider rejecting a promotion to be closer to family, prioritize personal connections.
Allow children an allowance to teach financial responsibility at a young age.
For asset diversification, consider exploring other investment options beyond real estate and Bitcoin.
Texas seceding from the USA is unlikely; focus on establishing residency for connection instead.
Deep dives
Sell Ontario real estate
Considering the current market conditions and your answer that you wouldn't purchase Ontario real estate today, it is recommended to sell the real estate.
Consider investing in Bitcoin
Given your belief that Bitcoin is not going to zero and its potential for value appreciation, you may consider allocating a portion of the proceeds from selling the real estate to Bitcoin.
Exploring other investment options
You may also want to explore other investment options beyond real estate and Bitcoin to diversify your portfolio and potentially generate returns. Consider researching and evaluating different asset classes that align with your investment goals and risk tolerance.
Holding cash temporarily
If you are uncertain about where to invest the proceeds from selling the real estate, it may be prudent to hold the cash in a bank account until you have a clearer investment strategy or opportunity.
Developing strong asset allocation models for investing in Bitcoin
One recommendation for investing in Bitcoin is to create a strong asset allocation model. This model should be personalized and make sense to the individual investor. For instance, allocating 80% of investment capital into safe mutual funds and stocks, 5% in physical gold, 5% in Bitcoin, and keeping 10% for stock trading could be a reasonable approach. Another option is to distribute investments evenly across different asset classes like stocks, gold, real estate, bonds, and Bitcoin. The amount of money to invest in Bitcoin would depend on the individual's financial situation and risk tolerance, but it could be more than 1% and less than 90% of their portfolio.
The importance of speculation with enough money
If someone believes in the Bitcoin thesis and wants to speculate on its potential growth, it is crucial to speculate with enough money that a significant increase in Bitcoin's value would make a meaningful difference in their financial life. However, it's also important not to speculate with so much money that the worst-case scenario of losing it would be devastating. The key lies in finding a balance that aligns with an individual's financial situation, goals, and risk tolerance. Each person should carefully consider their circumstances and create a personalized plan for how much money to speculate with.
The likelihood of Texas seceding and potential actions to explore
While there is much speculation about the possibility of Texas seceding from the United States, it is highly unlikely to occur. Historically, the Civil War settled the issue of secession, and legally it is challenging for a state to secede from the union. However, Texas does offer options for becoming a resident, even if one does not spend all their time there. Establishing residency through using a Texas mailing address and driver's license is feasible for those intrigued by the idea of being connected to Texas. As for the future of Texas, many experts believe the state has strong economic growth potential and is likely to experience significant changes. However, secession remains highly improbable.
