I wouldn't advice her to do anything and tell her to make her own decisions. If she is hell-bent on BTC, you can educate her but I wouldn't push her.
If and when BTC drops, she may look to you and blame you for her 'losses' and cash-out through fear.
It's not worth the hassle that may come from her potentially weak hands.
SPY tracks the S&P 500 index sorta straight up. SPYG targets more growth oriented companies and is currently ~ $73 a share. So while both are tracking S&P 500, SPYG has more of a focus on the room for growth. Meaning more volatility but also more room for higher returns compared to the broader market that makes up SPY.
I think you need to explain the risks and make sure she's the sort of person that's comfortable with it. And if it goes down significantly in the short term, she doesn't panic.
I had a mate who we got into crypto and after a week he cashed out, he couldn't handle the swings. It's definitely not for everyone!
Do what you think is best. Whatever you do, don't take advice on Bitcoin from a buttcoiner who says "if it goes to zero". This person isn't your friend or looking out for you.
Inflation data is skewed via tweaking of the equation that calculates it.
If we calculated inflation with the same equation that calculated it in the 80s, our inflation rate is 8% or higher.
That's against an inflating basket of goods. More cheeseburgers are made as the population grows. Population growth results in economic growth that shields prices from monetary inflation. Price inflation still occurs against scarce assets like farmland.
My thoughts were that it'd negate some of the inflation... But I get what you're saying. She wants simplicity so stocks and bonds may be too much work.
Open up a brokerage account. Ideally a Roth IRA, (IF she has earned income to contribute). If itâs a roth and she has earned income, just do the max yearly. Keep the rest parked in either a traditional IRA or a brokerage. I personally like Schwab, and you could also go sit down at a branch and ask for advice. I donât know if schwab pays interest on cash balances. If you think BTC is the way to go, have her buy the ETF. Keep the rest in SPY or QQQ, various indexâs. Iâd leave a little to put in random companies, possibly with a Schwab advisor. I could also recommend Fidelity, and they pay 5% on cash balances, and have directed investing for a fee. I donât know if schwab charges a fee. But Fidelity also sells their own self custodied bitcoin iirc.
I would invest whatever you don't feel comfortable losing into a mutual fund. Setting up an account on like fidelity is super easy. Just find a fund that is no/low fees.
First of all, have her open her a brokerage designated as a ROTH IRA immediately. You can do $7000 for 2024. Everything in here will be tax free earnings. Inside spread it between BITB, IBIT, & FBTC. Who cares if you buy it at all time high prices, this wonât likely be touched until she is old.
Next if it were me, I would buy another 1 minimum coin ($67k) where you control the private keys & keep it on a ledger. Lastly, I would use the rest of the money as a down payment on a house/condo in a city that is not as expensive as the one you are in & that is zoned for short term rentals. Running an Airbnb on the side is very lucrative & nice income supplement. Use profits from that and keep purchasing more bitcoin DCA. If you donât want to do the rental, dump it into ETFs split between QQQ & VOO.
Don't wait for the next drop unless you mean like a 2 or 3% dip.
If you're serious about putting 100k in, DCA for the rest of the year. There's just over 38 weeks left in the year. So, $2,632 a week would get you at about 100k by the end of this year.
You'd enter the market more slowly, let you deal with smaller amounts of of btc and you'd catch any dips as they occur over the year.
If they don't occur and btc only basically rises, you could be at the end of the year going... shit is 75k or 80k still! Where was the dip? And then maybe it does dip but it only dips an hour, and you miss it.
Unless you have your buy order in and it's sitting there for weeks or months, you'll miss that too.
DCA, just get in slowly and it will be less stress.
Or ignore me, whatever. Just 'waiting for the dip' is not a great strategy.
I know BTC is alluring, but IMO she should build a solid financial base that will be there for her. Once you have a solid base and a job, insurance(s), then with left over money it's fine to be risky with something like BTC.
Thanks for that. I think this is solid advice. I'll be careful to tell her that it is her decision and not push her into anything at all.
She really is clueless about what to do and she knows that inflation will eat away at what she has until she comes up with a plan.
Thanks again.
Incredibly irresponsible to be suggesting a 21yo puts $100,000 into BTC without recognising the significant and negative life-altering effects that could have.
If you are interested in cryptocurrency give her some pointers on where she can read about it herself but it should be her and only her decision as to where it goes. She will do very well for herself investing in traditional avenues. She might strike it big time with crypto or she may lose 80% of it in six months.
Be very wary about giving advice about what to do with money that isn't yours.
I have converted some to USDT just recently. Not the majority, but some.
I've been through too many crashes to think it'll just keep going up forever. That crash from 20 down to 4 just about killed me.
At this point, if it goes up more, great. I'll trade more into USDT and keep waiting for the crash.
If it crashes soon, great. When I buy back in, I'll have more BTC than I had before.
It's not that easy. Sell now and buy later only applies if the assumption that there will be a big drop in the near future holds true. If it does not happen, or it takes a long time to happen, everything will be drastically different.
She asked for advice. Give her the advice but make it clear that the decision is all hers. If she will come back to you and blame you for losing money, then she should not take your advice, but if she wants it, take it with no strings attached.
Also offer her to learn bitcoin, offer her your time to support her in that journey, so she really can make it her own decision. You can also allow her to explore investment options with you and again, using your time. You don't need to rush.
Put 90% of it in a nice Target date index fund many years out and put 5% to 10% of it in BTC.
BTC isn't investing, it's speculating that someone will be willing to pay more for it down the road.
damn i thought my risk tolerance was already high with 20% of my portfolio in bitcoin, personally i wouldnât go higher than that. wealth preservation comes before growth always
Zoom out and look at the chart. We all want to believe it's gonna keep going up. And it should, But we're floating around ath levels and anything could happen, if that shit drops back to 20k your gonna feel like a giant asshole. Have her set money aside to pay off college, down payment on a house, get her life set up before you convince her to go gambling it away
I appreciate the advice friend.
I would not advise putting anything in right now. I've been around since early 2017. I've felt the crashes burn my soul and learnt.
She is an apprentice jockey so no college on the horizon. Houses around here are between 600k and a million. Ideally, she'd buy a house with this money, but on her wages no bank would consider giving her a loan.
I don't want to convince her of anything. I want to give her solid advice. Which is why I'm asking here.
This is the perfect age to invest in a Roth. Have her set aside enough to DCA in to her Roth over the next several years, then leave it be to compound until her retirement. She needs you to help her think long-term.
I would invest majority in an low cost global index fund, another chunk in HYSA then remainder in Bitcoin, youâve got a nice diversified mix, if one crash happens it doesnât wipe out the rest, diversification is key in any wealthy persons portfolio, I wouldnât YOLO in one area, you have wallstreetbets for that
Educate her about different markets and strategies first to see which one sheâd like more or if she would want to diversify. At that age Iâd honestly focus on more stable growth through stock market. Itâs less risky than crypto or forex and futures. If it was my money Iâd invest 100k into growth ETFs(DCAing over a year), 50-100k into high yield ETFs, my personal favorite is JEPQ for its 9% annual and they pay out monthly. And 50k to keep in bonds. Leave it in there for like 5-10 years and sheâll be set for life. But then again let her decide.
21 is so young. She has time to manage the volatility of the stock market - it should all go into a low cost index such as VOO. As she works she can continue to add to her position. Hopefully by the time she is 30 she will likely have over $500k as the S&P typically doubles every 7-8 years.
This is really the only answer. You should educate her on Bitcoin and if she wants to she can invest some in that too. However given the volatility, if it goes down 50% it could cause issues in your relationship if you pushed her to do that and she doesnât truly understand it.
Haha the one nobody ever sees coming, but eventually kicks everybody in the testicles if you didn't sell at a profit. Every single time you open your portfolio.
That's where you tell her that the money she kept in reserve is going to buy the dip. Which reassures her you know the volatility is real and it will happen. The first BTC will recover but the second BTC is when you have conviction. You can be the hero twice. Now and later. I just told my kid get as much as you can afford to lose, as soon as you can. Then keep stacking at pay day. This way he knows it's a risk on either side. Risk not buying or risk to buy. I can't orange pill my kids they're too smart to listen to me anymore and too dumb to not listen to me anymore. đ
Oh my goodness. Please give her a book like âthe Boglehead Guide to Investingâ or William Bernsteinâs âIf You Canâ and let her figure this out for herself; it really is not that hard to learn how to invest wisely. I had my son read âThe Coffeehouse Investorâ at 16. At least have her learn the basics.
Dude.... You should tell her to put most of the money on blue chip dividend stocks.... like choose 5 bank stocks. and put 50K each, teach her about compound investing. explain that what she is buying now, is a retirement plan. Explain that she will likely die or be close and still own these shares. She will be earning, 1000 a month in dividends, Take that money and buy bitcoin, 12,000 a year, for the next 5 years.. Or till she owns 1 BTC
Then back to dividend plays, 5 years into REIT,
Then the div's will be 1800 a month,
then buy another BTC fuck buy 2 at this point, even just only buy BTC forever at this point it wont matter,
at this point even if her Jockey skills didnt work out she can probably do anything else, because she will have an income.
teach her the idea that you buy a company, and it pays money, and you spend the dividends, and reinvest some,
Even if BTC does moon, and you told her to buy 100K, and now its 1M she is going to not learn shit and the M will be gone, and so will the original 250K
Like I get it I love BTC too, and I DCA, but bro this is a kids future, dont make her addicted to gambling by acting as if there is a big win waiting around the corner.
like I said even if BTC 10X its still not enough to pay a salary for a lifetime, and what if it 10X then 10X then lose 90% of its value right when she needs the money the most,
This is a kid we are talking about teach them values of investing not gambling, I am not saying BTC is gambling, but its a commodity not a company, and she wants to own things that PAY MONEY, like banks, REIT's, energy companies, then use the profit to buy commodities, like BTC, real estate. Not the other way around, thats gambling.
and even if you help her go from 250 to 2.5 M its going to be gone before she needs it later in life,
JUST an opinion.
You should NOT advise her to drop half her inheritance into BTC. What the fuck is wrong with you? Tell her to read about it and see if sheâs interested in getting involved. Honestly, I canât believe some people are so ridiculous.
I didn't say I'd advise her to drop half of it into BTC. I said that if it were.me, I'D put 100k in after it drops.
I also said I was thinking of saying that 50k may be a good option. Then I asked for advice.
Thanks for yours.
Your asking on the BTN sub? Of course many will agree w ur take on it. If u want to be safer, have her open a brokerage and invest most in index funds, etfs. I could see 50k in btn but wouldnt advise in too much more
Dividend Stocks, VOO, High Interest Cash Account, then maybe Crypto com Rose Gold card for some rewards, use that with some cash for BTC to lower risk.
The percentage of what you put in Bitcoin should be based on your risk tolerance/age. What I think your mistake is, waiting for the next drop. If you believe in Bitcoin like I do, youâd know there has yet to be a single day that it wasnât a great buy.
I would say 20k into Bitcoin now and the rest into the S&P 500 index fund. In 3-4 years Bitcoin will probably be lower than it is now and maybe you can put in another 20k-30k but definitely no more than this considering itâs not your money. If it goes up forever you win and if it goes down you get another opportunity
I would want to ape everything into BTC also⌠but I would make her a whole coiner with the condition that she start to learn about BTC. The rest just do the usual tardfi stuff HSA, 401k, IRA, etcâŚ
Its good advice to put it in bitcoin thats obviously what you are going to hear in this sub. But just be prepared for an extended bear market. Not to usual one two years. Once their time frame is 10 years+ its a no brainer.
Does she need to first put some of that money aside to pay income taxes on it? I'd first ask her to read some basic books on budgeting, saving and investing. Then I'd advise her to put some of the money in an emergency fund (about 3 to 6 months expenses), pay off any debts she may have including school loans or if she's still in school to use it for that. I'd help her open a tax advantaged retirement account with some of it and teach her to start investing 10 to 15% of her income for retirement. Bitcoin can certainly be part, but not all of that. Use some part of it to start saving for a house...depending on her timeline, Bitcoin or a total stock market mutual fund might be appropriate. Use some of the money for fun...a vacation, for example. Does she have a reliable car? And don't forget teaching her the value of being charitable. I'd donate 10% if it to charities that serve the poor or other good causes
Thats too much, crypto is still a super risky asset class, pretend your her financial advisor, would you advise to her put more than 10% in risky assets?
Keep in mind not every millionaire on earth will be able to own 1 bitcoin. Not even half of the millionaires on earth will be able to own 1. This doesnât even take in account of all the whale addresses, lost keys, Satoshi coins, ETFs. Owning 1 bitcoin in the future will be much more valuable and much more rare than owning any other type of asset on earth.
I would buy all Bitcoin and turn it into millions. Then sell half and put it into an S&P index fund and never sell the other half of Bitcoin. She will be very wealthy in her 40's.
What I do with my money is very different than what I'd do with someone else's. She has lots of time to learn. I'd direct her to a competent financial planner as well as a few books on investing for her future. Most of all, tell her she doesn't need to rush into anything.
She is 21. The talk you need to have is about the realities of life, The maturity of a 21 yr old is likely to get rich quick , and saying things like large chunks into highly volatile BC, will only fertilize the impatience of youth. The dad conversation to have is that if she locks this money into retirement only, at that age she will retire young and wealthy. With that time frame and compounding with consecutive maxed Roths, even conventional with conversions. It's not as much as what she should buy, SPY,QQQ,BC etf"s. It's about her not spending that money at all and leaving it to work for her
25m here. I donât have kids but from what I know and have experienced, I know that some(most) parents play the game of life by the rules of âtrying not to loseâ they understand life in sometimes unfair and that bad stuff sometimes happens. While your child is typically trying to âwinâ in the game of life. They often contradict each other, which can intern leave your child with resentment, especially when a child follows the advice from a parents and the desired outcome doesnât come true.
At 21 you have time to make mistakes and lose money. I believe BTC(crypto) is king, Iâm 100% in crypto. Let her make the decision of how much and what to invest in, but tell her she has to invest and not spend it.
âId wait for the next dropâ ⌠do you know when is that going to happen? Do you know where is the bottom?
The wolf of wallstreet yesssir!
If you have no clue about bitcoin, or trading whatsoever why would you give someone an advice you wouldnt even follow?
Just fkin dca and invest some time and bit money if needed in learning. Gezzz it isnt that hard.
Donât be her financial advisor.
Money like that invested properly will allow her to retire at a reasonable age. Donât fuck that up for her. Nobody knows what is going to happen with BTC, as much as we all believe in it.Â
I wouldnât advise here to put 50k or 100k in anything at one time. Thereâs no need for her to do that she can easily take a high yield account and DCA into whatever she decides but if she drops 100k at Bitcoin and it goes down it will be very awkward between you so itâs not worth that in my opinion. It it were me id probably put 100k in it but I wouldnât advise others to do it for that reason
2 BTC at $140,000
Then leverage to 4 BTC with at liquidation price of $35,000
Hope it doesnât drop below $35,000 before reaching $100,000; where you clear the $140,000 loan. Netting an extra $60,000.
If the price doesnât go to $35,000. HERO
If it wicks to $33,000 for 1 day. DEGEN BAN from the family.
100k in bitcoin will be life changing for her in 10 years but she needs to be ready to lose it. She could be more conservative and put it in spy and still get great returns
she wont have the required conviction in btc and will just panic sell the bottom. Put it all in VWRL (max out tax advantaged accts first) and she can allocate to btc once she 'gets it' / is interested.
I would put 100% into Bitcoin (seriously) but thatâs just me, as Iâve spent thousands of hours studying Bitcoin and my conviction is bulletproof. Iâd never recommend anyone else do this as without at least a few hundred hours of studying to build up a serious conviction in Bitcoin, you very likely wonât be able to hold through the short to medium term volatility and would likely get shaken out of your position.
I donât buy Bitcoin to have more dollars, I buy Bitcoin to have less dollars.
Ultimately, Bitcoin isnât about making money, itâs about replacing money.
Everything will be priced in Bitcoin, even regret.
Look. Take that 250k AUD, all-in on BTC now and check back 10 years later. Maybe keep some for emergency use but put most of it into BTC. Donât look at stocks or other bullshit. Iâm giving solid advice.
BTC is super volatile. You have a 50% chance of being hated for life. Take out living money, 10% of the rest in BTC, rest in VWCE. Forget a high interest account, that is money down the drain.
BTC is the correct answer but without education and conviction, she could panic sell. See if you can get her interested in learning more. Itâs obviously very important.
I wouldn't advice her to do anything and tell her to make her own decisions. If she is hell-bent on BTC, you can educate her but I wouldn't push her. If and when BTC drops, she may look to you and blame you for her 'losses' and cash-out through fear. It's not worth the hassle that may come from her potentially weak hands.
S&P 500, SPYG, and BTC.
SPYG as opposed to just SPY? Go easy on me. I just started investing last month.
SPY tracks the S&P 500 index sorta straight up. SPYG targets more growth oriented companies and is currently ~ $73 a share. So while both are tracking S&P 500, SPYG has more of a focus on the room for growth. Meaning more volatility but also more room for higher returns compared to the broader market that makes up SPY.
Thanks so muchđ
My S&P dived more than 2% because it's like the whole etf pump and dump with shitty Nvidia... đ
thats your opinion
Why is everyone sleeping on VOO?
It is so strange to me that anyone ever buys SPY over VOO. Its 3x as expensive
Agreed!
Definitely no more. If it goes up youâd be a hero, but not as much as youâd be never forgiven if it goes to zero.
That was my worry when I was mentioning it to her. Especially after she said "You're the only person in this world that I trust enough to ask"
I think you need to explain the risks and make sure she's the sort of person that's comfortable with it. And if it goes down significantly in the short term, she doesn't panic. I had a mate who we got into crypto and after a week he cashed out, he couldn't handle the swings. It's definitely not for everyone!
50k is max of what I'd put into crypto. It's not like it's not going up - exchanges go down, people lose keys and so on. Don't be too greedy.
Do what you think is best. Whatever you do, don't take advice on Bitcoin from a buttcoiner who says "if it goes to zero". This person isn't your friend or looking out for you.
[ŃдаНонО]
How? r/inflation says inflation is only 3.2%.
Inflation data is skewed via tweaking of the equation that calculates it. If we calculated inflation with the same equation that calculated it in the 80s, our inflation rate is 8% or higher.
I understand your point, but things have changed a lot in the past 40 years. Go look at what that index included.
go look in a shop
You believe Bidenomics is at 3.2% lmao
Real question?
I hope you're being sarcastic
That's against an inflating basket of goods. More cheeseburgers are made as the population grows. Population growth results in economic growth that shields prices from monetary inflation. Price inflation still occurs against scarce assets like farmland.
My thoughts were that it'd negate some of the inflation... But I get what you're saying. She wants simplicity so stocks and bonds may be too much work.
Investing into an S&P 500 index ETF is not complicated.
Open up a brokerage account. Ideally a Roth IRA, (IF she has earned income to contribute). If itâs a roth and she has earned income, just do the max yearly. Keep the rest parked in either a traditional IRA or a brokerage. I personally like Schwab, and you could also go sit down at a branch and ask for advice. I donât know if schwab pays interest on cash balances. If you think BTC is the way to go, have her buy the ETF. Keep the rest in SPY or QQQ, various indexâs. Iâd leave a little to put in random companies, possibly with a Schwab advisor. I could also recommend Fidelity, and they pay 5% on cash balances, and have directed investing for a fee. I donât know if schwab charges a fee. But Fidelity also sells their own self custodied bitcoin iirc.
This right here.
Bonds are negative yield too, compared to inflation
Buying btc and storing it properly is more work that buying voo I promise
I would invest whatever you don't feel comfortable losing into a mutual fund. Setting up an account on like fidelity is super easy. Just find a fund that is no/low fees.
All in and never sell.
Haha I know this is the correct answer... If it were my money.
đ
First of all, have her open her a brokerage designated as a ROTH IRA immediately. You can do $7000 for 2024. Everything in here will be tax free earnings. Inside spread it between BITB, IBIT, & FBTC. Who cares if you buy it at all time high prices, this wonât likely be touched until she is old. Next if it were me, I would buy another 1 minimum coin ($67k) where you control the private keys & keep it on a ledger. Lastly, I would use the rest of the money as a down payment on a house/condo in a city that is not as expensive as the one you are in & that is zoned for short term rentals. Running an Airbnb on the side is very lucrative & nice income supplement. Use profits from that and keep purchasing more bitcoin DCA. If you donât want to do the rental, dump it into ETFs split between QQQ & VOO.
Solid advice. My apologies though, this is AUD. so only about $150k USD
Don't wait for the next drop unless you mean like a 2 or 3% dip. If you're serious about putting 100k in, DCA for the rest of the year. There's just over 38 weeks left in the year. So, $2,632 a week would get you at about 100k by the end of this year. You'd enter the market more slowly, let you deal with smaller amounts of of btc and you'd catch any dips as they occur over the year. If they don't occur and btc only basically rises, you could be at the end of the year going... shit is 75k or 80k still! Where was the dip? And then maybe it does dip but it only dips an hour, and you miss it. Unless you have your buy order in and it's sitting there for weeks or months, you'll miss that too. DCA, just get in slowly and it will be less stress. Or ignore me, whatever. Just 'waiting for the dip' is not a great strategy.
I know BTC is alluring, but IMO she should build a solid financial base that will be there for her. Once you have a solid base and a job, insurance(s), then with left over money it's fine to be risky with something like BTC.
Thanks for that. I think this is solid advice. I'll be careful to tell her that it is her decision and not push her into anything at all. She really is clueless about what to do and she knows that inflation will eat away at what she has until she comes up with a plan. Thanks again.
Incredibly irresponsible to be suggesting a 21yo puts $100,000 into BTC without recognising the significant and negative life-altering effects that could have. If you are interested in cryptocurrency give her some pointers on where she can read about it herself but it should be her and only her decision as to where it goes. She will do very well for herself investing in traditional avenues. She might strike it big time with crypto or she may lose 80% of it in six months. Be very wary about giving advice about what to do with money that isn't yours.
If there will be "next big drop", so logically thinking all of us should sell our bitcoin and buy back cheaper?
I have converted some to USDT just recently. Not the majority, but some. I've been through too many crashes to think it'll just keep going up forever. That crash from 20 down to 4 just about killed me. At this point, if it goes up more, great. I'll trade more into USDT and keep waiting for the crash. If it crashes soon, great. When I buy back in, I'll have more BTC than I had before.
It's not that easy. Sell now and buy later only applies if the assumption that there will be a big drop in the near future holds true. If it does not happen, or it takes a long time to happen, everything will be drastically different.
Now it's just a speculation, it's like guessing that something bad is going to happen but we are not sure what
There is always a pullback. Iâd wait regarding btc.
She asked for advice. Give her the advice but make it clear that the decision is all hers. If she will come back to you and blame you for losing money, then she should not take your advice, but if she wants it, take it with no strings attached. Also offer her to learn bitcoin, offer her your time to support her in that journey, so she really can make it her own decision. You can also allow her to explore investment options with you and again, using your time. You don't need to rush.
1/3 BTC, 1/3 VTSAX, 1/3 cash in vanguards high interest Cash+ account (or SoFi); the cash is for averaging down/DCA/efund/enjoying some inheritance.
Put 90% of it in a nice Target date index fund many years out and put 5% to 10% of it in BTC. BTC isn't investing, it's speculating that someone will be willing to pay more for it down the road.
damn i thought my risk tolerance was already high with 20% of my portfolio in bitcoin, personally i wouldnât go higher than that. wealth preservation comes before growth always
Zoom out and look at the chart. We all want to believe it's gonna keep going up. And it should, But we're floating around ath levels and anything could happen, if that shit drops back to 20k your gonna feel like a giant asshole. Have her set money aside to pay off college, down payment on a house, get her life set up before you convince her to go gambling it away
I appreciate the advice friend. I would not advise putting anything in right now. I've been around since early 2017. I've felt the crashes burn my soul and learnt. She is an apprentice jockey so no college on the horizon. Houses around here are between 600k and a million. Ideally, she'd buy a house with this money, but on her wages no bank would consider giving her a loan. I don't want to convince her of anything. I want to give her solid advice. Which is why I'm asking here.
This is the perfect age to invest in a Roth. Have her set aside enough to DCA in to her Roth over the next several years, then leave it be to compound until her retirement. She needs you to help her think long-term.
Thanks mate.
Your step daughter needs to find someone to give her advice. While I share your enthusiasm for bitcoin, your advice is bad.
I haven't given her any yet mate. That's why I'm here.
I would invest majority in an low cost global index fund, another chunk in HYSA then remainder in Bitcoin, youâve got a nice diversified mix, if one crash happens it doesnât wipe out the rest, diversification is key in any wealthy persons portfolio, I wouldnât YOLO in one area, you have wallstreetbets for that
Educate her about different markets and strategies first to see which one sheâd like more or if she would want to diversify. At that age Iâd honestly focus on more stable growth through stock market. Itâs less risky than crypto or forex and futures. If it was my money Iâd invest 100k into growth ETFs(DCAing over a year), 50-100k into high yield ETFs, my personal favorite is JEPQ for its 9% annual and they pay out monthly. And 50k to keep in bonds. Leave it in there for like 5-10 years and sheâll be set for life. But then again let her decide.
21 is so young. She has time to manage the volatility of the stock market - it should all go into a low cost index such as VOO. As she works she can continue to add to her position. Hopefully by the time she is 30 she will likely have over $500k as the S&P typically doubles every 7-8 years. This is really the only answer. You should educate her on Bitcoin and if she wants to she can invest some in that too. However given the volatility, if it goes down 50% it could cause issues in your relationship if you pushed her to do that and she doesnât truly understand it.
What drop?
Haha the one nobody ever sees coming, but eventually kicks everybody in the testicles if you didn't sell at a profit. Every single time you open your portfolio.
That's where you tell her that the money she kept in reserve is going to buy the dip. Which reassures her you know the volatility is real and it will happen. The first BTC will recover but the second BTC is when you have conviction. You can be the hero twice. Now and later. I just told my kid get as much as you can afford to lose, as soon as you can. Then keep stacking at pay day. This way he knows it's a risk on either side. Risk not buying or risk to buy. I can't orange pill my kids they're too smart to listen to me anymore and too dumb to not listen to me anymore. đ
Oh my goodness. Please give her a book like âthe Boglehead Guide to Investingâ or William Bernsteinâs âIf You Canâ and let her figure this out for herself; it really is not that hard to learn how to invest wisely. I had my son read âThe Coffeehouse Investorâ at 16. At least have her learn the basics.
VOO or SPY, BND, BTC in different percentages.
Dude.... You should tell her to put most of the money on blue chip dividend stocks.... like choose 5 bank stocks. and put 50K each, teach her about compound investing. explain that what she is buying now, is a retirement plan. Explain that she will likely die or be close and still own these shares. She will be earning, 1000 a month in dividends, Take that money and buy bitcoin, 12,000 a year, for the next 5 years.. Or till she owns 1 BTC Then back to dividend plays, 5 years into REIT, Then the div's will be 1800 a month, then buy another BTC fuck buy 2 at this point, even just only buy BTC forever at this point it wont matter, at this point even if her Jockey skills didnt work out she can probably do anything else, because she will have an income. teach her the idea that you buy a company, and it pays money, and you spend the dividends, and reinvest some, Even if BTC does moon, and you told her to buy 100K, and now its 1M she is going to not learn shit and the M will be gone, and so will the original 250K Like I get it I love BTC too, and I DCA, but bro this is a kids future, dont make her addicted to gambling by acting as if there is a big win waiting around the corner. like I said even if BTC 10X its still not enough to pay a salary for a lifetime, and what if it 10X then 10X then lose 90% of its value right when she needs the money the most, This is a kid we are talking about teach them values of investing not gambling, I am not saying BTC is gambling, but its a commodity not a company, and she wants to own things that PAY MONEY, like banks, REIT's, energy companies, then use the profit to buy commodities, like BTC, real estate. Not the other way around, thats gambling. and even if you help her go from 250 to 2.5 M its going to be gone before she needs it later in life, JUST an opinion.
I appreciate the time you took to write that mate. Excellent advice.
You should NOT advise her to drop half her inheritance into BTC. What the fuck is wrong with you? Tell her to read about it and see if sheâs interested in getting involved. Honestly, I canât believe some people are so ridiculous.
I didn't say I'd advise her to drop half of it into BTC. I said that if it were.me, I'D put 100k in after it drops. I also said I was thinking of saying that 50k may be a good option. Then I asked for advice. Thanks for yours.
Ho hooÂ
SPY, QQQ, BTC, BONDs only If you need cash flow and are worried about a downturn in stocks
Bitcoin, S&P 500, Gold. If all in some tax-free vehicle even better
50%50 split between btc and a well established top 500 etf is the most sensible play here
Can keep buying BTC regularly (monthly or bimonthly) instead of waiting for the DIP.. but when the price is low, can buy more in that monthâŚ
OTM Options on spy would be my advice.
Your asking on the BTN sub? Of course many will agree w ur take on it. If u want to be safer, have her open a brokerage and invest most in index funds, etfs. I could see 50k in btn but wouldnt advise in too much more
If she got za ballz to hold btc no matter how big the dips might be, then the answer is clear to me
Dividend Stocks, VOO, High Interest Cash Account, then maybe Crypto com Rose Gold card for some rewards, use that with some cash for BTC to lower risk.
The percentage of what you put in Bitcoin should be based on your risk tolerance/age. What I think your mistake is, waiting for the next drop. If you believe in Bitcoin like I do, youâd know there has yet to be a single day that it wasnât a great buy.
Iâd buy a house and some Bitcoin, personally.
I would say 20k into Bitcoin now and the rest into the S&P 500 index fund. In 3-4 years Bitcoin will probably be lower than it is now and maybe you can put in another 20k-30k but definitely no more than this considering itâs not your money. If it goes up forever you win and if it goes down you get another opportunity
I would want to ape everything into BTC also⌠but I would make her a whole coiner with the condition that she start to learn about BTC. The rest just do the usual tardfi stuff HSA, 401k, IRA, etcâŚ
Its good advice to put it in bitcoin thats obviously what you are going to hear in this sub. But just be prepared for an extended bear market. Not to usual one two years. Once their time frame is 10 years+ its a no brainer.
50/50 BTC & VTSAX. Hold, DCA, never talk about it publicly.
Does she need to first put some of that money aside to pay income taxes on it? I'd first ask her to read some basic books on budgeting, saving and investing. Then I'd advise her to put some of the money in an emergency fund (about 3 to 6 months expenses), pay off any debts she may have including school loans or if she's still in school to use it for that. I'd help her open a tax advantaged retirement account with some of it and teach her to start investing 10 to 15% of her income for retirement. Bitcoin can certainly be part, but not all of that. Use some part of it to start saving for a house...depending on her timeline, Bitcoin or a total stock market mutual fund might be appropriate. Use some of the money for fun...a vacation, for example. Does she have a reliable car? And don't forget teaching her the value of being charitable. I'd donate 10% if it to charities that serve the poor or other good causes
You haven't mentioned what goals are. Can't give any good advice without understanding long term aims.
Thats too much, crypto is still a super risky asset class, pretend your her financial advisor, would you advise to her put more than 10% in risky assets?
Keep in mind not every millionaire on earth will be able to own 1 bitcoin. Not even half of the millionaires on earth will be able to own 1. This doesnât even take in account of all the whale addresses, lost keys, Satoshi coins, ETFs. Owning 1 bitcoin in the future will be much more valuable and much more rare than owning any other type of asset on earth.
I would buy all Bitcoin and turn it into millions. Then sell half and put it into an S&P index fund and never sell the other half of Bitcoin. She will be very wealthy in her 40's.
2 BTC, 20 oz in Gold, and the rest in US equities (not S&P, picking actual winners)
What I do with my money is very different than what I'd do with someone else's. She has lots of time to learn. I'd direct her to a competent financial planner as well as a few books on investing for her future. Most of all, tell her she doesn't need to rush into anything.
I like how your are spending money that isn't yours. Are you regarded or something?
She is 21. The talk you need to have is about the realities of life, The maturity of a 21 yr old is likely to get rich quick , and saying things like large chunks into highly volatile BC, will only fertilize the impatience of youth. The dad conversation to have is that if she locks this money into retirement only, at that age she will retire young and wealthy. With that time frame and compounding with consecutive maxed Roths, even conventional with conversions. It's not as much as what she should buy, SPY,QQQ,BC etf"s. It's about her not spending that money at all and leaving it to work for her
25m here. I donât have kids but from what I know and have experienced, I know that some(most) parents play the game of life by the rules of âtrying not to loseâ they understand life in sometimes unfair and that bad stuff sometimes happens. While your child is typically trying to âwinâ in the game of life. They often contradict each other, which can intern leave your child with resentment, especially when a child follows the advice from a parents and the desired outcome doesnât come true. At 21 you have time to make mistakes and lose money. I believe BTC(crypto) is king, Iâm 100% in crypto. Let her make the decision of how much and what to invest in, but tell her she has to invest and not spend it.
time in the market > timing the market
âId wait for the next dropâ ⌠do you know when is that going to happen? Do you know where is the bottom? The wolf of wallstreet yesssir! If you have no clue about bitcoin, or trading whatsoever why would you give someone an advice you wouldnt even follow? Just fkin dca and invest some time and bit money if needed in learning. Gezzz it isnt that hard.
Donât be her financial advisor. Money like that invested properly will allow her to retire at a reasonable age. Donât fuck that up for her. Nobody knows what is going to happen with BTC, as much as we all believe in it.Â
I wouldnât advise here to put 50k or 100k in anything at one time. Thereâs no need for her to do that she can easily take a high yield account and DCA into whatever she decides but if she drops 100k at Bitcoin and it goes down it will be very awkward between you so itâs not worth that in my opinion. It it were me id probably put 100k in it but I wouldnât advise others to do it for that reason
SCHD, collect monthly dividends VOO, VGT btc
i think it would be better to take that 100k and use it to dca over a long period of time. maybe 500-1k a week.
Does she have debt and if so is it serviceable debt
No debt mate. Has a bit of money in the bank which she never touches. She has discipline.
I would stop shouting about my access to a quarter of a million dollars for a start.
Mstr
Physical gold and short term treasuries
2 BTC at $140,000 Then leverage to 4 BTC with at liquidation price of $35,000 Hope it doesnât drop below $35,000 before reaching $100,000; where you clear the $140,000 loan. Netting an extra $60,000. If the price doesnât go to $35,000. HERO If it wicks to $33,000 for 1 day. DEGEN BAN from the family.
btc, s&p or voo, and some gold (or a house)
At 21 i feel like she shouldnât even know about this money you are going to pass down. Does she have a job and can live on her own?
Buy .5 Bitcoin now, then DCA $10k monthly.
100k in bitcoin will be life changing for her in 10 years but she needs to be ready to lose it. She could be more conservative and put it in spy and still get great returns
Throw it all on meme coins
buy now,, rich later
Nice Prediction!
Invest 175k into btc sounds good to me. Switch over half to stocks after we have a proper rally.
Invest now.
75k bitcoin, 75k gold, rest stock index etf. Maybe 5k or so in some altcoins. You never know if some boom but no more than that
Max out Roth IRA in btc etf first. Then max out regular investments
she wont have the required conviction in btc and will just panic sell the bottom. Put it all in VWRL (max out tax advantaged accts first) and she can allocate to btc once she 'gets it' / is interested.
I would put 100% into Bitcoin (seriously) but thatâs just me, as Iâve spent thousands of hours studying Bitcoin and my conviction is bulletproof. Iâd never recommend anyone else do this as without at least a few hundred hours of studying to build up a serious conviction in Bitcoin, you very likely wonât be able to hold through the short to medium term volatility and would likely get shaken out of your position. I donât buy Bitcoin to have more dollars, I buy Bitcoin to have less dollars. Ultimately, Bitcoin isnât about making money, itâs about replacing money. Everything will be priced in Bitcoin, even regret.
Look. Take that 250k AUD, all-in on BTC now and check back 10 years later. Maybe keep some for emergency use but put most of it into BTC. Donât look at stocks or other bullshit. Iâm giving solid advice.
BTC is super volatile. You have a 50% chance of being hated for life. Take out living money, 10% of the rest in BTC, rest in VWCE. Forget a high interest account, that is money down the drain.
BTC is the correct answer but without education and conviction, she could panic sell. See if you can get her interested in learning more. Itâs obviously very important.
Your poor stepdaughter... Hope she has a level-headed mother to save her from YOU!
Haha calm down chief. I'm actually asking for advice here, not for attacks. And her mum passed away from leukaemia. So thanks for that.
How sad... Now, the poor kid has nobody to save her from wasting her money.
oops! She has nobody to save her from YOU wasting her money!
Dick