Budget Be Damned

[letsgetsailing3]

Originally Posted by Trimaran Ken

That is because it is not an asset.
Most millionaires didn't get that way by being stupid. They know exactly what Bitcoin is and know it has ZERO intrinsic value. You can't build anything with it, you can't eat it, you can't hang it on a wall and admire it, and you can't sell it unless you find someone willing to buy it. The moment people stop buying Bitcoins, their value goes to zero.

I don't necessarily disagree. I said it was speculative.



But I didn't make the statement that you attributed to me.

[Trimaran Ken]

Originally Posted by cyan

Facebook, Google, Netflix? No. Nor can you sell their shares unless someone is willing to buy, and some would say Facebook will be the first of the FAANGs to evaporate one day.

Those companies provide services that people want and use. In return they receive compensation. This is a business model that has worked for many companies in the past and will work again in the future. It also insures that these companies can not become worthless overnight. Companies like this can go down hill over time, but you will never see all of their subscribers go away overnight.

Look at old movies from the 1930s and watch what a "Run on the Bank" looks like when the investors panic. This is what I believe will happen to Bitcoin.

Bitcoin was a good idea when it started. It was never envisioned to be an investment. There is a need to be able to do monetary transactions instantly and at low cost, but Bitcoin is not it.

[Simi 60]

Plenty of greater fools out there with bitcoin.

[cyan]

Originally Posted by Trimaran Ken

Those companies provide services that people want and use. In return they receive compensation. This is a business model that has worked for many companies in the past and will work again in the future. It also insures that these companies can not become worthless overnight. Companies like this can go down hill over time, but you will never see all of their subscribers go away overnight.

Look at old movies from the 1930s and watch what a "Run on the Bank" looks like when the investors panic. This is what I believe will happen to Bitcoin.

Bitcoin was a good idea when it started. It was never envisioned to be an investment. There is a need to be able to do monetary transactions instantly and at low cost, but Bitcoin is not it.

Facebook receives compensation from its advertisers based upon customer clicks, a brand new business model just this century. Friendster, MySpace and Google+ are among many failed examples. Nobody knows how quickly 2 billion subscribers could ditch Facebook for something better because nothing like that has ever existed before. The crash in its stock on such an event would certainly be even faster. Investor panic, indeed.

FYI, Bitcoin brought the promise of MUCH more than just instant, cheap transactions. Removing all governments from transactions and the power of currency manipulation is an empowering freedom as old as bartering among cave men.

Of course Bitcoin was not intended to be an investment. It may not even last long, as it was just an experiment and SHA-256 will eventuallybe cracked just like SHA-1 was. It did prove, however, that the ingenious crowd-sourced security of block chain encryption can provide amazing benefits to the masses that no government has ever been able to do.

[sailorboy1]

Discussion better suited for an investment forum

IMO

[cyan]

Originally Posted by sailorboy1

Discussion better suited for an investment forum
IMO

I don't think you really own a thread after you start it. When you originally post your 401(k) numbers, you'll get a discussion of investments. (Not sure where the farming videos fit in?)

Your $475,000 in assets was an interesting starting point to go cruising full time. It makes me wonder how many people have way more than that, yet still feel like they are far away from the point at which they can go cruising full time....

[daletournier]

Originally Posted by letsgetsailing3

Crypto-currency isn't investing, it's speculation.

I'm not into crypto BUT most asset classes are mere speculation at the moment. Speculation is currently the only game in town.

[letsgetsailing3]

Originally Posted by daletournier

I'm not into crypto BUT most asset classes are mere speculation at the moment. Speculation is currently the only game in town.

The way I see it, there are some securities/instruments that you'd expect a return from, even if there were nobody interested in trading ownership, and there are some instruments that are pure speculation.


While the stock market overall has gone up, many stocks are projecting reasonable returns based on earnings. I'd call those investments. Bitcoin is a pure play on investor sentiment.

[sailorboy1]

3014.30

[sailorboy1]

Originally Posted by sailorboy1

3014.30

Well that didn’t last long, but then no one should have expected it to

[thomm225]

Originally Posted by cyan

I don't think you really own a thread after you start it. When you originally post your 401(k) numbers, you'll get a discussion of investments. (Not sure where the farming videos fit in?)

Your $475,000 in assets was an interesting starting point to go cruising full time. It makes me wonder how many people have way more than that, yet still feel like they are far away from the point at which they can go cruising full time....

Then there are those with far less than that maybe less than $25,000 that actually cruise the world and cross oceans...….

Not puttering along the ICW anchoring and stopping at Marinas bean counting.

And as far as assets, your health is number one.

Don't forget to get in your weekly workouts: bike ride, weight lifting, pullups, pushups, and/or a long distance run plus lots of stretching

[sailorboy1]

And then there are those that go nowhere except on the Internet

[Cthoops]

Originally Posted by sailorboy1

And then there are those that go nowhere except on the Internet

Mic drop.

[sailorboy1]

Originally Posted by sailorboy1

So I've been full time living on the boat and cruising a little more than 2.5 years. In that time I've been very weak and have regularly exceeded the monthly budget of $3k/mo I had planned on. So I wondered how this has all worked out in the big picture so I took a 2.5 year review:

- we have spend approximately $120,500 in this time, all in no "not countings", starting Sept 16, 2016
- we started with about $475,000 in real assets like cash, 401ks, and some stocks
- the only "income" we have had in this time is about $4500/yr in a rental house the past 1.5 years
- our total asset reduction for this time period is about $10,274 and as of April 29, 2019 we still have $464,726 in same basic mix of assets
- this is the difference of our current assets of real time 401ks, stocks, cash, rental value at the purchase price

So it has cost us in real "money" about $10,274 to cruise 31.5 months.

These are the facts and are what they are. It is just something to consider if you get into some "you need $XX" financial manager BS story. Not saying I'm right or wrong in my approach, just that this is a hard $$$$ fact FOR ME. And just wait till what happens in 3 years when I start tapping into whatever is in the Social Security Fund (my money I was made to "invest")

I'm providing this info to help planners. I'm NOT interested in the peanut gallery questioning or spinning some story about my numbers, I have an MBA and understand my numbers. I haven't done anything "special" I feel and have taken a moderate to above average level of risk, which included a slam a couple of years ago that I stuck out.

So go forth and cruise before you are old. It's your money so be sure YOU get to spend some of it instead of leaving to your "heirs".

So it's been a little over 6 months since I posted this. I've been spending a lot more than I initially budgeted so I took a new look at how it was shaping to see if I was going to have to start researching the best tasting budget dog food.

Currently for the calendar year 2019 I have $5383 MORE in assets than I started with. That's after having cruised around spending in my wild ways for 10.5 months

Bet this really has the doom and gloom naysayers panties in a wad with worry for me.

[Dockhead]

Originally Posted by sailorboy1

So it's been a little over 6 months since I posted this. I've been spending a lot more than I initially budgeted so I took a new look at how it was shaping to see if I was going to have to start researching the best tasting budget dog food.

Currently for the calendar year 2019 I have $5383 MORE in assets than I started with. That's after having cruised around spending in my wild ways for 10.5 months

Bet this really has the doom and gloom naysayers panties in a wad with worry for me.

Rising markets are a marvelous thing . . .



Glad it worked out for you!