Reverse Wealth Transfer on Steroids

https://thereformedbroker.com/2021/03/16/reverse-wealth-transfer-on-steroids/

by paulpauper • 5 years ago

52 32 5 years ago

Bostonian• 5 years ago

I agree with what the author says to avoid but wonder why he did not recommend investing in stock index funds, for example the Vanguard ETFs with symbols VOO or VT.

Zhenya• 5 years ago

Because then maybe he'd be out of a job:

"...a New York City-based financial advisor at Ritholtz Wealth Management LLC. I help people invest and manage portfolios for them."

clipradiowallet• 5 years ago

He's an investment advisor - him saying "invest in X" is financial advice, and it can bite him in the ass.

Also: markets are [once again] at all time highs, if he _was_ giving investment advice, I'd hope it sounded like "don't buy the top".

youeseh• 5 years ago

I think he's arguing that $1200 into any kind of security is shittier than $1200 in improving oneself professionally and socially.

kmeisthax• 5 years ago

If you need the $1200 today, then yes.

Most sound investing advice specifically says not to invest until you have enough liquid savings to withstand an emergency - keeping in mind that the biggest emergency one might face is usually losing your job. If you don't have that saved up - or worse, are already unemployed - securities are actually a really poor investment due to their volatility. A professional skill doesn't "go down" in the same way that a stock can go down.

If you are financially secure for the time being, then buying stocks is a good idea, as you can stick that in a tax-advantaged account for retirement. Large index funds are good for this specific purpose because you don't have the risk of an individual stock getting wiped out. You can hold onto it for a long time and get your few-percent-per-year ROI.

inopinatus2• 5 years ago

There is good advice here. Only key point missing: wear sunscreen

murph-almighty• 5 years ago

I have not been following the "live in NY but not too long" mantra, for sure

vsareto• 5 years ago

Trillionaires have the right to create any kind of nonsense they want and offer it up for sale

Uh, when did Earth get its first Trillionaire?

Get out of the house. Leave the home. Go outside.

We're still in a fucking pandemic!

The more it doesn’t feel that way, the more you know it’s the truth.

I mean, don't buy SPACs, digital currencies or NFTs, but don't do it because of a feeling.

This dude should just give me half of his money if the rest of his site is like this. He thinks pushups are a good suggestion for this situation. I wouldn't trust this guy's advice about money even if he had a time machine.

the-dude• 5 years ago

We're still in a fucking pandemic!

You are not allowed to leave the house?

AnimalMuppet• 5 years ago

Isn't Satoshi a trillionaire?

Macross82993• 5 years ago

Condescending boomer advice on par with "walk in and ask to see the manager and give him eye contact and a firm handshake."

Seems ostensibly helpful, is actually just meaningless platitudes and vague, generic advice that everyone knows.

tartoran2• 5 years ago

But investing in NFTs is the worst gamble one can do with their little disposable income and I find this part of the advice solid

Macross82993• 5 years ago

I mean, yeah, NFTs are a massive speculative gamble and probably a poor one ATM, the space is too oversaturated. That doesn't make speculation in general a bad idea.

His advice of "don't speculate with free stimulus money even if you can afford it, spend it on consumer goods instead" is still bad advice.

Young people are the ones who can afford to speculate without it hurting them too much. They have an entire lifetime to make lost money back, and if they win on their speculative play, an entire lifetime to compound it.

dleslie• 5 years ago

Respect yourself, respect others, and live life like you are going to die.

Doom scrolling and anxious FOMO will ensure your continued mysery.

joe_momma2• 5 years ago

Just work and be a slave to the system is what I took from that. Diversify your investments should have been the recommendation.

Macross82993• 5 years ago

Yeah, don't speculate in anything high risk. Leave that to important people. Instead, just consoom and spend your stimulus on business suits and concert tickets.

These people cannot stand the idea of speculative investments (such as DeFI) being available to the unwashed masses. Understandable, the author is a Financial Advisor after all and benefits from the impression that investing is some mystical voodoo that only Trained Professionals™ can do.

paulpauper4• 5 years ago

Defi is just Ethereum. it is not an alternative to the existing system.

spacedude99• 5 years ago

Mr. Anderson says you're not allowed to leave the matrix.

somethoughts• 5 years ago

Here's the author's youtube channel. There's also an Apple podcast verison. Its interesting to compare the nuance, tone and personality that the video as a medium adds. The video and podcast seem a lot more relatable/friendly/fallably human (versus the comments here being about how the author seems preachy/boomer-esque/know it all). Perhaps its because you realize they are from Brooklyn/Long Island and its just their speech pattern to talk super confidently.

The Compound

https://www.youtube.com/channel/UCBRpqrzuuqE8TZcWw75JSdw

paulpauper4• 5 years ago

I have been following the blog and the channel for awhile . One of the few halfway decent finance channels. The problem with a lot of finance content is so much of it is aimed at a novice audience.

senojretep356• 5 years ago

Haha imagine the same advice for bitcoin 15 years ago

aphextron• 5 years ago

"Haha imagine the same advice for bitcoin 15 years ago"

Or Tesla, or Apple, or Nvidia or, or, or... literally throw a dart at a list of NASDAQ stocks 15 years ago, same thing.

Hindsight is 20/20 and no one can read the future. His point is that you're better off investing in things you can control than gambling on a "sure thing".

irrelative• 5 years ago

Not to nit apart the title, but it seemed a bit strange to me. "Reverse wealth transfer" seems to imply wealth transfer has directionality.

inopinatus2• 5 years ago

I suspect the title is conflated with the phrase "redistribution of wealth", which when deployed in the political or macroeconomic vernacular has a default subtext of, "from those who have more, to those who have less". This is in turn obliquely comparable to (but not identical with) the Marxist slogan, "From each according to his ability, to each according to his needs".

The explicit reverse, and the content of the article, suggests an author responding to these common allusions, and including "reverse" to convey the antithesis.

SavageBeast2• 5 years ago

When I saw the $1.9 trillion stimulus pass I took that as a good signal to add to some existing crypto positions.

I stick to index futures and options on those futures myself but a friend of mine is deep into trading crypto. After a few drinks we were at his place just last Sunday and he was showing me charts and what not explaining his methodology for trading. It was absolutely alien to me considering the things I commonly trade.

Even funnier to me than How The Expert Does It was the fact that it's been working for some time. That very night he correctly called the big down move we just saw and correctly (so far) picked up where the fall back support would be. As always the situation is in progress...

The funny thing is that I'd be laughing my ass off at such cargo cult voodoo if he hadn't made so much money.

ed25519FUUU• 5 years ago

It will be seen whether or not crypto is a good investment for inflation. In the short term, I think it is.

In the long term I think inflation devours the world. When the stability of the US goes, so does the world.

paulpauper4• 5 years ago

how much is "so much money" are we talking about. I have found that people tend to overestimate what they think is a lot.

SavageBeast2• 5 years ago

Absolutely! I find people are good about over reporting their gains and under reporting their losses myself. He mentioned some numbers in the multiple tens of thousands for the month (for whatever it was worth). If thats true he's easily making more than my software dev salary if he's able to do it regularly. But why would such a thing be so hard? These markets are volatile and it's there if you know how to take it.

It's a hard game to make it in long term. Ive always told people "Making money on winning trades is almost hilariously easy - its holding on to it thats the hard part".

1 - Generate signals that end up working out 50% of the time.

2 - Structure the game such that your winners are 3-7x your losers (depending on conditions here).

3 - Automate daily back testing on real bid/ask prices and arrive at a moving average of your stop/exit thresholds - allow your thresholds to flex a bit with market conditions.

4 - Keep at least 1.5x margin requirements as reserves and never bend from this no matter how many contracts you might trade if you leveraged your entire account.

5 - I find it immensely helpful to only evaluate how many contracts to trade 1x/month. Longer is fine but whatever you do, don't take a windfall profit and immediately pile on more contracts for the next trade.

Give me ^ES and ^NQ any day of the week personally.

ImaCake• 5 years ago

Does anyone else think that maybe the whole gamestop "rebellion" is just part of the snake oil? A lot of institutions will ultimately make money on the backs of those GME investors. I feel the only way to win at investing is to just throw your money into a diversified portfolio and then go live your life. Unless you really, truly, like looking at magic money graphs all day, I think the only winning strategy for investing is to play it as little as possible. Hard to argue with the author on this one.

Reverse Wealth Transfer on Steroids

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