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birb_cromble  1d ago (text post)   740 thread views

Weekly Finance Thread

Since a lot of us here have expressed interest in not starving to death in a gutter, I figured I'd start a weekly thread to discuss financial matters.

Ground Rules

  • Remember that we're all just Internet randos. Don't bet your life savings on a hot tip from this thread.
  • Keep culture war in the culture war thread. Yes, global events may impact our personal finances, but that does not mean we have to incessantly harp on culture war aspects here. If you are going to discuss it, please stick to the practical impacts of it on an individual level.
  • Be kind. Remember that everyone here comes from different circumstances. We all have different resources available and different risk tolerances.
  • Don't let the perfect be the enemy of the good. Better is better. Celebrate people when they take a step up and work to move their finances in the right direction. Don't flame out because they haven't followed what you consider the optimal path. Everybody has to start somewhere.
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Oh, good timing, I just crossed a very large milestone in my portfolio today.

Congratulations! While I did not hit a large milestone or anything, I did hit a new net-worth PR on Friday thanks to another good day for equities. I imagine many are in a similar boat.

What do you think the chances are that we are currently in a large (AI related or not AI related) bubble that will pop? It seems like the money printing of the past few years has massive upward pressure on the stock market so I don't know how to unpick the two.

Me looking at a bubble in the elevator: "I don't think about you at all." Bubbles are only identifiable ex-post. Best to just stay the course with whatever you're doing instead of trying to time the market or outguess it. Investing at all time highs yields similar results as all other days.

I have always been a saver and live fairly frugally. But I am itching to increase my standard of living with some of my invested money. At what number in USD would you personally be comfortable beginning to draw down, say, 4% of your portfolio a year to increase your standard of living sustainably?

4% might be a bit aggressive. Many recommend 3% instead for greater safety.

You can always start off slow by just stopping contributions and spending all your earned income, and reinvesting dividends/coupons to see how it feels. Then move on to spending earned income and any distributions instead of reinvesting. This would be to avoid triggering capital gains taxes. Then the final boss is actually starting to sell down your positions, capital gains be damned, and withdrawing.

it seems like I am outpacing the rate of inflation with my investments.

I would hope so! That's the whole point of investing in anything riskier than government inflation-linked securities.

Do you think it's too late to buy bitcoin or is it still wise to buy it today?

Buy bitcoin if you desire cryptocurrency exposure in your investment portfolio, don't otherwise. No ones really knows where the price is going. Today's a good a day as any to buy if you want that exposure. I personally own only a trivial amount of BTC for buying things from... alternative vendors.

The older I get, the more I have access to but the less I want. I have already satisfied most of my needs and desires from my youth. How do I generate more desire within myself as I grow older?

Marry a spendthrift or someone who likes keeping up with the Jones's and you'll never have to generate such a desire yourself! Hooray!

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