Steve | Ric Responded March 8, 2024

There are 2 schools of thought on this. The first, which is more traditional and broadly accepted, is that you certainly should periodically rebalance your portfolio. By doing so, you insure that your portfolio allocation maintains your desired model. It also helps you sell assets at a profit and buy others at lower prices. In your case, for example, you’ve enjoyed massive gains in the crypto sleeve – hence it went from 1% of the portfolio to 4x as much. By rebalancing, you’d sell 3 pct points and bring the allocation back to your original 1% - which is what you wanted when you started. Taking profits is a great move, no? Since your investment is in an IRA, taxes on the gains are not an issue.

The other viewpoint – particular to crypto – is that rebalancing is less profitable. This camp argues that crypto is rising fast, with lots of room to grow. Why sell 75% of the position if that position is poised to sharply outperform all other positions? Let it ride, no? This argument is offset somewhat by those who recognize that crypto, despite its outperformance potential, often incurs big downturns – and by rebalancing when this happens, you keep selling high and buying low, ending up with more gains at lower risk than those who HODL bitcoin. Since your investment is in an IRA, taxes on the rebalance churn are not an issue.

So…up to you.

William | Ric Responded March 8, 2024

It’s just arithmetic. If you provide the various returns assumed in the chart of 7%/1500%/0% and 7%/-84%/0% to the 0% and 1% bitcoin portfolios, you’ll get the answers shown. Likewise, if you double the crypto allocation to 2%, you’ll vastly improve the returns as well. I wouldn’t use this chart of the basis for such a decision, however. The chart is hypothetical and does not reflect actual investment returns. It’s meant merely to make a point.

Jack | Ric Responded March 5, 2024

You might be right about that. The best way to prevent US consumers from buying Chinese cars is for US automakers to make cars that US consumers would rather buy.

Josh | Ric Responded March 1, 2024

This is a good idea on your part, as it extends your current interests and experience. It moves you to a higher level of client/patient – in terms of affluency, that is. I won’t attempt to suggest that a millionaire’s financial problems are as severe as those of a low-income individual or family, but people of all wealth cohorts incur challenges with abuse, addition, crime, mental health, and such.

I’m not aware of any financial planning firm having a CFT on staff. I’d suggest you open a practice, and turn to advisors, bankers, lawyers and accountants as they can be great referral sources. Many need your services.

George | Ric Responded February 26, 2024

No. It’s robbing Peter to pay Paul, like all tax schemes. In this case, Peter is an affluent, highly paid white collar employee and Paul is a lower paid worker who’s more dependent on Social Security than Peter is. The data show that most of the 401(k) and IRA tax benefits go to middle and upper middle class Americans, not to poorer Americans who can’t afford to save for retirement. So, the political view on the left is to redistribute this tax benefit accordingly. The idea will get lots of opposition, as you can imagine.

William | Ric Responded February 22, 2024

It’s not a good situation. Slowly, businesses are realizing that older workers have experience and maturity – both very helpful. But until hiring officers are willing to abandon their biases, the situation won’t change. It’s not hopeless…just discouraging.

Luisa | Ric Responded February 22, 2024

Yes, and they now realize the policy was disastrous. Too few babies translates into too few workers compared to older people – too many needing support and too few to provide it. Not sure how the Chinese will recover from this horrible policy decision.

Ken | Ric Responded February 22, 2024

As with so many things, balance is the key – Goldilocks, as it were.

Too many people and we cannot house, fee or care for everyone. Too few and we fail to sustain our species. Isn’t it funny, though, that the 1960s fears of “population explosion” have given way to fears of “population implosion.”

Mike | Ric Responded February 14, 2024

There are a few ETFs that emphasize Africa, from iShares, Global X and VanEck. But I’m not sure they’re necessary. Their stock markets are small, the much of the growth is going to come from the Fortune Global 500 that will expand into the African markets. An allocation to Africa might not be a bad idea, but it also might be a bit redundant.

Lindsay | Ric Responded February 14, 2024

Depends. How much money do you want to have in retirement? The more you save, the more you’ll have. I’d contribute the maximum pre-tax to both.

Jack | Ric Responded February 14, 2024

I regret that I must agree fully with you. And, you didn’t mention crime. Add that to your list.

N. | Ric Responded February 14, 2024

Actually, only about 20% of my podcasts pertain to crypto. If it seems like a lot more than that, then it’s probably because you’re not vey interested in the topic and therefore the commentaries are more noticeable to you.

I devote as much attention to it as I do because this is best wealth-building opportunity of the decade, and yet few people know much about it. Lots of education is needed, and that’s the role I serve. So instead of questioning why I cover it so much, a better approach is to question why you aren’t focusing more on what I’m actually saying about it – and why. This topic is really important.

But it’s not the only important topic. There are 4 others: longevity, retirement security, exponential technologies, and health & wellness. I cover all these extensively, and I don’t know anyone else who is. That’s a shame, for these are the topics that matter most to investors and advisors today.

Allen | Ric Responded February 13, 2024

Article Link>>

The article doesn’t bust the myth; it merely describes the story that’s in the new book. The story itself is old – 10 years old. Although Satoshi and early bitcoiners believed that transactions are anonymous, it was quickly determined – as the book and article explain – that transactions are merely pseunonymous – meaning we know what was done, but not necessarily whodunit. This is how Silk Road was shut down back in 2013. It is also why Hamas told its supporters last year to stop sending them bitcoin, because the Israelis and other governments were able to track and seize the money. For a decade now, law enforcement has been clear that it loves bitcoin, because digital money leaves a digital footprint – something you don’t get with cash.

I wasn’t familiar with how the anon-link was quashed, and it's a fun but geeky read. Not sure many will care about the how; they’ll care only (and rightly) that bitcoin is not anonymous. I haven’t seen anyone make that claim in many years.

Peter | Ric Responded February 11, 2024

I’m no longer serving as a financial advisor. I’d be happy to refer to you if you like.

Ralph | Ric Responded February 8, 2024

In the beginning, people paid cash. Then people started paying with checks – partly because they didn’t have the cash on them, and partly because they didn’t have the money at all – and businesses that took the checks lost out when the checks bounced. (Businesses also lose money to theft by employees – eliminating cash eliminates that risk.) That led to the first card – Diner’s Club – which fronted the money to the restaurant. The diner was expected to pay the bill at the end of the month. Amex soon entered this business, too, on the same basis. These were “charge cards” not “credit cards” – because you could charge the bill to the card but credit was not being extended to you; you were to pay the bill at month’s end. Amex still works that way.

Amex and Diner’s Club charged a fee to the business, which was happy to pay it since it removed the risk of a bounced check. Later, to grow their business, the card companies began letting you pay monthly instead of in full – in exchange for an interest rate. Credit cards were born.

As society has moved to digital payments, few carry cash anymore, and cards are a convenient and safe way to shop. But businesses now realize they’re still paying those fees to the card companies – as much as 3%. Laws used to prohibit them from charging card customers more than cash customers, but now they can. So, the choice is yours: pay cash, or use a card and pay 3% to cover the business’ cost of letting you use the card. Shop owners don’t want to simply raise their prices 3% because shoppers will think they are more expensive than the shop next door. So, the so-called nuisance fees that Biden complains about are born.

What you’re supposed to do is get a zero-fee card that has lots of cash-back features, and then pay it off monthly to avoid all interest costs. But few Americans do this – to the tune of $1.2 trillion. For most folks in credit card debt, they have no choice: they earn so little that they are forced to use credit cards – which they can easily obtain – to buy food, diapers, gasoline and medicine/health care. They’re forced to pay the monthly minimum so they have cash to pay for rent, car payments, insurance, clothes for kids and other vitals. Few are in credit card debt because of fancy vacations, jewelry and other wasteful spending.

So, yes, you could say the people are being “forced” into debt by virtue of their low incomes. This is why some are calling for a much higher minimum wage, universal basic income, elimination of taxes on Social Security, broadening of Medicaid, and other federal programs. So, yes, you just might see lots of legislation here – but probably not the kind you had in mind.

Bart | Ric Responded February 8, 2024

I don’t “follow” those folks, and following does not at any rate generate criticism. Taking such folks to task for improper actions and faulty advice is something I do when warranted, and sometimes that causes folks to complain about my complaining – such as your email.

No, I’m not publishing my newsletter any longer. I am focusing instead on my daily podcast and blog, and writing articles for the financial trade press and white papers for investors and advisors.

Heather | Ric Responded February 7, 2024

Some advisors are recommending the 529s anyway, because a new law lets you later convert money not used for college into an IRA for the child. But that requires some faith that Congress won’t change the law again. So, the alternative is to just keep all the savings in your name, and dole out the cash in the future based on needs. The need for silo investing – money in this bucket for this reason, and that bucket for that reason – is fast becoming obsolete.

Dorothy | Ric Responded February 7, 2024

I suggest you look at our Crypto Catalog. It features all the options available to you. You’d really benefit from our CBDA program, too – info on the website!

Bart | Ric Responded February 7, 2024

People like Dave, Suzi Orman, Jim Cramer and other celebrities and personalities in the personal finance world (including me) have a responsibility to honestly and fairly serve their audiences. We all need to avoid conflicts of interest and disclose those we can’t avoid. And most importantly, we must make sure that the information we’re providing is accurate, complete and correct.

Dave has violated this requirement on two occasions, and I have noted both. He has allegedly struck a financial deal with a timeshare outfit that has benefitted him greatly but reportedly at great financial and emotional cost to his listeners. And his advice regarding investment returns and withdrawal rates are universally regarded in the financial community as reckless and dangerous to anyone who follows that advice.

I simply don’t understand why you’re upset with me, rather than with Dave.

It’s not the first time I’ve had similar criticism for my comments. Back in the 1990s, a group of retired women – all in their 70s – formed an investment club and later published a book declaring that they had earned 24% per year, far outpacing the S&P 500. Their book became a runaway bestseller and they made large profits on the lecture circuit. Later, when it was revealed that they had miscalculated their returns (they’d been counting their contributions as profits) they admitted that their returns were actually less than the S&P 500. Yet they continued to promote their book and they continued to earn money from speaking gigs and other activities. I called them out on my radio show – and got criticism from some listeners for attacking a bunch of sweet old ladies – even though they were knowingly and deliberating lying to the public. I felt like Cary Grant in Arsenic and Old Lace.

Dave Ramsey, as you noted has helped millions of people get out of debt. I applaud him for that. But when he ventures beyond debt and into other topics that he knows nothing about, and when he signs financial deals that enrich himself at the expense of his listeners, I will take note of it to help those listeners protect themselves.

You can be assured that I’m not jealous of Dave’s success, which btw isn’t as significant as mine. And no, in my 34 years of operating EFS, neither I nor my firm was ever sued. And yes, being the subject a class-action lawsuit ought to damage your reputation – that’s the entire point of such actions: to deter people from perpetrating such frauds or crimes. I’m sorry you don’t agree.

I hope that, should I ever need it, you’d be as supportive of me as you are of Dave. But if not, and if others agree with you that I’m in the wrong and therefore they stop listening to my podcast, causing my ratings to decline, then all I can say is: good riddance.

William | Ric Responded February 1, 2024

True. But our conversation was aimed at those who already own BITW, and they already know about the K-1 issue. Although I could have emphasized for them that moving to BITB eliminates the K-1, it doesn’t necessarily simplify tax preparation obligations. It’s too complex a topic for a podcast, unfortunately, tho I may try to tackle it in the future.

Rob | Ric Responded February 1, 2024

Securities lending is common. Many investors view it as an opportunity to increase their gains by several percentage points a year. Entirely up to you. Talk with the firm to fully understand the risks.

Edward | Ric Responded February 1, 2024

About as long as you say.

You’re the client, so your view counts, no one else’s. Seems like it’s already been too long for you, or you wouldn’t be asking.

But when you say “away” are you referring to the advisor being away physically, or tangibly? I wouldn’t care what location my advisor is at – they can be halfway around the world – so long as they are paying attention to my needs, and responsive to me on a timely basis when I call or email.

Sometimes, an advisor is away, like, in the hospital. We can always be understanding and tolerant, but eventually – you say when – we have to remind the advisor and their firm that the relationship is business, not personal, and despite the advisor’s circumstances, we need to get the services we’re paying for. The advisor and the firm will understand and accommodate – and if they don’t, then find a new advisor.

Larry | Ric Responded January 31, 2024

That’s certainly an argument that many bitcoin promoters make. We all know that the US Dollar is debased annually – by intent, the Federal Reserve strives to cut the value of the dollar by 2% per year. But sometimes, it’s reduced by an even larger amount – as we’ve seen in the past several years. We call this inflation, referring to increased prices, because it’s more politically expedient. If the Fed and politicians called it what it really is – dollar erosion – the public wouldn’t tolerate it like they do (and if you think they don’t tolerate it, consider all the money in zero or low interest rate bank accounts).

The Fed is able to reduce the value of the dollar by simply printing more of them – by increasing the supply of dollars, you make each one worth a bit less. Now, 2% might not sound like much, but over decades it is devastating. That postage stamp that cost you four cents in 1960 costs 49 cents today – a 12.5x increase.

Bitcoin was created to solve this problem. A total of 21 million bitcoins will be produced (19mm so far), and the inability for the creation of more means there cannot be debasement. So while the value of a dollar goes down over time, the price of a bitcoin is expected to go up over time. And so far, that’s what’s happened. Will that continue? That’s for you to decide, but I’m in the camp that believes it will.

Kalil | Ric Responded January 31, 2024

Assuming the amount sent (in $) was correct, then you can simply sell the ETC and buy ETH. If the amount was incorrect, demand that the remainder be sent.

Jeffery | Ric Responded January 31, 2024

Thanks for the info. The article is a deep dive into how scammers use the tech to perpetrate their crime; I think consumers care only about how to identify the scam in order to avoid it. We’ve got to keep spreading that info!

Scott | Ric Responded January 29, 2024

Crypto is new, and largely outside the traditional financial services industry. Thus, college degree is less important than deep knowledge of crypto. Our CBDA course is a great start.

Robert | Ric Responded January 29, 2024

I’m no longer serving as an advisor so can’t give you advise. I can refer you to an advisor if you wish. I would not overweight CEFs as you’ve described – there are risks of overconcentration worth avoiding. And did you mean to say 9% per month, or 9% per year? Either way, you’re talking about something that’s either risky (or VERY risky) or whose payments include a return of capital – an important feature that many don’t understand and which can lead to poverty. I’d have an advisor review the plan and offer comment.

Geoffrey | Ric Responded January 25, 2024

own BITB, IBIT, EZBC, FBTC and BTCO That’s not advice.

Do your own research or rely on a financial advisor.

Tim | Ric Responded January 25, 2024

Buying bitcoin on a regular basis via a dollar cost averaging strategy is an idea I like.

William | Ric Responded January 25, 2024

I never recommended or owned stable value funds. For money I want safe, I use money market funds that invest solely in US Government Securities.

James | Ric Responded January 24, 2024

All of the sectors are exciting, and I believe highly promising. So I invest in as many of them as I can – there are now lots of thematic ETFs that make this easy. I’m also the guy behind the launch of the iShares Exponential Technologies ETF, which is certainly worth a look. As for the active vs passive debate, there’s nothing special about expotech in that regard. So however you feel about this issue, maintain that viewpoint with these thematic ETFs.

Daniel | Ric Responded January 24, 2024

Every firm sets its own initial price. It’s arbitrary – just like an IPO. It’s irrelevant and should be ignored. There’s no impact on their performance.

That said, I could envision on way the price: behavioral finance. If an investor favors the lowest price of the 11, or the highest, they might choose that ETF over the others. But that would merely affect the flows of the ETF, not the price of bitcoin. Again, I’d ignore this stat.

Joseph | Ric Responded January 24, 2024

It concerns me that you’d buy assets that you don’t understand. Please read my book, The Truth About Crypto, to get important education. It would take too much space here to answer the question – as well as provide warnings about the platform you used to buy them – and that’s why I wrote the book. Please read it, then let me know if you have further questions.

Anthony | Ric Responded January 23, 2024

Download free our new Toolkit on these ETFs at dacfp.com – you’ll see the many differences. Different fees, custodians, spreads, cash holdings and more. I like to spread my investments to avoid overconcentration.

William | Ric Responded January 23, 2024

Yeah, this is a silly situation, and you’re right to call it out.

We never refer to “spot” with any other ETF, so why these? Simple: the first bitcoin ETFs were bitcoin futures ETFs (which are bets on the future price of bitcoin). So when these came out, we needed to differentiate between them and the futures ETFs. “Spot” means “current”. So – the spot bitcoin ETFs buy bitcoin at the current price, and the bitcoin futures ETFs are based on the future (expected) price.

Ric

Bruce | Ric Responded January 23, 2024

A lot of people argue that IRAs, and Roths, are the best way to invest. That’s true for many assets, not just crypto. But your ability to do that is limited, and thus you might be forced to invest in taxable accounts. So talk to a tax advisor about it before

Reddy | Ric Responded January 23, 2024

You’re asking an important conflict-of-interest question.
 
You must always be skeptical when people make recommendations, because you don’t always know their motivation.

In this case, you’re ok. As you noted, I’m wealthy enough that the future price of crypto doesn’t really matter to me. And I’m not selling any products, so I earn no money if you buy something. MY show is supported by advertisers, like all traditional media. I hope you’ll patronize them so that they’ll continue to be my sponsors, but that’s about it.

In other words, when I say something, you can be confident I’m saying what I truly believe.

Bob | Ric Responded January 23, 2024

Multiplying by 25 is the same as withdrawing 4%. Clever, huh!

Michel | Ric Responded January 23, 2024

I covered this on my recent podcast – listen in!

https://www.thetayf.com/blogs/this-weeks-stories/now-that-the-bitcoin-etfs-are-here-my-two-beefs-and-my-two-predictions

Harvey | Ric Responded January 23, 2024

It’s up to you; there are pros and cons.

Pro:

• The ETF is more convenient, as it can be added to the rest of your portfolio at your brokerage account, like Schwab. Makes it easier to rebalance and dollar cost average.
• Tax reporting is easier. Included in your 1099 from Schwab. Coinbase does not provide this

Con:

• ETFs only trade on workdays. At Coinbase you can trade 24/7/365
• You pay no fees to hold; the ETF has an annual fee. (most ETF fees are much lower than Coinbase’s trading commissions)

So, your call.

Jay | Ric Responded January 22, 2024

I’ll be doing a podcast on this with Matt Hougan of Bitwise in a few weeks – stay tuned!

Michael | Ric Responded January 22, 2024

No, I don’t think BITW is disadvantaged. It’s a more diversified investment, and thus has attraction for many investors. And its biggest holding is bitcoin. The fund does not buy futures; other funds do. I am continuing to hold my BITW. And we’ll have a podcast devoted to this topic in a couple of weeks. Stay tuned!

Daniel | Ric Responded January 22, 2024

I’m aware of John’s opinion piece. It reflects his bias against crypto. My viewpoint published this week takes a very different view. It’s not based on liking or disliking an asset; it’s about investor choice.

Viral | Ric Responded January 18, 2024

3 in 4 advisors say they will allocate to the new bitcoin ETFs. An average allocation translates into $150 billion in flows. Since the supply is fixed, this can be expected to translate to substantial increases in price.

John | Ric Responded January 18, 2024

Correct. And MetaMask is the go-to for many re DeFi. This is not advice.

John | Ric Responded January 18, 2024

”Spot” means “the price right now” – as opposed to bitcoin futures ETFs, which are investments based on the future prices. And these new spot bitcoin ETFs differ from crypto ETFs in that they all buy bitcoin; the others buy stocks of companies engaged in the crypto industry.

Austin | Ric Responded January 18, 2024

We’ll be doing a podcast on exactly this next week – stay tuned!

Heath | Ric Responded January 15, 2024

The media is reporting that the ETFs are available at WF, but with limitations.

Teresa | Ric Responded January 12, 2024

Not sure what Laura said vs what you heard, so let’s start over.

When you stake coins, you are posting them as collateral. If the node goes offline or tries to validate faulty data, you could lose your coins. And if you join a staking pool, they’ll take a cut of your staking profits. Also, often when staking, you’ll be required to lock your coins for a period of time – reducing your liquidity.

Mt. Gox was a scam, and there’s no point in trying to explain what happened in the context of legitimate business activities. Set that aside. One lesson, though: do your best to select a valid crypto custodian.

Brandon | Ric Responded January 12, 2024

It’s been a few years since I’ve looked at SS complexities, and you cite a good one. I’d be concerned that my response could be out of date. So I’d rather refer you to someone knowledgeable about it. Let me know if you’d like the referral.

Octavio | Ric Responded January 15, 2024

This is not a promise you need to rely on Bitwise to fulfill. That’s because it’s an inherent aspect of how ETFs operate. BITW is a Grantor Trust, and these trade OTC; buyers and sellers set the price, and consequently the price could differ from the Net Asset Value of the fund. That is why the price is 37% less at the moment than the NAV. But when (if) the fund converts to ETF status, that discount will disappear – because all ETFs trade at NAV. The problem goes away – as we just saw with GBTC. It had a 50% discount last summer, but when it converted into an ETF last Thursday, that discount was gone.

Octavio response: Maybe you can share my e-mail on this subject to Matt Hogan who I respect but would appreciate sharing BITW is a grantor trust and its assets will be converted to its NAV instead of the discounted value after Thursday, 1-11-24, SEC approved its bitcoin spot ETF application.

Ric response: There is no benefit to asking Bitwise. No answer they give you will be anything you can rely on legally. Besides, neither I nor they believe that BITW will ever become an ETF; it contains 8 coins that the SEC says it will not allow an ETF to hold.

Octavio response: That said, are you saying BITW cannot owned Bitcoins its owns after the SEC approval of its spot ETF at those Bitcoins NAV and the other 9 not yet approved digital assets at their option values which continue to be valued at buyer and seller created. Are you saying BITW cannot account for them like what I envision after SEC approval of its bitcoin ETF? To me, I can see the other 9 which the SEC has not yet approved will stay at their discounted prices bit Bitcoins which . SEC has approved will be stated or valued at its NAV. Are you saying Matt will not be able to do what I think possible for BITW’S digital assets?

Ric response: If you’re referring to the fact that Grantor Trusts typically trade are premiums or discounts to NAV, then yes you are correct that is a material fact that investors need to know about. I have worked hard to provide that information, and have an article on it on my website. I know Bitwise discloses this as well.

Art | Ric Responded January 12, 2024

Yes

Richard | Ric Responded January 12, 2024

ETFs are ordinarily highly tax efficient; they rarely incur annual capital gains distributions, unlike mutual funds. However, the SEC has imposed a restriction on the spot bitcoin ETFs – cash settlement vs in-kind – and this could very well result in annual tax liabilities for all shareholders regardless of personal trading. Some believe the SEC will ease up on this requirement; we’ll see how the year goes. I don’t think any of the ETFs will prove to be more tax-efficient than the others, but time will tell.

Steve | Ric Responded January 12, 2024

I do not think all of the ETFs will survive; I also think others will enter the market – this is just the beginning. The key for sustainability is AUM. ETFs generally need $50 million in assets to be self-sustaining. But the competition has forced many of them to offer very low fees – 19 basis points is the lowest so far, and many have waived their fee for 6 mo to a year. They are thus playing the long game, and hoping that they’ll eventually amass enough AUM for the fund to be profitable. Others are treating it like a loss leader, to capture attention (and assets) for other of their funds. This is capitalism at its best.

Allen | Ric Responded January 12, 2024

BITW is unaffected. It won’t become an ETF in the foreseeable future. But the new ETFs are likely to generate higher prices for bitcoin over time, and BITW will benefit, as more than half of it is BTC. And the other coins likely will rise, too, as this situation is rising-tide scenario. I have no plans to sell my BITW.

Brian | Ric Responded January 12, 2024

Robinhood is increasingly regarded favorably, but I do not follow it closely enough to offer an actionable comment.

Josh | Ric Responded January 12, 2024

No, it won’t become an ETF in the foreseeable future. But the new ETFs are likely to generate higher prices for bitcoin over time, and BITW will benefit, as more than half of it is BTC. And the other coins likely will rise, too, as this situation is rising-tide scenario. I have no plans to sell my BITW.

Richard | Ric Responded January 12, 2024

No
No
No

Steve | Ric Responded January 12, 2024

The primary laws that are germane here are:
Securities Act of 1933
Securities Exchange Act of 1934
Investment Company Act of 1940
Investment Advisers Act of 1940
Sarbanes-Oxley Act of 2002
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
You’ll need a law degree….

Allen | Ric Responded January 12, 2024

There’s lots to consider. First, you’d need to obtain licenses: SEC Series 65 to be an Investment Advisor Representative of a Registered Investment Advisor, and/or FINRA licenses (Series 6 if you want to sell only mutual funds, or Series 7 which allows you to recommend virtually all kinds of securities). You’d also need a state insurance license if you want to recommend life & health insurance and annuities.

You’ll also want to obtain one or more professional designations. In addition to providing valuable education, you’ll be able to display the fact that you have attained the knowledge to serve clients. The CFP is the most popular – although there are hundreds of them. You can also get a college degree in financial planning from dozens of schools.

Next, you’ll want to decide how you want to be compensated. Do you want to earn commissions from selling investment and insurance products? If so, you’ll want to join an insurance company or broker/dealer. If you want to charge a fee (hourly, flat, retainer or AUM-based) then you’d want to choose a broker/dealer or an RIA firm.

I’d start by talking to financial advisors about their careers and firms. Then talk to HR folks at various firms, so you can compare. Check out the CFP program from the CFP Board of Standards, and the ChFC and CLU programs from the American College. Also look at course catalogs from universities.

The advisor field is a huge growth industry. There are far too few advisors, and half will be retiring in the next 10 years – creating a huge career opportunity for you. Good luck!

Tim | Ric Responded January 12, 2024

No. Both are securities, investments that own digital assets. So they are a good proxy but it’s not “the same.” BITW owns 10 coins; bitcoin and ethereum are about 80% of the total fund. GBTC owns bitcoin but its price currently trades at a discount (a problem that will go away when GBTC converts into an ETF, pending SEC approval).

Mazy | Ric Responded January 12, 2024

Not stupid at all – this situation is rather confusing.

Grayscale has asked the SEC for permission to convert GBTC into an ETF. Assuming the SEC approves (the court last summer ordered the SEC to do so, which is what led us to today’s situation), then your investment will become an ETF. And in the process, Grayscale will lower the fee. And the conversion will not be a taxable event. So, all good!

Diane | Ric Responded January 12, 2024

Sure. Exactly how depends on lots of factors. The best idea is to talk with a financial advisor. I can refer you to someone if you like.

Steve | Ric Responded January 12, 2024

Stop asking me questions you already know the answers to. I’m too busy to give people the answers they want to hear, when they know those answers are the wrong answers.

Of course you’d be breaking the law. And shame on those who are encouraging you to do it. Those crypto bros are everything that’s wrong with crypto – and they’re the ones giving Gary Gensler and Elizabeth Warren and Jamie Dimon and Warren Buffet all the ammunition they need to call crypto nothing more than a tool used by criminals.

In case I really need to say it: Do not break any laws. Do not engage in tactics that attempt to dodge any flaws. And STOP ASKING ME FOR PERMISSION TO DO SO.

David | Ric Responded January 12, 2024

You’re overanalyzing it, Dave, and thus getting confused. The 4% vs 8% controversy has nothing to do with “withdrawals” even though that word is casually used during the debates. The term to focus on is “spending.” Sure, the IRS might mandate that you “withdraw” a certain amount of money from your retirement account, but that doesn’t mean you must “spend” the money. You’d merely move it from the IRA and into a taxable account.

Spend no more than 4%. Ignore Ramsey’s absurd – and financially dangerous – advice to spend 8%.

Edgar | Ric Responded January 12, 2024

Please don’t misquote me. I’ve never touted a blanket opposition to Roth conversions. Rather, what I’ve always said is that the conversion only makes sense for people in a low tax bracket, and only to the extent that the conversion keeps you in that low bracket. So, I fully agree with your attorney.

Ron | Ric Responded January 12, 2024

Of course. We are macrobiotic, pescatarian, gluten-free. Sugar-free (as best we can) and, for Jean, dairy-free. We have a trainer 3x a week, and we workout typically 7x a week. No smoking, alcohol or drugs. Lots of sleep and relaxation techniques, and emphasis on our relationship with each other and with others as those are key to long-term health, too. In short, we practice what we preach on our two podcasts.

Tim | Ric Responded January 12, 2024

The two primary benefits of an IRA are the tax-deductibility of the contribution and the tax-deferral of the growth. If your children are in a low tax bracket, there’s little benefit from the tax deduction, suggesting that the Roth is the better choice.

SL | Ric Responded January 12, 2024

If they dump what? Are you referring to them selling all their holdings of US government debt? Stocks? Other? Neither country holds enough for it to matter much (if at all) to our economy long-term. I’d ignore that event. And such an event is extremely unlikely. Why worry about something that isn’t likely to occur and over which you have no control? You might as well worry about an asteroid hitting Earth. Stop worrying about such things!

Tom | Ric Responded January 12, 2024

I wouldn’t fuss over it. The Lightning Network is a Layer 2 protocol – meaning it sits on top of the Bitcoin blockchain – and is designed to execute trades faster. It doesn’t affect the price of bitcoin in your transaction, but might lower the transaction fee you pay or the speed of settlement. If you buy from an exchange like Coinbase, you won’t notice any impact on speed or price, so it’s really not something most people need to fuss over. And there are cybersecurity issues, being Layer 2. I’d keep doing what you’re doing for now.

Steve | Ric Responded January 12, 2024

Sorry to disappoint. I didn’t mention it because it wasn’t newsworthy. I made news back in 2007 when I predicted that the Dow Jones Industrial Average would close “unchanged” one day within a year – a price difference of 0.00 – demonstrating the fact that investors didn’t know what was going on during the financial crisis and they couldn’t decide whether prices should be higher or lower (hence, a zero change). Nobody believe me, as a 0.00 day is unheard of. But I was proven correct when it actually happened.

What you’re referring to is day when the Dow’s change was 0.00% - but not actually $0.00. The change was $0.86 – and this was so small that the percentage was zero. But there are lots of 0.00% days – they are not newsworthy. It’s 0.00 price that is rare. I do not believe that will ever happen again (which I guess is another prediction!).

Glad you Jean’s podcast! It’s really wonderful!

Richard | Ric Responded January 12, 2024

Pretty much everyone buys fractions of bitcoin. That’s because a single bitcoin costs about $42,000 (as I write this). Few people can afford that. So although everyone talks about “buying bitcoin” very few (other than wealthy investors) actually do. What they are actually doing is buying a piece (fraction) of a bitcoin. These are called Satoshis, named after bitcoin’s inventor, Satoshi Nakamoto. Think of these as the difference between a dollar and a penny. A penny is one-hundredth of a dollar; it takes 100 pennies to equal a dollar. In the case of bitcoin, a single satoshi is one-hundred-millionth of a bitcoin; it takes 100 million Satoshis to equal one bitcoin. So when you buy $1 worth of bitcoin, you’re getting a tiny tiny tiny fraction of a bitcoin. And as you buy more Satoshis, you eventually accumulate enough to equal one bitcoin. This is why enthusiasts like to say they are “stacking Sats!” – they are accumulating Satoshis!

So, every crypto exchange, like Coinbase, and every bitcoin fund, actually is letting their investors obtain Satoshis. Simple.

Harry | Ric Responded January 12, 2024

You’re right, asset-based pricing would make sense. This is why smarter investors choose ETFs over mutual funds – they are not only less expensive, they are more tax-efficient, too.

Arthur | Ric Responded January 12, 2024

It’s not mandatory, but you ought to consider an S-Corp or an LLC. Self-employed people can file a Schedule C. However, you ought to create a liability shield – and that’s what those do. Be sure to create a bank account to handle all of your business income and expenses; do not commingle personal assets with business assets. My advice is that you get advice from a lawyer, an accountant and a financial advisor.

Stephen | Ric Responded January 12, 2024

I do not think all of the ETFs will survive; I also think others will enter the market – this is just the beginning. The key for sustainability is AUM. ETFs generally need $50 million in assets to be self-sustaining. But the competition has forced many of them to offer very low fees – 19 basis points is the lowest so far, and many have waived their fee for 6 mo to a year. They are thus playing the long game, and hoping that they’ll eventually amass enough AUM for the fund to be profitable. Others are treating it like a loss leader, to capture attention (and assets) for other of their funds. This is capitalism at its best.

Ric

Ryan | Ric Responded January 2, 2024

My bet: it will be a rising-tide situation: the flow of assets into bitcoin via the new ETFs will be good for all digital assets, as it will generate new interest in crypto broadly. That’s good news for BITW. Also, that fund owns BTC more than anything else, so it would directly benefit from the new ETFs. I’m keeping my BITW.

Steve | Ric Responded March 8, 2024

There are 2 schools of thought on this. The first, which is more traditional and broadly accepted, is that you certainly should periodically rebalance your portfolio. By doing so, you insure that your portfolio allocation maintains your desired model. It also helps you sell assets at a profit and buy others at lower prices. In your case, for example, you’ve enjoyed massive gains in the crypto sleeve – hence it went from 1% of the portfolio to 4x as much. By rebalancing, you’d sell 3 pct points and bring the allocation back to your original 1% - which is what you wanted when you started. Taking profits is a great move, no? Since your investment is in an IRA, taxes on the gains are not an issue.

The other viewpoint – particular to crypto – is that rebalancing is less profitable. This camp argues that crypto is rising fast, with lots of room to grow. Why sell 75% of the position if that position is poised to sharply outperform all other positions? Let it ride, no? This argument is offset somewhat by those who recognize that crypto, despite its outperformance potential, often incurs big downturns – and by rebalancing when this happens, you keep selling high and buying low, ending up with more gains at lower risk than those who HODL bitcoin. Since your investment is in an IRA, taxes on the rebalance churn are not an issue.

So…up to you.

William | Ric Responded March 8, 2024

It’s just arithmetic. If you provide the various returns assumed in the chart of 7%/1500%/0% and 7%/-84%/0% to the 0% and 1% bitcoin portfolios, you’ll get the answers shown. Likewise, if you double the crypto allocation to 2%, you’ll vastly improve the returns as well. I wouldn’t use this chart of the basis for such a decision, however. The chart is hypothetical and does not reflect actual investment returns. It’s meant merely to make a point.

Jack | Ric Responded March 5, 2024

You might be right about that. The best way to prevent US consumers from buying Chinese cars is for US automakers to make cars that US consumers would rather buy.

Josh | Ric Responded March 1, 2024

This is a good idea on your part, as it extends your current interests and experience. It moves you to a higher level of client/patient – in terms of affluency, that is. I won’t attempt to suggest that a millionaire’s financial problems are as severe as those of a low-income individual or family, but people of all wealth cohorts incur challenges with abuse, addition, crime, mental health, and such.

I’m not aware of any financial planning firm having a CFT on staff. I’d suggest you open a practice, and turn to advisors, bankers, lawyers and accountants as they can be great referral sources. Many need your services.

George | Ric Responded February 26, 2024

No. It’s robbing Peter to pay Paul, like all tax schemes. In this case, Peter is an affluent, highly paid white collar employee and Paul is a lower paid worker who’s more dependent on Social Security than Peter is. The data show that most of the 401(k) and IRA tax benefits go to middle and upper middle class Americans, not to poorer Americans who can’t afford to save for retirement. So, the political view on the left is to redistribute this tax benefit accordingly. The idea will get lots of opposition, as you can imagine.

William | Ric Responded February 22, 2024

It’s not a good situation. Slowly, businesses are realizing that older workers have experience and maturity – both very helpful. But until hiring officers are willing to abandon their biases, the situation won’t change. It’s not hopeless…just discouraging.

Luisa | Ric Responded February 22, 2024

Yes, and they now realize the policy was disastrous. Too few babies translates into too few workers compared to older people – too many needing support and too few to provide it. Not sure how the Chinese will recover from this horrible policy decision.

Ken | Ric Responded February 22, 2024

As with so many things, balance is the key – Goldilocks, as it were.

Too many people and we cannot house, fee or care for everyone. Too few and we fail to sustain our species. Isn’t it funny, though, that the 1960s fears of “population explosion” have given way to fears of “population implosion.”

Mike | Ric Responded February 14, 2024

There are a few ETFs that emphasize Africa, from iShares, Global X and VanEck. But I’m not sure they’re necessary. Their stock markets are small, the much of the growth is going to come from the Fortune Global 500 that will expand into the African markets. An allocation to Africa might not be a bad idea, but it also might be a bit redundant.

Lindsay | Ric Responded February 14, 2024

Depends. How much money do you want to have in retirement? The more you save, the more you’ll have. I’d contribute the maximum pre-tax to both.

Jack | Ric Responded February 14, 2024

I regret that I must agree fully with you. And, you didn’t mention crime. Add that to your list.

N. | Ric Responded February 14, 2024

Actually, only about 20% of my podcasts pertain to crypto. If it seems like a lot more than that, then it’s probably because you’re not vey interested in the topic and therefore the commentaries are more noticeable to you.

I devote as much attention to it as I do because this is best wealth-building opportunity of the decade, and yet few people know much about it. Lots of education is needed, and that’s the role I serve. So instead of questioning why I cover it so much, a better approach is to question why you aren’t focusing more on what I’m actually saying about it – and why. This topic is really important.

But it’s not the only important topic. There are 4 others: longevity, retirement security, exponential technologies, and health & wellness. I cover all these extensively, and I don’t know anyone else who is. That’s a shame, for these are the topics that matter most to investors and advisors today.

Allen | Ric Responded February 13, 2024

Article Link>>

The article doesn’t bust the myth; it merely describes the story that’s in the new book. The story itself is old – 10 years old. Although Satoshi and early bitcoiners believed that transactions are anonymous, it was quickly determined – as the book and article explain – that transactions are merely pseunonymous – meaning we know what was done, but not necessarily whodunit. This is how Silk Road was shut down back in 2013. It is also why Hamas told its supporters last year to stop sending them bitcoin, because the Israelis and other governments were able to track and seize the money. For a decade now, law enforcement has been clear that it loves bitcoin, because digital money leaves a digital footprint – something you don’t get with cash.

I wasn’t familiar with how the anon-link was quashed, and it's a fun but geeky read. Not sure many will care about the how; they’ll care only (and rightly) that bitcoin is not anonymous. I haven’t seen anyone make that claim in many years.

Peter | Ric Responded February 11, 2024

I’m no longer serving as a financial advisor. I’d be happy to refer to you if you like.

Ralph | Ric Responded February 8, 2024

In the beginning, people paid cash. Then people started paying with checks – partly because they didn’t have the cash on them, and partly because they didn’t have the money at all – and businesses that took the checks lost out when the checks bounced. (Businesses also lose money to theft by employees – eliminating cash eliminates that risk.) That led to the first card – Diner’s Club – which fronted the money to the restaurant. The diner was expected to pay the bill at the end of the month. Amex soon entered this business, too, on the same basis. These were “charge cards” not “credit cards” – because you could charge the bill to the card but credit was not being extended to you; you were to pay the bill at month’s end. Amex still works that way.

Amex and Diner’s Club charged a fee to the business, which was happy to pay it since it removed the risk of a bounced check. Later, to grow their business, the card companies began letting you pay monthly instead of in full – in exchange for an interest rate. Credit cards were born.

As society has moved to digital payments, few carry cash anymore, and cards are a convenient and safe way to shop. But businesses now realize they’re still paying those fees to the card companies – as much as 3%. Laws used to prohibit them from charging card customers more than cash customers, but now they can. So, the choice is yours: pay cash, or use a card and pay 3% to cover the business’ cost of letting you use the card. Shop owners don’t want to simply raise their prices 3% because shoppers will think they are more expensive than the shop next door. So, the so-called nuisance fees that Biden complains about are born.

What you’re supposed to do is get a zero-fee card that has lots of cash-back features, and then pay it off monthly to avoid all interest costs. But few Americans do this – to the tune of $1.2 trillion. For most folks in credit card debt, they have no choice: they earn so little that they are forced to use credit cards – which they can easily obtain – to buy food, diapers, gasoline and medicine/health care. They’re forced to pay the monthly minimum so they have cash to pay for rent, car payments, insurance, clothes for kids and other vitals. Few are in credit card debt because of fancy vacations, jewelry and other wasteful spending.

So, yes, you could say the people are being “forced” into debt by virtue of their low incomes. This is why some are calling for a much higher minimum wage, universal basic income, elimination of taxes on Social Security, broadening of Medicaid, and other federal programs. So, yes, you just might see lots of legislation here – but probably not the kind you had in mind.

Bart | Ric Responded February 8, 2024

I don’t “follow” those folks, and following does not at any rate generate criticism. Taking such folks to task for improper actions and faulty advice is something I do when warranted, and sometimes that causes folks to complain about my complaining – such as your email.

No, I’m not publishing my newsletter any longer. I am focusing instead on my daily podcast and blog, and writing articles for the financial trade press and white papers for investors and advisors.

Heather | Ric Responded February 7, 2024

Some advisors are recommending the 529s anyway, because a new law lets you later convert money not used for college into an IRA for the child. But that requires some faith that Congress won’t change the law again. So, the alternative is to just keep all the savings in your name, and dole out the cash in the future based on needs. The need for silo investing – money in this bucket for this reason, and that bucket for that reason – is fast becoming obsolete.

Dorothy | Ric Responded February 7, 2024

I suggest you look at our Yellow Pages. It features all the options available to you. You’d really benefit from our CBDA program, too – info on the website!

Bart | Ric Responded February 7, 2024

People like Dave, Suzi Orman, Jim Cramer and other celebrities and personalities in the personal finance world (including me) have a responsibility to honestly and fairly serve their audiences. We all need to avoid conflicts of interest and disclose those we can’t avoid. And most importantly, we must make sure that the information we’re providing is accurate, complete and correct.

Dave has violated this requirement on two occasions, and I have noted both. He has allegedly struck a financial deal with a timeshare outfit that has benefitted him greatly but reportedly at great financial and emotional cost to his listeners. And his advice regarding investment returns and withdrawal rates are universally regarded in the financial community as reckless and dangerous to anyone who follows that advice.

I simply don’t understand why you’re upset with me, rather than with Dave.

It’s not the first time I’ve had similar criticism for my comments. Back in the 1990s, a group of retired women – all in their 70s – formed an investment club and later published a book declaring that they had earned 24% per year, far outpacing the S&P 500. Their book became a runaway bestseller and they made large profits on the lecture circuit. Later, when it was revealed that they had miscalculated their returns (they’d been counting their contributions as profits) they admitted that their returns were actually less than the S&P 500. Yet they continued to promote their book and they continued to earn money from speaking gigs and other activities. I called them out on my radio show – and got criticism from some listeners for attacking a bunch of sweet old ladies – even though they were knowingly and deliberating lying to the public. I felt like Cary Grant in Arsenic and Old Lace.

Dave Ramsey, as you noted has helped millions of people get out of debt. I applaud him for that. But when he ventures beyond debt and into other topics that he knows nothing about, and when he signs financial deals that enrich himself at the expense of his listeners, I will take note of it to help those listeners protect themselves.

You can be assured that I’m not jealous of Dave’s success, which btw isn’t as significant as mine. And no, in my 34 years of operating EFS, neither I nor my firm was ever sued. And yes, being the subject a class-action lawsuit ought to damage your reputation – that’s the entire point of such actions: to deter people from perpetrating such frauds or crimes. I’m sorry you don’t agree.

I hope that, should I ever need it, you’d be as supportive of me as you are of Dave. But if not, and if others agree with you that I’m in the wrong and therefore they stop listening to my podcast, causing my ratings to decline, then all I can say is: good riddance.

William | Ric Responded February 1, 2024

True. But our conversation was aimed at those who already own BITW, and they already know about the K-1 issue. Although I could have emphasized for them that moving to BITB eliminates the K-1, it doesn’t necessarily simplify tax preparation obligations. It’s too complex a topic for a podcast, unfortunately, tho I may try to tackle it in the future.

Rob | Ric Responded February 1, 2024

Securities lending is common. Many investors view it as an opportunity to increase their gains by several percentage points a year. Entirely up to you. Talk with the firm to fully understand the risks.

Edward | Ric Responded February 1, 2024

About as long as you say.

You’re the client, so your view counts, no one else’s. Seems like it’s already been too long for you, or you wouldn’t be asking.

But when you say “away” are you referring to the advisor being away physically, or tangibly? I wouldn’t care what location my advisor is at – they can be halfway around the world – so long as they are paying attention to my needs, and responsive to me on a timely basis when I call or email.

Sometimes, an advisor is away, like, in the hospital. We can always be understanding and tolerant, but eventually – you say when – we have to remind the advisor and their firm that the relationship is business, not personal, and despite the advisor’s circumstances, we need to get the services we’re paying for. The advisor and the firm will understand and accommodate – and if they don’t, then find a new advisor.

Larry | Ric Responded January 31, 2024

That’s certainly an argument that many bitcoin promoters make. We all know that the US Dollar is debased annually – by intent, the Federal Reserve strives to cut the value of the dollar by 2% per year. But sometimes, it’s reduced by an even larger amount – as we’ve seen in the past several years. We call this inflation, referring to increased prices, because it’s more politically expedient. If the Fed and politicians called it what it really is – dollar erosion – the public wouldn’t tolerate it like they do (and if you think they don’t tolerate it, consider all the money in zero or low interest rate bank accounts).

The Fed is able to reduce the value of the dollar by simply printing more of them – by increasing the supply of dollars, you make each one worth a bit less. Now, 2% might not sound like much, but over decades it is devastating. That postage stamp that cost you four cents in 1960 costs 49 cents today – a 12.5x increase.

Bitcoin was created to solve this problem. A total of 21 million bitcoins will be produced (19mm so far), and the inability for the creation of more means there cannot be debasement. So while the value of a dollar goes down over time, the price of a bitcoin is expected to go up over time. And so far, that’s what’s happened. Will that continue? That’s for you to decide, but I’m in the camp that believes it will.

Kalil | Ric Responded January 31, 2024

Assuming the amount sent (in $) was correct, then you can simply sell the ETC and buy ETH. If the amount was incorrect, demand that the remainder be sent.

Jeffery | Ric Responded January 31, 2024

Thanks for the info. The article is a deep dive into how scammers use the tech to perpetrate their crime; I think consumers care only about how to identify the scam in order to avoid it. We’ve got to keep spreading that info!

Scott | Ric Responded January 29, 2024

Crypto is new, and largely outside the traditional financial services industry. Thus, college degree is less important than deep knowledge of crypto. Our CBDA course is a great start.

Robert | Ric Responded January 29, 2024

I’m no longer serving as an advisor so can’t give you advise. I can refer you to an advisor if you wish. I would not overweight CEFs as you’ve described – there are risks of overconcentration worth avoiding. And did you mean to say 9% per month, or 9% per year? Either way, you’re talking about something that’s either risky (or VERY risky) or whose payments include a return of capital – an important feature that many don’t understand and which can lead to poverty. I’d have an advisor review the plan and offer comment.

Geoffrey | Ric Responded January 25, 2024

own BITB, IBIT, EZBC, FBTC and BTCO That’s not advice.

Do your own research or rely on a financial advisor.

Tim | Ric Responded January 25, 2024

Buying bitcoin on a regular basis via a dollar cost averaging strategy is an idea I like.

William | Ric Responded January 25, 2024

I never recommended or owned stable value funds. For money I want safe, I use money market funds that invest solely in US Government Securities.

James | Ric Responded January 24, 2024

All of the sectors are exciting, and I believe highly promising. So I invest in as many of them as I can – there are now lots of thematic ETFs that make this easy. I’m also the guy behind the launch of the iShares Exponential Technologies ETF, which is certainly worth a look. As for the active vs passive debate, there’s nothing special about expotech in that regard. So however you feel about this issue, maintain that viewpoint with these thematic ETFs.

Daniel | Ric Responded January 24, 2024

Every firm sets its own initial price. It’s arbitrary – just like an IPO. It’s irrelevant and should be ignored. There’s no impact on their performance.

That said, I could envision on way the price: behavioral finance. If an investor favors the lowest price of the 11, or the highest, they might choose that ETF over the others. But that would merely affect the flows of the ETF, not the price of bitcoin. Again, I’d ignore this stat.

Joseph | Ric Responded January 24, 2024

It concerns me that you’d buy assets that you don’t understand. Please read my book, The Truth About Crypto, to get important education. It would take too much space here to answer the question – as well as provide warnings about the platform you used to buy them – and that’s why I wrote the book. Please read it, then let me know if you have further questions.

Anthony | Ric Responded January 23, 2024

Download free our new Toolkit on these ETFs at dacfp.com – you’ll see the many differences. Different fees, custodians, spreads, cash holdings and more. I like to spread my investments to avoid overconcentration.

William | Ric Responded January 23, 2024

Yeah, this is a silly situation, and you’re right to call it out.

We never refer to “spot” with any other ETF, so why these? Simple: the first bitcoin ETFs were bitcoin futures ETFs (which are bets on the future price of bitcoin). So when these came out, we needed to differentiate between them and the futures ETFs. “Spot” means “current”. So – the spot bitcoin ETFs buy bitcoin at the current price, and the bitcoin futures ETFs are based on the future (expected) price.

Ric

Bruce | Ric Responded January 23, 2024

A lot of people argue that IRAs, and Roths, are the best way to invest. That’s true for many assets, not just crypto. But your ability to do that is limited, and thus you might be forced to invest in taxable accounts. So talk to a tax advisor about it before

Reddy | Ric Responded January 23, 2024

You’re asking an important conflict-of-interest question.
 
You must always be skeptical when people make recommendations, because you don’t always know their motivation.

In this case, you’re ok. As you noted, I’m wealthy enough that the future price of crypto doesn’t really matter to me. And I’m not selling any products, so I earn no money if you buy something. MY show is supported by advertisers, like all traditional media. I hope you’ll patronize them so that they’ll continue to be my sponsors, but that’s about it.

In other words, when I say something, you can be confident I’m saying what I truly believe.

Bob | Ric Responded January 23, 2024

Multiplying by 25 is the same as withdrawing 4%. Clever, huh!

Michel | Ric Responded January 23, 2024

I covered this on my recent podcast – listen in!

https://www.thetayf.com/blogs/this-weeks-stories/now-that-the-bitcoin-etfs-are-here-my-two-beefs-and-my-two-predictions

Harvey | Ric Responded January 23, 2024

It’s up to you; there are pros and cons.

Pro:

• The ETF is more convenient, as it can be added to the rest of your portfolio at your brokerage account, like Schwab. Makes it easier to rebalance and dollar cost average.
• Tax reporting is easier. Included in your 1099 from Schwab. Coinbase does not provide this

Con:

• ETFs only trade on workdays. At Coinbase you can trade 24/7/365
• You pay no fees to hold; the ETF has an annual fee. (most ETF fees are much lower than Coinbase’s trading commissions)

So, your call.

Jay | Ric Responded January 22, 2024

I’ll be doing a podcast on this with Matt Hougan of Bitwise in a few weeks – stay tuned!

Michael | Ric Responded January 22, 2024

No, I don’t think BITW is disadvantaged. It’s a more diversified investment, and thus has attraction for many investors. And its biggest holding is bitcoin. The fund does not buy futures; other funds do. I am continuing to hold my BITW. And we’ll have a podcast devoted to this topic in a couple of weeks. Stay tuned!

Daniel | Ric Responded January 22, 2024

I’m aware of John’s opinion piece. It reflects his bias against crypto. My viewpoint published this week takes a very different view. It’s not based on liking or disliking an asset; it’s about investor choice.

Viral | Ric Responded January 18, 2024

3 in 4 advisors say they will allocate to the new bitcoin ETFs. An average allocation translates into $150 billion in flows. Since the supply is fixed, this can be expected to translate to substantial increases in price.

John | Ric Responded January 18, 2024

Correct. And MetaMask is the go-to for many re DeFi. This is not advice.

John | Ric Responded January 18, 2024

”Spot” means “the price right now” – as opposed to bitcoin futures ETFs, which are investments based on the future prices. And these new spot bitcoin ETFs differ from crypto ETFs in that they all buy bitcoin; the others buy stocks of companies engaged in the crypto industry.

Austin | Ric Responded January 18, 2024

We’ll be doing a podcast on exactly this next week – stay tuned!

Heath | Ric Responded January 15, 2024

The media is reporting that the ETFs are available at WF, but with limitations.

Teresa | Ric Responded January 12, 2024

Not sure what Laura said vs what you heard, so let’s start over.

When you stake coins, you are posting them as collateral. If the node goes offline or tries to validate faulty data, you could lose your coins. And if you join a staking pool, they’ll take a cut of your staking profits. Also, often when staking, you’ll be required to lock your coins for a period of time – reducing your liquidity.

Mt. Gox was a scam, and there’s no point in trying to explain what happened in the context of legitimate business activities. Set that aside. One lesson, though: do your best to select a valid crypto custodian.

Brandon | Ric Responded January 12, 2024

It’s been a few years since I’ve looked at SS complexities, and you cite a good one. I’d be concerned that my response could be out of date. So I’d rather refer you to someone knowledgeable about it. Let me know if you’d like the referral.

Octavio | Ric Responded January 15, 2024

This is not a promise you need to rely on Bitwise to fulfill. That’s because it’s an inherent aspect of how ETFs operate. BITW is a Grantor Trust, and these trade OTC; buyers and sellers set the price, and consequently the price could differ from the Net Asset Value of the fund. That is why the price is 37% less at the moment than the NAV. But when (if) the fund converts to ETF status, that discount will disappear – because all ETFs trade at NAV. The problem goes away – as we just saw with GBTC. It had a 50% discount last summer, but when it converted into an ETF last Thursday, that discount was gone.

Octavio response: Maybe you can share my e-mail on this subject to Matt Hogan who I respect but would appreciate sharing BITW is a grantor trust and its assets will be converted to its NAV instead of the discounted value after Thursday, 1-11-24, SEC approved its bitcoin spot ETF application.

Ric response: There is no benefit to asking Bitwise. No answer they give you will be anything you can rely on legally. Besides, neither I nor they believe that BITW will ever become an ETF; it contains 8 coins that the SEC says it will not allow an ETF to hold.

Octavio response: That said, are you saying BITW cannot owned Bitcoins its owns after the SEC approval of its spot ETF at those Bitcoins NAV and the other 9 not yet approved digital assets at their option values which continue to be valued at buyer and seller created. Are you saying BITW cannot account for them like what I envision after SEC approval of its bitcoin ETF? To me, I can see the other 9 which the SEC has not yet approved will stay at their discounted prices bit Bitcoins which . SEC has approved will be stated or valued at its NAV. Are you saying Matt will not be able to do what I think possible for BITW’S digital assets?

Ric response: If you’re referring to the fact that Grantor Trusts typically trade are premiums or discounts to NAV, then yes you are correct that is a material fact that investors need to know about. I have worked hard to provide that information, and have an article on it on my website. I know Bitwise discloses this as well.

Art | Ric Responded January 12, 2024

Yes

Richard | Ric Responded January 12, 2024

ETFs are ordinarily highly tax efficient; they rarely incur annual capital gains distributions, unlike mutual funds. However, the SEC has imposed a restriction on the spot bitcoin ETFs – cash settlement vs in-kind – and this could very well result in annual tax liabilities for all shareholders regardless of personal trading. Some believe the SEC will ease up on this requirement; we’ll see how the year goes. I don’t think any of the ETFs will prove to be more tax-efficient than the others, but time will tell.

Steve | Ric Responded January 12, 2024

I do not think all of the ETFs will survive; I also think others will enter the market – this is just the beginning. The key for sustainability is AUM. ETFs generally need $50 million in assets to be self-sustaining. But the competition has forced many of them to offer very low fees – 19 basis points is the lowest so far, and many have waived their fee for 6 mo to a year. They are thus playing the long game, and hoping that they’ll eventually amass enough AUM for the fund to be profitable. Others are treating it like a loss leader, to capture attention (and assets) for other of their funds. This is capitalism at its best.

Allen | Ric Responded January 12, 2024

BITW is unaffected. It won’t become an ETF in the foreseeable future. But the new ETFs are likely to generate higher prices for bitcoin over time, and BITW will benefit, as more than half of it is BTC. And the other coins likely will rise, too, as this situation is rising-tide scenario. I have no plans to sell my BITW.

Brian | Ric Responded January 12, 2024

Robinhood is increasingly regarded favorably, but I do not follow it closely enough to offer an actionable comment.

Josh | Ric Responded January 12, 2024

No, it won’t become an ETF in the foreseeable future. But the new ETFs are likely to generate higher prices for bitcoin over time, and BITW will benefit, as more than half of it is BTC. And the other coins likely will rise, too, as this situation is rising-tide scenario. I have no plans to sell my BITW.

Richard | Ric Responded January 12, 2024

No
No
No

Steve | Ric Responded January 12, 2024

The primary laws that are germane here are:
Securities Act of 1933
Securities Exchange Act of 1934
Investment Company Act of 1940
Investment Advisers Act of 1940
Sarbanes-Oxley Act of 2002
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
You’ll need a law degree….

Allen | Ric Responded January 12, 2024

There’s lots to consider. First, you’d need to obtain licenses: SEC Series 65 to be an Investment Advisor Representative of a Registered Investment Advisor, and/or FINRA licenses (Series 6 if you want to sell only mutual funds, or Series 7 which allows you to recommend virtually all kinds of securities). You’d also need a state insurance license if you want to recommend life & health insurance and annuities.

You’ll also want to obtain one or more professional designations. In addition to providing valuable education, you’ll be able to display the fact that you have attained the knowledge to serve clients. The CFP is the most popular – although there are hundreds of them. You can also get a college degree in financial planning from dozens of schools.

Next, you’ll want to decide how you want to be compensated. Do you want to earn commissions from selling investment and insurance products? If so, you’ll want to join an insurance company or broker/dealer. If you want to charge a fee (hourly, flat, retainer or AUM-based) then you’d want to choose a broker/dealer or an RIA firm.

I’d start by talking to financial advisors about their careers and firms. Then talk to HR folks at various firms, so you can compare. Check out the CFP program from the CFP Board of Standards, and the ChFC and CLU programs from the American College. Also look at course catalogs from universities.

The advisor field is a huge growth industry. There are far too few advisors, and half will be retiring in the next 10 years – creating a huge career opportunity for you. Good luck!

Tim | Ric Responded January 12, 2024

No. Both are securities, investments that own digital assets. So they are a good proxy but it’s not “the same.” BITW owns 10 coins; bitcoin and ethereum are about 80% of the total fund. GBTC owns bitcoin but its price currently trades at a discount (a problem that will go away when GBTC converts into an ETF, pending SEC approval).

Mazy | Ric Responded January 12, 2024

Not stupid at all – this situation is rather confusing.

Grayscale has asked the SEC for permission to convert GBTC into an ETF. Assuming the SEC approves (the court last summer ordered the SEC to do so, which is what led us to today’s situation), then your investment will become an ETF. And in the process, Grayscale will lower the fee. And the conversion will not be a taxable event. So, all good!

Diane | Ric Responded January 12, 2024

Sure. Exactly how depends on lots of factors. The best idea is to talk with a financial advisor. I can refer you to someone if you like.

Steve | Ric Responded January 12, 2024

Stop asking me questions you already know the answers to. I’m too busy to give people the answers they want to hear, when they know those answers are the wrong answers.

Of course you’d be breaking the law. And shame on those who are encouraging you to do it. Those crypto bros are everything that’s wrong with crypto – and they’re the ones giving Gary Gensler and Elizabeth Warren and Jamie Dimon and Warren Buffet all the ammunition they need to call crypto nothing more than a tool used by criminals.

In case I really need to say it: Do not break any laws. Do not engage in tactics that attempt to dodge any flaws. And STOP ASKING ME FOR PERMISSION TO DO SO.

David | Ric Responded January 12, 2024

You’re overanalyzing it, Dave, and thus getting confused. The 4% vs 8% controversy has nothing to do with “withdrawals” even though that word is casually used during the debates. The term to focus on is “spending.” Sure, the IRS might mandate that you “withdraw” a certain amount of money from your retirement account, but that doesn’t mean you must “spend” the money. You’d merely move it from the IRA and into a taxable account.

Spend no more than 4%. Ignore Ramsey’s absurd – and financially dangerous – advice to spend 8%.

Edgar | Ric Responded January 12, 2024

Please don’t misquote me. I’ve never touted a blanket opposition to Roth conversions. Rather, what I’ve always said is that the conversion only makes sense for people in a low tax bracket, and only to the extent that the conversion keeps you in that low bracket. So, I fully agree with your attorney.

Ron | Ric Responded January 12, 2024

Of course. We are macrobiotic, pescatarian, gluten-free. Sugar-free (as best we can) and, for Jean, dairy-free. We have a trainer 3x a week, and we workout typically 7x a week. No smoking, alcohol or drugs. Lots of sleep and relaxation techniques, and emphasis on our relationship with each other and with others as those are key to long-term health, too. In short, we practice what we preach on our two podcasts.

Tim | Ric Responded January 12, 2024

The two primary benefits of an IRA are the tax-deductibility of the contribution and the tax-deferral of the growth. If your children are in a low tax bracket, there’s little benefit from the tax deduction, suggesting that the Roth is the better choice.

SL | Ric Responded January 12, 2024

If they dump what? Are you referring to them selling all their holdings of US government debt? Stocks? Other? Neither country holds enough for it to matter much (if at all) to our economy long-term. I’d ignore that event. And such an event is extremely unlikely. Why worry about something that isn’t likely to occur and over which you have no control? You might as well worry about an asteroid hitting Earth. Stop worrying about such things!

Tom | Ric Responded January 12, 2024

I wouldn’t fuss over it. The Lightning Network is a Layer 2 protocol – meaning it sits on top of the Bitcoin blockchain – and is designed to execute trades faster. It doesn’t affect the price of bitcoin in your transaction, but might lower the transaction fee you pay or the speed of settlement. If you buy from an exchange like Coinbase, you won’t notice any impact on speed or price, so it’s really not something most people need to fuss over. And there are cybersecurity issues, being Layer 2. I’d keep doing what you’re doing for now.

Steve | Ric Responded January 12, 2024

Sorry to disappoint. I didn’t mention it because it wasn’t newsworthy. I made news back in 2007 when I predicted that the Dow Jones Industrial Average would close “unchanged” one day within a year – a price difference of 0.00 – demonstrating the fact that investors didn’t know what was going on during the financial crisis and they couldn’t decide whether prices should be higher or lower (hence, a zero change). Nobody believe me, as a 0.00 day is unheard of. But I was proven correct when it actually happened.

What you’re referring to is day when the Dow’s change was 0.00% - but not actually $0.00. The change was $0.86 – and this was so small that the percentage was zero. But there are lots of 0.00% days – they are not newsworthy. It’s 0.00 price that is rare. I do not believe that will ever happen again (which I guess is another prediction!).

Glad you Jean’s podcast! It’s really wonderful!

Richard | Ric Responded January 12, 2024

Pretty much everyone buys fractions of bitcoin. That’s because a single bitcoin costs about $42,000 (as I write this). Few people can afford that. So although everyone talks about “buying bitcoin” very few (other than wealthy investors) actually do. What they are actually doing is buying a piece (fraction) of a bitcoin. These are called Satoshis, named after bitcoin’s inventor, Satoshi Nakamoto. Think of these as the difference between a dollar and a penny. A penny is one-hundredth of a dollar; it takes 100 pennies to equal a dollar. In the case of bitcoin, a single satoshi is one-hundred-millionth of a bitcoin; it takes 100 million Satoshis to equal one bitcoin. So when you buy $1 worth of bitcoin, you’re getting a tiny tiny tiny fraction of a bitcoin. And as you buy more Satoshis, you eventually accumulate enough to equal one bitcoin. This is why enthusiasts like to say they are “stacking Sats!” – they are accumulating Satoshis!

So, every crypto exchange, like Coinbase, and every bitcoin fund, actually is letting their investors obtain Satoshis. Simple.

Harry | Ric Responded January 12, 2024

You’re right, asset-based pricing would make sense. This is why smarter investors choose ETFs over mutual funds – they are not only less expensive, they are more tax-efficient, too.

Arthur | Ric Responded January 12, 2024

It’s not mandatory, but you ought to consider an S-Corp or an LLC. Self-employed people can file a Schedule C. However, you ought to create a liability shield – and that’s what those do. Be sure to create a bank account to handle all of your business income and expenses; do not commingle personal assets with business assets. My advice is that you get advice from a lawyer, an accountant and a financial advisor.

Stephen | Ric Responded January 12, 2024

I do not think all of the ETFs will survive; I also think others will enter the market – this is just the beginning. The key for sustainability is AUM. ETFs generally need $50 million in assets to be self-sustaining. But the competition has forced many of them to offer very low fees – 19 basis points is the lowest so far, and many have waived their fee for 6 mo to a year. They are thus playing the long game, and hoping that they’ll eventually amass enough AUM for the fund to be profitable. Others are treating it like a loss leader, to capture attention (and assets) for other of their funds. This is capitalism at its best.

Ric

Ryan | Ric Responded January 2, 2024

My bet: it will be a rising-tide situation: the flow of assets into bitcoin via the new ETFs will be good for all digital assets, as it will generate new interest in crypto broadly. That’s good news for BITW. Also, that fund owns BTC more than anything else, so it would directly benefit from the new ETFs. I’m keeping my BITW.

Michael | Ric Responded December 3, 2023

Nope, you’re good. (Though talking to an advisor is always a good idea.)

Sundar | Ric Responded December 3, 2023

Glad you’re finding value in my podcast!

You can buy GBTC in any brokerage account, such as at Schwab. If your 401(k) plan has a self-directed option, you can choose that about buy GBTC there, too. Note: I’m telling you “how” not giving advice as to whether you “should.” For the latter, you should consult a financial advisor, and I can refer you to one if you like

Robert | Ric Responded December 3, 2023

Oh dear. Did I just get an question from someone who bought one of those Grayscale funds that are trading at massive premiums? Sorry if you are one of that hapless folks, and yes, truth hurts sometimes. There was no point in my telling folks how to find out if a Grantor Trust is trading at a premium, for two reasons: people who know about this feature already know how to get the current status, and those who don’t know about it surely must know that all they have to do is type “ GBTC [or other fund’s symbol] discount” into any search engine.

Having listened to my radio show for (I hope) decades (thank you!) then you know that I don’t suffer fools well; that it has always annoyed me when people call or write to say, “I just did XYZ. Should I have done that?” instead of asking BEFORE they acted (when I’d have been able to be helpful); and that I always strongly encourage everyone to consult a financial advisor before acting because you don’t know what you don’t know. And you also know that I do enjoy – we all enjoy – the voyeuristic pleasures of seeing others do stupid things. And my hope is that others can learn from those mistakes.

Not a few times on my radio show did I admonish people who got hit in the head with a “Stupid!” stick. Hope it didn’t hit you. But if it did, you have opportunity to unwind the position and perhaps not lose any money if the premium is the same as it was when you purchased your shares – and you might even profit if the premium has risen further, thanks to other people who are even more stupid than you were. Sorry, that came out harsher than I intended. But you get my point. I hope, sincerely!

Jim | Ric Responded December 3, 2023

Mark Twain once wrote, “please forgive the length of this letter. I did not have time to make it shorter.”

Ken | Ric Responded December 3, 2023

I can think of lots of reasons not to buy, and just as many to buy.

CON

• It’s BTC only

• There’s a discount to the NAV

• There’s an annual expense ratio associated with owning shares

• Crypto is volatile

PRO

• It’s more diversified than a BTC ETF, which can help reduce risk

• The discount to NAV lets you buy BTC for less than its current price

• The expense ratio is less than some other funds

• Bitwise handles custody for you; no need to create/manage your own wallet

• Volatility can work to your advantage via dollar cost averaging, rebalancing and tax loss harvesting

You can probably add to both lists.

William | Ric Responded December 3, 2023

I don’t know if that example is cause or effect, but it’s definitely a noteworthy item. It is clear that younger workers are engaging in age discrimination against older workers, and you cite a common example. Similarly, many companies still have mandatory retirement ages. The elders can rightfully be indignant about this – just as youngers can be indignant that elders are offered financial benefits merely because of their age.

The war is brewing, and it will soon be all-out war.

Daniel | Ric Responded December 3, 2023

Great minds think alike!

Martha | Ric Responded December 3, 2023

States are increasingly agreeing with you – they are starting to reintroduce cursive into classrooms.

Allen | Ric Responded November 27, 2023

I doubt there will be much if any selling, and even if there was, it wouldn’t be expected to alter the price of the fund.

People who bought BITW did so because they wanted a diversified portfolio of crypto. If they only wanted to own bitcoin, they could have bought GBTC or OBTC. So the new bitcoin ETFs won’t impress them – they’d have to go from owning 10 coins to owning just one. Why would any of them want to do that (and incur tax liability along the way)?

Even if large numbers of BITW owners did that, it wouldn’t likely affect the fund’s NAV. That’s because there’d be too few – relative to the crypto universe – to move the price. And since half the fund is in bitcoin in the first place, they’d merely be selling BTC from one fund to buy it in another – a zero-effect trade.

I’m going to continue holding my BITW, with no worries.

Joseph | Ric Responded November 27, 2023

You didn’t ask me about your strategy of borrowing from your retirement account to invest in crypto, so I can’t weigh in on what you ought to do now.

BTW and FWIW, IMHO, I would never recommend borrowing against retirement savings to invest. If you’re wrong, not only do you lose money on the investment, you incur interest expenses on the loan – and because the money came from your retirement plan, you risk losing your future financial security. Three reasons not to do what you did – which I would have said had you asked before you did it.

Linda | Ric Responded November 27, 2023

You raise the political (philosophical?) objection to UBI, and it’s hard to refute – just like it’s hard to argue with anyone who has political or philosophical views. That’s not to say you’re wrong; it’s merely to say nobody knows if you’re wrong. So – maintain your position until someone comes up with enough counterviews to cause you to change your position.

Linda | Ric Responded November 27, 2023

If yours is a cold wallet, you are immune to cyber viruses – because your wallet, by definition, is not connected to the internet. But eventually, you will connect that cold wallet to the internet (to sell or transfer your coins), and at that point, your cold wallet becomes a hot wallet – and subject to the risks you describe. There’s no way to avoid this risk, but I’d consider it to be extremely low – so low that you never hear about incidents such as those you describe. I think you’re catastrophosizing – scaring yourself by focusing on unlikely events instead of focusing on more realistic events (such as bitcoin quintupling in price). You might as well suffer insomnia by worrying about asteroids hitting Earth.

Linda | Ric Responded November 27, 2023

Nothing protects anyone from panic selling, leading to “runs” and massive declines in prices or, in the case of insured bank deposits, liquidity. Sure, bank accounts of $250,000 or less are insured by FDIC – but that doesn’t help you if the bank is closed and the ATM is empty.

SIPC does not protect against investment losses; it only replaces shares lost if the custodian collapses; the shares themselves might still be worthless.

No one should ever invest in anything because of so-called “government insurance.” If you are unwilling to risk loss of your investment, don’t invest. Period.

Todd | Ric Responded November 27, 2023

Yes, Todd. All ETFs are eligible for investment inside any type of IRA as as self-directed 401(k) accounts (which are available in many employer plans). You’re buying shares of an ETF, and ETFs are securities, and securities are permitted inside retirement accounts. You’re not buying bitcoin when you buy a spot bitcoin ETF. Same when you buy stock ETFs – you’re not buying shares of stock; you’re buying shares of the ETF, which is buying the stocks or the bonds or the real estate or the gold or the bitcoin or whatever. Simple, easy. This is why there’s going to be such a large asset flow into these ETFs – most people have most of their money in IRA and while they can’t easily use that money to buy bitcoin, they can use it to buy these ETFs.

Note that I said “easily.” There are actually qualified crypto IRA custodians – my favorite is Choice, where I have accounts and am an investor – that do let you buy bitcoin, Ethereum and dozens of other digital assets (as well as cows and horses, but that’s another story). Most people will start with these new spot bitcoin ETFs but they’ll soon realize that all they’re getting is bitcoin. If you want more diversification, you’ll want to look at Choice.

James | Ric Responded November 27, 2023

I would keep my mortgage loan separate from all other loans.

Craig | Ric Responded November 27, 2023

Looking for a DC-based expert is silly, since you’re seeking to do something cutting edge on the internet. You should be willing to work with someone remotely, without limiting yourself to a geographic area.

I’ve asked my colleague and CBDA faculty member Jacki Roach, who’s a leading expert in NFTs for her thoughts on this. She notes that online learning platforms (Coursera, Udemy, LinkedIn Learning) have classes about NFT art (creating collections, the minting process, listing on an NFT marketplace such as OpenSea or Rarible, and business strategies for marketing NFTs.

2021 and 2022 saw a boom in NFT art activity, but the crypto winter has pretty much killed the NFT art market, at least for now. Jacki says there is no lucrative way to sell NFT art at this time. Successful artists are partnering with each other, pitching their work on Twitter Spaces, and building a community of followers on social platforms like Discord.

OpenSea, the most well-known NFT marketplace, has tutorials and resources that explains minting and creating a collection. This is a good place to start. Platforms like Foundation.app cater to the fine art sector and can also be helpful in gaining knowledge. Now might be the right time to start, since prices have bottomed out. The contrarian strategy says it’s best to engage when no one else wants to.

Josh | Ric Responded November 16, 2023

Thanks for the tip.

William | Ric Responded November 16, 2023

Our relationship is as warm as ever. I continue to own BITW, and we still do webinars together. I hosted two dinners for Bitwise last week in SF and LA. We’re talking now about their 2024 podcast engagement.

Barry | Ric Responded November 16, 2023

The “rage” is simply hype – the media love stories that grab audiences, which boost their revenues. AI is a big leap forward, but it will take time for it to have the impact many expect. This is so common it has a name – the Gartner Hype Curve. You can google it to see. So, no, you’re not missing anything. Everyone else is.

Wayne | Ric Responded November 16, 2023

I think there are many factors. That, plus the economic hardship of raising kids, the increased affluence of today’s populations (the high the affluence, the lower the birth rate), increased longevity and technologies that give women more control over whether and when to have children, and greater career options (motherhood is no longer the only option for women).

Ed | Ric Responded November 16, 2023

Ric: There have been such worries throughout the decades. As an EFE client, you probably have a copy of my first book, The Truth About Money. Read that again, as it addresses this very point. We bounce from crisis to crisis, and despite occasional short-term dips in the stock market, the long-term trend remains intact.

The real question is how much of your own money should be in the stock market. The answer depends on your situation, and that’s why you should discuss this with your EFE advisor. There’s no reason for you to take any more risk than is necessary to achieve your retirement security goals.

Ed: Understood, thanks. Current affairs just seem more perilous than previous crises. Hmm.

Ric: Yeah, sure seems like Ukraine/Russia and Israel/Hamas are scarier than anything. But really – scarier than the Cuban Missile Crisis?

Ed: I remember that! But, as scary as that was, it was one crisis. Now, we have climate change, multiple crises from autocracies challenging democracies (ours included), potential military confrontation with two (or more) super powers… gun violence, presidential craziness…. The article makes a point (you may want to read it) that it is all of these forces converging that represent the greatest threat in many decades. We are at the end of postwar global stability. And Wall Street reflects this concern.

Ric: Really? The Cuban Missile Crisis was the only crisis we faced in the 1960s? I think you are suffering from recency bias, confirmation bias and selective attention bias – all very common issues that cause us all to suffer from catastrophizing bias. The result, if not checked, is panic selling – which always proves costly. I’m not saying your wrong to worry; today’s issues are real and really scary. But we will resolve them – and move on to brand new crises that will also scare us! So yes be scared. Just don’t sell out of stocks because of it.

Ed: Good point. I'll rest easier now.

Bethany | Ric Responded November 10, 2023

Congrats on your success. And kudos for asking your thoughtful questions. I’m no longer serving as a financial advisor so can’t give you the personal advice you need and want. And as you have already demonstrated, it’s important to get the answers to your questions before you invest. I can refer you to an advisor if you like. Just let me know.

Allen | Ric Responded November 10, 2023

Interesting idea indeed, Allen. But given that the USG didn’t even want its dollars backed by gold, I cannot imagine the USG would turn to bitcoin. And not sure it should, since BTC is a global asset.

Zach | Ric Responded November 10, 2023

I like your idea, and believe it’s inevitable that retirement ages will rise. However, they are technically benefit cuts, and that means there will be political debate over this idea.

Josh | Ric Responded November 7, 2023

Thank you, Josh! JB is a hero

Pat | Ric Responded November 7, 2023

Thanks for your note. Yes, like you, I am as disturbed by the protests across the US as I am about Hamas. Who would have thought we’d see a repeat of 1939 Germany here in the US?

And yes, JB is heroic

Anonymous | Ric Responded November 6, 2023

The NFT market for digital artwork – such as Bored Apes, Crypto Kitties and NBA Top Shots – has collapsed. It seems these were fads, similar to Beanie Babies. It remains to be seen whether prices for these NFTs will recover.

The price collapse of that market coincided with the crash of bitcoin, Ethereum and other digital assets. However, in the past year, prices for these coins has risen sharply – bitcoin is up 100% so far this year – while prices for most NFTs remains at or near lows. The common viewpoint is that attention is focused on the commercial uses for BTC, ETH and other coins – uses that hyped NFT art lack. There is also an increasing engagement in crypto by institutional investors and governments, and they are focused on primarily on BTC, ETH and stablecoins. This trend is expected to continue.

Meanwhile, there is a new level of interest in NFTs, but of a more commercial nature than the creation and sale of digital art. This is now referred to as the RWA – the tokenization of Real World Assets. Starbucks now distributes rewards to its Loyalty Program members via NFTs; Breitling gives all its watches an NFT so owners can track the provenance of its timepieces; The Norwegian Seafood Assn and Italy’s Parmigiano Reggiano are encoding their products with NFTs to combat forgeries, WalMart is encouraging lettuce growers to track their crops with blockchain technology to reduce the risks of exposure to salmonella, and the state of West Virginia is recording and distributing automobile titles as NFTs, a practice being adopted by other states. These are just a few examples of the uses of NFTs – demonstrating that this technology is alive and well and rapidly growing.

One of the biggest growth areas for NFTs in securities. Franklin Templeton has released the first-ever tokenized money market fund, and release of ETF shares as NFTs is under development by them and others. It’s projected that NFTs will begin to replace mutual fund and ETF shares this decade – a massive achievement for a $30 trillion industry, with huge implications for the financial services industry.

Given all this, will none of the Bored Ape NFTs ever again enjoy investor interest? Hard to believe, but we’ll see.

Jim | Ric Responded October 30, 2023

You’ll find all your answers at their web site!

https://www.nirsonline.org/

Lowell | Ric Responded October 30, 2023

If I had money in an FDIC-insured bank account, I wouldn’t worry. Those trying to scare you about banks and “worthless” dollars always have something they’re trying to sell you. Ignore them.

Paul | Ric Responded October 30, 2023

Yes, minus fees.

Deicy | Ric Responded October 30, 2023

Quantum computing – and the supposed threat that it will render private keys worthless, thus allowing thieves to steal your crypto – is an overblown concern. Two reasons:

First: say someone can use the new text to craft software to steal your bitcoin. Why would they bother? Bitcoin is worth $500 billion. Why not instead steal access to the Federal Reserve (US dollars in the world = $29 trillion). Related: why would someone waste time with bitcoin, when they can instead hack the US national defense system? The US power grid? Air traffic control network? People who think that bitcoin will be the sole target of hackers are thinking waaaay to myopically. If quantum computing can do what the fearmongers say it will be able to do, then you’ll have a lot more to worry about than protecting your bitcoins.

Second: if someone can write code to hack into the bitcoin blockchain, can’t someone write code to prevent people from hacking into it? Of course they can – and they will.

Find something else to worry about.

Maria | Ric Responded October 22, 2023

Important question, but it’s not a topic for the show because it’s not within the theme of the podcast. More importantly, the answer depends on your situation. Anything from “withdraw the money and pay the tax” to “leave the money there and use it for your own lifelong learning to avoid the tax” are applicable, again depending on your situation. So, all I’d be able to say on the podcast is “talk to your financial advisor.” I can refer you to one if you like.

Richard | Ric Responded October 22, 2023

The best way to start is with education – read my book, The Truth About Crypto. Then take my consumer/investor course in the CBDA program at www.dacfp.com. And let a good financial advisor give you guidance – not only on which approach to take, but how much to invest as well. You’ll discover that there are lots of ways to invest, and what’s best depends on your goals, attitude and situation. I can refer you to an advisor if you like.

Josh | Ric Responded October 22, 2023

On the surface, buying more than one of these crypto funds might seem redundant. There’s no reason to own two S&P 500 Index funds, for example – they are identical and their sponsors are reliable, so simply choose the S&P 500 fund that has among the lowest fees and highest convenience.

But crypto is not yet where the stock market is, so differences remain. Custodians differ, and risk of hack is higher than with the stock market. So, owning two or more funds (with different underlying custodians) might help with cyber safety. There could be other material differences as well, such as fees. And I’d favor the companies that have a long and dedicated focus on crypto, which ought to translate to better management and performance.

That said, there are differences in some of these funds. Some buy only bitcoin or only Ethereum; others buy both. Some that buy both do so cap-weighted; others equal-weighted. So you have to understand the difference and decide which you prefer. Talking to each company – they’re all happy to chat! – will get you the info you want. Better yet, let your financial advisor do that for you. They help with the rest of your investment recommendations, right? So let them help you with this one, too.

Michael | Ric Responded October 10, 2023

Well said, Michael: If you are truly interested you will listen to people who live there or have visited Israel.

Robert | Ric Responded October 10, 2023

We’ll leave it to the developers to figure that out. It’s reasonable to conclude that developers will build what they believe they can sell – meaning, what the market is demanding.

Carrie | Ric Responded October 10, 2023

LOL – did I really call Africa a country!?!? The bane of talking off the cuff, instead of scripted. Ha! (or rather, oy!)

Anyway, I don’t dispute your assertion of European (and American? And Asian?) exploitation of African countries (note the “ies”), but logically it doesn’t make sense. If I have something you need, then I ought to be expected to be in command, not you. The fact that this isn’t the case really raises concern.

Luisa | Ric Responded October 10, 2023

No, in many cases there is no difference. Shirking your responsibilities by hiding behind bankruptcy laws is, well, morally bankrupt. The major exception: financial strife resulting from medical expenses. Getting a disease is not typically one’s fault, after all.

Patty | Ric Responded October 10, 2023

It’s easy to see how these programs can reduce crime. Studies show that students who don’t learn to read by 3rd grade are far more likely to drop out of high school. And dropouts are far more likely to wind up in prison. So, helping parents provide food, shelter and clothing to their kids, and enabling them to spend more time with their kids, ought to help with getting more kids to graduate high school and even go on to college. The benefit isn’t immediate, but long-term is of value to the kids, their families and society overall. The real question is whether we can afford to implement programs like this.

Michael | Ric Responded October 10, 2023

Yes, I was clear that this program is paid for by taxpayers, and that the cost if applied broadly would easily be unaffordable and unsustainable So far, that’s not stopping communities from implementing these programs.

Supporters say this isn’t a question of fairness. Is it fair that some families suffer medical expenses or health care issues that prevent them from working? They argue that we need to help those who need the help.

As you note, this is a highly emotional issue. Complex issues usually are.

Paul | Ric Responded October 1, 2023

Invesco owns 40,000 properties – but they are not all (or even mostly) single family homes. They own office buildings, warehouses, student housing, laboratories, medical offices and more.

Still, your point is a good one: many investment funds have been purchasing houses throughout the country, paying top dollar and investing for cash – making it easy for builders to sell to them instead of individuals. They don’t generally rent nightly via AirBNB but they do rent them for annual leases. Some have expressed concern that this reduces the availability of houses, and increases prices. Some communities have created laws to prevent these practices.

But Mr. Potter is another story; in my view, he’s the hero of the story, not George Bailey. Surprising but true.

Steve | Ric Responded October 1, 2023

I don’t plan on selling those funds. They are more diversified, and as they own BTC, they will benefit from the increase in price that is expected to come from the launch of the new ETFs. Whether you add to your portfolio depends on your situation and current crypto allocation. An advisor can help you with that. I can refer you to one if you like.

Marc | Ric Responded October 1, 2023

Thanks for the AI event info – I’d hope that all planners are factoring in the coming SS changes into their projections. It’s all conjecture at this point, as we don’t know what Congress will do, but it’s best to calculate a worst-case scenario and share that with clients. Such a dialog would be very helpful.

Ronn | Ric Responded September 15, 2023

I don’t know. I don’t know anyone who’s ever done that successfully. I wouldn’t recommend that you try.

Jonathan | Ric Responded September 14, 2023

I don’t believe so. There has always been a small group of advisors and pundits who advocate for flat-fee, retainer or hourly rates instead of the AUM model (a fee that’s a percentage of the account value). The folks opposing the AUM fee claim that it’s unethical, and creates a bias. They don’t claim that it’s necessarily cheaper. The bias argument is bogus – it’s nothing but a defamatory remark to win business against their AUM competitors.

I could just as easily offer a contrary view, and this comes from decades of experience as a financial advisor. I’ve seen lots of flat-fee advisors at work, and in far too many cases, I’ve seen their “objectively” dissolve into “indifference.” Since their fee isn’t based on managing assets, they don’t really care if you invest as they suggest. They have no incentive to make sure you open that account, fund it, and keep the assets invested. And since their comp is not affected by your gains and losses, they have little care about whether your account rises or falls in value. AUM-fee advisors, though, care greatly: their comp rises when your account rises, and their comp falls when your account value falls. They thus have a great incentive to help your money grow – and this perfectly aligns with your interests, too, far better than others.

Does your doctor call you daily to make sure you took your meds? If your doctor’s comp was based on your compliance with their recommendations, I bet you’d be getting a lot more attention from your doc than you do.

This is what makes capitalism the greatest economic system in the world: when used properly, it aligns interests rather than creating conflicts.

And by the way, I’ve met and trained tens of thousands of advisors over the course of my career – commission-based advisors, fee-based, AUM-based, you name it. And I can tell you this: you’ll find honest, ethical advisors in every camp. It’s not the fee schedule that determines integrity, it’s the advisor. So choose the advisor you like best, and the fee schedule you prefer. Then move on.

Luisa | Ric Responded September 14, 2023

I think you’re right – he seems overly fixated on – and fearful of – his death, and he seems to be doing extreme things to prevent or delay it. But if he succeeds, we’ll all benefit, so go for it, dude!

I do hope his expectation of living forever doesn’t prevent him from engaging in estate planning – even if medically he can live to 300, he could get hit by a bus or trip on the stairs at any moment. Estate planning is the responsible, mature thing to do – a message for all of us, not just billionaires trying to live forever.

Wayne | Ric Responded September 13, 2023

You raise a valid point, Wayne – and it’s not limited solely to the SS crisis. More broadly, having so many young people out of the workforce is bad for them, and bad for society. I think we all can list the issues, and none of them are good.

Now, I’m not necessarily saying that these folks aren’t working because they’re lazy. Sure, that’s the case for some. But for many, they are denied opportunities – some because of discrimination, others because of unhealthy upbringing, others due to substance abuse. Some can’t work due to mental or physical health issues. So, yes, we need to fix this, for doing so will generate lots of benefits – and helping solve the SS crisis is just one of many.

Ken | Ric Responded September 12, 2023

Yes. I was frequently explaining on my podcast throughout late 2021 and early 2022 that the idea is to sell long-term bonds and move to short-term Tbills or cash. And that, as interest rates peak, it will again be a great time.

Bob | Ric Responded September 11, 2023

There are a couple of misconceptions here, Bob. First, 66.8 is your “full retirement age”, not 65. Neither of those dates are meaningful, however. There are only two dates that matter: age 62, and age 70. At 62, you can start to college SS benefits. If you do, you’ll get less than if you wait until age 70.

Each year from 62 to 70, the monthly benefit rises; whenever you start, that benefit is locked for life. So, starting at 62 means you start collecting 8 years sooner, but the amount is dramatically less than if you wait until 70. If you think you’ll live into your 80s, 90s and 100s, then definitely wait until 70. (65 and 66.8 are just interim dates, along with every other month between 62 and 70. The SSA’s use of “full retirement age” is highly misleading.)

Second, don’t let worries about the coming cut in benefits (which you heard me discuss on my podcast) alter your decision about when to start benefits. All SS benefits are increased annually based on inflation, so starting now doesn’t do anything special for you.

As for your tax question, there is never a legitimate answer. The response is always “because Congress says so.” Tax law is a political act, enacted to extract the maximum revenue at the minimum objection (to allow lawmakers to get re-elected. Never look to logic for answers to questions such as yours.

George | Ric Responded September 7, 2023

The host of that video is uninformed. You’re not allowed to borrow from an IRA. (You can borrow from a 401(k), but it’s not recommended.)

Focus on the R: retirement. The IRA is not meant to pay for education, houses, cars or anything other than retirement. I realize you’re facing challenges, but turning to the IRA for anything other than your own retirement is not the answer.

Talk to a financial advisor who can delve fully into your situation. I can provide a referral if you like.

Ralph | Ric Responded September 7, 2023

I’m not sure delaying menopause is any different than using contraceptives. But not sure either of us gets a vote here. This is for each woman to decide, not men. We’ve had too much of that already.

Bill | Ric Responded September 2, 2023

I’m not familiar with that gentleman, and haven’t read/heard his content. I’m struggling to make sense of the clip you provided. I do agree that FedNow is an important project that will have lots of implications, but I fail to see how that has anything to do with bitcoin. Bitcoin is an asset, like stocks, gold and real estate. All of these are stores of value; people buy they because they believe that they will retain (and increase in) value. The Fed prints money, like cash. Cash and stores of value peacefully coexist; in fact, they support each other.

Many people continue to believe that bitcoin’s sole purpose is a replacement for money. It’s not. It’s a store of value, alongside all other stores of value. Saying bitcoin is dead because of FedNow suggests a basic misunderstanding of crypto.

Mark | Ric Responded August 30, 2023

Thanks for your email. I didn’t say Dave Ramsey was guilty. I said he’s been sued by dozens of listeners. I’m just the messenger! We’ll see how the case goes. But please don’t dismiss serious allegations merely because you’re a fan. Blindly following anyone without regard to their actual behaviors often leads to bad outcomes. By the way, so far you’re the only one to come to his defense. Thanks again

Lowell | Ric Responded August 27, 2023

No. Digital money is the same as paper money – except for the medium. Whether you use paper currency or digital currency, it’s the same. All that matters is the issuer. Right now, the Fed issues paper currency (via the Bureau of Engraving and Printing). If the Fed were to issue a CBDC – central bank digital currency – it would be the same for you as the paper currency you currently use.
 
But if you were to use currency provided by a third party, then you’d have to wonder if that currency is as safe as the currency you get from the Fed. Bottom line: you don’t need to fear digital currency. And if you need proof of that statement, just consider this: you already use digital currency, in the form of your debit and credit cards, Apple Pay, PayPal, Venmo and Zelle. Your financial life is already digital! Think about it: your income is direct-deposited to your bank account, and you pay bills online. When’s the last time you used cash for anything other than tips to valet attendants or gifts to street beggars?
 
Welcome to the digital age.

Leslie | Ric Responded August 25, 2023

I’ve never been a big fan of gold, but that has not prevented me from having it in my portfolio. Investing isn’t about buying what you like and avoiding what you dislike. Successful investing is about having an exposure to every asset class and market sector. It’s all part of diversification, and when you engage in rebalancing, dollar cost averaging and tax loss harvesting, you are likely to enjoy higher returns and lower risks over long periods than if you only buy what you like and avoid what you dislike.
 
Even if you were to conclude that current events translate into price appreciation for gold, how much gold would you buy? When would you decide to sell it? Questions like these vex all investors who try to beat the market by picking winners. Many try, but very few succeed on a consistent, long-term basis.

Leslie | Ric Responded August 25, 2023

If power grids worldwide suddenly collapsed due to a major event, such as a solar flares or nuclear war, I’d say that the last thing you’d be worrying about is your bitcoin. I wouldn’t allow such concerns to prevent me from living my live – or investing in the way I need to invest.
 
This point was perhaps best made by Woody Allen in Annie Hall. While a child, he grew depressed after reading that the universe s expanding and will someday apart. His exasperated mother tells the doctor, “He stopped doing his homework!” and the boy says, “What's the point?”
 
Don’t be that boy. It will prove to be very expensive.
 
But if you want to learn how to build a strategy to protect yourself, read Chapter 46, “How to Prepare for Economic Collapse” in my award-winning #1 best-seller, The Truth About Money.

Jeremy | Ric Responded August 25, 2023

As you heard on the podcast, I am a fan of equal weighting, for all the reasons mentioned. And while that concept therefore applies to all investments, it’s not available in every case. And we’re talking about indexed investments, not actively managed ones. In those cases, it’s a moot point, as you’re relying on the fund manager not only to select the investments but to determine the weighting for each one. When I worked with BlackRock to create the iShares Exponential Technologies ETF (symbol XT), I insisted that it be equal weighted.
 
Regarding overall allocation – which is, after all, a weighting question – I can’t say as it depends on the circumstances of the individual investor, and I know nothing about yours. This is why there’s no substitute for meeting with a financial advisor, and I can refer you to one if you like and you’re willing to work long-distance (via zoom).
 
One observation: you mentioned “growth” for a “medium risk” portfolio. Those terms are mutually exclusive. I mention this because investors often lay down criteria that are conflicting, and the result is a schizophrenic portfolio whose construction is almost certain to fail at satisfying the investor. A good advisor can help you determine what truly matters to you and create an allocation model that is more likely to deliver what you’re looking for.

Mike | Ric Responded August 25, 2023

Not timely? Not sure I understand that. Whenever I mention a particular ETF or other investment opportunity, I’m not suggesting that you buy it today and sell it tomorrow for quick profits. My show is focused, as its title says, on the future…and I’m talking about long-term trends. So, sure, an ETF I like might have fallen in the recent past, and/or it might fall in the short-term future. But over the next decade and beyond, I am confident that it will deliver the returns you want and need. Nothing is certain, and past performance doesn’t guarantee future results, as it says on page one of every prospectus. There are risks with every investment – even bank accounts – and that’s why you should diversify your investments, and make all investment decisions based on your own circumstances – ideally with the help of a talented financial advisor.
 
All that said, based on your age, I can understand why you might not think you have decades to patiently wait for the returns that might eventually be obtained. (I could argue that you maybe have much longer than you think, based on innovations in health care coming from exponential technologies, but I know nothing of your health or financial situation.) So, it might make sense for you to invest only a little into riskier investments, or even none at all. A financial advisor can help you figure all that out, and if you like, I can refer you to one.

Stephen | Ric Responded August 25, 2023

Sure, good idea – I’ll do this on a podcast in September. Look for that!

Judy | Ric Responded August 24, 2023

No. There hasn’t been a need. The list appears in my NYT bestseller, The Truth About Your Future. While there’s been a little movement in the list, the trends that the list reflect (published a few years ago) remain intact. Bottom line: avoid occupations that can be performed by AI and robots. Focus on jobs that involve thinking, creating, communicating and managing. And be prepared to return to school periodically, to learn new skills that will keep you viable and desirable in the workforce. Lifelong education will be the norm.

Anthony | Ric Responded August 17, 2023

Perfect storm? I think you mean the opposite – stars aligned. Yes, there are lots of great developments underway. You mention only two: the halving in 2024, and the spot bitcoin ETFs (which might come to market any day, not necessarily in 2024). I’d add: new legislation on stablecoins (and PayPal’s introduction of one), Ripple’s victory in its lawsuit against the SEC, the likelihood that the SEC will also lose its case agbainst Grayscale, Coinbase winning approval to trade futures…the list goes on and on. I did a podcast on the ETF situation last week – go to DACFP.com to view it – and am releasing a white paper on it on Monday, too.

Dana | Ric Responded August 17, 2023

Yes, I still advocate financial literacy. Less than half the states require that high school students complete a personal finance class. There are many organizations working hard in this area: National Endowment for Financial Education, Institute for Financial Literacy, American Savings Education Council, Jumpstart Coalition for Personal Finance Literacy. All are worth looking into.

Leslie | Ric Responded August 25, 2023

I’ve never been a big fan of gold, but that has not prevented me from having it in my portfolio. Investing isn’t about buying what you like and avoiding what you dislike. Successful investing is about having an exposure to every asset class and market sector. It’s all part of diversification, and when you engage in rebalancing, dollar cost averaging and tax loss harvesting, you are likely to enjoy higher returns and lower risks over long periods than if you only buy what you like and avoid what you dislike.
 
Even if you were to conclude that current events translate into price appreciation for gold, how much gold would you buy? When would you decide to sell it? Questions like these vex all investors who try to beat the market by picking winners. Many try, but very few succeed on a consistent, long-term basis.

Leslie | Ric Responded August 25, 2023

If power grids worldwide suddenly collapsed due to a major event, such as a solar flares or nuclear war, I’d say that the last thing you’d be worrying about is your bitcoin. I wouldn’t allow such concerns to prevent me from living my live – or investing in the way I need to invest.
 
This point was perhaps best made by Woody Allen in Annie Hall. While a child, he grew depressed after reading that the universe s expanding and will someday apart. His exasperated mother tells the doctor, “He stopped doing his homework!” and the boy says, “What's the point?”
 
Don’t be that boy. It will prove to be very expensive.
 
But if you want to learn how to build a strategy to protect yourself, read Chapter 46, “How to Prepare for Economic Collapse” in my award-winning #1 best-seller, The Truth About Money.

Jeremy | Ric Responded August 25, 2023

As you heard on the podcast, I am a fan of equal weighting, for all the reasons mentioned. And while that concept therefore applies to all investments, it’s not available in every case. And we’re talking about indexed investments, not actively managed ones. In those cases, it’s a moot point, as you’re relying on the fund manager not only to select the investments but to determine the weighting for each one. When I worked with BlackRock to create the iShares Exponential Technologies ETF (symbol XT), I insisted that it be equal weighted.
 
Regarding overall allocation – which is, after all, a weighting question – I can’t say as it depends on the circumstances of the individual investor, and I know nothing about yours. This is why there’s no substitute for meeting with a financial advisor, and I can refer you to one if you like and you’re willing to work long-distance (via zoom).
 
One observation: you mentioned “growth” for a “medium risk” portfolio. Those terms are mutually exclusive. I mention this because investors often lay down criteria that are conflicting, and the result is a schizophrenic portfolio whose construction is almost certain to fail at satisfying the investor. A good advisor can help you determine what truly matters to you and create an allocation model that is more likely to deliver what you’re looking for.

Mike | Ric Responded August 25, 2023

Not timely? Not sure I understand that. Whenever I mention a particular ETF or other investment opportunity, I’m not suggesting that you buy it today and sell it tomorrow for quick profits. My show is focused, as its title says, on the future…and I’m talking about long-term trends. So, sure, an ETF I like might have fallen in the recent past, and/or it might fall in the short-term future. But over the next decade and beyond, I am confident that it will deliver the returns you want and need. Nothing is certain, and past performance doesn’t guarantee future results, as it says on page one of every prospectus. There are risks with every investment – even bank accounts – and that’s why you should diversify your investments, and make all investment decisions based on your own circumstances – ideally with the help of a talented financial advisor.
 
All that said, based on your age, I can understand why you might not think you have decades to patiently wait for the returns that might eventually be obtained. (I could argue that you maybe have much longer than you think, based on innovations in health care coming from exponential technologies, but I know nothing of your health or financial situation.) So, it might make sense for you to invest only a little into riskier investments, or even none at all. A financial advisor can help you figure all that out, and if you like, I can refer you to one.

Stephen | Ric Responded August 25, 2023

Sure, good idea – I’ll do this on a podcast in September. Look for that!

Judy | Ric Responded August 24, 2023

No. There hasn’t been a need. The list appears in my NYT bestseller, The Truth About Your Future. While there’s been a little movement in the list, the trends that the list reflect (published a few years ago) remain intact. Bottom line: avoid occupations that can be performed by AI and robots. Focus on jobs that involve thinking, creating, communicating and managing. And be prepared to return to school periodically, to learn new skills that will keep you viable and desirable in the workforce. Lifelong education will be the norm.

Anthony | Ric Responded August 17, 2023

Perfect storm? I think you mean the opposite – stars aligned. Yes, there are lots of great developments underway. You mention only two: the halving in 2024, and the spot bitcoin ETFs (which might come to market any day, not necessarily in 2024). I’d add: new legislation on stablecoins (and PayPal’s introduction of one), Ripple’s victory in its lawsuit against the SEC, the likelihood that the SEC will also lose its case agbainst Grayscale, Coinbase winning approval to trade futures…the list goes on and on. I did a podcast on the ETF situation last week – go to DACFP.com to view it – and am releasing a white paper on it on Monday, too.

Dana | Ric Responded August 17, 2023

Yes, I still advocate financial literacy. Less than half the states require that high school students complete a personal finance class. There are many organizations working hard in this area: National Endowment for Financial Education, Institute for Financial Literacy, American Savings Education Council, Jumpstart Coalition for Personal Finance Literacy. All are worth looking into.