Eric | Ric Responded December 17, 2023

Thanks for your email, and very sorry for your loss. I’m not serving as a financial advisor to individual clients at this time, but I can refer to you a colleague if you like.

Kevin | Ric Responded December 17, 2023

I’ve learned long ago to largely ignore what people say and focus instead on what they do. Gary Gensler has approved bitcoin futures ETFs and other crypto ETFs, and is about to approve spot bitcoin EFTS; Jamie Dimon’s firm, JP Morgan, settles $1B in cross-border transactions per day using blockchain technology – his own JMPCoin – and his firm’s Onxy platform tokenizes assets for its institutional clients, among many other crypto-related activities; Charlie (RIP) and Warren invested $500M into Nubank, Brazil’s largest digital bank with 67 million customers – and more than 2mm of them have purchased such digital assets as bitcoin, Ethereum, Polygon and Uniswap via their bank accounts. I’m not sure I’ve ever compared crypto to cars, but then again, is everyone behind the wheel in a cult?

Kevin | Ric Responded December 17, 2023

I’ve been involved in crypto since 2012, and I’ve dealt with folks like you since the beginning. To be honest, I’m getting pretty tired of the diatribes and hand-wringing, bolstered by vague accusations and wild claims. So, here’s my reply to everything you wrote: Prove It. You’ve made 12 accusations. Show me the proof. Give me the evidence. Don’t just recite what you’ve heard, and don’t just repeat the claims of others who reflect your viewpoint – so common an error it even has a name (confirmation bias). Instead, show me the data. I’m willing to listen. If you can demonstrate to me that your facts are correct, that crypto is being used by people to engage in murder for hire (seriously!?!?) then I’d like to see the facts. And if you can’t, then please consider that maybe just maybe your views are incorrect and you ought to consider adopting a different point of view.

Luisa | Ric Responded December 17, 2023

O my. Lots of issues here. First, I never recommended the company or its product; I merely described yet another innovative way that companies are inventing products and services using blockchain technology. There was no "mini-commercial" - any more than it's a commercial when Lester Holt says on NBC News that Delta Airlines has lowered its fares. Second, I would never tell anyone to pay money for something until after they receive it - and to use your credit card, which offers protection in the event that the product/service isn't delivered. Third, I haven't looked much into this company or its product, but a quick search online did not reveal to me anything nefarious going on. The outfit is clearly a startup, and so delays in manufacturing and distribution wouldn't surprise me - but again, you're not supposed to send them money until you get the merchandise. Your experience is worth noting, but there are as many consumer behavior issues here as there are "questionable company" practices.

William | Ric Responded December 17, 2023

You raise an important topic, and one certainly worthy of conversation on my podcast. I’ll do that in coming weeks. thanks for the nudge –

Ken | Ric Responded December 17, 2023

I’m not aware of any antitrust issues occuring in the eyeglass manufacturing or retail industry (which is not to say it can’t be occurring). We see situations like this in many industries – airlines (which tend to raise and lower price in sync with each other) movie theaters, and others. But in most cases, it’s just market competition, not collusion.

Robert | Ric Responded December 17, 2023

I've been complaining about the real estate business for decades, and every time I do, I hear from offended real estate agents. No one else ever complains about my commentaries. Food for thought.
 
Happy to reply your points. First, my math is pretty simple, as I explained on the podcast. If you pay $500,000 for a house and later pay a $60,000 commission to sell it, that's 12%. Simple. And outrageous and not a practice you'll find in any other industry. Your comparison to the financial advisor industry is flawed: that real estate agent did work to sell me that house - a one-time job. They should get paid one-time, based on that transaction. Financial advisors get paid in that first year, too - based on the value of the asset at that time (the way it ought to be). And you pay the advisor annually based on each year's asset value - again, as it should be - because the advisor is doing more work each year. If you don't want the work, then fire the advisor and avoid the fee. But you have no such ability with your house - you're going to pay that inflated fee upon sale no matter what, and the longer you've kept the house, the more it rises in value, the more you're going to pay. Totally unfair.

Yep, that 80/20 rule exists in most places.

That 6% fee is definitely non-negotiable. Oh, sure, an agent might pretend to "negotiate" by cutting it to 5%. But if they do, the customer can expect reduced services or quality. And more likely, agents simply refuse to accept the lower fee. Prove me wrong on this one.
I only made 3 points in the show. I'm right on the first, we agree on the second, and you haven't proved me wrong on the third. I fail to see how my podcast was "riddled with misleading information."

I didn't mean to offend you, as I have never meant to offend real estate agents. But when we see business practices that are unfriendly to consumers and unjustified - as the court just ruled to the tune of $1.8 billion - we have to be honest with ourselves. It's time that real estate agents were.

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.

Eric | Ric Responded December 17, 2023

Thanks for your email, and very sorry for your loss. I’m not serving as a financial advisor to individual clients at this time, but I can refer to you a colleague if you like.

Kevin | Ric Responded December 17, 2023

I’ve learned long ago to largely ignore what people say and focus instead on what they do. Gary Gensler has approved bitcoin futures ETFs and other crypto ETFs, and is about to approve spot bitcoin EFTS; Jamie Dimon’s firm, JP Morgan, settles $1B in cross-border transactions per day using blockchain technology – his own JMPCoin – and his firm’s Onxy platform tokenizes assets for its institutional clients, among many other crypto-related activities; Charlie (RIP) and Warren invested $500M into Nubank, Brazil’s largest digital bank with 67 million customers – and more than 2mm of them have purchased such digital assets as bitcoin, Ethereum, Polygon and Uniswap via their bank accounts. I’m not sure I’ve ever compared crypto to cars, but then again, is everyone behind the wheel in a cult?

Kevin | Ric Responded December 17, 2023

I’ve been involved in crypto since 2012, and I’ve dealt with folks like you since the beginning. To be honest, I’m getting pretty tired of the diatribes and hand-wringing, bolstered by vague accusations and wild claims. So, here’s my reply to everything you wrote: Prove It. You’ve made 12 accusations. Show me the proof. Give me the evidence. Don’t just recite what you’ve heard, and don’t just repeat the claims of others who reflect your viewpoint – so common an error it even has a name (confirmation bias). Instead, show me the data. I’m willing to listen. If you can demonstrate to me that your facts are correct, that crypto is being used by people to engage in murder for hire (seriously!?!?) then I’d like to see the facts. And if you can’t, then please consider that maybe just maybe your views are incorrect and you ought to consider adopting a different point of view.

Luisa | Ric Responded December 17, 2023

O my. Lots of issues here. First, I never recommended the company or its product; I merely described yet another innovative way that companies are inventing products and services using blockchain technology. There was no "mini-commercial" - any more than it's a commercial when Lester Holt says on NBC News that Delta Airlines has lowered its fares. Second, I would never tell anyone to pay money for something until after they receive it - and to use your credit card, which offers protection in the event that the product/service isn't delivered. Third, I haven't looked much into this company or its product, but a quick search online did not reveal to me anything nefarious going on. The outfit is clearly a startup, and so delays in manufacturing and distribution wouldn't surprise me - but again, you're not supposed to send them money until you get the merchandise. Your experience is worth noting, but there are as many consumer behavior issues here as there are "questionable company" practices.

William | Ric Responded December 17, 2023

You raise an important topic, and one certainly worthy of conversation on my podcast. I’ll do that in coming weeks. thanks for the nudge –

Ken | Ric Responded December 17, 2023

I’m not aware of any antitrust issues occuring in the eyeglass manufacturing or retail industry (which is not to say it can’t be occurring). We see situations like this in many industries – airlines (which tend to raise and lower price in sync with each other) movie theaters, and others. But in most cases, it’s just market competition, not collusion.

Robert | Ric Responded December 17, 2023

I've been complaining about the real estate business for decades, and every time I do, I hear from offended real estate agents. No one else ever complains about my commentaries. Food for thought.
 
Happy to reply your points. First, my math is pretty simple, as I explained on the podcast. If you pay $500,000 for a house and later pay a $60,000 commission to sell it, that's 12%. Simple. And outrageous and not a practice you'll find in any other industry. Your comparison to the financial advisor industry is flawed: that real estate agent did work to sell me that house - a one-time job. They should get paid one-time, based on that transaction. Financial advisors get paid in that first year, too - based on the value of the asset at that time (the way it ought to be). And you pay the advisor annually based on each year's asset value - again, as it should be - because the advisor is doing more work each year. If you don't want the work, then fire the advisor and avoid the fee. But you have no such ability with your house - you're going to pay that inflated fee upon sale no matter what, and the longer you've kept the house, the more it rises in value, the more you're going to pay. Totally unfair.

Yep, that 80/20 rule exists in most places.

That 6% fee is definitely non-negotiable. Oh, sure, an agent might pretend to "negotiate" by cutting it to 5%. But if they do, the customer can expect reduced services or quality. And more likely, agents simply refuse to accept the lower fee. Prove me wrong on this one.
I only made 3 points in the show. I'm right on the first, we agree on the second, and you haven't proved me wrong on the third. I fail to see how my podcast was "riddled with misleading information."

I didn't mean to offend you, as I have never meant to offend real estate agents. But when we see business practices that are unfriendly to consumers and unjustified - as the court just ruled to the tune of $1.8 billion - we have to be honest with ourselves. It's time that real estate agents were.

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.

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.