Topic: choose an option (Read 794 times)

a house is a house until its condemned by the state, or its part of a HOA that have maintenance costs which if you dont keep it presentable they can take you to court and put a lien on the house and take it. or if you dont pay the land tax. or there is a storm that damages the house

even a house is not guaranteed profit, as it has ongoing costs. many people tht win a house in a lotto then cant afford the up-keep costs so end up quick selling below value

This one is right, a business doesn't really mean anything at all, you may make a lot of money and I mean like millions one year, and then be bankrupted and close shop next year and we have absolutely no proof that would change at all. I believe that the best thing to do right now would be making sure that we are dealing with something that is guaranteed.

Like a house for example, a house is always a house, it's a house when there is inflation, it's a house when there is an recession, it's a house when you are rich or poor. That's just one example, bitcoin is the answer for me, I would love to get it all in bitcoin because I trust it more than anything else, but that doesn't mean I am right, it just means that is what I would prefer.

"guarantee"   "continuous profit"  HA
usually someone selling a business, means there must be a reason why they are selling it. getting a business is not a sure thing, sometimes you end up having to invest alot more money to bring the business back into modern standards/profitability

its like real estate.. many people that do them lotteries where the lottery commission award a house. the recipient then cant afford the legal fee's taxes and modernisations to make it fit to break even/profit. yep alot of people end up just selling the house/business because managing it to make it valuable is too much cost/effort. so they sell it to pass the problem onto someone else. sometimes selling it below value just to get rid of the problem

I would choose option E, a business, well, simply because if I have a business, then I can guarantee a lot of years of having that business and continuous profit if only I handle the business well. But yes, there is a risk in business or owning a business, but it's worth taking the risk and making it happen. You see, in other options, I will get a certain amount of money and a certain period, but what if those periods? In the end, I will have nothing to save up because of the expenses. So I would rather choose the business so I can have a long-term money profit; in short, I will think long-term. With a business, I have the possibility of growing it into a successful business, and it will also give me long-term wealth, which is more practical to choose and it will give me a long term opportunity.

i agree going by strictly "inflation" official numbers doesnt help

for instance canned food in a supermarket here was £0.50 average just 2 years ago. where as this year its £1.50 so a 300% rise instead of the stated 12.7% (4.7+8%) official stats
car fuel went from £1.30/ltr to £2/ltr to £1.49/litre in 2 years. so again official inflation stats dont always correspond to real world spending of particular things

Inflation is an uneven thing to measure, no doubt some things are cheaper now not more expensive.   The statistics accounts for improvement a bit like an insurance process might in replacement, I think its called hedonics.    Anyhow I dont disagree on referring to figures as it helps removes bias, my view of inflation will vary from you or anyone depends how we spend our money etc.
 I'll post the figures but inflation in 8 years from mid seventies to mid eighties worked to roughly half the value of money at that time.   People suffered greatly from what I've heard, our oldest living President but also a 1 term president is largely for that reason of poverty in the population that might elect him they chose not to a 2nd time.
    So the rule stands today, in great strife 1 term president becomes precedent :p   Trump had the pandemic regardless of what else you think of him, to be put out of office was quite normal.    Can we say the same for Biden I would guess not exactly but inflation is an ongoing threat imo re OP proposition.

https://www.investopedia.com/terms/h/hedonic-regression.asp

I would only choose that option if it is a few houses and not a single one. I would still prefer bitcoin right now to be fair, all 480k worth bitcoin at this moment, but if I assume that I want a house, I would get a few of them and not just a single house.

Reason for that is the fact that if you have just one house, that means you need to find someone who would rent a 480k worth house, and even though you may, the moment they get out you start to look for one again. Whereas, if I have like 4 houses worth 120k each, or even 8 houses worth 60k each, that means it would be fine, if one leaves, you still have all the rest paying you, and you will end up finding one without getting too much financially left hanging. That is why I would prefer a few houses, and not just a single house.

it wont reduce amount to 2152, it will just men what you buy with 5k in 8 years is the number of goods 2152 buys today

might be best to use real numbers
year          interest   from 5k
2015   0.12        4994
2016   1.26        4931.08
2017   2.13        4826.04
2018   2.44        4708.29
2019   1.81        4623.07
2020   1.23        4566.20
2021   4.70        4351.59
2022   8.00        4003.46

so 5k today only buys $4003 amount of goods at 2015 prices

Ultimately one main deterrent exists to long term dollar in that the value is totally sure to decline and so you do not want to expose yourself in that way.  Your pension is already due to arrive in greatly reduced dollars by the time you spend it, don't duplicate or increase your liabilities in any way a plain citizen is already exposed to.   Some people with alot of assets but also debt can say they are hedged vs dollars losses but this doesnt apply to most of us .

(8 years)  of inflation at 10% is a ton of value lost in those dollars received.  It would reduce the per month amount of 5000 to 2152 dollars after 8 years of value lost.

i might have said things before but lets summarise

a. taking a lottery win as $5k for 96month
what some do not realise is if a lottery commission keeps the $480 and only gives you $5k a month ($60k a year) you are not realising that they have put that money into a account earning 5% interest. meaning it earns$24k a year. so when they pay you $60k they are actually only paying you $36k of the lump
which after paying 96 payments of $5k leaves the lottery commission with $126k to keep as profit

b.
if you take the lump and invest it in some account that offers 5% you can claim the $5k income and still have $126k after 96months
                                                             investment that offers 8% you can claim the $5k income and still have $239k after 96months
                                                             investment that offers 12.5% you can claim the $5k income and still have $480k after 96months

c. is obvious, taking what was $480k in bitcoin (20btc at $24k) is now 20btc=$860k

d. houses have ongoing local state/council/land tax. maintenance and other bills like insurance. so its not a straight forward sit and wait for better market valuations

e.businesses have ongoing costs too. supplies, labour and advertising and leases and insurances

f. gold is near its all time high so has more chance of correcting down rather than continuing up

Let's say we adjust the numbers to the current rates.
I'd choose c (even at current 42k) and here's why.

a. -usually if you spread the win over x years you get the full sum and a lump sum gets you only 75%. You made both these the same numbers, so it's simply not worth it to take "a"when you have "b." If you ask someone if he'd like $100 now or $10 now and the rest divided to $10 a month, I bet you $100  that out of 10 random people nobody would take the second option.
b - In my country you can't declare bitcoin for tax purposes, only fiat money and when you exchange bitcoin to fiat you need a proof of funds. So, if You receive bitcoin, you pay nothing and can later spend that bitcoin within the lower tax bracket. You can't do that with fiat money and if you get $500k, you'll pay close to $200k in taxes...
c- by far the est option. Not only it allows you to profit from a coming bull run, but also choose how much tax you'll pay. Even if you decide to spend some of that at current price with no profit, if you stay below a certain amount (~$50k), you'll only pay 20% tax, when compared to 45% if you accepted all that in lump sum fiat money. Also, I'd have an option to move to a more lenient country to sell with no tax and I wouldn't be able to do that with fiat.
d- a house costs you money to maintain and a $450k house isn't something cheap and easy to rent out. It may take months before you find a tenant. Also, selling a house takes time.
e- I have no time to manage a business and I may have no knowledge in the field of that business. Let's say you get a beauty salon, or a  restaurant worth $450k. I wouldn't know how to run it.
f- Probably second best option after C, but it's much harder to move around and sell. If there was only fiat money and gold to choose, I'd get gold, but since there's bitcoin...

I would choose  $480000 worth houses that will give rental income to me . In my point of view, if I have a house to rent then I will get  a fare that is stable income firstly. Then I will invest in   Bitcoin  , the future of Bitcoin is very bright and in future Bitcoin will be part of our life and people could pay any bill by Bitcoin .I will invest in Bitcoin for long duration and in my opinion it is safe and I will get a huge amount of money by this . My third. Choice is $480000 of businesses.I know about business good,So I want to invest in businesses.I am a big fan of Robert Kiyosaki and I read his many books in which he taught how to invest in businesses.

Honestly, I prefer to choose more than one and if that is the choice then take a chance on Bitcoin and business, the reason is clear that both options have a good process in the long term as long as we are able to run them correctly. Because if you just choose but don't know how to develop then in my opinion it won't give you any results. Bitcoin can increase over time but people need to incur additional costs to continue increasing the number of holdings and the business can also generate huge profits if run properly and appropriately.

Simply put these two choices are far better to choose because there are opportunities to generate profits in the long run. But unfortunately we live not a matter of choosing, but how to create these opportunities become more tangible in our life and how possible this can be reached by many people when talking about options.

Anyone who knew what bitcoin could do will choose the bitcoin option all the way, in a few short decades your money could easily multiply manifold without you even having a single thing to do about it besides watch the market closely and time your buys. Although the other options that do not involve winning the lottery aren't so bad either. The housing market could collapse at any moment but either way you have a roof above your head which you can rent out if you already have one anyway, and still earn dividends from. Gold isn't a bad option as well since over time gold has history of increasing in value so it's not like you're at a loss with that particular asset. So yeah, everything that doesn't involve you getting taxed so much like winning the lottery is good enough.

Neither gives a yield or cashflow which is a problem for most.   Silver and gold are decade long plays, not practical to hold especially by themselves and I often think of BTC in a similar way to begin at least.  Its surprisingly hard to build a valid safe way to gain a yield off an investment without relying on simple interest placed a deposit somewhere etc.   You can lend the BTC out personally and gain a return on each contract to lend but thats definitely work and risk to transact not easy to do.
  Alot will disagree and its not without risk, probably far more risky but as gold is a valid longer term play I think also the mining firms or just a fund of those firms is a valid play but thats not always with a yield some stocks will.

I will choose B with a lump sum payment of $480K.

Of course by choosing B we will be charged a higher tax maybe above 20% for me it will not matter I will still get a large enough amount in my pocket.

The reason is because with $480K and then cut taxes, let's say I receive a net of $400K I can still buy some bitcoin, buy the house I want and continue to build a business with the money I have, of course there is still a remainder so it will be saved as a reserve fund, emergency fund and other needs.

I think I would get lump sum of 480k, which opens up anything I want to do. I mean it covers literally every other option, if I want to then I can do it. The logic here is that 24k per bitcoin so 20 bitcoin part is weird, if we get 20 bitcoins then it worths 800k right now, so I am going to ignore everything else and just consider it 480k worth of everything. In that regard, if we say that it's all worth 480k, then I would just take the cash all in one and decide what to do later. I want 5k per month? Put your money in interest and take out 5k each month, I want bitcoin? I can just buy it, I want a house? I can buy it, I want a business? I can buy or build it, I want gold? Just go get some.

When you have 480k in your bank account in lump sum, then you can do all the other stuff you want and that's why I like that option a lot more than others. Plus, with 480k, in my nation, you can live until you die without ever working, that's way more than retirement requirement, you can retire easily with that, I can live with 2k a month, 24k a year, that means 20+ years with interest it could be like 25 years.

I will prefer $480k of BTC because, I have the knowledge and I know how to use it to bring more money that will increase my capital in the future. Since the price of BTC is heading to were investors will get double profits from their investment, any moment from next year and it will help those that will make $480k their choice to invest everything in BTC investment and hodl like 1 or 2 years before they will release them for sale and by then the price of BTC will nearly hit $100k .

Not that gold, house, and business are not good to invest $480k but it will take a long years before you will begin to see little profits from the investment but if you invest it in BTC in this bear run, I think it will not take you more than 3 years before you will make huge amount of money from the investment.

I am free of taxing on my bitcoin purchases so I will go with using all that money to Buy Bitcoin, its lottery, something I won base on me getting lucky, this is the perfect money that are good for taking risks isn't it?

Since I have other means of surviving financially I don't have a problem using all that money to buy Bitcoin and moreover now is still a good time to invest in BITCOIN and its slowly getting too late but still good timing, by next year third quarter I could be up double in ROI already.

I don't do much of lotteries myself because I just don't like the idea, and I do gambling only when I feel like, I can wait months to gamble again, it's not a must for me.

I prefer this one and I will invest 5BTC into silver and gold coins or simply precious metals and another 5BTC for real estate property. The remaining 10BTC will be my long term investment for future purposes.