Topic: Early Retirement Extreme - page 2. (Read 14438 times)

a house is an asset...and can generate net income

it can also be an appreciating asset.

also at what point is a bubble no longer a bubble....eg the Australian housing market still has not popped, particularly in Sydney, it may have gone down 1-3%, but then in one month goes 1.5%. I wish it would pop....but they have taken to calling it the longest bubble ever....!

The problem I think, is property is a religion there....so may defy reason for an indefinite amount of time.....

A house is most definitely an asset. Maybe you need to check the meaning of the word 'asset'? A house may not be an income generating asset, but it is none-the-less an asset.

I agree on one part.

A car is definitely not an asset in general, particularly recent models, but I don't think banks promote them as assets, but simply provide debt to allow their purchase. The debt usually amortises fast, to reflect the expected decline in value. It's similar to paying for a lease on a car, no-one expects to have any savings as a result of it.

That said some older cars, if bought well can be great assets, such as collectible sportscars, which have rocketed in value recently (mainly older Porsche/Ferrari/McLaren etc).

Regarding housing, other than in the recent bubble, which was extreme by any standards, especially for the US, housing has generally been an excellent asset. It is is almost always been cheaper historically to pay a mortgage over 30 years, than to pay the ever increasing rentals over the same period and equally over the longer holding periods capital values increase massively. Owning rental property is even better, since the upside is free provided the tenant pays the mortgage. The majority of privately owned wealth at middle-income levels in most developed countries has been created from ownership of property. Few people make significant wealth from simply saving their incomes through their lives.

Most people, especially in here, don't understand that most "assets" are not investments because they have been brainwashed by banks to think that their devalued car is an asset. Their house is an asset. And so on.
When in reality, if it were not for the housing bubble, most people would never see any kind of profit from a home sale. And you certainly cannot expect to profit from selling most cars. Yet banks view this form of chattel as something with value and therefore brainwash you to believe that you are making money by owning them and borrowing from the bank against them.

The stupidity of people never ceases to amaze.

Only if you kept it in banknotes.

This is the stupidy of the deflation argument so often quoted on these forums, most people with any investments/wealth keep it in property/stocks/income generating assets. These assets largely outperform inflation, so real values go up not down over time.

I tend to dismiss the most catastrophist scenarios. When oil runs short life will be less comfortable; with that I agree. But Mad Max scenarios like hyperinflation are out of the question. The powers that be make sure it never happens because, what business would corporations do in such a situation? There have been many recessions like the current one yet the stocks profitability has remained faithful to the long-term trend well above inflation. Besides, since stock price is a price, how could inflation undermine its value? 

You can start getting ready, hoarding food and weapons, but I would first make sure I have a nice money stash for the rest of my life.

If dollars hyperinflate, then $100k may not buy much.

My plan is to make $250k a year, save $100k a year, and retire by the time I'm 40.

I can live easily off $50-100k annually in retirement because I'll already own my home and vehicles outright and have no debt.

Where is bitcoin in this picture?

BTC = $0.00
XRP = $0.50
DXY = 85

yeah I know, it's like you end up paying double tax all the time,  not cool.  But for a BackPacker like me it works out great motivation to keep my visits under 3 months.

though it is good to be informed.  Here in Canada if you visit the country you can fill out a visitor tax redemption,

http://www.canadainternational.gc.ca/new_zealand-nouvelle_zelande/come-venir_canada/tax_refund-remboursement_taxe.aspx?lang=eng

they know it's unfair to try to tax someone who is just visiting. Other countries probably have something similar if they are in their right mind.

Tax you on what?

Come to the Philippines. I will escrow your BTC (and take care of paying the women in fiat). They won't accept BTC, they don't know how. Plus I offer armed security.

If you get sick with something, that's not my problem though, so ... ... I just make sure you won't die while you're here.

Don't do it! Buy a mining rig instead, get the most efficient mining rig you can afford... live off the proceeds, Then go BackPacking around the world, take pictures lots of them and save for the day when you have to upgrade.

so I used to make 37k/year. my rent was only 900.00 including utilities and I only spent about 200 on monthly expenses + internet of course= big savings.

I often bake my own bread, I never eat out except on special ocassions and take the time to learn new skills in my spare time... I saw Bitcoin and I understood this was my ticket!

So I quit my 37k a year job and lived off of my savings while I learn how to put all my intellect and motivation toward this Epic, Truly Monumental project; Bitcoin is going to change the world!

Now here Is what i'm going to do... right now broke. spent my money on buying the best equipment I could afford and living expenses really killing me, but I read everything that I can aim my eyeballs at and figured this out.

What is bitcoins global demand? I have no clue, but I know there are lots of people who want to use bitcoin, just gotta get those merchants on board.

1: so I figure the price will rise no matter what: check

2: I bought my rig that will pay itself and start generating revenue until it's not efficient enough, sell my old cards get new ones buy ASIC.

3: Live off proceeds, use spare time to find more efficient ways to live and live within my means.

4: pack my rig into a little safe room, pay my rent, pay someone to keep an eye on it,

5: exchange my money, declare revenue from investment or whatever mining bitcoin falls under for taxation...(I like my government, they can be pricks at times though and I do not like the people they hire... but over all their doing a good job)

6: Travel the world, visit poor countries where my revenue will be greeted with great appreciation by the locals, take advantage of loose women after my BTC, visit questionable establishments, have a good time.

Yeah that's my plan.

Come to the Philippines if you have that much money. I offer armed security. You'll be safe here.

Russia, Ukraine...

Maybe even Poland, but this depends on your needs...

So working 60 hours a week in order to have a huge mostly useless car is more important to you than turning your business into a hobby.

Case closed.

lol nah man read a little bit farther down the thread. I spent months in many beautiful developing countries very cheap. Then lived in more developed countries in many places by wwoofing, so I got free rent (& sometimes food too). Then I rented a place of my own for a few months to take a break and thats where the 2k came in.

I would have told you if you wouldn't mock me with "magical places"...

Nothing magical, just a country.

Can you please name this magical place! I'm thinking of moving there as soon as I find out where it is...

I was thinking more than writing. I wanted to say that stocks can go down really hard, even more in an event of economical collapse. I don't trust stocks. Sorry for the confusion and for not trusting stocks.

Only live stocks.

WHAT?!

Where are you getting your information from???