How does cryptocurrency works? Does any of you have any experience about this?

Mikehills101 - this is not the thread for that discussion. If there is any conversation about it here, it is going to be awful.

From the sound of things, you're just looking for a basic introduction, so you'd be better off just using Google and reading Wikipedia in the first instance.

Age: 31
Location: Wisconsin
Occupation: Accountant
Checking Account: $15k
Live Bankroll: $15k
Monthly Income at Job: $4.4k after taxes ($80k annual income)
Monthly Income from poker: $1.5-3k depending on volume
Debt: $18k new car
Monthly Rent: $900
Risk: Medium to High
401k: ~$60k

Debating cashing out some/all of my 401k and investing in real estate or something that can generate more passive income in the near-mid future. Hate to think like this, but my grandparents and parents are both upper-middle class and I'd like to think I will inherit $1M+ some day. This leads me to believe I should be more aggressive with my 401k money and put it towards something like real estate instead.

Any amount you take out of your 401k would be subject to ordinary income taxes and increase your adjusted gross income for tax purposes. Additionally, given that you're under the age if 59.5 you would also have an additional 10% penalty. Combining those aspects along with the additional costs for holding real estate (property tax, insurance, transaction costs, etc.) you'd be starting off way behind

All great points. Perhaps I'm just better scaling back my current 401k contribution and putting that money into a savings account for future real estate/investment purchase.

I guess in general I am just way more skeptical of the market than I ever have been. Also, fees for a 401k plan are ridiculous. I feel like I could/should be putting my money to better use.

The Incredible Shrinking Factor Return
Part I of Alice in Factorland
Rob Arnott, Vitali Kalesnik, PhD, and Lillian Wu

Ok, buddy, try to get rid of the debt first. Do that asap, that is your priority #1. Then decide how much you can allocate every month to investing. Ideally it should be around 60%, but anything will do. Dollar cost average into stock indices for long term gains and compounding growth. You can gamble a bit with cryptos, but never increase your gambling money. Discipline is the key. 80k$ is good annual income for this. I don't know why everyone recommends real estate, stocks are easily more profitable. And if you like real estate so much why just not invest into REIT sector?

Thanks. That is good advice. Forgot to mention I bought my car during a Black Friday deal and got it at 0% interest for 5 years. So as nice as it will be to not have a car payment again, it's not costing me anything to carry this debt.

real estate highly correlates with the market......

Phil, you have striking same financial situation as me. I am an accountant as well. Here are my thoughts

1. Never ever cash out 401k early as penalty is very stiff. I forgot the exact percentage but I think it was like 40%

2. Investing in real estate is good, despite what people say in this forum. But you really have to know what you are doing. You need to buy property at a good price and generate income through renting it out. Being a landlord is harder than it looks.

You can get an FHA loan for 3.5% down on a 2-4 unit residential building. You have to live in one for at least the first year. Worked great for me.

Is it true that real estate prices are highly correlated to the market but rents change much more slowly?

that would make sense. when houses went to **** in 07-12 I don't remember my rent payments declining

United States - Los Angeles
65k in cash, 5k in crypto
3-4k a month (professional poker player)
high risk of tolerance
both short term and long term strategies
$0 debt

I'm open to any info. I just quit my day job as working a 9-5 was too much time with not enough return. I live rent free and not many expenses. I'm in a position where I have a lot of time and can take quite a few risks. Thanks for the help!

This post aged nicely

Age: 31
Location: Los Angeles
Occupation: Poker
Cash: $180k
Crypto: $250k (80% eth 15% btc 5% other)
Mutual funds: $110k
Monthly Expected Income from Poker: $10k
Debt: none
Monthly Expenses: $3k
Risk: High

I obviously have too much in cash, although it's annoyingly spread out between casino deposit boxes(Vegas and LA) and need to invest somewhere. I want to know what kind of asset class allocation I should be looking for. My instincts suggest something along the lines of 40% crypto 40% mutual funds 20% cash.

I've read the last few pages and it seems to be mostly US facing advice. Not sure if being from UK changes things much for me, but here we go:

28, single, no children.
Cash: £95K
Income: £50K after tax, saving about £25K/year.
Debt: £15K student loan (1.5% interest)

I have the option to go 50/50 with my parents on buying a rental property (in south of England) in 2018 which would essentially be putting in all of my money. We would not get a mortgage, they would manage the property and I'd get half of the rental income.

It seems like a good option for long term investment but maybe I would be better with something more flexible and investing less of my net worth into one are?

Is locking up 'everything' in property for 10+ years too restrictive? Or a mistake in general?

Age: 26
Location: Canada
Occupation: None
Cash: 2 million CAD
Crypto: 4 million CAD
Real estate: 500K CAD
Monthly Expected Income: None
Debt: None
Monthly Expenses: 6K CAD
Risk: High

2 Million CAD sitting in the bank that I just cashed out from cryptos and have 0 investments other than crypto and a home that I own (which doesn't really count as an investment since I don't make money from it). Should I hire someone to handle my money? Kind of clueless with this. Any help is appreciated.

just keep doing what you doing

how do you spend 6k in a month lol. but yeah i'd prolly hire someone to give you some advice instead of turning to a poker forum.

You're in a great spot and have lots of different options

I'm super bearish on crypto from here...so I'd tell you to cash it all out and put it in a 60/40 balanced index fund and enjoy the rest of your life. You easily have enough money for it to be gg at anything close to the expense level you indicated.

if needed, go to someone for advice that gets paid by the hour not on commission. advice both on strategy and on taxes. you probably don't need someone to actually manage it for you since that part isn't all that hard

your expense ratio (gj btw! this is huge) means you're potentially set for life, so i'd get more conservative, withdraw most of the crypto money. you can still let a milly ride on crypto and be set for life with the rest

i was in a similar situation (but with less money lower expenses too though) and I put 75% of it in 5 low cost ETFs (us large, us small, europe, asia, emerging markets), weighted for % of world market

+1

If I had 6 million, I'd fist-pump and then put about 4 million into a variety of high dividend stocks and take down ~$200K year just in dividend payments. The remaining 2 million would be my mad money, e.g. buy-ins for WSOP for the rest of my life

GG, Jelly1

You have too much cash that is for sure. You want to look at maximising your ISA now and looking at equity investments if you have a long time period for amounts over your emergency fund.

Regarding the property you have a lot of things to consider. Have you ever purchased one before? If not you could be saving into a LISA yourself and getting £1000 a year free towards your first house purchase. Equity investments might give higher return over the long haul on the cash if you can handle the variance. It is possible to get 3-5% on a decent chunk of your cash with 0 risk as well. I dont know how much better the property would yield.

You have a lot of money to save, definitely look at maximising the % return on your cash, then look at stocks and shares isa's. Other options to consider for investing would be p2p loans, property and crypto currencys. Have you got a pension?

Being in the UK changes a ton of things, what is correct in the USA might well be different here.

First move should be getting an accountant and trying to pay the minimum tax on your crypto capital gain. These amounts are sure to be signaled to the CRA because they are unusual for someone. This said, you are looking roughly at 25% of it going to taxes.

CRA link: https://www.canada.ca/en/financial-c...ency.html#toc3

Secondly, you should try to get advice from professionnals to see how you can lower your taxe rate from now. Incorporation? etc

Also has approximately one too few spouses and 1.3 too few children.