Thanks Pano.
A quick reply to the investment/retirement quasi-advice being given, and the discussion it sparked.
| | On July 24 2014 17:28 TalentedTom wrote:
i would be weary about saving money in today's economy, inflation is getting incredibly high, i think you'd be better off just buying two 500k houses (in desirable locations), and rent them out, $1500 for the top, $1000 for the basement, inflation adjusted income that will have reasonable relative value in any economic conditions |
I think without any capital allocation expertise, Pano's got a fine, albeit simple, plan.
A low 7-figure net worth, highly liquid in his early 30s is at least as good as less liquid investments like TT's 500k houses route because Pano always has the 2nd option open. He misses out on the first 5ish years of compounding returns, but the trade-off is not a snapcall for the illiquid option. Most of the economic value of the skillset he is building will be realized later in his career, and having that money not tied up in a mortage/house so he can skip an angel round(s) for his first startup a couple of jobs/years down the line could be lower risk/higher EV, despite being more specialized.
I'm barely a dilettante in this stuff so read comments critically. Just trying to highlight that the standard "oh I have money, better invest it in some stuff and read some books" is just as likely to be smart as it is to be FPSy depending on how you go about it, just as "oh I have money, better not do anything with it and bank on the skills that got me the money in the first place" can also make sense. |
