Razick (OP)
Legendary
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Activity: 1330
Merit: 1003
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April 17, 2013, 08:37:20 PM |
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I thought I'd get some input on my investment plan, tell me what you think. To be honest I probably won't actually do this, but let me know what you think anyway.
To keep it simple:
1. Dollar-cost average fixed amount monthly in to Bitcoin
2. Hold until long-term price target of $500-$800 and slowly cash out into precious metals.
3. During the next recession (since metals tend to rise and stocks fall) slowly transfer my money from silver to stocks.
4. Decide what to do next based on market conditions.
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ACCOUNT RECOVERED 4/27/2020. Account was previously hacked sometime in 2017. Posts between 12/31/2016 and 4/27/2020 are NOT LEGITIMATE.
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"I'm sure that in 20 years there will either be very large transaction volume or no volume." -- Satoshi
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empoweoqwj
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April 17, 2013, 08:40:23 PM |
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you expect people to spend time critiquing a financial plan even you don't intend to implement. strange ....
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mgio
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April 17, 2013, 09:17:34 PM |
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This is actually what I'm doing.
But I will probably start cashing out 1/3 of my coins at $200 in the short(er) term, whenever it gets back up there, and hold the others for a very long time (years).
I actually cashed out a little into gold, but gold is a HORRIBLE investment, at least in Massachusetts where I live. First, it is always taxed as a short-term gain, so that means 28% tax (my tax bracket) PLUS 12% state tax (MA short term capital gains). Also gold is in a bubble right now and has been dropping. Finally, coinabul charges you about 8% over spot for gold so you lose money right off the bat.
The only reason to buy gold is if you expect it to help you evade taxes (it won't).
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kjj
Legendary
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Activity: 1302
Merit: 1025
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April 17, 2013, 10:40:42 PM |
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If you have any sort of investment plan that involves metals and stocks, you need to understand this chart, and follow it closely. http://investmenttools.com/images/wfut/metals/dow_gold.gif |
17Np17BSrpnHCZ2pgtiMNnhjnsWJ2TMqq8
I routinely ignore posters with paid advertising in their sigs. You should too.
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Bitmeat
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Activity: 28
Merit: 0
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April 18, 2013, 02:25:58 PM |
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If you start at the bottom of your list, and work your way up, skipping step 2 and 1, it's a sound investment plan.
As it is you're basically gambling with your money. Why not go to vegas and have more fun doing it?
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Luckybit
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April 18, 2013, 06:00:18 PM |
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This is actually what I'm doing.
But I will probably start cashing out 1/3 of my coins at $200 in the short(er) term, whenever it gets back up there, and hold the others for a very long time (years).
I actually cashed out a little into gold, but gold is a HORRIBLE investment, at least in Massachusetts where I live. First, it is always taxed as a short-term gain, so that means 28% tax (my tax bracket) PLUS 12% state tax (MA short term capital gains). Also gold is in a bubble right now and has been dropping. Finally, coinabul charges you about 8% over spot for gold so you lose money right off the bat.
The only reason to buy gold is if you expect it to help you evade taxes (it won't).
Aren't Bitcoins taxed at 40% as capital gains when you try to cash them out? That would be higher than gold. |
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wachtwoord
Legendary
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Activity: 2324
Merit: 1125
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April 18, 2013, 07:12:02 PM |
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What are the axes on the chart and what are "div" and "qx_xaverage"? |
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mgio
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April 18, 2013, 07:26:39 PM |
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This is actually what I'm doing.
But I will probably start cashing out 1/3 of my coins at $200 in the short(er) term, whenever it gets back up there, and hold the others for a very long time (years).
I actually cashed out a little into gold, but gold is a HORRIBLE investment, at least in Massachusetts where I live. First, it is always taxed as a short-term gain, so that means 28% tax (my tax bracket) PLUS 12% state tax (MA short term capital gains). Also gold is in a bubble right now and has been dropping. Finally, coinabul charges you about 8% over spot for gold so you lose money right off the bat.
The only reason to buy gold is if you expect it to help you evade taxes (it won't).
Aren't Bitcoins taxed at 40% as capital gains when you try to cash them out? That would be higher than gold. No, hold them for a year and pay long term capital gains. In MA, that is 15% plus ~5% state, or 20%. And short term capital gains is the same for both gold and bitcoins. Gold is worse because it is always considered a short term gain. |
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ManBearPig
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April 19, 2013, 09:12:26 PM |
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Personally, I have an amount I decided to put in initially from which I haven't withdrawn, ie. cashed out to fiat nor have I added to.
If you guess that Bitcoin will hit 4 figures or something then topping up might be unnecessary and have the effect of raising your average price. If you believe the growth will be steady but clearly upwards then it would make sense to put in more now to gain the full benefit of a long rise.
Topping up would also ensure that a lot of your value will be lost on any sudden plunge as you'd been buying at a high price right before the drop.
Just my thinking, as a counterpoint.
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