What's the best piece of investment advice you can give me? (bitcoin tied in)

[ChiBitCTy]

I run an extremely large retirement plan here in the United States (well, I am the sole advisor on it).  I got asked the other day during a large presentation I was putting on, if you could give a young investor one piece of advice, what would it be.  What immediately came to mind "never listen to your friends, family or co-worker when it comes to investment advice.  

If I had a penny for every bit of piss poor information I've heard one co-worker tell the next or uncle tell his nephew or whatever, I would be a filthy rich man.  

Why do I bring this up?  A buddy of mine whom I love to death, as nice as I can possibly say, is an idiot.  Two summers ago we went to the Nelly Ja Rule concert together and someone brought up bitcoin, he said "oh that's a scam".  Knowing full well he knows NOTHING about cryptocurrency or finances ..I didn't even hit him with the "ok so bitcoin is a scam, fair enough, what's the blockchain?" NO ONE has ever been able to explain that who's told me bitcoin is a scam.   I just told him it's not.  He's knows I'm an FA and pretty sure he knew I was pretty "deeply" involved in the bitcoin community.  

He texts me today "do you know anything about bitcoin" , well last night.  I said in fact yeah, I know quite a bit.  I asked why "A friend told me I should buy some".  I sent him a voice message back ... "Sean, I'm a huge bitcoin supporter, I've been around for over a decade now and truly fell in love with it for the tech.  But here's the thing, it's inherently NOT an investment, and you shouldn't consider it until you get your finances straight. He has NOTHING to his name.  He just for the first time in his 40 plus year life got a decent job.  I know he doesn't know how to properly bank even (credit unions for check, online banks for savings...AVOID the big banks like BOA, Chase, Wells Fargo etc).  I also know he doesn't have knickle in any "backbone investments".  What I mean buy that is your long term financial plans.  401k's, IRA's etc.  I said once you get that on track, then sure I think you should probably put a few bucks in to it, but until then.

This is a reminder that your friends likely don't know jack shit about investing, and seek advice from a licensed professional, not some jerk off co-worker who tells everyone to do the same thing even though everyone's situation is different.

Let's not forget bitcoin is NOT a replacement for traditional finances.  A write up both myself and Greg Maxwell contributed to heavily.  Greg is cypherpunk, he sits at the table with best of the best in the "game"...so no need to take my word for it.  https://bitcointalk.org/index.php?topic=5288768.0

As always, my DMs are open.  I'm willing to help provide guidance.  I will never ask for a fn cent.  It's my passion helping people (more so animals, but people too lol).  I've offered my services many times here before and I think ONE person has taken me up on it.  I'm a 20 year FA, Series 6, 7, 63, 65, life, health, CRC licensed.  I'm no fool, take advantage of free help.  But my main stressor is don't be dumb, set your foundation first,then buy bitcoin.  

[Churchillvv]

Sure you've done well with your offers!

Apparently, co-workers, Friends and family often only suggest and/or gives advise to anyone who they think needs it specifically on what they either regret not investing in or what they wish to invest in even though they are obviously limited in knowledge of (whatsoever investment) the invest they sure will offer you without any considerations.

And of course I wouldn't also gree 100% percent that one shouldn't take the advise of co-workers friends and family because sometimes this friends and family could be you @OP with all the in-depth knowledge hence saying one shouldn't take such advise might equally mean your relatives friends should disregard your advise "if all things being equal"

[Darker45]

I guess a prevalent problem among many Bitcoin or crypto investors is premature investing. For example, many eagerly jumped right into Bitcoin without knowing the basics and the implications. For one, many went into it even if they aren't patient enough to withstand boredom hodling for years. They had no idea Bitcoin is basically a long-term investment. Many of them even bought at the top. Also, many didn't educate themselves with the basics of the technology. In the end, they either sold below their buying price because they badly needed the money or lost it because they took a pic of their backup phrase and kept it in their phones.

So, I definitely agree to "set your foundation first, then buy Bitcoin." Or perhaps Bitcoin might not be for you.

[Solodoski]

If I had a penny for every bit of piss poor information I've heard one co-worker tell the next or uncle tell his nephew or whatever, I would be a filthy rich man.  

knowing the kind of individual that is sharing the investment idea of that you are giving the investment idea helps you know if it is worth trying to convince someone to invest in what you believe in. some will talk you into guiding them on how to invest even when they are not ready to invest, for those kind of people, no amount of advice you will ever give them will be worth it because they will never implement them.

the best piece of advice you can ever give anyone relating to bitcoin is that no good things easily. if they don't present themselves as someone that is ready to stay patience, then there is no point going any further. majority of the people in our circle are built to think that things comes always on a platter of gold and for such mentality, it is enough reason not to waste your time trying to convince them to invest even when you are so certain that them doing that will be a blessing for them.

[Apocollapse]

I would say your strategy are correct for Average Joe, because most people can't take risk.

The most important investment that must people get first is health investment, make sure to have health insurance even it's the cheapest program.

Next, have emergency funds for 6-12 months monthly spending.

After that, it depend on us what are the investment we want to invest.

Most people like to invest in debt securities, mutual funds or any investments that can give guaranteed profit like 4%-8%. They think if the return is higher than inflation rate released by central bank, they're in profit. Like, if the inflation rate is 4%, they're making 3% per year if the return is 7%. But, the real inflation rate is actually around 10% per year.

It's really hard to find investment that pays higher 10% per year, Bitcoin is the solution and it's the lowest risk for me compared to business, low cap stock, and P2P lending.

[Alpha Marine]

Pretty solid advice here actually. I just disagree with something.
While I don't know your friend at all, you obviously know him better than me, I don't think he needs to have all the things you mentioned before he puts money into Bitcoin. A better advice would have been for him to learn about Bitcoin and understand it before he could put money into it. If after understanding bitcoin, he still wants to invest in it, then fine, but he shouldn't do it because a college or whoever said he should do it.

Also taking financial advice from relatives who actually know what they're talking about ain't a bad thing as long as you do your own research. You for example are a financial analyst and you probably have relatives or friends or nephews, you've have decades of experience so you definitely know what you're talking about when you give financial advice, so if the person giving the advice is like that then I don't think its wrong to take it seriously. All you have to do is do your own research and seek a second or even third opinion if you have to.

I don't think you have to have your life or finances in order first before buying bitcoin. As long as you know and understand what bitcoin is, and have a source of income where you also have enough disposable income, you can buy bitcoin by DCAing if you want to.

[notocactus]

What immediately came to mind "never listen to your friends, family or co-worker when it comes to investment advice.  

I do one thing. I will never tell my family members and relatives about investment in Bitcoin. I did it in the past, but from my experience, I knew it is painful experience, hence I no longer want to repeat it in future.

Even it is investment, people can do their investment differently and that leads to different results, success or failure. It's obviously their own responsibility, but when they fail, they will not recognize their own reasons but will immediately find reasons from someone else. And at that time, you as a tutor for their investment debut, will be one of first victims. Honestly, I want peace, freedom and no pressure from someone, so I don't want to introduct Bitcoin investment and get such headache later.

[kryptqnick]

To me, an advice would be precisely how the op explained why he didn't encourage his friend to invest: Get your financial situation straight and stable first, consider buying Bitcoin later. Bitcoin is volatile, buying it is a risk, and people shouldn't risk what they can't afford to lose.
Now, if a person can earn Bitcoin, that's a different story, but there should again be an understanding that basic needs come first, saving up this BTC comes second.

[Judith87403]

What immediately came to mind "never listen to your friends, family or co-worker when it comes to investment advice.  

I do one thing. I will never tell my family members and relatives about investment in Bitcoin. I did it in the past, but from my experience, I knew it is painful experience, hence I no longer want to repeat it in future.

Even it is investment, people can do their investment differently and that leads to different results, success or failure. It's obviously their own responsibility, but when they fail, they will not recognize their own reasons but will immediately find reasons from someone else. And at that time, you as a tutor for their investment debut, will be one of first victims. Honestly, I want peace, freedom and no pressure from someone, so I don't want to introduct Bitcoin investment and get such headache later.

You're right, I also have a similar case with you which is why I don't like telling people about bitcoin investment anymore, because they will always put the blame on me whenever time they experience lose in the market, which is very bad. At this point is going to look asive you introduced them to a scam project. mean while they didn't follow the instructions that was given to them, this is why most of them always end up losing in bitcoin investment.

Of course for you to have  peace you just need to stay on your lane because sometimes telling people about bitcoin investment is like inviting problems to ourselves, so to avoid being pressured over nothing or getting unnecessary headache. We just need to keep our investment plans to ourselves without telling anyone about it.

[Bitcoin Smith]

If making money is the only goal there are million ways to do that, it can be done by selling a simple bun with some chicken by branding it as the delicious lickin good. So even if we ask a professional for help with the retirement plan they just pass on the knowledge they have it doesn't mean has to work for others.

Only we know what's best for us, so gather knowledge from everyone possible and decide which one will suit for us, and if someone in their 40s just starting it's still a good thing cause better late than never.

[OgNasty]

The best piece of advice I can think of for a young investor is to, "get off zero."

So many people are afraid to invest or they think they need a wizard to help them do it.  Nothing teaches like experience.  Just get off zero, get yourself some skin in the game, and that's when you start learning.  There are so many little nuances in investing and trying to learn without doing makes things far more difficult.  The sooner people toss a couple bucks at an investment, the sooner they can get comfortable with seeing how it reacts to different situations.  Investing doesn't have to be hard or take a lot of time.  You just have to do it.  I know people who have been talking about investing in Bitcoin since it was at $2.  They always have a reason not to get in, but if they had just tossed $5 at it back then, maybe they would have gotten comfortable with it, invested more over the years, and would be financially free today instead of still wondering if they should invest.

[Josefjix]

There are so many little nuances in investing and trying to learn without doing makes things far more difficult.  The sooner people toss a couple bucks at an investment, the sooner they can get comfortable with seeing how it reacts to different situations. 

Word
Such statements like "I'll invest later", "let me see what I can do". Keeping on procrastinating and doing nothing about it, these categories of people have enough money in their bank, but inwardly, they are NOT an investor. Always asking questions, learning everyday but they never put in the work, I mean, purchase a little quantity and see the outcome. It's even harder for them to throw in a little buck and see how it goes the first time. It's always easier said than done.

[Aanuoluwatofunmi]

I run an extremely large retirement plan here in the United States (well, I am the sold advisor on it).  I got asked the other day during a large presentation I was putting on, if you could give a young investor one piece of advice, what would it be.  What immediately came to mind "never listen to your friends, family or co-worker when it comes to investment advice.  

Source to having a reliable information can be from anywhere and same applies to how we can get false information on the same vein, what I use to advise in this regard is for us to always verify on any form of information received, know the source, verify from other source, then ensure that you can afford to bear the cost of it in case of anything happening at the cause, but we are too given in believing on people so quick without minding to research or verify.

[BIT-BENDER]

never listen to your friends, family or co-worker when it comes to investment advice.  

If I had a penny for every bit of piss poor information I've heard one co-worker tell the next or uncle tell his nephew or whatever, I would be a filthy rich man.  

This leads me to one investment plan that I believe in and that watch how you make judgements. I see people making the wrong judgements in investment based on how they feel or what they are used too. If you actually surround yourself with friends that you can't trust their advice at least to do some research on it then you are in the wrong place.

The fact that I have wrong friends and families in terms of investment knowledge doesn't mean the other person doesn't have, so don't make wrong judgements, in business try to look for facts and if that's far fetch look for the closest thing to facts.

[tread93]

I run an extremely large retirement plan here in the United States (well, I am the sold advisor on it).  I got asked the other day during a large presentation I was putting on, if you could give a young investor one piece of advice, what would it be.  What immediately came to mind "never listen to your friends, family or co-worker when it comes to investment advice.  

If I had a penny for every bit of piss poor information I've heard one co-worker tell the next or uncle tell his nephew or whatever, I would be a filthy rich man.  

Why do I bring this up?  A buddy of mine whom I love to death, as nice as I can possibly say, is an idiot.  Two summers ago we went to the Nelly Ja Rule concert together and someone brought up bitcoin, he said "oh that's a scam".  Knowing full well he knows NOTHING about cryptocurrency or finances ..I didn't even hit him with the "ok so bitcoin is a scam, fair enough, what's the blockchain?" NO ONE has ever been able to explain that who's told me bitcoin is a scam.   I just told him it's not.  He's knows I'm an FA and pretty sure he knew I was pretty "deeply" involved in the bitcoin community.  

He texts me today "do you know anything about bitcoin" , well last night.  I said in fact yeah, I know quite a bit.  I asked why "A friend told me I should buy some".  I sent him a voice message back ... "Sean, I'm a huge bitcoin supporter, I've been around for over a decade now and truly fell in love with it for the tech.  But here's the thing, it's inherently NOT an investment, and you shouldn't consider it until you get your finances straight. He has NOTHING to his name.  He just for the first time in his 40 plus year life got a decent job.  I know he doesn't know how to properly bank even (credit unions for check, online banks for savings...AVOID the big banks like BOA, Chase, Wells Fargo etc).  I also know he doesn't have knickle in any "backbone investments".  What I mean buy that is your long term financial plans.  401k's, IRA's etc.  I said once you get that on track, then sure I think you should probably put a few bucks in to it, but until then.

This is a reminder that your friends likely don't know jack shit about investing, and seek advice from a licensed professional, not some jerk off co-worker who tells everyone to do the same thing even though everyone's situation is different.

Let's not forget bitcoin is NOT a replacement for traditional finances.  A write up both myself and Greg Maxwell contributed to heavily.  Greg is cypherpunk, he sits at the table with best of the best in the "game"...so no need to take my word for it.  https://bitcointalk.org/index.php?topic=5288768.0

As always, my DMs are open.  I'm willing to help provide guidance.  I will never ask for a fn cent.  It's my passion helping people (more so animals, but people too lol).  I've offered my services many times here before and I think ONE person has taken me up on it.  I'm a 20 year FA, Series 6, 7, 63, 65, life, health, CRC licensed.  I'm no fool, take advantage of free help.  But my main stressor is don't be dumb, set your foundation first,then buy bitcoin.  

I like the simple piece of advice I found off an instagram meme one time I was scrolling social media on some random ass day and it went something like this: Listen, Smile, nod, agree, and then do whatever the fuck you were gonna do anyways" Also I can definitely attest that Ty knows what he is doing here and that he also does give great financial advice. The other thing I really liked abouit what you posted is that you urge people to seek the help of a professional and I think that should be implemented in every aspect of ones life.

[Die_empty]

To me, an advice would be precisely how the op explained why he didn't encourage his friend to invest: Get your financial situation straight and stable first, consider buying Bitcoin later. Bitcoin is volatile, buying it is a risk, and people shouldn't risk what they can't afford to lose.
Now, if a person can earn Bitcoin, that's a different story, but there should again be an understanding that basic needs come first, saving up this BTC comes second.

It is essential to have a stable income and savings before considering investing in Bitcoin. Setting out enough money to take care of your needs and having an emergency fund is essential in having a successful investment plan. Many people who sold their coins prematurely was because they don't have the right knowledge or they don't have a good financial backup plan. People donot need to have a fortune before investing in Bitcoin since DCA stractegy helps to make buying easier. Understanding how to take advantage of Bitcoin volitility is the bedrock of a profitable investment journey.

[Questat]

You nailed it right mate. There’s no problem with bitcoin investment especially a lot have been successful because of it, but let’s be practical here.

Fiat is still the most essential thing that will help us secure our daily survival. We have to build financial security first with fiat because it’s what makes us live our present, after that we’ll proceed to secure our future retirement and that’s where bitcoin should be a crucial part.

Stabilize your finances first, before we start taking risk with bitcoin and deal with its uncertainties.

[ChiBitCTy]

Sure you've done well with your offers!

Apparently, co-workers, Friends and family often only suggest and/or gives advise to anyone who they think needs it specifically on what they either regret not investing in or what they wish to invest in even though they are obviously limited in knowledge of (whatsoever investment) the invest they sure will offer you without any considerations.

And of course I wouldn't also gree 100% percent that one shouldn't take the advise of co-workers friends and family because sometimes this friends and family could be you @OP with all the in-depth knowledge hence saying one shouldn't take such advise might equally mean your relatives friends should disregard your advise "if all things being equal"

Well it is meant to be implied, though I should have been more specific of course as I've seen a few people mention this same thing..of course if your friend, co-worker, family member is a licensed professional then by all means, that's of course not what I'm saying. Now there are people who aren't advisors who are extremely knowledgeable.  My good buddy, someone I look up to and see as a bit of mentor @LesbianCow is probably the most well rounded financially savvy person I've ever met.  You should take advice from someone like him.  However, the issue becomes, how do you know that they are as financially savvy as they say.  I do, because of my trade..but the average Joe wouldn't.  There in lies the issue.  

Also guys, there's a HUGE difference between a veteran advisor and a "Financial Rep" (someone with say just a series 6 and 63), and an insurance agent (someone with a life and health insurance license).  They are NOT reputable sources of financial information.

Again, as always, my door is always open.  @tread93 appreciate the kind words bud .

The best piece of advice I can think of for a young investor is to, "get off zero."

So many people are afraid to invest or they think they need a wizard to help them do it.  Nothing teaches like experience.  Just get off zero, get yourself some skin in the game, and that's when you start learning.  There are so many little nuances in investing and trying to learn without doing makes things far more difficult.  The sooner people toss a couple bucks at an investment, the sooner they can get comfortable with seeing how it reacts to different situations.  Investing doesn't have to be hard or take a lot of time.  You just have to do it.  I know people who have been talking about investing in Bitcoin since it was at $2.  They always have a reason not to get in, but if they had just tossed $5 at it back then, maybe they would have gotten comfortable with it, invested more over the years, and would be financially free today instead of still wondering if they should invest.

I like this and you're right.  It's amazing how many people I run in to who just sit on zero, as they sare scared.  This is where work retirement plans can really pay off.  There is no 401k, 403b, 457b/Deferred Comp / group retirement plan offered through your employer that has any investments that you're going to lose your ass on.  They don't exist.  So at minimum this is a fantastic way to get off zero, hell even if you're in a shitty Stable Fund or Bond fund, it's better than zero.  Well said.

[Liliana1304]

I guess a prevalent problem among many Bitcoin or crypto investors is premature investing. For example, many eagerly jumped right into Bitcoin without knowing the basics and the implications. For one, many went into it even if they aren't patient enough to withstand boredom hodling for years. They had no idea Bitcoin is basically a long-term investment. Many of them even bought at the top. Also, many didn't educate themselves with the basics of the technology. In the end, they either sold below their buying price because they badly needed the money or lost it because they took a pic of their backup phrase and kept it in their phones.

So, I definitely agree to "set your foundation first, then buy Bitcoin." Or perhaps Bitcoin might not be for you.

Theses sets of individuals fall into the category of 'i saw them doing it, so I thought to give it a try'. These people do not have the knowledge and won't bother to make a little research about it but because they heard that it makes one filthy rich, their interest becomes piqued.
I like the fact that the op, despite his love for the tech surrounding Bitcoin and also his position as a financial advisor to pressurize this friend into making a decision he knows nothing about and could eventually regret in the future, but rather steered him in a path that's more 'safe' and suitable to the friend's personality because people like that may not know how to handle the pressure of when the markets start heading on a downward spiral or maybe a loss so it's best to use your head first and not get carried away by emotions or the excited chatters of financial freedom from coworkers.

[Churchillvv]

Sure you've done well with your offers!

Apparently, co-workers, Friends and family often only suggest and/or gives advise to anyone who they think needs it specifically on what they either regret not investing in or what they wish to invest in even though they are obviously limited in knowledge of (whatsoever investment) the invest they sure will offer you without any considerations.

And of course I wouldn't also gree 100% percent that one shouldn't take the advise of co-workers friends and family because sometimes this friends and family could be you @OP with all the in-depth knowledge hence saying one shouldn't take such advise might equally mean your relatives friends should disregard your advise "if all things being equal"

Well it is meant to be implied, though I should have been more specific of course as I've seen a few people mention this same thing..of course if your friend, co-worker, family member is a licensed professional then by all means, that's of course not what I'm saying. Now there are people who aren't advisors who are extremely knowledgeable.  My good buddy, someone I look up to and see as a bit of mentor @LesbianCow is probably the most well rounded financially savvy person I've ever met.  You should take advice from someone like him.  However, the issue becomes, how do you know that they are as financially savvy as they say.  I do, because of my trade..but the average Joe wouldn't.  There in lies the issue.  

Also guys, there's a HUGE difference between a veteran advisor and a "Financial Rep" (someone with say just a series 6 and 63), and an insurance agent (someone with a life and health insurance license).  They are NOT reputable sources of financial information.

Again, as always, my door is always open.

Of course this are probably the words I wanted to read in the first or second paragraph of the post and sure you can edit and include them to make things more balanced and reliable.

I often seek advice from a friend who is more like a brother now because his very smart with investment with and knows so much that I always want to hear his opinion on all my ideas before I could carry them out, yeah there is always a sign to know if one is really good/professional financial advisor but if one can't spot this traits then looking at what one have achieved can be a good way to know if someone's advise will be meaningful or not.