Posted by DigiNomad on 8th of May 2023 at 03:27 pm
I was talking to a client this weekend and said something like -
look, the best money manager is the one that can CONSISTENTLY
places your assets into sectors experiencing the most inflation
relative to your USD holdings (aka savings, if you're American).
Beware of money managers, and very wealthy individuals, going on
TV and Twitter to demand rate cuts...for the good of
society.
Posted by DigiNomad on 8th of May 2023 at 03:35 pm
Agree, for the most part. Once the ratio of your
investable assets to necessary annual income exceeds around 30 to
1, then inflation is your friend, as long as you know how to find
the asset classes that are inflating faster than the currency
you're using (this ratio is debatable - I personally go with 10 to
1 because I'm confident in a 10% return annually). So, you could
have W-2 income of a million per year, but if you also spend a
million per year, inflation is not your friend.
Another way to look at it, if you need 100K to get by per
year and have 3 million in assets (not including primary
residence), then inflation is your friend....but that's still very
middle class.
** There are a crap ton of assumptions built into this post.
Keeping things simple sacrifices accuracy.
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I was talking to a
Posted by DigiNomad on 8th of May 2023 at 03:27 pm
I was talking to a client this weekend and said something like - look, the best money manager is the one that can CONSISTENTLY places your assets into sectors experiencing the most inflation relative to your USD holdings (aka savings, if you're American).
Beware of money managers, and very wealthy individuals, going on TV and Twitter to demand rate cuts...for the good of society.
DigiNomad, could you explain the
Posted by junkie on 8th of May 2023 at 03:31 pm
DigiNomad, could you explain the underlying logic here? High inflation kills the middle class and benefits upper classes.
Agree, for the most part.
Posted by DigiNomad on 8th of May 2023 at 03:35 pm
Agree, for the most part. Once the ratio of your investable assets to necessary annual income exceeds around 30 to 1, then inflation is your friend, as long as you know how to find the asset classes that are inflating faster than the currency you're using (this ratio is debatable - I personally go with 10 to 1 because I'm confident in a 10% return annually). So, you could have W-2 income of a million per year, but if you also spend a million per year, inflation is not your friend.
Another way to look at it, if you need 100K to get by per year and have 3 million in assets (not including primary residence), then inflation is your friend....but that's still very middle class.
** There are a crap ton of assumptions built into this post. Keeping things simple sacrifices accuracy.