Rocket Ships, Tendies, and Diamond Hands

The past couple of weeks have been insane with the WallStreetBets thread and Gamestop fiasco. It is tough hearing all of the noise, through the news and friends, and not getting baited in for the quick cash but I’m trying my best to stick to my plan. That being said I’ve really enjoyed reading some of the funny comments on WallStreetBets and hearing the life altering stories.

I spent a lot of time this past week interviewing accountants and talking to financial advisors; I’m even meeting with a PersonalCapital financial advisor later today. I feel like I’m missing some things and it’s tough to know what you don’t know, but I think I’m starting to determine that I know I don’t know a lot of stuff when it comes to taxes (hopefully that sentence wasn’t too mind bendy).

I’m spending a lot of free time trying to find personal finance topics that people are interested in or having issues with and researching them. The latest example is the overfunded whole life policy, or what some are calling an infinite banking policy. The best way I can describe it, thus far, is one is slowly (appeared to take seven years typically to break even but dependent on underwriting class and product structure) setting up another asset, just like a house or stock account, from which they can borrow from in the future. Once this fund is capitalized one could borrow from it using their policy as collateral, and in the event of death the death benefit would be reduced by the policy loan. The cool catch is if you, for example, had a 200k cash value and took out a loan for 100k these contracts would still give you crediting on the full 200k. The crediting rate is a minimum guaranteed rate plus a dividend, as dividends are paid to the policyholders at a mutual company. It’s very similar to refinancing a paid off house, getting cash, but still capturing the possible appreciation on the full house value. The infinite banking policy may just be a little less volatile as the crediting rate has a minimum where as your house could theoretically decrease in value. It’s an interesting topic and I’ll be sure to write a post specifically on it but if you wanted to look into it yourself there’s a book that is steeply discounted in price, just pay for shipping, at Mapping Out The Millionaire Mystery Book – Chris Naugle

Now let’s get to those numbers. I will say, with Bitcoin being as volatile as it is, Bitcoin was about $46,250 per coin when I recorded these numbers.

10-day BS Refresh

Analysis Intelligence

The Opening NW in the 2/10/2021 column is the closing NW from the 1/31/2021 column. The green numbers represent estimated changes to my net worth in those categories (green numbers in 2/10 column are the changes that I estimated on 1/31). The white “Gain from” rows show how the actual numbers turned out compared to my original estimates, ten days prior. The big story since the 31st was that Tesla, which came out the morning of the 8th, was going to buy a bunch of Bitcoin and start accepting payment in Bitcoin. This was actually my biggest ten day increase since September, when I hit the two year mark on owning the MI houses and Zillow started being less influenced by the relatively low sale prices and more influenced by comparable houses.

Crystal Ball

While I will be collecting a paycheck for the first time since September it is time for winter taxes! That’s what will be depleting some of my cash over the next ten days. I also have a bunch of city fees, like a landlord fee and a annual rubbish bill.

Ideas for increasing NW/Learning

  • Figure out what I need to do to get a HELOC, for access to cash
  • Figure out how much I could contribute to an overfunded WL policy (ie look at my budget)
  • Finish my actuarial module so I can get my FSA, will be a 7k increase in salary
  • Revisit Tax Liens
  • Learn about Salesforce
  • Start analyzing how affiliate programs really work
  • I’ve had a friend ask me multiple times now to write macros for her. I was able to help her again last night and maybe should keep this idea open for as a way to help people and make some good money.
  • Seriously considering taking out my liquid trading account to put all into Bitcoin. More analysis to come.
  • Instead of relying solely on Amazon to sell my book I’m thinking to sell the books on my website as well. Should I just control the book sales in the same corporation as my real estate in Michigan?

Notes:

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