4 ms·

As someone who owns shares at a company preparing to IPO, all I can say is I'm at least fortunate to have a stake in the massive asset bubble. The last thing I

As someone who owns shares at a company preparing to IPO, all I can say is I'm at least fortunate to have a stake in the massive asset bubble. The last thing I'll be doing is buying a house in the Bay Area though.

umeshunni 7y ago
Exactly. Why exchange one inflated asset for another inflated asset when you can cash out and keep them in T-bills (or even a broad ETF), instead.
- fullshark 7y ago
  Well you can actually live in one of them.
  - raverbashing 7y ago
    If you suspect the price of the asset will go down, then it's better to rent than to buy it
- leet_thow 7y ago
  Plus I figure the majority of people who have significant gains likely vested around 2011-13 and are closer to middle age now like myself and are thinking about family and retirement, not wine cellars and penthouses.
  - brij0102 7y ago
    wine cellars and penthouses can definitely be part of retirement :)
- whb07 7y ago
  Talk about burning money. Treasury bills are returning negative real rates. Back in the 80s there was a brief window where treasury bills hit close to 15% and that’s because they were thought to be suspect. Perhaps we should get back to rationality and start suspecting that massive deficits and printing Monopoly money isn’t so good for the future.
friedman23 7y ago
Agreed. Working in the Bay Area makes sense despite the massive cost of renting because savings are just as large. So if you spend 10 or so years in the Bay Area and move to another part of the country you could live very well.
- aantix 7y ago
  That’s how my wife and I paid off our student loans. We lived in non-trendy neighborhoods (Excelsior and Daily City) but within a 1.5 mile walk to bart. saved a ton of money just because of that. There’s so much more leverage regarding engineering compensation in the Bay Area. Keep housing a spending relatively in check, and you’ll accumulate savings the Midwest could only dream of.
- dsfyu404ed 7y ago
  Moving away from your professional network when you're only 10yr into your career is not advice often given to people looking to "do well" Edit: Sine apparently it doesn't go without saying, for a great many people (dare I say majority) career advancement (and the compensation that comes with it) is the most practical path to a happy life.
  - sologoub 7y ago
    Doesn’t that depend on OPs priorities? Maybe they are more into FI than career advancement and want to move to a low cost area?
  - chubot 7y ago
    live well != do well . The misquote is telling :)
    - deleted 7y ago
      [deleted]
mbesto 7y ago
> The last thing I'll be doing is buying a house in the Bay Area though. The two are actually interrelated. Lots of people of amassed an incredible amount of wealth from the housing market in the bay area and is largely due to wealth generated from tech (which then trickles down to lawyers, real estate agents, etc). I'm not sure why you think the one (tech companies) is an easy "all-in" and the other one is completely (real estate) "hands-off". I would think most people would think the opposite, since real estate has a much more tangible asset to realize.

umeshunni 7y ago

Exactly. Why exchange one inflated asset for another inflated asset when you can cash out and keep them in T-bills (or even a broad ETF), instead.

fullshark 7y ago
Well you can actually live in one of them.
- raverbashing 7y ago
  If you suspect the price of the asset will go down, then it's better to rent than to buy it
leet_thow 7y ago
Plus I figure the majority of people who have significant gains likely vested around 2011-13 and are closer to middle age now like myself and are thinking about family and retirement, not wine cellars and penthouses.
- brij0102 7y ago
  wine cellars and penthouses can definitely be part of retirement :)
whb07 7y ago
Talk about burning money. Treasury bills are returning negative real rates. Back in the 80s there was a brief window where treasury bills hit close to 15% and that’s because they were thought to be suspect. Perhaps we should get back to rationality and start suspecting that massive deficits and printing Monopoly money isn’t so good for the future.

friedman23 7y ago

Agreed. Working in the Bay Area makes sense despite the massive cost of renting because savings are just as large. So if you spend 10 or so years in the Bay Area and move to another part of the country you could live very well.

aantix 7y ago
That’s how my wife and I paid off our student loans. We lived in non-trendy neighborhoods (Excelsior and Daily City) but within a 1.5 mile walk to bart. saved a ton of money just because of that. There’s so much more leverage regarding engineering compensation in the Bay Area. Keep housing a spending relatively in check, and you’ll accumulate savings the Midwest could only dream of.
dsfyu404ed 7y ago
Moving away from your professional network when you're only 10yr into your career is not advice often given to people looking to "do well" Edit: Sine apparently it doesn't go without saying, for a great many people (dare I say majority) career advancement (and the compensation that comes with it) is the most practical path to a happy life.
- sologoub 7y ago
  Doesn’t that depend on OPs priorities? Maybe they are more into FI than career advancement and want to move to a low cost area?
- chubot 7y ago
  live well != do well . The misquote is telling :)
  - deleted 7y ago
    [deleted]

mbesto 7y ago

> The last thing I'll be doing is buying a house in the Bay Area though. The two are actually interrelated. Lots of people of amassed an incredible amount of wealth from the housing market in the bay area and is largely due to wealth generated from tech (which then trickles down to lawyers, real estate agents, etc). I'm not sure why you think the one (tech companies) is an easy "all-in" and the other one is completely (real estate) "hands-off". I would think most people would think the opposite, since real estate has a much more tangible asset to realize.