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> * houses yield somewhere around 1% above inflation But buying a house is the only way I can leverage such a massive amount and I have to have housing anyway.
by reedjosh 5y ago
> * houses yield somewhere around 1% above inflation
But buying a house is the only way I can leverage such a massive amount and I have to have housing anyway. It also fixes my housing costs in contrast to renting.
Further, I can sell my house and take gains without paying taxes on the gains. I can't do that with stocks.
> Don't rely on credit cards for emergencies.
I'll also be able to sell metals/stonks/cryptos if need be, but overall I'm just not risk adverse. If I end up selling to get by and lose some, I see that as just making up for what I would have already lost by holding too much cash.
- dmoy 5y agoI should note that the 90% credit drop also coincided at a time when my investments crashed by 50%+, which would have been an extremely suboptimal time to pull out money. That would have wiped out like 10 years of growth. I strongly, strongly encourage you to put aside at least 3 to 6 months' worth of expenses outside of risky investments.
- tylerhou 5y agoTo add on to your point, the core issue is that you need to take into account correlated risk when deciding on your investment strategy/risk tolerance. If you're at the point where you need to dip into an emergency fund, it's possible (maybe even likely) that the entire financial market is burning. You will need access to capital when nobody has access to capital, which will make borrowing very expensive or impossible.