4 ms·

Gotta be honest, aside from learning skills you can barter with, that sounds like a wildly speculative strategy.

krageon 5y ago
> wildly speculative They're describing making friends. Granted, putting it next to a financial investment as some sort of equal is unconventional but it makes sense. It's not like having a wide social safety net is some sort of modern untested phenomenon.
- horns4lyfe 5y ago
  Yes making friends is a great way to live, no doubt, and has a much bigger effect on happiness than money does. As a long-term financial strategy, it absolutely does not make sense. They’re talking about using their money to make friends, which will not go well.
Mezzie 5y ago
It is. So is investing in the stock market when I can't choose when to pull out. Working for another year or two to wait out a bad marekt and planning when to retire and therefore when/how to shift my investments from riskier assets to more secure ones like bonds aren't an option. Given that the stock market is highly volatile (and I don't see that changing within the next 20 years), putting money in when I can't choose how and when to take it out is insanity. Plus a lot of assistance programs I'll need once I'm permanently disabled won't help me if I have assets. Saving up 200k is no good when I'm going to end having a relapse at 45 and spending it all on healthcare. (Versus spending it on things now which will continue to bear returns and then be eligible for help later). If I save money, odds are I won't actually get to use it. It will all go healthcare corporations/the government/care homes. I would greatly prefer something more stable (and this isn't my sole financial strategy - I specifically moved back somewhere with a very LCOL so I could buy and pay off a house in <10 yrs, for example, but that's less relevant); I'm a pretty risk-averse person. I mentioned it not because I think it's a good strategy for everyone, but because it's worth thinking of alternative systems in general. Currency is useful because it can be exchanged for other things; if currency is unobtainable for whatever reason, seek alternatives.
- horns4lyfe 5y ago
  You have a lot of good points there, and I do appreciate your greater kind of “life strategy” I guess. In particular, I just don’t think the idea of giving lots of money to a non-profit and expecting some kind of return on it in support (financially or otherwise) is likely to pay off. If the idea is just being a charitable person as part of your ethos, awesome. As an investment not so much. That said, your point about benefits and all your money going to healthcare anyway certainly gives me pause.
  - Mezzie 5y ago
    You misunderstand a little bit. I'm not donating to food banks/mutual aid/related nonprofits solely in hopes that they'll give me a financial return. It's also in part so that said places exist when I need them. For instance, a lot of places shut down in 2020 and 2021, helping to keep them open means they can help me in 2028 if I need it. I'll also note that the nonprofit/donor part is the most speculative part. It's the social portfolio version of individual stocks. If you did ONLY that, it would be very silly. And of course it depends on the money you have versus the money that's being thrown out around you. I live in a rust belt town where the average income is 24k. Also, disability presents a lot of perverse incentives. Again, it's less 'do this!' and more 'If you can't get ahead, consider not playing for a while.' One example is that people receiving SSI literally can't have more than 2k in the bank. This...presents substantial difficulty. And if I need assisted living, the government will literally take everything that isn't my house first. (Hence why I AM prioritizing owning property). If you want to maximize financial return, do not do this. But since the OP mentioned 'safety', and safety is often less about the access to cash than the access to resources cash can provide, so it may be worth trying to secure them directly.
- giantg2 5y ago
  If you want stable, maybe look at fixed income investments. Annuities cab be a good option to look at, and are overlooked by many.

> wildly speculative They're describing making friends. Granted, putting it next to a financial investment as some sort of equal is unconventional but it makes sense. It's not like having a wide social safety net is some sort of modern untested phenomenon.

horns4lyfe 5y ago
Yes making friends is a great way to live, no doubt, and has a much bigger effect on happiness than money does. As a long-term financial strategy, it absolutely does not make sense. They’re talking about using their money to make friends, which will not go well.

Mezzie 5y ago

It is. So is investing in the stock market when I can't choose when to pull out. Working for another year or two to wait out a bad marekt and planning when to retire and therefore when/how to shift my investments from riskier assets to more secure ones like bonds aren't an option. Given that the stock market is highly volatile (and I don't see that changing within the next 20 years), putting money in when I can't choose how and when to take it out is insanity. Plus a lot of assistance programs I'll need once I'm permanently disabled won't help me if I have assets. Saving up 200k is no good when I'm going to end having a relapse at 45 and spending it all on healthcare. (Versus spending it on things now which will continue to bear returns and then be eligible for help later). If I save money, odds are I won't actually get to use it. It will all go healthcare corporations/the government/care homes. I would greatly prefer something more stable (and this isn't my sole financial strategy - I specifically moved back somewhere with a very LCOL so I could buy and pay off a house in <10 yrs, for example, but that's less relevant); I'm a pretty risk-averse person. I mentioned it not because I think it's a good strategy for everyone, but because it's worth thinking of alternative systems in general. Currency is useful because it can be exchanged for other things; if currency is unobtainable for whatever reason, seek alternatives.

horns4lyfe 5y ago
You have a lot of good points there, and I do appreciate your greater kind of “life strategy” I guess. In particular, I just don’t think the idea of giving lots of money to a non-profit and expecting some kind of return on it in support (financially or otherwise) is likely to pay off. If the idea is just being a charitable person as part of your ethos, awesome. As an investment not so much. That said, your point about benefits and all your money going to healthcare anyway certainly gives me pause.
- Mezzie 5y ago
  You misunderstand a little bit. I'm not donating to food banks/mutual aid/related nonprofits solely in hopes that they'll give me a financial return. It's also in part so that said places exist when I need them. For instance, a lot of places shut down in 2020 and 2021, helping to keep them open means they can help me in 2028 if I need it. I'll also note that the nonprofit/donor part is the most speculative part. It's the social portfolio version of individual stocks. If you did ONLY that, it would be very silly. And of course it depends on the money you have versus the money that's being thrown out around you. I live in a rust belt town where the average income is 24k. Also, disability presents a lot of perverse incentives. Again, it's less 'do this!' and more 'If you can't get ahead, consider not playing for a while.' One example is that people receiving SSI literally can't have more than 2k in the bank. This...presents substantial difficulty. And if I need assisted living, the government will literally take everything that isn't my house first. (Hence why I AM prioritizing owning property). If you want to maximize financial return, do not do this. But since the OP mentioned 'safety', and safety is often less about the access to cash than the access to resources cash can provide, so it may be worth trying to secure them directly.
giantg2 5y ago
If you want stable, maybe look at fixed income investments. Annuities cab be a good option to look at, and are overlooked by many.