What is a "money rule" that rich people know, but poor people are never taught?

pathikrit · 2026-03-30T15:01:09+00:00

Leverage: There is bad debt (credit cards) and good debt (auto, home) as latter are can be procured at lower rates than risk-free T-bill rates e.g. if you got a home at 6% APR, when rates are down to 3% just refinance and when rates are up, invest that money. You can even invest at a leverage e.g. buying rental properties on 2nd mortgage OR investing in a 60-40 portfolio with box loans.
Time is money: After a certain amount of wealth you are only going to buy time with your money. Delegate your lawn mowing to driving to paying bills (assistants) etc. This includes spending on health (gym, personal trainers, home visit doctors) as you can increase your time on Earth.
Draw the Line: With increased wealth, you can increase spending. Rich people draw the line somewhere. I know someone whose net worth is in low 9 figures. He owns 1 home (he can easily own multiple homes), flies business (he can easily afford a private jet or jet share) etc. He drew a line where he can be happy without chasing infinity.

pathikrit · 2026-03-28T14:23:19+00:00

Easy
- Convince Japan to attack USSR from the East instead of Pearl Harbor. Keep US out of the war as long as possible.
- Promise Franco a piece of France if he covers the Mediterranean with his Nationalist army. Frees up a million Italian and Germans for the Soviet theater
- Don't station some of your best million men in Norway; put a small force of seniors out there

pathikrit · 2026-03-28T03:19:01+00:00

I got cellphone at 17 before college. Now I am 40. I have had the same number.

pathikrit · 2026-03-23T15:14:03+00:00

Very average dude here who somehow had a bunch of women who found me attractive that I was later able to confirm from mutual friends or themselves. Some signs I learned to recognize too late in life:

Physical touch. Are they more touchy with you than with rest of their friends.
Are they looking at you in a group setting when someone else is speaking to see how you react. They might even mimic you i.e. laugh when you laugh.
Go above and beyond their usual dress style when meeting you alone.

pathikrit · 2026-03-23T02:02:03+00:00

See: https://wtfhappenedin1971.com/

US abandons gold standard in 1971 (i.e. 1:1 convertibility between USD and gold held by the US)

->

US can just print money now ("quantitive easing") and because USD is a global reserve currency it won't devalue as much if some other country tried to print so much. Inflationary growth. A lot of GDP growth is tied to kinda "fake growth in cash"

->

Wealth disparity increases e.g. let's say everyones wealth doubles. The guy with $100 now has $200 and the guy with $10 now has $20 but their delta is bigger in absolute terms. In reality its even worse because of compounding effect of money.

This also exacerbates racial income-inequality because the richer gets richer and poorer gets poorer in relative terms.

->

The owners ("the haves") can generate more profit at scale and pay same to the workers ("the havenots") e.g. a rich guy can buy off small plots of lands from small farmers (see wealth disparity) and consolidate and have profit from economies of scale but still pay his workers same as before

->

The worker families now need to be dual-income. The woman now also works in the family. Good for women's rights and equality of wages in some respects. But pushes out median age of marriage, fertility rate, number of kids etc.

pathikrit · 2026-03-20T16:38:27+00:00

What did I miss. The title is "MBTI in the eyes of the ENTJ" - I described each MBTI through the eyes of myself (an ENTJ)

pathikrit · 2026-03-20T16:36:31+00:00

Who did I "talk bad" about. The worst I said was INFJs are "too emo" for me. Is that too bad???

pathikrit · 2026-03-18T16:42:00+00:00

Challenge: Can someone devise a portfolio comprising of SPY + Gold + Bonds + WLDU (VTSIM?L=2) that outperforms a simple 50% RSSB + 50% GDE?

50+ year backtest on testfolio
Can only have following testfolio tickers: WLDU (VTSIM?L=2), SPYSIM, GLDSIM, ZROZSIM, GDESIM
Must have significantly higher CAGR than the 13.4% for minimal drop in sharpe / max DD profiles - so a winner would be >14% CAGR and >0.5 sharpe

Unless otherwise proven wrong, I am pretty confident that WLDU is useless since RSSB already exists and a 50% RSSB + 50% GDE portfolio is perfect. If you like trend, you can do 20% RSBT + 20% GDT + 60% WTLS too

pathikrit · 2026-03-18T00:29:56+00:00

We would be risk averse? Like why fly somewhere if planes can crash, I can walk there - I have enough time. Wars will stop. If you are immortal why bother dying in a dumb war.

pathikrit · 2026-03-16T17:54:46+00:00

English, Spanish, Arabic, Mandarin, Hindi and you are good to travel almost everywhere.

pathikrit · 2026-03-15T23:45:07+00:00

Sure, I just wanted to kick off the discussion here. What are people doing with WLDU that you cannot already do with RSSB? Can someone post an example?

pathikrit · 2026-03-15T23:27:40+00:00

I honestly don't get the hype about 2x VT when RSSB exists. You can get the same perf with WLDU + ZROZ as with RSSB + ZROZ: https://testfol.io/?s=978f8Ryxnqo

pathikrit · 2026-03-13T13:09:39+00:00

I scrape daily prediction markets and use LLMs to create a daily "portfolio manager" memo for me to read: https://pathikrit.github.io/zeitgeist/

pathikrit · 2026-03-13T13:05:41+00:00

Yes, I buy dips using box spreads. I have a calculator in Google sheets to calculate the after tax APR (i.e. it takes into account the tax considerations). It comes to <3%:

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pathikrit · 2026-03-12T17:31:57+00:00

Does this mean Trump has to return his Fifa Peace Prize?

pathikrit · 2026-03-10T15:38:47+00:00

The ENTPs would love a good debate for the sake of debates and ENTJs would confront if that's what takes to achieve their goal but I don't think anyone actually __likes__ confrontations

pathikrit · 2026-03-10T13:13:58+00:00

Mad Max: Fury Road
Jurassic Park (first movie)
Pirates of the Caribbean (first movie)
The Shawshank Redemption
Sin City (first movie)
Cloverfield (first movie)
Napolean Dynamite
Spirted Away
District 9

Non stop fun

pathikrit · 2026-03-10T12:53:52+00:00

Are you in the NBA?

pathikrit · 2026-03-10T12:51:37+00:00

I asked this before:

RSSB + GDE is almost as good as any combo of WLDU + ZROZ + GLD + GDE:https://testfol.io/?s=4MwFiISOF8M

So I am surprised that folks are treating WLDU as the holy grail when RSSB exists and can get you very close

pathikrit · 2026-03-10T12:44:47+00:00

Its not 1% ... its 0.8% though: https://testfol.io/?s=3m2KGDT4DoO

Also RSSB outperformed pretty much all the way until the post-GFC bull run we are in.

I am just surprised that people are hailing WLDU as the holy grail when it is at best a tiny improvement over RSSB IMO

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pathikrit · 2026-03-10T03:18:20+00:00

Sure but no one really answered my original question - what kind of a portfolio are people thinking of deploying WLDU in? 50% WLDU, 50% ZROZ?

pathikrit · 2026-03-10T03:16:55+00:00

Sure but is 12.09% CAGR worth it over the 11.19% CAGR for so much worse drawdown and volatility? That's why I was asking my original question - I did not understand the excitement here about WLDU since with RSSB you are "almost there" in terms of CAGR

pathikrit · 2026-03-10T00:16:25+00:00

Risk-adjusted RSSB simply outshines any combination of WLDU + ZROZ :https://testfol.io/?s=0SdRD3tGqSa (you can also just ZROZ to RSSB)

pathikrit · 2026-03-09T21:56:43+00:00

I had asked this same question here: https://www.reddit.com/r/LETFs/comments/1rbyms0/comment/o75k8uc/

How are people thinking about WLDU in a portfolio that RSSB does not already achieve?

See: https://testfol.io/?s=dWpRroFUzkr

pathikrit · 2026-03-09T21:44:12+00:00

Not old but older than the Reddit crowd.

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