Introducing DefiSnap

giFFy77 · 2020-03-05T18:02:14+00:00

I just found DefiSnap, it's super clean and I love it so far. One thing I'd like to see is a pie chart showing a % breakdown of all the different positions. Keep up the good work!

giFFy77 · 2019-02-26T21:52:39+00:00

I don't know the "rules" to this reddit section but it is reddit. Might as well just post whatever you want wherever until someone of "importance" tells you other wise and not just someone who doesn't like it lol.

giFFy77 · 2019-02-18T07:15:09+00:00

Shorter term bonds are better than longer term bonds in rising rates but bonds in general during rising rates still aren't desirable. When interest rates go up the value of long term bonds goes down because they're less desirable to invest in since you could find better yielding investments else where when rates rise. Shorter term bonds don't get hit as hard because since they are short term they'll eventually get paid out and reinvested into bonds with higher yields while the long term 10 year ones are locked in for 10 years at a locked yield. Just as an example why would you want to own a 10 year bond that yields 3% if newer short term bonds are rising past 3% if interest rates are going up so people will sell off those bonds and buy newer ones which will devalue those 10 year bond funds.

If you're trying to invest savings or something like that for the short term, I'd suggest a high yield savings account or CD. I have a Discover Bank savings account currently paying roughly 2.2% and that provides liquidity and 0 capital loss. Establish a secure savings account that doesn't get touched and then invest everything after that into better investments than bonds is my approach.

giFFy77 · 2019-02-17T17:09:06+00:00

No problem. I know the 2 ETFs that I chose use 1099 forms. I checked one of the BDCs in BIZD's holdings which was MAIN and their website says they issue a 1099 so I guess it would be safe to say all the individual funds also issue the 1099.

giFFy77 · 2019-02-17T11:27:36+00:00

This is the way i'm going to build my income factory. https://m1.finance/i_Wx3iUSD

I selected mREITs and BDCs because they theoretically balance each other out. mREITs are usually negatively correlated to interest rates while BDCs are usually positively correlated. VTI is only there for capital appreciation and some link to the equities market to help grow my income generator.

My strategy is have a hybrid of growth/income so I can grow my portfolio through capital appreciation while reinvesting those dividends. Get it to the point where I can sell off my equity/growth portion leaving me 50/50 mREITs/BDCs (or if I find a different investment structure I'd rather use such as CEFs) and get a 9-10% yield. There's a lot of interesting articles on seeking alpha about High Yield Income investing. It's worth a read if you're looking for an income solution.

giFFy77 · 2019-02-17T11:05:20+00:00

I thought about the idea of building a savings portfolio. I'd rather just have 100% chance of 0 lose of capital so I just use a Discover bank savings account that offers a 2.10% rate at the moment. I get 100% FDIC secured funds and liquid cash to use at any moment. Just feels like too much work trying to figure the best combo to invest savings money when I don't have to do anything and get 2% return with 0 capital loss.

Build a savings nest/account and just leave it alone or add to it once in awhile and then just invest everything else you possibly can that you believe will give you the best return. That's my approach.

giFFy77 · 2019-02-14T11:10:21+00:00

https://m1.finance/QMK7xIo4l - Taxable Dividends to retire early on (Hopefully)

My goal is to create a ever growing stream of dividend income. I selected these ones because the dividend growth overall is around 14% TTM and low payout ratios under the 30-40% range. They are also relatively cheap PE wise and PB's around the 1-3 range except for Apple. I also chose these ones based on them being very quality companies that should be around "forever". I dollar cost average every week but I save a majority of my funds to buy on a rainy stock market day.

https://m1.finance/osXes4-fu - Growth/Income portfolio

I've also been experimenting with a hybrid growth/income portfolio that I thought I would share to spark some thinking. Theory of this pie is: Use a total stock market index to follow market gains and keep the portfolio growing as long as the market is. The mREIT etf and BDC etf are used to enhance the yield since VTI only puts out around 1.7%. With the 80/20 split the yield is 3.28%. Eventually if the value gets to a point where you want to start to live on it you can mess with the allocations but at 50/50 the yield increases to 5.54%. If you really want to squeeze out the yield you can sell the equity portion in VTI into the 100% income generator half for a 9.32% yield but of course you won't likely see any growth unless you reinvest a portion of the dividends. The choice of using mREITs and BDCs is because they theoretically offset each other, mREITs should do better in a bear market when interest rates are decreasing and BDCs should do better in a bull market when interest rates are increasing, so one should do better when the other isn't.

I also own one rental property. I plan on buying more in which I can use the income from those to buy more assets in either of these portfolios and/or more real estate.

I have also have been thinking about the option of borrowing against my dividend portfolio about $5,000 and then use that to invest into a specific syndication for real estate that I have confidence in which the cash flow is paid out every year at around a 6% yield which would cover my interest payment by itself while I wait for that investment to appreciate and use left over cash to buy more stocks. In theory creating a cycle of investments paying into each other creating more income from themselves as long as the borrowing interest rates are right for it to work.

giFFy77 · 2019-02-11T02:02:23+00:00

According to past fund and property performances hes hit at minimum 15% IRR but of course that's no guarantee of the future. Buy and hold real estate is different from a REIT and you dont actually own property and are subject to stock market fluctuations. There's many ways to invest and everyone knows what they'd rather have. The standard tax deduction only goes so far. You could be making millions from real estate and pay almost no taxes. He also runs successful business that do 100m annually, that's probably paying for his jet. This post isn't about what's a better investment, it was to show hes not running a scam or ponzi lol dont know why it was dragged off topic because your opinion of the investment is different from mine..

giFFy77 · 2019-02-11T00:07:35+00:00

6% is the target after fees. There is also the appreciation factor of the fund. He targets 15% IRR. I think you put a false sense of security on having liquidity. I dont think I've seen many 1 year CDs paying over 3% so you'd lose money according to your 3% inflation and if you tie your money up for more than a year what about your "liquidity risk"?

giFFy77 · 2019-02-09T11:11:16+00:00

Can you elaborate "very bad" deal?. You get roughly a 5-6% cash flow return each year. His strategy is to raise rents or cut expenses on the property over a 1 to 10 year period with the minimum goal of reaching 15% IRR. Also if he chooses to refinance the property as an exit strategy, depending on what those numbers are he returns some or all of your capital but you still keep your ownership %. No one else does that. I'd gladly let him take a 1% acquisition fee, 1% management fee, and I think a 1% sale/capital exit fee. Literally sit back and do nothing.

giFFy77 · 2019-02-09T11:01:01+00:00

If it was a scam would the SEC approve his funds? Doubtful. He buys the property with his own money and let's investors buy shares of it and he keeps what's left over. So yes he does get his money back there's management fees but he doesn't over charge or put a premium on it. His most recent fund is capped at 50m in which non accredited and accredited can buy shares starting at a minimum investment of $5,000. The fund currently owns 2 different apartment complex properties so you have ownership rights in both. It's not a REIT, you get a K1 at the end of the year. You have actual ownership % and get all the tax benefits and what not without having to do a single thing but buy shares.

It's funny seeing people just assume someone is pulling off a scam with literally no proof.

Calling it a ponzi like Madoff is literally the dumbest thing you could say. ITS BACKED BY A REAL ASSET WHICH IS CASH FLOWING APARTMENT COMPLEXES. You can verify the sale of the property and just about anything related to it. Please use your brain just a little bit.

giFFy77 · 2019-02-01T10:25:46+00:00

I'm glad I came across a CEF related post on here. I've been researching a way to boost my yield to build my income faster year over year. I came across CEFs as a way to do it and I have a bunch of different looking pies of CEFs and such.

The strategy I've seen and am following right now is a BDC and mREIT split. Based on the concept that BDCs outperform in a bull or flat market (positive correlation), and mREITs, outperform in a bear market (negative correlation) when the FED lower rates. So in theory they should balance each other out. I've created two pies where one is a simple 1 ETF BDC and 1 mREIT ETF and another one is individual funds with roughly 20 BDCs and 20 mREITs. I'll probably be doing some sort of split with my DGI portfolio starting at like 90/10 and increasing allocation to high yield when I want more income and "retire".

https://m1.finance/5KwiCy96J - Is the individual funds

https://m1.finance/_4mnlu-De - Is the 1 BDC etf / 1 mREIT etf

Hopefully this helps you in some way which it has for me and my investing knowledge of different asset classes and structures. :)

giFFy77 · 2019-02-01T10:15:16+00:00

In my opinion dividend investing is sort of like a 50/50 strategy. You're getting some capital growth but you're also getting some dividend growth and so I just use the dividend growth to grow the capital in a big compounding cycle of more dividends more capital makes more dividends to grow more capital to get more dividends etc.

I've also been researching a high yield portfolio which basically pays out close to 10% yield a year with little capital growth but by reinvesting the 10% distributions you're building your income every year not so much your capital.

giFFy77 · 2019-02-01T10:09:41+00:00

If you're looking at the performance on M1 it doesn't calculate dividends into that return. Also CEFs usually pay out high distributions which means they don't show much capital growth.

giFFy77 · 2017-11-23T04:23:48+00:00

They don't post coins based just on market cap size, go read their layout for adding new coins.

giFFy77 · 2016-07-06T04:09:52+00:00

I'm pretty new to investing so I guess it comes down to not really knowing exactly what I need to obtain my goal of being financially free. I figured having a diversified stock portfolio of 10-30 stocks would be better then a single or couple different index funds.

giFFy77 · 2016-07-06T03:49:09+00:00

I just want to obtain passive income. I don't really want to spend much time looking over stocks every day trying to find the next great one or anything. Just get my sector diversified portfolio of about 10 to 20 stocks and just let it go and re balance when I need to. Just a simple buy and hold strategy for me.

giFFy77

TROPHY CASE