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[Unscripted] The Unscripted money system, your last business ever미묘한 영어 2022. 9. 13. 13:42
In terms of the growth of your assets, CENTS business and productocracy is the answer.
But after growth, you need to allocate your Unscripted money into three pots, the fuck you pot, the home pot, and the paycheck pot.
Fuck you pot
First, the 'fuck you' pot is idle cash sitting in your account, usually doing nothing. The purpose of this pot is not about yields or returns, but about options. For example, if you want to invest in biotech stocks hoping they explode in the future, the FU pot is where you draw money from. If your dream house comes up for a foreclosure sale, you can steamroll the competition with this cash. It's a liquid call option on an opportunity.
You might worry about idle cash not being invested in the market because of inflation. Inflation is real, but its real impact on a Scripted life is negligible.
Money in the FU pot is money you are willing to lose, but not to the extent of threatening your life. Even if you will have lost the FU pot, you just depleted the pot for the next opportunity.
The Home Pot
The optional home pot is your dream home free of mortgage. Your biggest lifetime expense will be your home. If you remove this expense, money will never be an issue. The reason why it's optional is you can alternatively have the most important and large enough 'paycheck pot' to pay your monthly mortgage or rent without issue.
The Paycheck Pot
The paycheck pot is the passive income system that pays your bills and funds your lifestyle. Such systems can be bonds, ETFs, options, stocks, bank deposits, investment trusts,s or anything that delivers a published, predictable yield.
The purpose of the system should be income, not growth. Once a 5 percent return on your paycheck pot is a large enough income to make you happy, you can fund the rest of your money as you wish.
You need to switch from a busy entrepreneur to a semiretired entrepreneur living off investment income. Instead of managing a business of business, you manage a business of money. A money system is a capital rental system, like a real estate investor who collects rent on his properties regularly. Instead of physical assets, you cede control to your money.
There are 6 major instruments we deploy our money to get rents.
: stock dividend, REIT dividends, MLP partnership income, bond interest, loan interest, managed income
SO,CVX,MMM
AVB,DLR,EQY
Rules for the paycheck pot
the rent rule
Anytime you cede control over your money, demand rent. Don't expect a pipe dream to come true in the future. You have to secure the regular rent.
the snap rule
The paycheck pot investments must remain highly liquid, or recallable back to cash at the snap of a finger.
the apoclayse rule
Your money should be trusted to largely recognized megalithic companies that would be threatened only by the apocalypse situation like hyperinflation of our fiat currency or the collapse of our banking system. Stick with larger companies.
the three years in three months rule
If any of your investments appreciates unrealized gains greater than three years in dividens in any three month period, sell and take the profit.
The Admiral Ackbar rules
The old saying, if it’s too good to be true, it probably is.
The farther you get from the yield of the S&P 500, the larger the risk.the 1% rule
Besides asset devaluation, management fee is another threat to your 1% standing.
Avoid any fund with a management fee including commisions, front loads etc. greater than 1%, exluding interest charges. Personally I shoot for less than .5 percent and avoid any investment with a front load or a commission.The Ostrich rule
You should avoid investments where the business no longer jives with either the cultural or economic climate.
Be clear of potentially troubling investments like dying industries or fads(Crocs, Krispy Kreme).
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