Cost of college vs Crypto, Gold, Silver
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A few months ago a friend of mine asked me "Mack, I have 200k saved for my daughters college which will start next year. Do you think its worth it." It was in Northern California so this is the norm. He knows Im an investor and his angle was more to impress me expecting I'd say of course. My response was "No, I dont think it is at all" which got his attention and he asked why.
My response - in thirty years would you rather dig up 200k of USD from 2016, or a pile of gold that was worth 200k in 2016. This is an old argument, but he said "gold of course, but I'm investing in her education." Fair enough and he asked me what I would do.
"Knowing what I know today, the world is in debt, unstable and no guarantees. I would put 30k in physical gold and 20k in physical silver. Then put 10k in a goldmoney account in singapore so you have liquidity if gold rises and the dollar falls. I would put 30k in bitcoin and 10k across a few other crypto's. Now you have 100k left so take 25k of that and buy three stocks that are totally dominant with staying oower which was Apple, Google and Amazon. Now you have 75k to invest in her actual education.
Tell her to go travel and get jobs she lives. Be a snow ski instructor, work on a cruise ship, live in a hostel and learn french, teach english in Thailand for a few years, dont worry about how much you make, but how happy you are. Use 10k a year to supplement the low income, but soak it all in and look for opportunities. Not for career jobs, but ideas, things your passionate about.
Do that for as long as you can. Six years, eight years. On day she will wake up and realize she never has to work again because of the original investments and she will have lived a great life, maybe a great love and get married along the way.
Or you can pay the 200k, you both will end up more in debt by the time its over and be a debt slave for the rest of your life. He of course winced at my suggestion and said "no, she's going to college."
Hindsight is always easy and of course no gurantees in the future - but the 40k in crypto would be over 200k today. The 50k im metals would be 60k and positionex for the future and the FANG stocks all went up.
Its easy for me to have said that because ita not my daughter and not my money, but i would like to think Id push my child towards a world education mixes with specific tech classes from around the world and bypass the college brainwashing.
What do you think you would do with 200k, send your kid to college? Is it worth it these days. I didnt know about Steem, but a kid could even start a blog in Steem for their future.
To this day ive tried to get him to put 1k in bitcoin and hes just too afraid its a scam.
What you are paying $200,000 of government paper for is another government piece of paper that says you know what you are talking about, even if you don't know what your talking about. The same knowledge you are paying $200,000 for you can get for free on the net. It's all about a piece of paper. Like you advised to your friend, your better off doing something you enjoy doing and the money will come. Cheers
Exactly. When I went to college I could pay for half the costs working a part time job, my parents paid a small amount and my student loans were small. I paid off the loans within three years. People are now graduating with 10's of thousands in debt and it makes no sense to me. I read an article last month about the percentage of student loan funds that are spent on spring break and it was both surprising and disturbing. At the local sports bar I live by in northern california, I'd say that 5 out of 6 employees have dropped out of college and that was after taking out loans for the first year or two. They are working as bartenders and waitresses to pay for loans even though they dropped out.
And they could of got the same job they are doing now, without spending all that time and money on a degree of worthlessness. If they just got a descent job to start with, saved and invested the money, they would already be ten years ahead of where they are now. Cheers
It is amazing how many people think bitcoin is still a scam. Great article. Thanks!
I have told at least twenty friends that I will send them a Coinbase invite and that we both get a $10 bonus if they buy $100 worth and that I will send them the $10 as soon as they setup the account even if they dont buy $100. I still cant get someone to take a free $10. Its for their benefit, get $120 of bitcoin for $100. Still resistant. I gave up.