AI and how to use it in your life and career, debt ceiling and what happens next!!
Crypto News and what is means for the US market.
👋 Hello Everyone.
Well the debt ceiling got raised as expected. Now what does that mean for us and the economy? I don’t see it making a huge difference as it was expected to pass but there are some key takeaways: 1) It will ease the minds of Investors which is a plus for the overall equities markets. 2) Student loan payments will begin again so that will impact millions who might not be prepared to make said payments 3) With the pullbacks on spending by the federal government (meaning less money being pumped into the economy) we can expect slowed economic growth for the next 2-3. So all in all not the worst news and certainly some stability will occur through this.
Gensler and the SEC have now gone after Binance and Coinbase. What does this do to the crypto markets and how we purchase crypto in the near future. That is the billion dollar question. Could this be a major blow to crypto - yes. Do I still think crypto will prevail in the long run - yes. So what do we do for now? With so much good news but even more looming bad news which direction do we go. My opinion is - maybe we just have to sit tight. I could see the SEC and Gensler getting their legs cut down through all of this based on a few points. 1) Never really providing a clear path of regulations for these platforms to follow. 2) Governmental overreach. 3) The potential for corruption. So my thought is to keep following and researching while cutting back on further investment for now. I still believe that crypto will be the future and that it will be life changing from an investment return perspective but I definitely think its not a bad time to pump the breaks a little.
Repeat: (I feel this section is worth displaying again) As scary as it sounds I feel it is still business as usual, although with a heightened awareness. There is money to be made all around us, even with so many uncertainties. So where to start? In my opinion its starts with a well-rounded portfolio (index funds, ETFs, stocks, crypto, precious metals, real estate, art) that helps all of us hedge against the broader market issues. So what do I like and what is working right now:
High Yield savings accounts. I like Marcus, Wealthfront and UFB direct. But do your own research and pick one that you are comfortable with. This is free money and better than leaving your funds parked making nothing.
Treasury Bills. This is a great product to integrate into your portfolio. Paying a yield of over 5% right now treasury bills are a great way to make passive income while also having tax benefits. Check it out at Public.com (use my link in bio to get FREE stock. The affiliate code is richhabits!
The key takeaway is to make sure you are simple not leaving your money parked. Inflation rates are too high to not have your money working for you.
📣 Is direct index investing better overall vs traditional ETFs/Index Funds !!!!!!
The profitability of direct index investing compared to traditional ETFs can vary depending on several factors, including investment strategies, market conditions, fees, and individual preferences. Below are some points to consider when comparing the two approaches - and remember direct index investing is very hands on. That is why I generally prefer traditional strategies and let others do the heavy lifting.
Customization: Direct index investing allows for greater customization compared to traditional ETFs. With direct indexing, investors can construct portfolios that precisely match specific indices or implement personalized investment strategies. This level of customization can provide more control and potentially lead to better performance if the investment strategy aligns with the investor's goals and market conditions.
Tax Efficiency: Direct indexing may offer potential tax advantages compared to traditional ETFs. By owning individual stocks or securities, you can selectively harvest tax losses, manage capital gains, and potentially reduce tax liabilities. This tax management flexibility can be particularly beneficial for high net worth individuals or those with specific tax considerations.
Cost: Cost is an important factor in investing. Traditional ETFs are generally known for their low expense ratios, making them a cost-effective investment option. Direct indexing, on the other hand, can involve higher costs due to potential trading and implementation costs associated with managing individual securities. Keep this in mind whether choosing to self manage or have an advisor help.
Diversification: Traditional ETFs offer broad diversification as they typically track a market index or sector. This diversification helps spread risk across a basket of securities, reducing exposure to individual stock or sector risk. Direct indexing may offer the ability to customize and potentially enhance diversification, but it requires careful portfolio construction to avoid concentrated positions.
Accessibility: Traditional ETFs are widely available and easily tradable on exchanges, making them highly accessible to individual investors. Direct index investing, on the other hand, may have higher barriers to entry, as it may require a higher minimum investment, specialized platforms, or the use of specific financial advisors or institutions.
I hope this helps any of you that are considering this strategy. I personally don’t think it is a good strategy for those without professional advisory and a very high net worth. But it does have its advantages so I thought we should touch on it.
Before making any investment decisions, it's recommended to conduct thorough research, consult with a financial advisor, and consider the potential risks and rewards associated with each approach.
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🎙️ I am also really excited about how quickly the podcast has grown. So thank all of you that have downloaded and given it a listen. We have climbed the charts very rapidly and we are currently ranked #13…For those of you that have not stopped by it is the Rich Habits podcast on Spotify and Apple. And please feel free to DM me or message on any platforms and let me know your thoughts and takeaways. For all PAID community members please note that the private livestream is up and running and I am so excited for what we will be covering this week. It is scheduled every Thursday @ 7pm EST.
💸 Student Loan payments are back-and the question is are you ready for them?
Federal student loan payments have been paused for over 3 years with no interest or payment accumulation and that all ends August 31st of this year. What does this mean and how do those with these debts make the necessary adjustments to begin paying again? I hope the answer is that you have been putting away the necessary funds monthly and putting said funds into a high yield savings or maybe treasury bills. But if thats not the case it’s time now to get ahead of it since you have 2.75 months to get some funds ready as the payments kick back in.
Keep in mind that you will likely see interest start accruing in August with payments beginning end of September. Now I know we have been down this road before but it is important to understand that you have to be prepared and you can not default on these loans. If you do it can result in damaged credit, the government garnishing your wages or even the seizure of your tax return. So those of you that will have to deal with this just - 1) be prepared 2) make the payments 3) budget now to get ahead of it.
🚨 Artificial Intelligence (AI) updates, investment opportunities and the best platforms to use. And why you should be learning AI to help you become more efficient in your business and personal life.
Lets start by discussing some of the best platforms to use and why:
Midjourney AI: the platform allows users to generate images based on textual descriptions, creating a wide range of art forms, from realistic to abstract styles. Midjourney is especially known for its high-quality, well-structured, and detailed images.
Fliki: It offers a wide variety of AI voices in different languages and regional dialects. The best feature os that is allows you to convert text into audio and video content. It is vary helpful for creating stories and other content.
Looka: This one is great if you are just starting a new company or rebranding a current company. Looka logo maker uses your preferences and runs it through AI to create really nice custom logos and branding concepts.
Beautiful AI: Is web based and helps you create amazing presentations. It uses AI to design the slides based on the inputs you provide it. It handles all of the fonts, colors and animations for you.
Chat GPT 4: Simple and solves anything for you. It is important for you to get started and testing with GPT4. The prompts are the most important aspect of getting the most out of it. So recent prompt writing and once you get the hang of it you can carve hours out of your week for writing tasks.
What Stocks, ETFs, and Cryptos in the AI sector are we DCAing into? Do your own research as always.
Stocks: Nvidia, AMD, Microsoft, Google and Micron.
Index/ETFs: AIQ, LRNZ
Cryptos: OCEAN, FET, AGIX,
Just getting started in crypto? It’s not as scary as one would think. You can open an account and attach your bank account pretty quickly and easily. I like Public.com (there is a link in my bio - use the affiliate code “richhabits” for a FREE $10 in stock when you fund the account).
🤔 Getting started in REAL ESTATE?
If you are just getting started I am a huge fan of trying REITS (Real Estate Investment Trust). I really like Fundrise and think it is great for beginners. You can simply download the App, attach your bank account and invest for a little as $10 dollars. The beauty of a REIT is that you can create passive income while getting your feet wet in Real Estate. Now as you grow and learn through this passive strategy then you can look at taking larger shots and doing it on your own.
Weekly Book Excerpt (Napoleon Hill - Think and Grow Rich)
“Most great people have achieved their greatest success just one step beyond failure” We all know that I love this book and think that everyone should read it. And this quote is just another example of the great guidance Napoleon Hill provides throughout. And this quote does go both ways in my opinion. Many people give up too soon on their dreams when they may be one meeting, phone call or customer away from a totally different life.
Money Mindset - Weekly insights
I am so proud to announce my affiliation with Acorns. I know you all have heard me talk about this awesome platform for years but now I am officially working with them and I couldn’t be more excited. If you haven’t used Acorns yet its a must in your wealth building journey. Even if you use it just for the roundup feature.
How it works - You simply attach your bank account and set the rate of risk you want in your portfolio and Acorns does the rest by rounding up your daily purchases and investing those funds. It’s such a great investment tool because it is automated and just a few cents at a time. It’s like found money.
Brand of the month - Dun & Bradstreet
I am excited to add Dun & Bradstreet to my portfolio of companies that I proudly represent. A DUNS number is so important to the success of your small business. So if you have not applied for one please read up so you can understand the importance of it. Please use the provided link so you can check out all the amazing benefits for your company -
D&B link
Thanks for following along. See you soon!