The Rise of AI and how we can prepare!
Housing market outlook, ISO 20022 coins and expectations, Treasury Bills
👋 Hello Everyone.
As we edge closer to a full on recession it is more important than ever for us to really focus on whats real and where this is all heading, and how we can prepare. We have 1) the weakening dollar 2) AI threatening the workforce 3) massive tech layoffs leading to tens of thousands of skilled worked dumped into the unemployment lines 4) continued high inflation along with a slew of factors to be aware of.
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.
Having a portion of your portfolio in cryptocurrency. I think everyone should have exposure to crypto as the adoption and disruption continue to grow. So many people equate the volatility of crypto to it being a scam and that is just not the reality. Like any growth sector there are bad apples but if crypto wasn’t here to stay the largest hedge funds, investors and companies in the world would not be adopting it. For purchasing I like Coinbase, Crypto.com and Public.com. I recommend sticking with the blue chip players such as Bitcoin, Etherium, Ripple, Stellar and Quant.
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.
📣 Housing Market Recovery in 2024!! Is now a good time to invest?
I always think it’s a good time to buy. Regardless of the economic conditions, real estate is always a great place to build wealth. Whether you are planning on house hacking (buying a duplex and living in 1 unit) or buying single family homes for long term or short term rentals keep in mind - that although interest rates are higher right now, you don’t have the crazy buying frenzy going on. This leads to better deals and more flexibility (not in all markets obviously). Keep in mind that the $500k home you were interested in 2 years ago that sold for $600k (3-4% interest) was not a better deal than buying the similar $500k home for $450k at 6% interest. And you can always refinance when rates ease.
Keep in mind that with population pressures in many markets there are still good opportunities for your real estate needs. With renting on the rise and these proven shortages I just don’t see how buying for personal, investment or long term wealth goals can be a bad strategy even with the current economic conditions.
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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. 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.
💸 This is for all of you. The Rise of AI and Chat platforms are changing the landscape in many sectors of the workforce. Ae you prepared?
Even TikTok has added a new tool allowing creators to disclose if they used AI in their videos or not. TikTok will likely add a simple disclaimer to videos—similar to sponsorship disclosures—that will aim to separate “real” content from content created with AI. Crazy right. Just the other day I was ordering goods for one of my brands I noticed that the website I was ordering from had completely switched to AI generated models. Whats next?
Should the government step in and slow down AI development? My opinion and the simple answer is yes. Until we have a better understanding of the future consequences I don’t think tech giants should be allowed to continue full scaled development. It has been estimated that 25% or roughly 83 million jobs could be replaced in the next 5 years. So what does that do to our economy? What will those people do? It would seem that all of that additional revenue for those few AI companies would simply funnel further to the rich and investors in those companies while the workers that have been outsourced might have outdated useless skill sets. This is definitely for a longer discussion but something that we must keep top of mind to ensure none of us end up being replaced.
🚨 CRYPTO updates and why the ISO 20022 coins should be on your watch list!
As the Ripple case makes its way through to a conclusion there is a lot on the line. I believe we will have an outcome that will be either a settlement or a win. What does this mean for crypto and the ISO 20022 coins? I think it will cause a huge surge in activity for the crypto scene and specifically the ISO coins.
With these ISO coins and the switch from the antiquated SWIFT payment system I feel investment capital will pour in at record levels. So I recommend everyone has exposure to crypto in their portfolios and that you should be researching the ISO 20022 coins as a potential addition to your investment portfolio. Coins on that list - QNT, XRP, XLM, HBAR, IOTA.
Obviously you still want exposure to (some of my faves) Bitcoin, Etherium, Polygon and Cardano but I just want everyone to have eyeballs on the other coin category as well.
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).
🤔What is real?
Apples high yield savings account offer draws in $1 billion in deposits in the first 5 days. Why is this significant? Because consumers have withdrawn $60 billion dollars from savings in the past couple weeks. This is a crazy but incredible number because it took a banking meltdown/crisis for people to wake up and realize that the only people making money with your deposits are the banks. Remember - parked money is dead money.
You have to fight back! Make your money work as hard for you as you worked to get it. Money sitting in a personal savings account (making $.001%) is financial suicide. At the very least you have to have a High Yield Savings account (averaging 4%) or Treasury Bills (averaging 5%) so you are working on keeping up with inflation. I get it, you want to play it safe. But with inflation bouncing around the 7% mark how can you not try to implement a solid financial strategy to at least not go backwards. You are already losing 7% so implementing these strategies gives you a chance to make real gains.
Weekly Book Excerpt (The Intelligent Investor - Benjamin Graham)
“Successful investing is about managing risk, not avoiding it” Amazing and timeless quote! In good markets and bad far too many people clench to their money with a vengeance while not considering the inflation and economic factors that are chipping away at their savings. Holding your funds in a traditional savings account is a losing proposition and should be avoided especially when there are other options to optimize your savings. My 2 favorites in a market like this are 1) High Yield Savings accounts (PNC 4.3%, Citizens 4.5%, Wealthfront 4.3%) 2) Treasury Bills. Again with T-Bills you have a secure way to make 5% right now and you have the added benefit of no state or local taxes on your gains. Public.com is a great place to purchase. Use my code (RICHHABITS) for $10 in FREE stock when you fund your account.
Money Mindset - Weekly insights
Are you finding your way? It may be time to hunker down and play defense. With so much bad news on the horizon you know my thoughts. Diversify and have exposure to broader markets while also finding safe havens to earn passively. There are always ways to win even in tougher markets.
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Interesting update: Microsoft has made several exciting announcements regarding the integration of artificial intelligence (AI) into its Bing chatbot and Edge web browser. The most significant of these changes is that Bing users now have free access to the GPT-4 model, which is the same underlying technology that powers OpenAI’s ChatGPT Plus subscription service. Previously, the GPT-4 version of the Bing chatbot was only available through a “limited preview.” But now, users can access it through the Bing app, web access, and Edge browser.
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!