Below was my response to a really well written article I found here on Leo Finance. First Let me restate, the article was well written AND that I respect the writers views because they are coming from their perspective.
That being said... My Strategy will arguably make you RICHER, FASTER and with Relatively more certainty ASSUMING one thing... You can figure out how to make it work without losing all of your hair! I am bald now, so I made it work, but lost my hair in the process. Here was my response:
Duuuuuuude! We are forgetting about the biggest wealth builder in the world. This portfolio is missing the most highly leverageable asset.
REAL ESTATE should be the cornerstone of every investment portfolio. Especially Rental real estate which generates capital in whatever the currency of the time or location is.
IMHO A solid asset allocation would look more like this:
25% Real Estate
25% Equities
25% Crypto
10% Cash (whatever your local currency is)
5% Precious Metals (because they are just a store of wealth)
And then I leave 10% at the end for you to put into which ever asset class you see to do best with. In your case I would have to assume it would be Bitcoin and Etherium.
Real Estate is leverageable... Your $10k investment can be used to buy a $300k asset that generates $36k in gross rents per year AND appreciated 10% in 2019 and 2020.
Let's assume for simple numbers that your Net Operating Income is $10k for the year PLUS your building appreciated 10% on its $300k initial purchase price. You just made $30k+$10k and we aren't even talking about the depreciation you gained on the building for tax purposes which likely saved you another $5k. As well as the Amortization of your loan which likely paid off another $5k which ads to your equity (aka how much you make when you sell)
In a year like this past we just had your $10k investment would return a total of $50k giving you a 500% ROI (return On Investment)
All of this assumes that you paid market value of course... You could do what I have done every year over the last 7 years and buy this same house at $150k, put $50k into it and only be into the building for $200k (all borrowed bank money by the way) and have earned the additional $100k on top of that.
Totally out a $150k Profit if you flipped the house within that year and a 1,500% return on investment...
I'm not saying it is easy... Or that someone new to the game could hit the same numbers an experienced investor can swing at, BUT it does belong in your portfolio and unlike the rest of these digital, paper and metal assets... If you ever need a place to stay... You own a building.
My Sincerest Apologies If This Article Offends
You know what... I am going to turn this into a post. Great Article my friend! Thank you for the inspiration! Cheers To you on your Wealth building Journey and I am looking forward to seeing you a very wealthy millionaire!