Why Invest At All (Cash vs Property)
In episode 2, Chris and Taylor talk about the HISTORY OF MONEY: FED, Fiat Money
Portfolio Builders · Chris Evans and Taylor Welch
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Show Notes
Ray Dalio (net worth $13B) just said to the world “cash is not what you want to have right now, AT ALL”
In episode 2, Chris and Taylor talk about the HISTORY OF MONEY: FED, Fiat Money. Let’s say we only have 100 single-dollar-bills. That’s all there is in the entire world. Let’s also say that your yearly salary is $1 per year, and let’s also say that a house costs $1 to buy… which is one year’s salary, and 1% of the world’s total supply of dollar bills. THEN, the government prints 900 more single-dollar-bills, bringing the total world’s supply to 1,000 single-dollar-bills. This is “inflation,” because the “purchasing power” of $1 just went way down…
WHY? Inflation (2-3% annually which is actual devaluing of the dollars buying power). Opportunity cost (of 10%+ yearly w/compounding creates your biggest risk of all time). Let’s say you put $100k into real estate today… 10 years from now if you follow our strategies, that will likely be worth $537,566 and you will have some debt on it (likely $260k) so you’ll have a positive growth net-worth wise of $270k equity (up from $100k cash) PLUS: $150k in cash payments from rental CASH FLOW - $100k turns into $370k vs $100k turning into $77,632.
Ray says cash is trash because cash is DEVALUING (inflation).
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