Selling a property at her 70's and buying BTC \ stacker news ~bitcoin

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Selling a property at her 70's and buying BTC

2741 sats \ 23 comments \ @Bitcoiner1 9 Jan bitcoin

A couple of months ago I posted this asking for some ideas and recommendations for my Mom.

Yesterday we had a conversation where finally she realized all the expenses that were involved in the property on 2024.

89% of the rental income went to pay expenses of the property, as insurance, taxes, buying a new AC, etc...We didn't know about it, we expected to be way lower....Reality hits us in the face.

She has own the property for about 10 years, from the buying price to today price of sell, the property has done 3x. Not bad for a property.

Our plan is to sell it.

She will distribute her cash in the following way: 6,6 % in USD with this amount she can live for almost 2 years. 10% in USDC (sorry BTC maxis) but this coin can help her to generate some income and not worrying about volatility. 83,4% will be used to buy BTC, the plan is to do DCA during 2 years.

The USDc will be use to lend and get some interest. IMO the best platform to do it is Lend by Hodlhodl.

The USD will be in the bank doing nothing.

The BTC will do nothing, just in a cold storage for a few years.

What do you think 💬?, would you do the same for your 70 years old Mom?, what would you do different?

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65 sats \ 3 replies \ @freetx 9 Jan

I think the idea is good, but I think you are too low in USD allocation. She is 70....its quite possible you are going to have health cost and need things like sitters, etc in coming years. Maybe go 75/25?

83,4% will be used to buy BTC, the plan is to do DCA during 2 years.

This part confuses me a bit...do you mean you will actually go 100% USD and then buy in BTC over 2 years until you reach 83% of total? Or do you mean you will lump-sum buy 83% BTC and then add to it via DCA over next 2 years?

In general I think DCA only really makes sense when:

You are using cash-flow to acquire bitcoin
You are executing a DCA plan over a decade or so

I'm not sure DCA-ing makes any real sense over a 2 year period when you are already sitting on the cash.....the volatility is just too extreme over a 2 year period....if BTC runs to 200K during that time then you've cost yourself half your potential stack. If it trades sideways around 95K then it doesn't matter.

Sure if it falls to 30K over the 2 year period you will get a bigger stack, I just think that is not very likely given macro environment.

I would just lump sum buy.

21 sats \ 0 replies \ @alt 23h

I'm sure that lump sum purchase will outperform DCA on average if the asset is appreciating. Sometimes you might get a better return from DCA if the asset depreciates during the buying period, but more often than not the asset will appreciate (that's why you're buying it), so a lump sum is more likely to give a lower cost basis.

As you say, DCA makes sense if you're buying with cash flow because lump sum is not an option.

10 sats \ 0 replies \ @Bitcoiner1 OP 23h

Thanks for your feedback.

23 sats \ 0 replies \ @nym 9 Jan

Yea agree

55 sats \ 0 replies \ @denlillaapan 9 Jan

Pretty decent.

Given her age I would perhaps move the proportions a little (70:30 or so—more for living expenses, and less for BTC). You're supposed to live nice and comfortably at that age!

And also, keep some of the USD bank deposit (maybe a quarter?) in physical cash. I wanna recall that you guys are in Venezuela so perhaps the banks (or banking infrastructure, in case you keep USD accounts in America) might not be entirely reliable

30 sats \ 0 replies \ @sasasuina 9 Jan

I would say it's a solid plan.

21 sats \ 9 replies \ @DarthCoin 9 Jan

I only see fiat maximalism here

you should change your alias from "bitcoiner1" into "fiatmaxi1"

13 sats \ 8 replies \ @Bitcoiner1 OP 9 Jan

83.4% Bitcoiner, 16.6% fiat maxi would be fair.

Would be great to know how would you advise your parent in a situation like this...

221 sats \ 7 replies \ @DarthCoin 9 Jan

Start building a bitcoin circular economy around you - #576140
Then sell the house for BTC (or convert all the trash fiat into BTC)
live happy from your BTC stash, work hard to earn more sats.

All that crap with "I will put USDC into some bullshit yield program" is totally a fiat maxi crap that will put you back into the same vortex of fiat debt. You will never gonna make it.

The whole point is to USE BTC as money every day, not to generate yield... and fuck all the govs and banks.

Otherwise is just a bullshit crap, we are going back to slavery.

34 sats \ 4 replies \ @B_for_Bitcoin 9 Jan

Definitively, Darth is a fucking maxi idiot. She is now in her 70s and this wise man says she should"start building a bitcoin circular economy around her". This man is not good.

0 sats \ 3 replies \ @DarthCoin 9 Jan

your idiocy is impressive...

13 sats \ 2 replies \ @B_for_Bitcoin 9 Jan

You are a blessing to have in my life. You are enlightening me with your wisdom.

How is it possible that this person doesn't realise how ridiculous they are making themselves with their idiotic intervention in every post and comment?