Let's start to plan "How to invest $10k of Tether USDT" for SPinvest

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Hello SPinvest club members. Today let's talk about starting to put a plan together to diversify our holdings. The STEEM power-downs are over and we have our bag, time to split it up. The markets are all over the place because of COVID19 and the future is uncertain but Black Thursday (sounds like a sale) has already happened when the markets tanked. Gold is pretty much at an all-time high in $ with the £ gold price at around 95% ATH price. Stocks markets took a dig a few days back keeping the prices lower for investors to get in and we all watch crypto so we know what's happening with HIVE and BTC. Holding $9500 in tether earning 8% a year is ok with me, we could just invest the interest earned monthly but it might be better the spread it and diversify a little.
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There are tons of ways of doing this but keep in mind that this is investment club money and not personal savings, our range of investment are somewhat narrowed. This means nothing silly like staking unknown tokens, buying unknown shares are whatever favour of the month is. We should be aiming for a solid portfolio that might look a look boring but a portfolio that if left untouched for 5-10 years would be worth more than it is today with no questions asked.

So, there are a few different ways we can do this. To be forward and make it clear from the get-go. We are talking about the Tether USDT balance SPinvest holds. Going on some feedback I got I think most people are happy for us to hold onto some Tether long term as we can make 8% per year on fiat and it provides easy cash should a large SPI token holder need to liquidate quickly. I assume everyone is happy with our current HIVE and BTC holdings and we are talking about Tether. So here are a few ways I can see this playing out.

Current Tether balance - $9632 earning $2.01 per day. Its goes up 1 cent every 24 days. Compound that shit Those pennies will come a little quicker every day until we are earning more than a penny a day by compounding. It's a super slow process but it works and is perfect for just leaving on the burner and forgetting about it.

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Assuming we hold onto $5000 tether to earn around $1 a day and provide liquidity for exiting token holders and hedge for the fund. This will have to be voted on, but just for the purpose of this post, there are a lot of assumptions.

We would have $4600 leftover to invest in other things. If we decided on 4 things to invest into. 4 solid investments that will undoubtedly stand the test of time. Think like your investing and you can't touch it for 20 years. Think like buying intel shares based on the fact only that intel will still be a trading company in 20 years. It’s not hard to pick long term stocks if your realistic and pick companies that are embedded into the economy. If we feel intel will still be trading in 20 years, we would have to assume it’s in profit and its share price will have increased. Other stocks like this would be coke a cola, Nike are McDonalds. Would you sleep well at night with your money in a stock like Facebook, apple, alphabet, uber, Airbnb, are any of the other hot tech stocks topping the market caps lately. I'm not saying they are not good stocks but I think over 20 years, these companies will be replaced are at least lose market share in their area as they become less relevant with the times.

So, if we split our $4600 4 ways, we get $1150 for each investment

1/ We can invest in gold easy knowing it has a 5000 years history of being a store of value. Gold is an excellent hedge against inflation and never goes out of fashion.

2/ We could go into another cryptocurrency to mix it up. My feeling is either ETH, BCH are BNB but I would also be happy to not invest into another crypto and just hold the HIVE and BTC will already have.

3/ Next up, we would have to invest in some shares. There will never be a good time to enter the market and in 2-5 years it won't matter. To keep everything simple, we could go into an index tracker are pick 1&2 individual stocks. 2 suggestions would be Tesla which could someday be a trillion-dollar company but if not, I feel will definitely still be trading in 5-10 years and something else with a more solid history.

4/ Something else we decide on as a club. Something non-blockchain. I’ve just got idea block

How and when do we invest?

After we figure out what we wanna invest into and with how much, we need to plan how to invest. Do we cash out $4600 and just do it in 1 day and then just sit on it are should we buy a little every week are month until the money runs out? Again, we are faced with many more options so let’s have a look at a few ways. Assuming for these examples we have decided to invest into 4 things for $4800 (to keep it simple) in total.

1/ Withdraw $4800, split it 4 ways and make the investments. Job done

2/ Withdraw $100 per week for each of the 4 investments for 12 weeks. This will provide a little cost averaging over 12 buys should the markets take either way

3/ Withdraw $400 every month for each of the 4 investments for 3 months. Same idea as above but with 3 buys.

4/ Mix and match, e.g. Invest everything into gold right away and cost avg everything else.

With the idea of being transparent to club members, it's important that our investment choices are not over complicated and simple. If something requires any sort of maintenance, it's probably not for us.

How to do the voting?

I think the excel idea we used last time was a success even if it was tricky for everyone to complete. We were able to gather a lot of information from club members really quickly. I still think the idea of answering multiple questions with votes remaining anonymous is a good idea. We need to change the format of the voting document to make it more universal and easier for club members to use. Last time I used Microsoft excel from the downloaded version, I'm thinking if I use office online which is a filtered version of the downloaded version, it will work for more members.

Do you know of any website are software that lets a bunch of selected members create polls/votes with multiple choice answers for free?

I'm thinking Microsoft office is used by most people and DMing are emailing a link are file is best. Surely it's very simple to download a small app that will open and let someone edit a Microsoft office doc file?

Please, some feedback on this would be great as this is stage 1 stuff that needs to be sorted before we even start any voting.

My next post is Wednesday so I'll have an update about this with the plans to have a voting document ready to go next Friday. I'm sure that it will be around 15-20 questions long at least so any suggestions you have, throw them out there now. That can include what we invest into, how we enter the markets, how much we wanna invest in each investment, etc, etc.

Thanks for reading, I hope this gives you something to think about. Just as a lost thing to show you in which direction we are headed. This is our current off Hive investments.

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And we are aiming for something closer to this. This again is only to give a rough idea but going on the examples above, this is looking more like a balanced portfolio than the chart above.

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Anyways, thanks again for reading the post and hit me back with feedback.



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8 comments
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I get that "There will never be a good time to enter the market " but, since these are exceptionally uncertain times I would go for a more spread out investment strategy rather than investing everything at once.

We thought we were all heading out of lockdown this weekend and then Leicester had to go back in. Everything is still so uncertain so taking our time and see how things play out seems a better choice to me. But . . . I know very little about investing and investment cycles so I'll be interested to hear what others think.

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Ive been talking with other people and they are predicting a second wave of big stuff to happen so we might hold off on the actual investing for another month are 2 but we can have a plan in place and be ready :)

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Leave it in tether for right now. Wait until the markets correct and give a pullback. Stocks are near all time highs, same with gold. Oil bounced from a negative future price. Bitcoin still holding between $9k-$10K.

I think we need to look at the stock market to spread the risk. That said, the risk is too high now. We see a global economy that is suffering yet the market is partying like we are going to see 5% global growth.

Patience often wins in the markets.

As for the path, I would think buying over time is the best approach. No point going all in with on buy point.

Posted Using LeoFinance

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I agree, it could be another month are two before we do any investments. We can start to plan it out and be ready for when the time comes.

There could be a second wave and the market could crash again but I agree with the fact the market is oddly high for the times we are in.

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I don't know how to invest at all. My first investment was to buy SPI. I therefore rely on more capable members of the club :-).

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When the voting file goes out, just answer the questions you know about.

Looks like you made a good 1st investment. Wait a few more years and hopefully we can double it :)

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I'm retiring in ten years. It will be an improvement :-)

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There has been a bit of chatter on Leo discord about RUNE. Need to do more research on it, but looks like a cross chain crypto project, price is moving in a stagnsnt market and @khaleelkazi (I think it was him) puts a big big call on it as a future top 5 crypto. Worth a look into for 1/4.

Others I'd like to see in SPI would be gold, ETH and TESLA (somehow).

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