AI transcript
0:00:02 – Okay, business leaders, are you here to play
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0:01:18 – Welcome to Office Hours of PropG.
0:01:20 This is the part of the show where we answer questions
0:01:21 about business, vector, entrepreneurship,
0:01:22 and whatever else is on your mind.
0:01:25 If you’d like to submit a question,
0:01:26 please email a voice recording
0:01:28 to officehours@propgmedia.com.
0:01:31 Again, that’s officehours@propgmedia.com.
0:01:32 So with that, first question,
0:01:35 and also I have not heard or seen these questions.
0:01:40 – Hi, Professor Galloway.
0:01:42 Thank you for your time.
0:01:43 My name is Mike.
0:01:44 I’m 35 years old.
0:01:47 I live on Long Island in Nassau County.
0:01:51 I have a modest job and my wife’s a teacher in Brooklyn.
0:01:53 My question is, what will happen to the value
0:01:56 of my limited wealth and that of other Americans
0:01:59 that don’t have Bitcoin when the US buys a strategic reserve
0:02:01 and there’s more widespread adoption?
0:02:04 Will the value of my retirement portfolio collapse?
0:02:05 I’m worried about losing everything
0:02:07 in my family falling behind.
0:02:09 I feel like I’m gambling on which currency
0:02:13 will be more prevalent or even exist in 20 to 30 years.
0:02:15 What should we do?
0:02:15 Thanks.
0:02:18 – Hi, Mike from Long Island.
0:02:22 So you’re 35, sounds like you’re in a good relationship.
0:02:23 You both are working.
0:02:26 Your wife’s doing something important as a teacher.
0:02:29 So the first thing is to recognize you’re young.
0:02:30 Sounds like you’re in love.
0:02:31 You’re both employed.
0:02:33 Things are pretty good for you.
0:02:36 So okay, so the honest answer to your question
0:02:37 is nobody knows.
0:02:40 I talked to Michael Saylor and when I leave his,
0:02:41 I had lunch with him.
0:02:42 When I leave the lunch,
0:02:43 I think I should put everything into Bitcoin.
0:02:44 And then an hour later, I’m like,
0:02:45 “Wait, what is Bitcoin again?”
0:02:49 Anyway, so the bottom is nobody knows.
0:02:51 Trump recently announced that his administration
0:02:52 will be considering the creation
0:02:55 of a national digital asset stockpile.
0:02:58 Well, this really isn’t quite a strategic reserve.
0:02:59 It could still have a massive impact
0:03:01 on America’s involvement with cryptocurrencies,
0:03:03 specifically if the US government weighs in
0:03:05 and buys a shit ton, the price would go up.
0:03:07 Currently, America holds more Bitcoin
0:03:08 than any other government
0:03:10 as a result of large scale asset seizures,
0:03:12 about 5 billion as of 2023.
0:03:14 Even so, they’ve sold none of it.
0:03:16 Countries including Germany, Hong Kong,
0:03:18 Russia, Brazil and Poland are all taking steps
0:03:21 to review Bitcoin as a reserve asset.
0:03:23 In the past 10 years, Bitcoin is up over,
0:03:26 Jesus Christ, 48,000%.
0:03:29 In the past year, it’s up 140% since the election,
0:03:30 it’s up 50%.
0:03:32 So, okay, what do you do?
0:03:34 The genius of Bitcoin in my mind
0:03:37 is they’ve come up with this incredible means
0:03:41 of creating a somewhat credible sense of scarcity.
0:03:42 What do I mean by that?
0:03:45 We keep printing more dollars that we’ve had inflation,
0:03:48 so you could argue that the value of the dollar
0:03:50 goes down every year.
0:03:52 You know, I bought a house,
0:03:56 every house I bought 30 years ago is worth,
0:03:57 I wish I’d never sold it,
0:03:59 is worth six to 10 times what I bought it for,
0:04:00 more than inflation.
0:04:03 Is that because the asset’s got them in value
0:04:04 and it’s producing more rent?
0:04:07 No, it’s because there are more dollars chasing
0:04:10 fewer assets, that’s the definition of inflation.
0:04:12 Or simply put, the dollars you throw into your mattress
0:04:14 get worth less and less every year,
0:04:16 because we keep producing more of them.
0:04:19 Bitcoin has created this credible feeling
0:04:22 that because of the algorithm or the structure
0:04:26 where it requires more and more numbers to be thrown
0:04:29 at an algorithm or at a math problem,
0:04:31 that it takes more energy, it limits the supply,
0:04:33 and they say they’re gonna stop mining Bitcoin
0:04:35 at 21 million coins.
0:04:37 And the market believes it, so the market says,
0:04:40 all right, this is a credible store of value
0:04:43 and a place to hedge inflation.
0:04:45 It’s also a place to hedge currency risk
0:04:47 if you’re in Argentina and your pesos
0:04:49 are worth 30% less every month.
0:04:51 You immediately get them and there’s currency controls,
0:04:53 meaning you can’t trade it for dollars,
0:04:55 you immediately go into Bitcoin.
0:04:58 So there is real use cases here, right?
0:04:59 It’s not a payment system.
0:05:02 I’ve never been paid or paid anyone in Bitcoin.
0:05:03 I don’t see this having a lot of utility.
0:05:08 I just don’t use the blockchain, call me old fashioned.
0:05:10 So the question is, what do you do?
0:05:13 I think it’s highly unlikely and I wouldn’t bring your hands
0:05:15 too much or spend too much time worrying
0:05:17 that your assets are gonna go to zero
0:05:21 because of Bitcoin and the America’s decision
0:05:24 or not decision to create a strategic reserve of Bitcoin.
0:05:28 Well, you might wanna do is maybe put two, three,
0:05:31 4% of your net worth into Bitcoin.
0:05:32 That way you’re a little bit hedged
0:05:34 and if it does go up two, three, 10 fold,
0:05:37 you feel as if you’ve participated in the upside.
0:05:41 I would not go all in on this much less really anyone asset.
0:05:43 If you’re making some money,
0:05:45 my guess is your wife has good benefits.
0:05:47 You max out your 401k,
0:05:48 anything that’s matched or tax deferred,
0:05:49 try and match that out,
0:05:52 try and get money taken out of your paycheck
0:05:54 so it’s never in your hands
0:05:55 and make sure you’re diversified
0:05:57 and in low cost index fund.
0:06:00 So if you’re worried about crypto
0:06:01 or you think that in fact,
0:06:04 it’s going to be something that might take off,
0:06:05 put a little bit of money in,
0:06:08 don’t put all three or 4% or 5% in at one time,
0:06:11 dollar cost in because it’s a highly volatile asset.
0:06:13 But if you want to hedge a little bit
0:06:15 against the upside or the downside
0:06:17 of your current portfolio, then yeah,
0:06:19 put a little bit of your money into,
0:06:21 I would just probably do Bitcoin.
0:06:23 I think some of the other shit coins are just too volatile
0:06:25 and you end up staring your phone all day.
0:06:27 But sure, dip your toe if you think,
0:06:29 if that’s going to make you feel a little bit better,
0:06:31 but I wouldn’t lose sleep thinking
0:06:33 that all other assets are going to crash.
0:06:35 Thanks for your question.
0:06:37 Question number two.
0:06:39 – Hi, Prof. G. I’m Peter from Boston.
0:06:41 I got my first job out of school
0:06:43 nearly four years ago at a small firm
0:06:45 and for the first time I’m looking to change positions
0:06:48 to a larger company with a deeper talent pool
0:06:50 for mentorship and better growth opportunities.
0:06:51 In my current role,
0:06:54 I was able to take on a lot of responsibility early on
0:06:56 due to the fact that we were a small team
0:06:58 and grew rapidly since I started.
0:06:59 As someone who has been
0:07:01 on the other end of the hiring process,
0:07:02 do you have any advice on how to stand out
0:07:05 when my experience and abilities are greater
0:07:08 than what the number of years on my resume might suggest?
0:07:09 To phrase another way,
0:07:11 how do I know if I’m just a big fish
0:07:13 in a small pond aiming too high?
0:07:14 Thanks for your time.
0:07:16 – Everyone thinks they’re,
0:07:17 well, thanks for the question.
0:07:18 Everyone thinks they’re aiming too high
0:07:19 until they hit the target.
0:07:22 I’ve never been qualified to do anything I’ve ever done.
0:07:23 I wasn’t qualified to get a job at Morgan Stanley.
0:07:25 I definitely wasn’t qualified to get into business school.
0:07:26 I wasn’t qualified to start a strategy.
0:07:29 I’ve never been qualified to do anything I’ve ever done.
0:07:32 So just put that away thinking that you’re aiming too high.
0:07:33 You may not hit the target.
0:07:35 You may apply to be a VP somewhere
0:07:37 and they say, “Sorry, you really aren’t qualified.”
0:07:40 But the way you do this is you start interviewing.
0:07:44 And the easiest questions are the hardest to answer.
0:07:47 And that is, you know what they’re going to ask you.
0:07:48 Why should we hire you?
0:07:50 What’s different about you, right?
0:07:53 What do you bring to this company that’s unique?
0:07:55 Yeah, why do you want to work here?
0:07:58 And what do you do to try and improve
0:08:00 your, you know, your sustainable advantage
0:08:03 or these assets that are differentiated, right?
0:08:05 In sum, what differentiates you?
0:08:07 Why is it relevant to us?
0:08:08 And how do you, what practices
0:08:10 or what do you do that makes it sustainable?
0:08:12 So you literally want to show up
0:08:15 and kind of act like they’d be crazy not to hire you, right?
0:08:18 I also find it kind of a hack in interviewing
0:08:19 to get the person to like you
0:08:21 because a lot of this is based on relationships
0:08:23 and how they feel about you after the interview
0:08:25 is start asking them questions.
0:08:28 People are narcissists or they’re self-involved
0:08:30 and they love talking about myself.
0:08:33 So Lisa, how did you get involved at Salesforce?
0:08:36 Or, you know, what do you like about working here?
0:08:39 Or when you look at my skills, what do you think?
0:08:41 Do you think I’d be a good fit here?
0:08:44 So, you know, what you want to figure out
0:08:46 and you want to be confident is to say, okay,
0:08:47 I think I’d be great at this,
0:08:50 but is this the right fit for me?
0:08:51 You know, start asking them questions.
0:08:53 Who does really well at Salesforce?
0:08:56 Or I’m just using that as an example.
0:08:58 But the key here is you, you know,
0:08:59 you miss all the shots you don’t take,
0:09:02 just start interviewing and find out
0:09:05 if in fact you’re in that weight class.
0:09:09 But circling back, you know, everyone’s an imposter.
0:09:11 Everybody thinks they’ve fooled people, not everybody.
0:09:12 Most people think they’ve fooled people
0:09:15 when they get the job or get into graduate school
0:09:17 or get a high character boyfriend or girlfriend.
0:09:19 So, yeah, aim high.
0:09:22 If you miss, don’t take it too seriously, keep aiming.
0:09:24 And if you really want to see what your currency
0:09:26 is in the marketplace, then go into the marketplace
0:09:27 and try and start interviewing.
0:09:29 Thanks for the question.
0:09:31 We have one quick break before our final question.
0:09:32 Stay with us.
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0:12:00 (upbeat music)
0:12:07 – Welcome back, question number three.
0:12:10 – Hey, ProfG, I’m Josh, a 27-year-old from Mexico
0:12:13 working in marketing for a large multinational company.
0:12:15 Thank you for everything you do.
0:12:17 Your content really inspires and helps my day-to-day,
0:12:19 so I really appreciate it.
0:12:21 Sadly, my father passed away last year
0:12:25 in getting with an inheritance that I will just receive.
0:12:27 This has left me with a financial question.
0:12:30 My first thought was to buy two apartments,
0:12:32 since it’s money that I didn’t really work for
0:12:35 and see it as securing something my dad left me.
0:12:38 However, I know today, renting and investing the money
0:12:40 in the market make more sense.
0:12:42 This would also leave me the opportunity
0:12:45 to use the money for a grad school if I needed it,
0:12:47 since I know it’s something that could boost my career.
0:12:50 I’ve been lucky enough to land a job that makes good money
0:12:52 and have advanced quickly in the corporate world.
0:12:55 So my question is, what’s your stance
0:12:57 on renting versus buying, and what would you do
0:12:59 if you were a 27-year-old male
0:13:02 that suddenly received a lump sum like this?
0:13:05 Again, thank you for your thoughts and all the content.
0:13:06 Cheers.
0:13:08 – So the first thing you wanna do
0:13:13 is you wanna put it in a bond fund or a treasury fund
0:13:15 that’s getting four and a half or 5% right now.
0:13:18 If it’s $100,000, that’s 5,000 a year,
0:13:21 low risk or no risk, so you’re getting $400 a month,
0:13:22 but don’t just let it sit there.
0:13:26 Put it into some sort of, you know, T-bill fund
0:13:27 or what do they call it, certificate of deposit,
0:13:28 whatever you wanna call it.
0:13:31 Basically, if you put money in at Interactive Brokers
0:13:34 or Schwab, I think you get between four and 5%
0:13:36 while you’re trying to figure this out.
0:13:38 Okay, so in terms of where to put it,
0:13:41 you wanna lean into your advantage.
0:13:44 If you understand the local real estate market
0:13:48 and you or someone in your life could manage those apartments
0:13:49 and you’re scrappy and maybe know
0:13:51 how to fix up an apartment,
0:13:53 buying real estate, fixing it up
0:13:55 and turning it into rental properties
0:13:58 is a fantastic way to build wealth slowly.
0:14:03 I own almost 30 rental units in Delray Beach, Florida
0:14:05 and they’ve been one of my best investments.
0:14:09 It’s obviously a lot about when you buy, where you buy,
0:14:11 and I bought in Florida when no one else wanted to buy,
0:14:13 which is the time you wanna buy
0:14:15 ’cause prices were really, really low.
0:14:17 I bought these things for about an average of 100,
0:14:19 sometimes 120,000.
0:14:22 They produce really good rental income
0:14:25 and my guess is they’ve tripled in value since then,
0:14:26 but I don’t wanna sell them.
0:14:28 I wanna have cash flow as I get older.
0:14:32 So I think rental units, if you have some advantage,
0:14:34 do you understand the local market so you don’t overpay?
0:14:36 Do you have the ability to manage them?
0:14:40 Do you have some skills to improve them, to upgrade them?
0:14:43 Otherwise, you’d be better off just buying REITs
0:14:44 than managing your own real estate
0:14:45 ’cause there really is some headache
0:14:48 around managing these things.
0:14:51 I would suggest, and if you don’t have those advantages
0:14:52 or market knowledge around real estate,
0:14:53 that you just take the money
0:14:56 and you put it in low-cost ETFs.
0:14:59 Not only SBY or QQQ the NASDAQ,
0:15:02 but start thinking about maybe putting half of it even
0:15:06 in some sort of diversified, low-cost world index
0:15:08 sans the U.S.
0:15:09 Why do I say that?
0:15:11 The U.S. has become very expensive
0:15:13 and while, I mean, what do you know?
0:15:15 You want low-cost, you want diversification,
0:15:17 you want an index fund or an ETF,
0:15:19 but you’re still, to a certain extent,
0:15:22 trying to find alpha and pick stuff.
0:15:26 So even though you’re picking all of the S&P with SPY,
0:15:28 I think the S&P, I would argue,
0:15:31 is historically expensive, maybe even overvalued.
0:15:32 I was with a buddy of mine
0:15:36 who runs Private Wealth for JPMorgan
0:15:37 and he was saying, I said,
0:15:39 the market cap of the U.S. right now
0:15:43 is equivalent to half of the total market cap of the globe.
0:15:45 And he said, actually, it’s worse than that
0:15:46 ’cause if you counter in debt,
0:15:48 70% of the capital markets are in the U.S.
0:15:52 So if you add up the money corporations have borrowed
0:15:55 and U.S. borrowing, or consumer borrowing,
0:15:57 plus the value of our stock market,
0:16:00 70% of the value is supposedly registered in the U.S.
0:16:04 So if someone said to you, you can buy the U.S. for $70
0:16:07 or you can buy the rest of the world for $30,
0:16:08 I would argue there’s more upside
0:16:11 to buying the rest of the world for $30.
0:16:14 So I would use a robot advisor to spend some time on AI
0:16:18 and say I want low cost index funds.
0:16:22 And I also wanna make sure that I’m not only diversified
0:16:26 within the U.S. but I’m diversified to a certain extent
0:16:28 around my investments from the U.S.
0:16:31 But low cost ETFs or index funds.
0:16:34 Also, it sounds if you’re doing well,
0:16:39 I’d be reticent or careful to blow that money
0:16:41 or invest that money in grad school
0:16:43 unless you really think it’s gonna pay off
0:16:46 because you’ve been given a gift from your father,
0:16:48 his hard work, his time.
0:16:51 And at your young age at 27,
0:16:55 I don’t know, say it’s $50,000.
0:16:56 By the time you’re 67,
0:16:59 which will happen much faster than you think
0:17:01 with a low cost ETF,
0:17:05 you’re probably gonna have a really nice nest egg
0:17:07 or something to fall back on.
0:17:09 So, and I would imagine that’s what your father wanted.
0:17:10 So I’m not saying don’t invest in yourself,
0:17:11 don’t go to grad school,
0:17:15 but maybe be very selective if you’re doing well
0:17:18 at your job and make sure you can get some financial aid.
0:17:20 Just because I hate to see kids
0:17:23 borrow a lot of money or spend a ton of money on grad school
0:17:26 when it may not provide the pop that they’re anticipating.
0:17:27 Then that never used to be an issue.
0:17:28 It always used to be worth it.
0:17:31 Now you actually have to do the math.
0:17:32 Let me back up.
0:17:35 This is a really good problem.
0:17:37 Congratulations to you, but again, low cost ETFs.
0:17:42 And I would do say 50, 60% US, 40% international.
0:17:43 If you wanna lean into real estate,
0:17:44 make sure you know what you’re doing
0:17:47 and you have some advantages there.
0:17:48 But again, this is a good problem.
0:17:50 And I’m sorry about your father’s passing.
0:17:52 It’s something we all deal with,
0:17:54 but it’s something I don’t think any of us are prepared for.
0:17:56 It’s heartbreaking when it happens.
0:17:58 So I’m sorry about your dad.
0:18:01 That’s all for this episode.
0:18:03 If you’d like to submit a question,
0:18:04 please email a voice recording
0:18:06 to OfficeHouras@PropertyMedia.com.
0:18:09 Again, that’s OfficeHouras@PropertyMedia.com.
0:18:21 This episode was produced by Jennifer Sanchez.
0:18:23 Our intern is Dan Shalon.
0:18:25 Drew Burroughs is our technical director.
0:18:27 Thank you for listening to the “Property Pod”
0:18:29 from the Vox Media Podcast Network.
0:18:30 We will catch you on Saturday
0:18:33 for “No Mercer No Mouse” as read by George Hahn.
0:18:35 And please follow our “Property Markets” pod
0:18:38 wherever you get your pods for new episodes
0:18:39 every Monday and Thursday.
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0:00:42 like Gladiator 2, Dexter, Original Sin, and 1923.
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0:00:47 – Want prize with that?
0:00:49 No, not fries.
0:00:51 Prize.
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0:00:58 like a cash prize, gift card prize, rewards prize,
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0:01:13 Chances of winning based on code entry time.
0:01:14 Rules and app.
0:01:18 – Welcome to Office Hours of PropG.
0:01:20 This is the part of the show where we answer questions
0:01:21 about business, vector, entrepreneurship,
0:01:22 and whatever else is on your mind.
0:01:25 If you’d like to submit a question,
0:01:26 please email a voice recording
0:01:28 to officehours@propgmedia.com.
0:01:31 Again, that’s officehours@propgmedia.com.
0:01:32 So with that, first question,
0:01:35 and also I have not heard or seen these questions.
0:01:40 – Hi, Professor Galloway.
0:01:42 Thank you for your time.
0:01:43 My name is Mike.
0:01:44 I’m 35 years old.
0:01:47 I live on Long Island in Nassau County.
0:01:51 I have a modest job and my wife’s a teacher in Brooklyn.
0:01:53 My question is, what will happen to the value
0:01:56 of my limited wealth and that of other Americans
0:01:59 that don’t have Bitcoin when the US buys a strategic reserve
0:02:01 and there’s more widespread adoption?
0:02:04 Will the value of my retirement portfolio collapse?
0:02:05 I’m worried about losing everything
0:02:07 in my family falling behind.
0:02:09 I feel like I’m gambling on which currency
0:02:13 will be more prevalent or even exist in 20 to 30 years.
0:02:15 What should we do?
0:02:15 Thanks.
0:02:18 – Hi, Mike from Long Island.
0:02:22 So you’re 35, sounds like you’re in a good relationship.
0:02:23 You both are working.
0:02:26 Your wife’s doing something important as a teacher.
0:02:29 So the first thing is to recognize you’re young.
0:02:30 Sounds like you’re in love.
0:02:31 You’re both employed.
0:02:33 Things are pretty good for you.
0:02:36 So okay, so the honest answer to your question
0:02:37 is nobody knows.
0:02:40 I talked to Michael Saylor and when I leave his,
0:02:41 I had lunch with him.
0:02:42 When I leave the lunch,
0:02:43 I think I should put everything into Bitcoin.
0:02:44 And then an hour later, I’m like,
0:02:45 “Wait, what is Bitcoin again?”
0:02:49 Anyway, so the bottom is nobody knows.
0:02:51 Trump recently announced that his administration
0:02:52 will be considering the creation
0:02:55 of a national digital asset stockpile.
0:02:58 Well, this really isn’t quite a strategic reserve.
0:02:59 It could still have a massive impact
0:03:01 on America’s involvement with cryptocurrencies,
0:03:03 specifically if the US government weighs in
0:03:05 and buys a shit ton, the price would go up.
0:03:07 Currently, America holds more Bitcoin
0:03:08 than any other government
0:03:10 as a result of large scale asset seizures,
0:03:12 about 5 billion as of 2023.
0:03:14 Even so, they’ve sold none of it.
0:03:16 Countries including Germany, Hong Kong,
0:03:18 Russia, Brazil and Poland are all taking steps
0:03:21 to review Bitcoin as a reserve asset.
0:03:23 In the past 10 years, Bitcoin is up over,
0:03:26 Jesus Christ, 48,000%.
0:03:29 In the past year, it’s up 140% since the election,
0:03:30 it’s up 50%.
0:03:32 So, okay, what do you do?
0:03:34 The genius of Bitcoin in my mind
0:03:37 is they’ve come up with this incredible means
0:03:41 of creating a somewhat credible sense of scarcity.
0:03:42 What do I mean by that?
0:03:45 We keep printing more dollars that we’ve had inflation,
0:03:48 so you could argue that the value of the dollar
0:03:50 goes down every year.
0:03:52 You know, I bought a house,
0:03:56 every house I bought 30 years ago is worth,
0:03:57 I wish I’d never sold it,
0:03:59 is worth six to 10 times what I bought it for,
0:04:00 more than inflation.
0:04:03 Is that because the asset’s got them in value
0:04:04 and it’s producing more rent?
0:04:07 No, it’s because there are more dollars chasing
0:04:10 fewer assets, that’s the definition of inflation.
0:04:12 Or simply put, the dollars you throw into your mattress
0:04:14 get worth less and less every year,
0:04:16 because we keep producing more of them.
0:04:19 Bitcoin has created this credible feeling
0:04:22 that because of the algorithm or the structure
0:04:26 where it requires more and more numbers to be thrown
0:04:29 at an algorithm or at a math problem,
0:04:31 that it takes more energy, it limits the supply,
0:04:33 and they say they’re gonna stop mining Bitcoin
0:04:35 at 21 million coins.
0:04:37 And the market believes it, so the market says,
0:04:40 all right, this is a credible store of value
0:04:43 and a place to hedge inflation.
0:04:45 It’s also a place to hedge currency risk
0:04:47 if you’re in Argentina and your pesos
0:04:49 are worth 30% less every month.
0:04:51 You immediately get them and there’s currency controls,
0:04:53 meaning you can’t trade it for dollars,
0:04:55 you immediately go into Bitcoin.
0:04:58 So there is real use cases here, right?
0:04:59 It’s not a payment system.
0:05:02 I’ve never been paid or paid anyone in Bitcoin.
0:05:03 I don’t see this having a lot of utility.
0:05:08 I just don’t use the blockchain, call me old fashioned.
0:05:10 So the question is, what do you do?
0:05:13 I think it’s highly unlikely and I wouldn’t bring your hands
0:05:15 too much or spend too much time worrying
0:05:17 that your assets are gonna go to zero
0:05:21 because of Bitcoin and the America’s decision
0:05:24 or not decision to create a strategic reserve of Bitcoin.
0:05:28 Well, you might wanna do is maybe put two, three,
0:05:31 4% of your net worth into Bitcoin.
0:05:32 That way you’re a little bit hedged
0:05:34 and if it does go up two, three, 10 fold,
0:05:37 you feel as if you’ve participated in the upside.
0:05:41 I would not go all in on this much less really anyone asset.
0:05:43 If you’re making some money,
0:05:45 my guess is your wife has good benefits.
0:05:47 You max out your 401k,
0:05:48 anything that’s matched or tax deferred,
0:05:49 try and match that out,
0:05:52 try and get money taken out of your paycheck
0:05:54 so it’s never in your hands
0:05:55 and make sure you’re diversified
0:05:57 and in low cost index fund.
0:06:00 So if you’re worried about crypto
0:06:01 or you think that in fact,
0:06:04 it’s going to be something that might take off,
0:06:05 put a little bit of money in,
0:06:08 don’t put all three or 4% or 5% in at one time,
0:06:11 dollar cost in because it’s a highly volatile asset.
0:06:13 But if you want to hedge a little bit
0:06:15 against the upside or the downside
0:06:17 of your current portfolio, then yeah,
0:06:19 put a little bit of your money into,
0:06:21 I would just probably do Bitcoin.
0:06:23 I think some of the other shit coins are just too volatile
0:06:25 and you end up staring your phone all day.
0:06:27 But sure, dip your toe if you think,
0:06:29 if that’s going to make you feel a little bit better,
0:06:31 but I wouldn’t lose sleep thinking
0:06:33 that all other assets are going to crash.
0:06:35 Thanks for your question.
0:06:37 Question number two.
0:06:39 – Hi, Prof. G. I’m Peter from Boston.
0:06:41 I got my first job out of school
0:06:43 nearly four years ago at a small firm
0:06:45 and for the first time I’m looking to change positions
0:06:48 to a larger company with a deeper talent pool
0:06:50 for mentorship and better growth opportunities.
0:06:51 In my current role,
0:06:54 I was able to take on a lot of responsibility early on
0:06:56 due to the fact that we were a small team
0:06:58 and grew rapidly since I started.
0:06:59 As someone who has been
0:07:01 on the other end of the hiring process,
0:07:02 do you have any advice on how to stand out
0:07:05 when my experience and abilities are greater
0:07:08 than what the number of years on my resume might suggest?
0:07:09 To phrase another way,
0:07:11 how do I know if I’m just a big fish
0:07:13 in a small pond aiming too high?
0:07:14 Thanks for your time.
0:07:16 – Everyone thinks they’re,
0:07:17 well, thanks for the question.
0:07:18 Everyone thinks they’re aiming too high
0:07:19 until they hit the target.
0:07:22 I’ve never been qualified to do anything I’ve ever done.
0:07:23 I wasn’t qualified to get a job at Morgan Stanley.
0:07:25 I definitely wasn’t qualified to get into business school.
0:07:26 I wasn’t qualified to start a strategy.
0:07:29 I’ve never been qualified to do anything I’ve ever done.
0:07:32 So just put that away thinking that you’re aiming too high.
0:07:33 You may not hit the target.
0:07:35 You may apply to be a VP somewhere
0:07:37 and they say, “Sorry, you really aren’t qualified.”
0:07:40 But the way you do this is you start interviewing.
0:07:44 And the easiest questions are the hardest to answer.
0:07:47 And that is, you know what they’re going to ask you.
0:07:48 Why should we hire you?
0:07:50 What’s different about you, right?
0:07:53 What do you bring to this company that’s unique?
0:07:55 Yeah, why do you want to work here?
0:07:58 And what do you do to try and improve
0:08:00 your, you know, your sustainable advantage
0:08:03 or these assets that are differentiated, right?
0:08:05 In sum, what differentiates you?
0:08:07 Why is it relevant to us?
0:08:08 And how do you, what practices
0:08:10 or what do you do that makes it sustainable?
0:08:12 So you literally want to show up
0:08:15 and kind of act like they’d be crazy not to hire you, right?
0:08:18 I also find it kind of a hack in interviewing
0:08:19 to get the person to like you
0:08:21 because a lot of this is based on relationships
0:08:23 and how they feel about you after the interview
0:08:25 is start asking them questions.
0:08:28 People are narcissists or they’re self-involved
0:08:30 and they love talking about myself.
0:08:33 So Lisa, how did you get involved at Salesforce?
0:08:36 Or, you know, what do you like about working here?
0:08:39 Or when you look at my skills, what do you think?
0:08:41 Do you think I’d be a good fit here?
0:08:44 So, you know, what you want to figure out
0:08:46 and you want to be confident is to say, okay,
0:08:47 I think I’d be great at this,
0:08:50 but is this the right fit for me?
0:08:51 You know, start asking them questions.
0:08:53 Who does really well at Salesforce?
0:08:56 Or I’m just using that as an example.
0:08:58 But the key here is you, you know,
0:08:59 you miss all the shots you don’t take,
0:09:02 just start interviewing and find out
0:09:05 if in fact you’re in that weight class.
0:09:09 But circling back, you know, everyone’s an imposter.
0:09:11 Everybody thinks they’ve fooled people, not everybody.
0:09:12 Most people think they’ve fooled people
0:09:15 when they get the job or get into graduate school
0:09:17 or get a high character boyfriend or girlfriend.
0:09:19 So, yeah, aim high.
0:09:22 If you miss, don’t take it too seriously, keep aiming.
0:09:24 And if you really want to see what your currency
0:09:26 is in the marketplace, then go into the marketplace
0:09:27 and try and start interviewing.
0:09:29 Thanks for the question.
0:09:31 We have one quick break before our final question.
0:09:32 Stay with us.
0:09:40 Support for Prop G comes from Domo.
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0:09:51 Or how’s the new marketing campaign performing?
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0:11:17 – We’re taking Box Media Podcast on the road
0:11:18 and heading back to Austin
0:11:20 for the South by Southwest Festival,
0:11:21 March 8th to the 10th.
0:11:23 What is real?
0:11:26 We’ll be doing special live episodes of hit shows,
0:11:27 including Pivot, that’s right.
0:11:30 That dog’s going to the great state of Texas.
0:11:31 Where should we begin?
0:11:34 With Esther Perel, a Touch More with Sue Bird
0:11:38 and Megan Rapinoe, not just football with Cam Hayward
0:11:41 and more, presented by Smartsheet.
0:11:43 The Box Media Podcast stage at South by Southwest
0:11:46 is open to all South by Southwest badge holders.
0:11:49 We hope to see you at the Austin Convention Center soon.
0:11:53 Visit voxmedia.com/sxsw to learn more.
0:11:57 That’s voxmedia.com/sxsw.
0:12:00 (upbeat music)
0:12:07 – Welcome back, question number three.
0:12:10 – Hey, ProfG, I’m Josh, a 27-year-old from Mexico
0:12:13 working in marketing for a large multinational company.
0:12:15 Thank you for everything you do.
0:12:17 Your content really inspires and helps my day-to-day,
0:12:19 so I really appreciate it.
0:12:21 Sadly, my father passed away last year
0:12:25 in getting with an inheritance that I will just receive.
0:12:27 This has left me with a financial question.
0:12:30 My first thought was to buy two apartments,
0:12:32 since it’s money that I didn’t really work for
0:12:35 and see it as securing something my dad left me.
0:12:38 However, I know today, renting and investing the money
0:12:40 in the market make more sense.
0:12:42 This would also leave me the opportunity
0:12:45 to use the money for a grad school if I needed it,
0:12:47 since I know it’s something that could boost my career.
0:12:50 I’ve been lucky enough to land a job that makes good money
0:12:52 and have advanced quickly in the corporate world.
0:12:55 So my question is, what’s your stance
0:12:57 on renting versus buying, and what would you do
0:12:59 if you were a 27-year-old male
0:13:02 that suddenly received a lump sum like this?
0:13:05 Again, thank you for your thoughts and all the content.
0:13:06 Cheers.
0:13:08 – So the first thing you wanna do
0:13:13 is you wanna put it in a bond fund or a treasury fund
0:13:15 that’s getting four and a half or 5% right now.
0:13:18 If it’s $100,000, that’s 5,000 a year,
0:13:21 low risk or no risk, so you’re getting $400 a month,
0:13:22 but don’t just let it sit there.
0:13:26 Put it into some sort of, you know, T-bill fund
0:13:27 or what do they call it, certificate of deposit,
0:13:28 whatever you wanna call it.
0:13:31 Basically, if you put money in at Interactive Brokers
0:13:34 or Schwab, I think you get between four and 5%
0:13:36 while you’re trying to figure this out.
0:13:38 Okay, so in terms of where to put it,
0:13:41 you wanna lean into your advantage.
0:13:44 If you understand the local real estate market
0:13:48 and you or someone in your life could manage those apartments
0:13:49 and you’re scrappy and maybe know
0:13:51 how to fix up an apartment,
0:13:53 buying real estate, fixing it up
0:13:55 and turning it into rental properties
0:13:58 is a fantastic way to build wealth slowly.
0:14:03 I own almost 30 rental units in Delray Beach, Florida
0:14:05 and they’ve been one of my best investments.
0:14:09 It’s obviously a lot about when you buy, where you buy,
0:14:11 and I bought in Florida when no one else wanted to buy,
0:14:13 which is the time you wanna buy
0:14:15 ’cause prices were really, really low.
0:14:17 I bought these things for about an average of 100,
0:14:19 sometimes 120,000.
0:14:22 They produce really good rental income
0:14:25 and my guess is they’ve tripled in value since then,
0:14:26 but I don’t wanna sell them.
0:14:28 I wanna have cash flow as I get older.
0:14:32 So I think rental units, if you have some advantage,
0:14:34 do you understand the local market so you don’t overpay?
0:14:36 Do you have the ability to manage them?
0:14:40 Do you have some skills to improve them, to upgrade them?
0:14:43 Otherwise, you’d be better off just buying REITs
0:14:44 than managing your own real estate
0:14:45 ’cause there really is some headache
0:14:48 around managing these things.
0:14:51 I would suggest, and if you don’t have those advantages
0:14:52 or market knowledge around real estate,
0:14:53 that you just take the money
0:14:56 and you put it in low-cost ETFs.
0:14:59 Not only SBY or QQQ the NASDAQ,
0:15:02 but start thinking about maybe putting half of it even
0:15:06 in some sort of diversified, low-cost world index
0:15:08 sans the U.S.
0:15:09 Why do I say that?
0:15:11 The U.S. has become very expensive
0:15:13 and while, I mean, what do you know?
0:15:15 You want low-cost, you want diversification,
0:15:17 you want an index fund or an ETF,
0:15:19 but you’re still, to a certain extent,
0:15:22 trying to find alpha and pick stuff.
0:15:26 So even though you’re picking all of the S&P with SPY,
0:15:28 I think the S&P, I would argue,
0:15:31 is historically expensive, maybe even overvalued.
0:15:32 I was with a buddy of mine
0:15:36 who runs Private Wealth for JPMorgan
0:15:37 and he was saying, I said,
0:15:39 the market cap of the U.S. right now
0:15:43 is equivalent to half of the total market cap of the globe.
0:15:45 And he said, actually, it’s worse than that
0:15:46 ’cause if you counter in debt,
0:15:48 70% of the capital markets are in the U.S.
0:15:52 So if you add up the money corporations have borrowed
0:15:55 and U.S. borrowing, or consumer borrowing,
0:15:57 plus the value of our stock market,
0:16:00 70% of the value is supposedly registered in the U.S.
0:16:04 So if someone said to you, you can buy the U.S. for $70
0:16:07 or you can buy the rest of the world for $30,
0:16:08 I would argue there’s more upside
0:16:11 to buying the rest of the world for $30.
0:16:14 So I would use a robot advisor to spend some time on AI
0:16:18 and say I want low cost index funds.
0:16:22 And I also wanna make sure that I’m not only diversified
0:16:26 within the U.S. but I’m diversified to a certain extent
0:16:28 around my investments from the U.S.
0:16:31 But low cost ETFs or index funds.
0:16:34 Also, it sounds if you’re doing well,
0:16:39 I’d be reticent or careful to blow that money
0:16:41 or invest that money in grad school
0:16:43 unless you really think it’s gonna pay off
0:16:46 because you’ve been given a gift from your father,
0:16:48 his hard work, his time.
0:16:51 And at your young age at 27,
0:16:55 I don’t know, say it’s $50,000.
0:16:56 By the time you’re 67,
0:16:59 which will happen much faster than you think
0:17:01 with a low cost ETF,
0:17:05 you’re probably gonna have a really nice nest egg
0:17:07 or something to fall back on.
0:17:09 So, and I would imagine that’s what your father wanted.
0:17:10 So I’m not saying don’t invest in yourself,
0:17:11 don’t go to grad school,
0:17:15 but maybe be very selective if you’re doing well
0:17:18 at your job and make sure you can get some financial aid.
0:17:20 Just because I hate to see kids
0:17:23 borrow a lot of money or spend a ton of money on grad school
0:17:26 when it may not provide the pop that they’re anticipating.
0:17:27 Then that never used to be an issue.
0:17:28 It always used to be worth it.
0:17:31 Now you actually have to do the math.
0:17:32 Let me back up.
0:17:35 This is a really good problem.
0:17:37 Congratulations to you, but again, low cost ETFs.
0:17:42 And I would do say 50, 60% US, 40% international.
0:17:43 If you wanna lean into real estate,
0:17:44 make sure you know what you’re doing
0:17:47 and you have some advantages there.
0:17:48 But again, this is a good problem.
0:17:50 And I’m sorry about your father’s passing.
0:17:52 It’s something we all deal with,
0:17:54 but it’s something I don’t think any of us are prepared for.
0:17:56 It’s heartbreaking when it happens.
0:17:58 So I’m sorry about your dad.
0:18:01 That’s all for this episode.
0:18:03 If you’d like to submit a question,
0:18:04 please email a voice recording
0:18:06 to OfficeHouras@PropertyMedia.com.
0:18:09 Again, that’s OfficeHouras@PropertyMedia.com.
0:18:21 This episode was produced by Jennifer Sanchez.
0:18:23 Our intern is Dan Shalon.
0:18:25 Drew Burroughs is our technical director.
0:18:27 Thank you for listening to the “Property Pod”
0:18:29 from the Vox Media Podcast Network.
0:18:30 We will catch you on Saturday
0:18:33 for “No Mercer No Mouse” as read by George Hahn.
0:18:35 And please follow our “Property Markets” pod
0:18:38 wherever you get your pods for new episodes
0:18:39 every Monday and Thursday.
0:18:42 (upbeat music)
Scott talks about Bitcoin, explaining why it won’t replace traditional investments and why long-term diversification matters. He then shares tips on standing out in job applications and gives advice on investing inheritance money.
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