Rich Habits Podcast - Q&A: Leveraged ETFs, Losing Rental Property, & Our Bitcoin Exit Strategy

Episode Date: May 1, 2025

In this week's episode of the Rich Habits Podcast, Robert Croak and Austin Hankwitz are joined by Zaid Admani from Public's The Rundown!---Sign up for the Rich Habits Newsletter and join 52K+ likeminded investors in receiving weekly market updates, click here!---Trial the Rich Habits Network for 7 days completely for free and see why 600+ other podcast listeners love the community we've built, click here!---Sign up for Public and take advantage of their up to $10,000 bonus when you transfer an existing portfolio to their platform, click here!---⭐ Download our FREE Financial Planner –⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠click here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⭐ Download our FREE Budgeting Template –⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠click here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⭐ Earn 4.1% on your savings with a High-Yield Cash Account –⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠click here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⭐ Trade stocks, options, music royalties and crypto on Public –⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠click here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⭐ Automatically buy stock where you shop with Grifin –⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠click here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⭐ Protect your family with term life insurance from Suriance –⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠click here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⭐ Use code “Spotify” for 15% off our 4-module video course –⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠click here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⭐ Optimize your portfolio with Seeking Alpha –⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠click here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠---👤 Explore everything Austin does –⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠click here ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠👤 Explore everything Robert does –⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠click here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠❓ Ask us questions for our Q&A episodes – @richhabitspodcast on Instagram📬 Inquire about working together – [e-mail]---Disclosure: A Bond Account is a self-directed brokerage account with Public Investing, member FINRA/SIPC. Deposits into this account are used to purchase 10 investment-grade and high-yield bonds. As of 5/1/25, the average, annualized yield to worst (YTW) across the Bond Account is greater than 6%. A bond’s yield is a function of its market price, which can fluctuate; therefore, a bond’s YTW is not “locked in” until the bond is purchased, and your yield at time of purchase may be different from the yield shown here. The “locked in” YTW is not guaranteed; you may receive less than the YTW of the bonds in the Bond Account if you sell any of the bonds before maturity or if the issuer defaults on the bond. Public Investing charges a markup on each bond trade. See our⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠Fee Schedule⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Bond Accounts are not recommendations of individual bonds or default allocations. The bonds in the Bond Account have not been selected based on your needs or risk profile. See⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠https://public.com/disclosures/bond-account⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ to learn more.Hankwitz Group LLC has an existing business relationship with NEOS Investment Management LLC. The opinions expressed are those of the author, and the author owns several NEOS ETFs.

Hey everyone and welcome back to the Rich Habits Podcast question and answer addition. As you guys know by now, these are our Thursday Q&A episodes, which means if you have a question to ask us, you can ask us a question via Instagram DMs at Rich Habits Podcast, via email at richhabitspodcast at gmail.com, or ask us a question inside of the Rich Habits Network. And as a quick reminder, we are still running a seven-day free trial. There's been over 200 of you that have joined the Rich Habits Network over the last two months because of this seven-day free trial. You guys are loving it. You're trialing the network. You fall in love with it after the first live stream and you stick around. So we very much appreciate it. Now, Robert, this episode is going to be a little bit

different because we actually have a special guest. Zaid, thank you so much for joining us on this Q&A episode. As you guys might know, if you listen to the rundown by public, Zaid Admani is the host of that show. Zaid is a character when it comes to the financial markets. I appreciate it. I appreciate Appreciate you having me on. Austin, you know, we've known each other for, what, almost five years now. So it's great to finally be on the pod. And Robert, great to finally meet you and talk in person. I've been watching your walking talks for forever now. So it's great to be on the pod with you guys. Definitely love having you. You do a great job on Instagram as well. It's really fun because you're our first ever guest on a Q&A episode. So let's, let's mark that in the annals of history

the Rich Habits Network and Rich Habits Podcast. So let's get into it. It's actually going to be a fun episode, right? So not only now, will Robert and I be answering some questions, but we'll lean on Zade to give his hot take as well. But before we jump into our first question, I do want to take a moment to give a quick shout out to, you know, on the rundown, you guys do these like deep dive episodes on Saturdays every single weekend. And it's call it like 10 or 15 minutes long. It's a video episode. And this most recent one was about the Google antitrust lawsuit, a little bit of earnings call info stuff in there as well. So why don't you walk our listeners through a little bit what to expect

when it comes to those deep dive episodes in the past and maybe even in the future. Yeah, thanks for asking about that. So our main show is a daily show, seven to eight minutes long, to give you a quick recap of what happened in the markets. The previous day, what's to look forward to, trending stories and things like that. What we started to do recently, though, is do weekend deep dive just focused on one topic where we go deep for 10, 12 minutes. And this past weekend, we actually talked about Google.

They're making a lot of news these days about earnings, and they're also under some heat from regulators, you know, being called a monopoly, potential breakup there. So we did a nice deep dive about that and what it means for Google, are they going to be broken up or is it going to be more of a Microsoft situation that happened in the 90s? So we talk about that. I highly recommend checking that out if you want to learn more about Google and their fate, you know, that could be broken up. Yeah, man, they just had an earnings call this last week. And it was very good, actually, right? So, like, I think a lot of investors, including myself, were kind of thinking, like, is chat GPT going

to be the end of Google, right? Everyone's just going to go ask these AI models for answers versus Googling an answer. Well, 50 billion dollars of search revenue for the first quarter of the year kind of puts those speculations to rest. And I think they were talking about their quarter billion monthly active users for Gemini and their cloud business segments running on a high octane full speed ahead. It's a really cool business model. So yeah, definitely check out the earnings if you haven't already. That to me was like Google dropping the mic, telling the critics that they're not cooked just yet. I mean, the fact that search is still growing double digit, everyone says that chat CPT and the AI models are just going to destroy Google's business model. That's not been the case so far.

And I think it's because people just have been Googling for 20 years now, right? You're not going to change the habits of the entire world in two or three years. It might happen in 20 years, 10 years maybe, but it's not going to happen overnight. And Google just keeps printing money in the meantime and investing in their AI. We talked about that in the deep dive episode. So they're not going away anytime soon. And I want to piggyback all of this because for me, it's always funny because we're in this every day.

And people that are on the outside, they're not thinking about how we think about the markets in these individual stocks and where these sectors are going of growth. And so for them, I believe you, it's five, 10 years away before they're switching away from a Google and getting their answers from Grock or TikTok or wherever they're going. so I agree totally. And I think the interesting thing is because Google is still printing money, $30 plus billion in profit Q1, I mean profit, right? That allows them to then potentially build a monopoly or a remote when it comes to AI.

I mean, they got the data, they got everything. And to me, that's going to be the most interesting thing. It's two things. Number one, are the regulators actually going to break up Google? That's a wildcard here. I don't know. We'll have to see. But number two, can Google use the money?

printer that they have right now, billions of dollars to cement a moat in AI. And then that's their next dominant industry that they're going to be a monopoly in for the next 20 years. So those are two things that to watch out for when it comes to Google. Until then, just as a shareholder, I mean, you're also getting the benefits of share buybacks. They announce 70 billion in share buybacks, increase in dividends, things like that. So I know the stock hasn't done so well compared to other big tech stocks this year, but definitely something that I'm keeping an eye on. I am right there with you as a Google shareholder, I got really excited when I was listening to the earnings call. And they talked about robotics, right?

Specifically, alluding to humanoid robotics. And obviously, they invested well over $100 million or so into Apptronic, which is a company that we were invested into as well, which is exciting. So, yeah, I'm all here for Google. Shout out to Google. So now before we jump into our first question, coming from Lynn, let's take a moment to hear from our episode sponsor, Public. If you're looking to open a brokerage account, actually built during the century, you need to give public.com a try.

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Paid for by public investing, full disclosures in the podcast description. All right. So our first question comes from Lynn V on email. Lynn says, hi, Austin and Robert. I'm a new listener in my 60s and love all. all of this valuable information. I'm getting ready to retire next year at 67 years old. I will have a great pension from a large company and I also have about 400,000 in 401ks and Roth IRAs, 150,000 in brokerage accounts, $100,000 in crypto assets, 80,000 in a high yield savings as well as some

CDs. The pension and Social Security I will get will provide about 90% of my current income, which gives me a pretty nice living in retirement. However, I'm also starting to lean towards more high-risk investments. On last week's episode, Andrew's question about high-risk investing was interesting to me, specifically talking about leveraged ETFs and how to capture more upside using them. My question is, are these ETFs generating monthly income by selling or writing options on the stocks? I'm not sure how these ETFs work and how they're able to multiply both the upside and the downside of the price action with the underlying stocks or indices they track. This is a really good question. Robert, you want to kick us off? Yeah, I'll kick it off by saying that make sure that everyone

listening and following along does their research. It sounds great when it's promoted to you and it's a 3x multiple. So if it makes 8% and it's three times leverage, you're going to make a 24% return. But that rubs both ways. So remember, in these leverage ETFs and it's why I don't use them or promote them, you're going to have the same multiple of downside risk as well. So make sure you understand that, especially in volatile markets, because it all sounds good if we feel like we're safe enough in a long running bull run. But right now, I just don't think it's a really good strategy. I think there's better ways to find higher risk, but I don't think this is the way I would go

about it. I would rather see taking some of that money and marking it for private investments, pre-IPO investments, maybe some real estate and multifamily. Some of those things may be a little more high risk to balance out your portfolio without being in the predicament of what I believe is a bad idea for these highly leveraged ETFs. Yeah, I just want to make sure Lynn listening here completely understands how these ETFs work, right? So, for example, UPRO is a very popular one.

It's the pro-shares ultra pro S&P 500 ETF. And according to their website, they offer. a daily 3x leverage to the upside or the downside on the performance of the S&P 500, which means that any given day, if the S&P 500 is up 1%, this ETF will be up 3%. Just as if it's down 1%, this ETF will be down 3%. And year-to-date, the S&P 500 is down about 6% or 7%, and this ETF is down 25.5%. Right? So, like, if you're on the wrong side of one of these sort of leveraged,

trades, you can absolutely blow things up in your portfolio. So what I want to encourage you to do, Lynn, is maybe take a step back from this. I understand that you want to do some high risk investing. I'd encourage you to listen to Roberts' advice about different asset classes versus using leverage to multiply your returns or your losses depending on what you're trying to buy in the stock market. I don't own any leveraged ETFs. They just, to me, don't make a lot of sense. It's very much timing the markets, and I'm not very good at that, to be honest with you. So it's something I'm staying away from. But Zaid, what's your perspective on leveraged DTFs and things of that nature? Totally agree with everything you guys are saying. I do want to add about these leverage

ETFs. So I'm not a leverage ETF guy myself, just like you guys. These leverage ETFs are designed to track the daily movements of whether the S&P or they have like these leverage ETFs that track individual stocks as well. So it's not a buy and hold instrument either. So like there's decay over time. I think Austin, you mentioned. mentioned that the S&P example, the S&P is down, what, 4% this year, but this leverage ETF is down 24%. So these leverage ETFs are designed to be a day trader instrument. So unless you want to, unless you want to do that and, you know, day trade with these leverage ETFs, which again, I don't recommend either, which is hard to recommend these to anybody.

They're too volatile. They're too risky. The decays there. You got to be trading these hourly, essentially, to take advantage of the volatility. There are better options out there that Robert just mentioned. So you got to understand how these leverage ETFs work and just don't get caught up in the viral TikTok video or whatever that someone's like, oh, I made 300x because of this leverage ETF on video or something. Got to be very careful with this stuff. The decay behind these instruments can have a huge impact on returns. Yeah, I totally agree. And it always comes down to this. As you're building your wealth, personal finance is personal, but you don't have to get fancy. I'm very wealthy.

I'm here every single day sharing my journey, and I don't do fancy stuff. I understand what I'm investing in. I'm a long-term investor, and I suggest all of you watching and listening do the same. Because when you try to cut corners and be real fancy to make more money, it usually doesn't work. And, you know, Austin and I's message is pretty straightforward for the last few years you've been following. And that is be a long-term investor. Understand what you're investing in. And just stay consistent. And I think that's the big takeaway for this question.

So our next question comes from Jordan C via email as well. Jordan says, hey Robert and Austin. I love the podcast and I like forward to the new episodes every single week. My name is Jordan. I'm 22 years old and I'm currently financing a vehicle at 6.9% APR. I'm currently considering trading in this car and leasing a new one. Here's the breakdown. I have a 2020 Tesla Model 3 with about 71,000 miles on it and I owe a little bit over 15,300 on it through this financing, paying about $500 a month. I can trade this in, begin a two-year lease, and pay $2,100 up front, which includes the first month's payment, and then pay $388 a month for the next two years. I just finished up my master's degree in education. I have no student loan debt,

but I do have this $15,300 loan weighing me down. Obviously, I would lose the equity trading this in and leasing a new vehicle, but I believe leasing a new vehicle would upset that loss and save me thousands over the next two years. What do you guys think? Your thoughts and opinions are much appreciated. Robert, I'll let you kick this one off. So yeah, here's my thought, and this is a good, good question for many of you. I have a rule of thumb. If you want to get something new and you're going to drive it to the wheels fall off, buy it. Otherwise, never buy a new car. You should always lease. That's my opinion. The numbers make sense to me. get a new lease every two or three years because I don't want to deal with maintenance, I don't want to

deal with repairs, and I want to make sure I have a nice car that is safe at all times. But to answer your question, you have to look at it this way. I don't think you're giving up much equity in this vehicle at $15,300 because of the fact that they're going for $15, $17,000, $17,000 on the market. So I think that's negligible and not something I'd be too concerned with. I would be concerned with the actual numbers. How much are you really saving? And are you doing this because you want to save the $150 a month? Or are you doing it because you want to have a newer car, lower miles, and get a better model of, I'm assuming, another Tesla. It doesn't clarify on the question. But that's the way I look at it is, why are you doing this? I don't think you're doing it just to save the $150 because

I don't see that where that's going to move the needle much for you. But if you're doing it as a combination of the monthly savings having a newer vehicle and having this lower priced lease, then that, I think, is a good idea. What's your take, Zad? Yeah, actually, I thought about doing something similar myself. I actually have a 2021 Tesla Model Y that I bought used last year. I was thinking about getting another Tesla for my wife. You see all these deals advertised by Tesla for their leases, and it sounds really nice, right? $299 a month or something along those lines. I agree with Robert. I think if the goal is to get a new car because the 2020 Model Y or the Model 3 that Jordan has doesn't do it for them anymore, okay, I understand that part. But otherwise, I think it's hard to recommend,

in my opinion. I'm always someone who I just want to make sure people understand that like when you lease a vehicle, you're essentially renting it and you're renting it for 388 a month over this two-year period of time where I'm assuming at this $500 a month, you should have this car paid off in the next like three years. So it's like I have a lower payment for the next two years and then I guess like you're going to take on another lease after that. Maybe the payment stays the same. So now three years go by and yeah, you're probably driving a 2025 or a 2026, but like you just have these, you know, payments in perpetuity or you just spend three years your life paying off, you know, call it seven percent interest rate debt, which is like in that range where it's like,

yeah, you could pay that off. I'm not mad at you for paying off seven percent. Now if it was four percent or 3%. I would be mad at say keep it around. But it's like, one of those things where it's like, okay, fast forward three years, you have a paid for Tesla Model 3 with maybe 100,000 miles on it. That's probably worth like, I don't know, 10 to 12K. But you don't have a monthly payment and you have a vehicle now versus fast forward three years. You still have a monthly payment of 388, 450. Like, who knows what that next lease is going to turn into. I don't know. For me, it's always so hard because I think the best way to build wealth is to find margin in your budget. and you find margin in your budget by saying no to high interest debt and by paying off debt that

you've just kind of had over a long period of time. And so in this situation, like what happens in three years from now when you have this $500 a month freed up? You could invest that $500 a month versus in a situation in three years from now where you're leasing. Maybe your lease is $500 and you consistently have this payment. So I'm going to say keep the Tesla, pay it off over the next three years, and then start investing that $500 a month every month for the rest of your life. And when you do need a new car, do what Zaid did, which is go buy a used Tesla Model Y or something. Before this episode, we were talking about it. And he said after the tax credit, his Model Y was $21,000.

That's right. Save up for that. Go buy it. Assuming interest rates are 7, 8, 9, 10%, right? So I don't know. I'm just a big believer that the only way you build wealth is by investing money. And you find money by finding that margin. and margin normally comes from paying off unnecessary debt.

All right. I'm going to unpack this just a little bit further. And I love this question because, Austin, you and I always differ on it. And that's what makes this podcast so good. We always say personal finance is personal. And this exact question is personal. So let me give you a reference. My personal driver is always a new lease.

I don't want to mess with things. I don't want to have to deal with it. I don't want to have to have any issues. So I look at that payment as a cost of doing business. a cost of life. My cool vehicles are always bought used and my company vehicles, you guys would get great joy. My construction company in Ohio, at one point I had five of the same vehicle. They were 1998 to 2005 Chevy Silveradoes. Now since then, I've sold three of them, but I still have two. And so it's always situational here when looking at this. And I agree with Austin 100%.

but let's put a little bit of one last wrinkle into this. If you're a lawyer, if you're a doctor, if you're a salesperson, it drives all the time, if you're a realtor, someone that has to take people in their vehicle all the time, you don't want to have an older, ratty vehicle with 100,000 miles on it because then they may frown on that and look at it like, well, if this person's successful in their own field, why don't they have a slightly nicer car? So that is why with all things personal finance, it's up to your situation. I think either way is a good way to do it.

And I will end it with. They said they just finished up their master's in education. So I'm assuming this is a teacher, which means you're probably making 45 to 65K and you're not a lawyer or one of those things. So with that information, do you think they should still lease? If we're specifically speaking to Jordan and not the other 100,000 people that are going to see this episode, then yes, I would keep the Tesla. But for other people, that's why I said 100% agree with you. but with everyone else listening, I want to make sure people understand. We're not telling you not to have a nice car.

We're telling you that there's a time and a place and do you need it? And I always tell the story. I had a friend that owned a construction company in Ohio. He came to one of my job sites and he laughed at me. He looked at all the trailers and the trucks. He goes, dude, what is going on? What's with all the old trucks? I'm like, what's wrong with them?

They run great. And he was like, he has all of these big, crazy trucks and trailers. Well, he went bankrupt a year later. So I stopped him. And I said, hey, what was your carry cost every month for all your trucks and trailers? And he was like about $26,000 a month. And I'm like, exactly. So I think that really speaks to your point, Austin, of finding those ways in your budget to arbitrage that extra money to build towards wealth.

So you're always not living beyond your means, even if you own a business. I love these discussions. They make this podcast so unique. So our next question here comes from Dan C via email as well. Remember, if you want to ask us a question via email, email us at Rich Habitspodcast at gmail.com. Dan's question says, I have been listening to the podcast for a while now, and after hearing about all these 20-something-year-olds who are killing it, I decided to ask for some advice.

I own a small business that is appraised for about $750,000 based on about a quarter million of SDE. I owe $45,000 on this business. I have a primary residence worth $700,000 with only about $150,000. and 10,000 of debt on it at 2.5% interest. I own a beach house worth 1.1 million with no debt, no mortgage, no nothing, and we rent it and make about 40,000 a year. I also have $150,000 in my bridge account that's invested in Vanguard International Funds. And in a money market, I've got $600,000 sitting on the sidelines earning 4.5%. I want to get back in and start

the process of moving my money market money into public and get a little bit. more income on it. I will inherit about $600,000 of the next few years, and I'll need to put that money to work somewhere as well, assuming I don't buy another business with it. I'll be 56 next week, and your advice will be my birthday present. So what do I do with the $600,000? My wife has $100,000 in her Roth IRA. I've got about $40,000 in mine, and we maxed out for the year already. P.S., I still love silly bands. I love that. And let me take this one first. Dan, don't worry about it. all the young kids killing it. It's all bull crap. I promise you most of them have leased lambos, leased this, rented this. It's all fake. I know it. I see it from behind the scenes all the

time. You are killing it, Dan C. And it's impressive. And you're still so young, you have a lot of great years ahead. So me coming from a very similar situation to you, I love the idea of buying multiple more businesses in your career because if you're really good at it and get that value add increase the profits increase the sales you just get so much more multiple later on when you exit that business so the number one thing i see here and i love everything about your situation is this 600k i feel you're too risk off when i see you have all of that in the money market plus you have another 150 in your bridge account in international i just feel like you should be more risk on at your age and obviously at your net worth. So for me, I'd love to see you build up more

in the bridge account and less in the money market, get some more of these ETFs we talk about. Maybe you could look at start getting into some private equity deals and getting some of this money working in pre-IPO, maybe some more real estate and stuff like that to where it's a little more risk on, but you still have a lot more upside because I do feel you're planning it a little too safe having that much money making four and a half percent but austin i'd love to hear you and zade's take no i largely agree with you a couple things stick out to me the first thing which is not really the question you even asked but you're only making forty thousand dollars a year on this one point one million dollar beach house that's a lot of equity tied into a beach house to only yield about three and a

half percent cash on cash on an annualized basis i'm not saying you sell it maybe you raise rents maybe you do some short-term rentals. Maybe you try and get it up from three and a half percent to five or six or seven. Like how can your beach house begin to start bringing in, call it 65 or 75,000 a year to really begin to turbo those cash on cash returns. So that's just a little call out there. But I agree with you, Robert. When it comes to this bridge account being on these international funds, 600,000 sitting in cash earning four and a half percent, it seems to me like Dan is already in the I'm retired mode. Which like, don't get me wrong. That's cool. But, on the same token, you're 56. You can't touch this money for three and a half years anyway, right? So it's like,

if you can't even withdraw the money without penalties until 59 and a half, why not have that money work for you over that three and a half year period of time? And I understand if you're like trying to say to us right now, oh, it is working for me. It's earning four and a half percent. Sure, I get it. The stock market's down six. You're going to make four and a half percent this year. So theoretically you're up probably like twoish percent year to date. Like that's cool. I get it. But the four and a half percent you earned last year was much less than the 25 percent the stock market delivered. And I'm not saying that the stock market's going to be in the green next year or that we're even going to be in the green this year. But what I am saying is that the chances of you

living until 66, 76, maybe even 86 are pretty high. And I'd be very, very mad at myself if I encouraged you to just sit in cash for the next 10, 15, 20 years, knowing that this $600,000, if invested correctly in the S&P 500 and the index funds and ETFs we talk about, on average, will double every seven years. That means your 600,000 will double to 1.2 million, and then that will double again to 2.4 million all by the time you're about 70 years old. So there's a lot of upside potential that you could potentially be leaving on the table here, assuming you just stick to this cash.

But yeah, I agree. You're really risk off, and I'd really want to encourage you to be a little bit more aggressive. Now as you turn 56 years old on your birthday. First of all, like you said, Dan, absolutely crushing it. Incredible to see your portfolio at this level at your young age. I would agree with everything you guys said. I think this is a story about portfolio construction, portfolio allocation. It doesn't have to be 100% ETF or equities. It could be a 50-50 split, 60-40, something along those lines, something to give you more exposure to the stock market because historically, like Austin, you said, doubles every seven years. So it just might be a tweak

of the portfolio to get more exposure to equities. And then if you want to go, you know, even bigger, swing for the fences, real estate, private equity deals, things like that, IPOs, you can just make a sleeve of your portfolio that allocates to those funds. I think your situation is pretty solid here. You have a lot of levers to pull here. I think that's the key thing is there's a lot of levers to pull here. A lot of things you can experiment with good thing about public. He mentioned public in his email. You can construct your portfolio and generate a sleeve that does some bonds, some treasuries, some equities, some ETFs. You can kind of do it all on the public app. I think you're in a really good spot and you just kind of tweak some levers to end up in a better spot by the time you're retired.

I think the biggest call out to me that I just kind of realized here is one, this guy's like, you know, two million plus net worth, which is incredible, but also two, he has one point six million dollars of equity in his real estate. And maybe that's his play, right? Maybe the play is he's going to let his real estate of 1.6 continue to trend higher. And in 10 years, he'll have a paid off primary residence. Maybe his 1.1 million beach house is worth 1.6, 2 million. I don't know. And that's like his retirement is to get out of that and sell it and put that into maybe some bonds or 60-40 split with equities and things like that. So maybe he's on a completely different like path we aren't seeing. But I do want to just encourage you here, Dan. You got another probably 20 good years ahead of you of

investing, don't sit on the sidelines for that entire 20 years. I 100% mic drop that was exactly what I was going to say. I deal with it every single day where people just have their foot off the gas. They get some money and then they take their foot off the gas immediately for far too long. All you have to do and we say it every day is when in doubt, zoom out. Go click on the S&P 500. Go look at VOO, the ETF and then zoom out for 20, 30 years. And you will see that. that it goes up into the right over time, and you can't let these little bumps in the road get in the way and then sit in cash or be super scared on the sideline.

I love that take, Austin. So our next question comes from KDP. Katie says, I have a question about my mortgage. I have a 30-year mortgage at a 2.8% interest rate. I never thought much about it until I started listening to your podcast and exploring more ways I could be financially responsible. I did a little bit more research about how mortgage loans are paid back, and I'm seeing that now in the first half of my 30-year mortgage,

the majority of my monthly payment is going to go toward interest and not much toward principal. Would it be stupid of me to consider taking out a helock for the amount of my mortgage, use it to pay off my mortgage, and then use the money I was paying my mortgage off with to now pay the helock off? Correct me if I'm wrong, but I believe the monthly payments I'll be spending toward the helock. More of that will go toward the principal than the interest,

which is the opposite of my mortgage. Is that a good idea? I'm honestly not sure what I should do in this situation. I think it's a terrible idea. You have to look at the fact of right now you have 2.8% interest. The HELOC's going to be 7, 7.5, 8. I don't know exactly what they are at the time of filming. And you have to also understand something is it doesn't work that way.

The HELOC is only going to approve you for a certain specified amount of the total equity you have in the property. That's what you're going to be able to borrow. So unless this house you've already paid down 60, 70, 80% of it, you wouldn't be able to get enough in the HELOC anyway. So I think your thinking makes sense, but the way it would play out simply does not work. So Katie, I don't like this idea at all. For everyone listening, I'm okay with HELOCs. If you believe that you have all this equity in a home, say it's your primary home, and you can use that for a really valid reason. Maybe you're going to renovate your business. Maybe you're going to put an ADU in the backyard of your property and the numbers play out there where it's going to be profitable for you for the long term.

But just to try and get a HELOC to pay off the current mortgage for a much higher interest rate, the math just doesn't work. I'm right there with you. 2.8% interest on a 30 year mortgage. I would be big chilling. I would be making my normal payments. I mean, you're probably over here, depending on. on how much you borrowed, like on an annualized basis, maybe paying $6,000, $7,000 a year in interest, which really isn't all that much. I mean, the house I'm in right now in filming inside of,

I bought for about 400 grand, and I have a 6.5% interest rate on this mortgage. And according to my tax payments, I paid like $22, $23,000 in interest last year just like on those mortgage payments, right? So, like, you paying $6,000 or $8,000 is pretty cool at that 2.8% interest rate. again, when we talk about interest rates and why they're important to consider when it comes to investing versus paying off debt, things of that nature, is because we know over a long period of time, the S&P 500, the NASDAQ, the Dow Jones, right, the ETFs and index funds we talk about go up into the right by 8, 9, 10%, over a long period of time, but that happens every single year, on average. And so what you're essentially doing is taking money that you could have invested

at this 8, 9, or 10% in these index funds and ETFs, and instead putting it to pay off a 2.8% interest rate. So you're making 2.8% on your money because that's interest you're not paying. But the opportunity cost of that was not making 8, 9, or 10% somewhere else on your money. So again, we always talk about like arbitrage and making sure that our money is working hard for us and things of that nature. You can't out invest high interest debt. We say that all the time because if you're not.

you're paying 30% interest, then yeah, you want to go pay off that 30% interest, but you're only paying 2.8%. So if I were you, Katie, I hear what you're saying about like the amateurization schedule of your mortgage. It's probably something you just learned and it's freaking you out. It's life, unfortunately. But I would just keep the mortgage and rock and roll. 100% agree with what you guys are saying about my house back in 2021, about 400K, 2.99. I've told my wife, we're not moving. Because this mortgage rate is like an asset essentially. It is. You know, you can't get that. anymore. And the amount of interest you're paying now compared to what you would have to pay if you

buy a house today, can't even compare. So, yeah, I mean, the mortgage, I would, I don't know if the asset is the right word, but I kind of treat it like an asset. It's an asset having that low of an interest rate. And then you can use the money saved over to invest in things like the S&P 500 or other things because you're going to get a higher yield, even even in bonds. You can put the money in bonds and you're going to get a higher yield. I want to illustrate that a minute because I think it is one of the most important things in building wealth for people to understand. There's a lot of people out there that are in financial education that are telling you to have no debt, debt is bad, all these terrible things. But what you have to understand that Austin and Zaid alluded to is that

think of it this way in very simple terms. If you can borrow money for 3% and you can make 10, 12, 15% with the money, all of that arbitrage, that upside potential goes to you, not some else. And that is why the wealthiest people on earth have payments on their homes, payments on their jets, payments on their yachts and everything else, because they know that if they borrow cheap and use their money elsewhere where they're going to make a lot more with it, it's going to add to their balance sheet, not someone else's. So I hope that helps. Everyone listening, why we talk about this and that arbitrage is so important that the positive arbitrage is going into your account, not someone else's. Listen up, folks.

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open up a bond account, lock in that 6% or higher yield, or take advantage of Publix $10,000 bonus right now for transferring a portfolio into public. Or, right, this is the third or, take advantage of the 1% match happening in your IRA at the moment. Public is just crushing it right now. They've got all the perks, and we're super excited to be working with them. Yeah, and another or would be the high yield cash account. They're one of the top earning cash accounts in the country, 4.1% right now as a filming. So don't forget about that if you're trying to build that emergency fund. So our next question comes from Cameron B. Cameron says, hi, Austin and Robert. I'm in a sticky situation deciding whether to keep my residential property or not. Before listening to the show, I fell for the trap that

real estate is always a good purchase and I purchased a single family home for myself and my son. It was at the peak of the housing market in July of 2022. I bought it for $310,000, but right now it appraises for below $260,000. I'm in San Marcos, Texas, and I owe $291,000 on my mortgage at a 4.9% interest rate. After my son's mother moved about 45 minutes away, I had to relocate closer to his school. So I'm now renting that house out. The mortgage that I'm paying on that house is $2,450, but the rent that my tenant is paying me is only $1,600. I'm 30 years old.

I've got $80,000 in index funds in traditional brokerages, $22,000 in my Roth IRA invested in index funds as well, $250,000 in Bitcoin that has grown substantially over the last several years, and $10,000 or so in large-cap single stocks, a few thousand in reeds, some art on Masterworks, as well as about $100,000 of cash in a high-yield cash account for emergencies and disposable for future investments. I make roughly $120,000 a year, give or take based on my commissions. So here's the question. Would it be smart for me to hold on to this house for the next few years or take the loss now to get rid of it and clean my hands? Robert is a real estate question. I feel like it's right down your alley. I'll let you kick

this one off as well. It's definitely a sticky situation, but I look at it this way. If you sold it right now, it's not really a massive loss. You can fully handle the loss. You have plenty of cash to do it. But in my opinion, I wouldn't touch it because I don't know that part of Texas, San Marcos, but I would say that you at least have capital appreciation and the potential to make this money back if the housing market starts to go back up in San Marcos. So I would keep it.

I know it's a $800 loss a month for you out of your cash flow. but I think the numbers make sense to give yourself that chance to be able to get the money back and have a positive outcome from this property rather than just selling it and cutting your losses. The only way I think it makes to sell and cut your losses right now is if you weren't in a good financial situation and the $900 or $800 a month was make it or break it for you. But otherwise, I'd keep it because there's a strong chance that capital appreciation in that neighborhood goes back up. The house value goes back up over the next two or three years. And so that's why, in my opinion, I would keep it. That's a really good perspective. So I'm running some numbers here.

And if he sold the house at about this 260,000 range, he'll take home to himself after commissions and probably some fees, about $240,000 to $245,000. But he'll still owe $291,000 on the mortgage, which means he'll still have to pay, let's call it, 50,000. thousand dollars back to get out of this situation. So that's that $50,000 loss that he's alluding to. Now, you're saying that he should just continue to hold on to this house, eat the $850 of negative cash flow every month, which after about four years or so will mean that same $50,000 loss if he just got out of it now. So you're assuming that in the next four years that the value of the home will appreciate so much that he'll be back in the money. Well, I look at it this way.

originally bought it for $300,000. And let's say with a $300,000 home, the original price, and let's say that the capital appreciation is average, so it's 4% a year. So that would be $12,000 a year in capital appreciation, we assume at a 3, 4% rate. So I look at it this way. I would rather have the asset still with the opportunity to recoup my money than sell the asset, eat the loss, because I know where you're going with. this and it does make sense is that he could take that $8,900 a month and invest it and where would

the better outcome be? We don't know that, but that's just my take of what I would do because I always like to give myself a chance to be able to win in a situation that is a bad one. And in this instance, that's why my opinion stands that I would keep the property because you never know with that area. So I know Zaid, you're very familiar with this area because you live in Houston and you used to live close to this area. What's your perspective? Yeah. So I live in Houston right now. I lived in Austin, which is pretty close to St. Marcos. The entire central Texas area is kind of going through a repricing right now when it comes to housing. It was really popular during the pandemic. And now these days, prices have come down significantly. So St. Marcos is probably about an hour,

hour and 10 away from Austin. I don't know if the area is going to bounce back to the same level that it did during the housing boom that we had during the pandemic. The vibes are a little bit down when it comes to Central Texas compared to what it was three, four years ago. But you have the opportunity of recouping some of the loss. I think the other question is like, how much of a pain is it to manage the rentals, right? So he's 45 minutes away. Does he have a rental property company who handles all the maintenance and stuff as he do it himself? How much of that is taken away from his job, his family, things like that. So I think that's the other question is if it's not too much of a pain, then I guess you can eat the loss and hope for an appreciation. But if you add in the cost of

managing the property and like the mental cause and the headaches, that could change the equation a bit. I will also say that this guy is in a wonderful situation besides the home, right? He's got 100K of cash waiting for, you know, disaster to strike. Well, guess what? This is the disaster, right? 50K could go to this. He has $250,000 of Bitcoin. One, I would encourage you to take some profits when you're ready and then reallocate that to more traditional investments like what Robert and I are doing here. But it's like you've got these levers that you can pull that make this not so much a disaster in the sense that, oh my God, my mortgage, I'm going to have to have all this deal. I've got to take on a personal loan. Now it's just an inconvenience, right? It's the tuition

you pay for learning if you ended up wanting to get out of this. Yeah, I'm kind of torn, right? Because on one side of the equation, to Robert's point, there is very much a world where it could bounce back. But on the other side of the equation, I think about probably myself here in Nashville, right? I paid about 400 for my home. I think it's estimates right now is close to like 380 or so. I plan to live here for a while and then I also plan to rent it out. So it's like it doesn't really make sense for me to like feel weird about a $20,000 capital depreciation since when I bought it like two years ago. But I think, you know, it's very neighborhood specific.

It's very specific to someone's situation. And your situation is that your child is 45 minutes away. So you now are renting a house or apartment closer to where your child is at school. And you're now having to like play, you know, this remote landlord job, which to Zade's point, I'm sure could be pretty intimidating. I agree. Like, it's a toss up. If you are unhappy with the situation, you have the money set aside saved and ready to go to get yourself out of it.

And congrats, like, that's just paying tuition to the markets and learning and paying what it's called a stupid tax, right? It happens. We've all paid all those stupid taxes in the past. But Robert's point, you also have the situation where you also have enough side-aside to eat this cost for the next couple of years, allowing you the flexibility and opportunity to have it appreciate over time. So I would really just do some reflecting and know, like at the end of the day, it's no longer a math equation. It's a brain calorie equation. It's an equation to do with your relationships. It's an equation to do with your time spent away from your family. I think that's how I would approach it in this situation. And one last caveat and hack that I use

all the time and I just use it to my advantage big time in a commercial property purchase. Do your research. You don't know. You could sell this property, eat the loss and miss a news article in your local development newspaper or website or whatever your local administration of some new factory Micron decides to spend $100 million building a factory there or FedEx builds a new hub. And then all of a sudden rental rates in the area go up 40% in the course of a two-year period. And you just sold because you didn't know that was happening. So just always do your research in this situation because the people that understand what's happening and forecast like Austin and I always talk about are the ones that win.

So that's why I always want to give myself a chance to win in these situations. Best luck to you, Cameron, and we appreciate you asking your question here on the podcast. Now, our final question for the Q&A episode this Thursday is coming from Kyren on Instagram. Kairn says, hi, I've been a listener for a while, and I want your honest opinion. Should I buy Bitcoin right now? Are you bullish on Bitcoin? So I'll kick this one off. I have roughly 1.7-ish Bitcoin left.

As you guys know, I had about 2, 2.2, 2 and a half, something like that. I forget the exact number I had. It's about a quarter million dollars worth of Bitcoin. And I, over the last, let's call it like a couple months as we've experienced some volatility after the Trump administration and things of that nature, I've been taking some profits, right? I think I took about 15 to 20 percent off the table. I did this around 85 to 80. $89,000, you know, dollars per coin is when I took those profits. And I've got about 60, 70-ish-thous

of cash now, like from that account that I've since deployed elsewhere. And I am not actively buying Bitcoin at the moment because I bought a bunch of it in the beginning of 2023, knowing that I've got an entry and I've got an exit strategy. I very much dollar cost averaged into Bitcoin in 23 and 24. I deployed about $100,000 into it. And now it's worth about a quarter million. And I'm in the exit strategy part of my plan, which means I'm just dollar cost averaging out of it, right? I sold some at 85, 87.

I sold some more at 89, 88. I'll sell some at 95, 100 if we get there, right? Like, my plan with any investment is to have a clear entry and a clear exit strategy. I've laid this out countless times, actually, ever since like January and again in March, inside the Rich Habits Network. Robert and I are very transparent with what we're buying and selling.

and when we do it and why we do it. So if you've not yet joined the rich habits networking, you want those insights, they're all posted inside of there for our members to go check out. But I'm now in the exit portion of my Bitcoin, and I plan to be 80 to 90 percent out of my Bitcoin. I plan to have a little bit, right? I never want to get out of the asset class completely, but I plan to move out about 80 to 90 percent of it if we go up to 120, 140, right, somewhere in that range. I plan to reallocate elsewhere, put it into some undervalued single stocks, maybe some Nios funds, things of that nature. So here goes. I'm on the Bitcoin maximalist side of this equation. I have not taken profits in Bitcoin, and I'm not saying you should do

the same. I have not taking any profits in Bitcoin since 2017. And so for me, I am in the boat that I still believe by, let's call it, 2030, we will see a minimum of a $500,000 Bitcoin by that date. That's what I think the minimum is for me. So for me, always take profits along the way like Austin stated. If you're not as bullish and maybe as crazy as I am, that's okay when it comes to cryptocurrency. But in my opinion, I'm not taking any more profits

and I'm still accumulating along the way when I can in Bitcoin specifically because I just believe the upside potential is so large that I don't think I'll find a better place to put money over the next five or six years. And but also you have to remember, I started buying Bitcoin in 2011. So I had a big head start on most people. That shouldn't affect how you think about Bitcoin now if you're starting today or you started at 23 or 24. But I agree with Austin 100%. Understand why. you're buying it, understand your entry and your exit strategy. And a good rule of thumb that I've always used is when I buy something, when it goes up 50%, I take off 25%. When it goes up 50% again,

I take another 25%. And I do that until I'm totally out of the position with my own money and I'm playing with House's money. So I totally agree with Austin on that standpoint. The only difference is I'm not at a point right now where I'm going to sell any Bitcoin until probably, and we've talked about this many times, till probably $300,000. When it gets to that, I'd probably seriously consider selling a bunch. So something really interesting

is happening with Bitcoin over the last couple weeks. It's decoupling from the NASDAQ and the rest of the stock market. I think over the last year or so, Bitcoin was kind of acting as a high beta, a high volatile tech stock essentially, right? NASDAQ would go up,

Bitcoin would go up. That hasn't been the case over the last couple weeks. decoupled, whereas Bitcoin was going up while the rest of the stock market stayed flat. That to me is very interesting. I think something interesting is happening here. I'm not as much of a Bitcoin maxi as Robert is. I do think it's important to have some exposure in your portfolio like I do. That's my two cents.

I talked about it on the rundown on the podcast. It's like the decoupling is happening. Keep your eye on Bitcoin. I think it's the most interesting that it's been in a long time because of the behaviors over the last couple weeks. and maybe it means more central banks all over the world are going to buy it because of some potential shakiness in the U.S. dollar. We're seeing the same thing happen with gold.

Gold is hitting all-time highs. Maybe Bitcoin will finally fulfill its promise as being digital gold. I haven't felt that way in a long time until just recently because of what's happened over the last couple weeks. So just to put some numbers around what you're saying, right? Bitcoin is actually a year-to-date in the green about half a percent as a of this recording, whereas the NASDAQ is down about 10% and the S&P is down about 6% year to date. So to your point, yeah, Bitcoin is sort of acting as this like digital gold kind of being

in the green while the markets are more in the red. So Zaid, I'd love to have your thoughts. I said 2030. Where's Bitcoin's price at 2030, in your opinion? I think it could get to, you know, two to 300,000 like you mentioned. I mean, I don't really have a price target. I just like to follow the macro of what's going on. And no one really owns Bitcoin as far as like the big money players, the central banks.

Yes, we have ETFs and things like that. And yes, these ETFs are are starting to get bigger and bigger. But like how many central banks are actually buying Bitcoin yet? I think that to me is the key question. If we start seeing real activity there and because of more volatility in the US dollar, that to me is the biggest question is like that could just moonshot Bitcoin, the 250, 300. if we see that inflow over the next two to three years. Yeah, that's what I wanted to hear from you is understanding if there's that much buying pressure,

which then puts, you know, this pressure on the amount of Bitcoin available. Would it be directly correlated to price appreciation? I think so. You just alluded to it and said yes. So good. I really like this question because it's such a simple question. Yet we can make it really complicated or we can just discuss our beliefs like we did and then go from there. and see what happens because, like you both said, I think everyone should own it.

And it's just depending on how much of your portfolio, how risk on you want to be, and what your out strategy is. I love Austin's out strategy because he's taking profits along the way, which a lot of people don't do. But he's still staying in the sector. And I think that is the best strategy you can implement. I learned to do that after round-tripping over the last two cycles. right? And I think a lot of people are probably in that same boat, right? In 2017, 2018, I was like, oh, Bitcoin's going to 100k when it's at 20K and it went up and then it came crashing down to 3,000. And then in this most recent cycle, I think it was like 21 or 22. It went to like 65K. Everyone's like, oh, it's going to go to 100. I never sold me. And it went back down. I'm like, dang, dude, like I'm really bad at this stuff. Like I, like next time, even if I don't perfectly, you know, time the market, I need to have an exit strategy because I don't want to be so over allocated to this asset class in perpetuity. I want to be able to have exposure. We talk about five to 15% of our portfolio into cryptocurrency, Bitcoin specifically. So it's like, yeah, I want to

have some exposure to this stuff. But I don't want to have all this over allocation from long-term profits. And just for me, I've got more than five or 15%. So it's like, I need to have an exit strategy where I'm reallocating the cash to more traditional investments that make more sense for my risk tolerance now as I'm, you know, I turn 29 here in the next. next little bit. So I just want to be able to, you know, make a little bit of money, take some profits, reallocate it to other places and keep rocking and rolling. That's kind of how I approach it. Do you guys care if it's actually buying Bitcoin itself versus an ETF? I'm, you know, I'm curious. No. No, I don't really care. I think, you know, I've got Ibit in my Roth IRA. My Roth IRA is literally

90% S&P 500, 10% Ibit, right? I plan to keep Bitcoin in my retirement accounts in perpetuity because I agree with Robert. It's going to be worth hundreds of thousands, if not millions, throughout my lifetime. Right. But with this specific trade that I'm alluding to, I did this in a normal brokerage account, so it's just straight up Bitcoin.

Yeah, I think the most important thing with any investing, you know, the number one thing that's probably on every camera in every conversation in every casino around the world when you're a gambler is I was up. You hear it all night long,

I was up two grand, and then this happened. That's why you take profits along the way and that's why you have a strategy. I think the next, number one thing that prevents people from building wealth. A lot of people get money, but they don't know how to build from there. And so I think the number one thing with that is letting greed and speculation get in the way of strategy. If you can implement your strategy and have that dialed in

to where you understand why you're doing something and the term you're going to do it within, I think is the best way to build wealth because many, many people I've seen. over the decades. You know, they get a little bit of wealth, they get a little bit of money, and then all of a sudden they go out and think that they're super rich. And I dealt with it yesterday in a conversation where a gentleman was asking me what to do. He bought a pre-construction condo that he's assumed he was going to make $200, $400,000 off of, and now his carry cost on that condo now that it's finished and it hasn't sold is $22,000 a month,

which is killing him because his net worth was only $3 million. I'm like, you shouldn't have been buying a $2 million condo to speculate if you only have a $3 million net worth. And that's just all about understanding how to build wealth and not taking so many moonshots that you can put yourself back to zero. And that happens all the time. Everyone, thank you so much for joining us on this week's episode of the Rich Habits podcast, question and answer edition. Major shout out to Zaid as well for hanging out with us on this episode. If you've not yet listened to the rundown by public, highly recommended. Zaid and the team over there are crushing it with the daily episodes. I like to think of the

rundown as sort of a little bit of supplement to what we're doing here at the Rich Habits podcast. We got Monday and Thursday. Well, when we don't have it on Tuesday, Wednesday, Friday, Saturday, you can go to the rundown and listen to what they're talking about. It's a great time to listen right now, too, because we're in the middle of earnings season. So a lot of earnings coming out. I mean, we're talking, you know, we're talking big tech earnings this week. And then next week is the Fed meeting. So we're going to keep you guys in the loop of all that stuff, seven to eight minutes every morning. I mean, it's the perfect. time to tune in. Absolutely. Everyone, thanks so much for joining us and have a great rest of your week.