How to mitigate the risk of investing on crowdfunding platforms where there is little transparency on the underlying financial health of the platform company. Topics covered include: What is the platform economy How blitzscaling and an over-reliance on venture capital funding led to Peer Street's bankruptcy What happens next for investors on Peer Street's platforms How individuals and businesses can mitigate the risk of investing or conducting business on … [Read more...]
407 Plus: More on Annuities, Real Estate, Yield Curve, Strong Dollar, and Zombie Firms
In Plus Episode 407, we continue our discussion on fixed annuities and fixed index annuities. We discuss real estate crowdfunding platforms, inverted yield curves, Series I savings bonds, and is now a good time to invest outside the U.S. given the strong dollar. Finally, we explore what zombie firms are and whether they could cause a market crash. … [Read more...]
390 Plus: Why Stock Markets Rise, Analyzing Crowdfunded Real Estate, and Roofstock One
In Plus episode 390, we explore why stock markets generally appreciate over the long-term. We review how to analyze real estate deals sourced from real estate platforms like Crowdstreet. Finally, we review a way to invest in single-family rental homes using tracking stocks available via Roofstock One. … [Read more...]
366 Plus: Updated Expected Returns, a New Real Estate Investment, and the Vanguard Managed Allocation Fund
This week on Plus Episode 366, we review the changes to the 10-year expected returns for different asset classes used in the Money For the Rest of Us Plus asset allocation model. We discuss a hotel investment David recently made on the Crowdstreet platform. Finally, we review the Vanguard Managed Allocation Fund (VPGDX). … [Read more...]
350: How to Invest in Startups on Equity Crowdfunding Platforms?
The risks and opportunities of investing in startups on equity crowdfunding platforms. Topics covered include: Why do individual investors now have more access to startup investments What has been the historical performance of venture capital funds How most startups fail, leaving only a few startups to offset portfolio losses What factors to consider when deciding on which startups to invest Why do startups have so many different share classes What platforms are … [Read more...]
230: Use Caution With Real Estate Crowdfunding
With RealtyShares and other crowdfunding platforms shutting down, should you invest on these platforms and if so how do you go about evaluating the investment opportunities? Photo by Hubert Mousseigne In this episode you’ll learn: How are real estate investments funded. Why are real estate crowdfunding platforms shutting down. How to evaluate a real estate investment opportunity. Show Notes The Real Estate Crowdfunding Review RealtyShares’ downfall shows perils of … [Read more...]
229 Plus: RealtyShares Closing, Opportunity Zone Funds and Online Financial Planning
This week November 10, 2018, we review the recent announcement that the crowdfunding real estate site RealtyShares is shutting down. We review how to evaluate private real estate deals including platform risk as it relates to opportunity funds. We also look at a comprehensive online financial planning site (New Retirement) that you can try for free. … [Read more...]
193 Plus: Pensions, Bankruptcy Risk and Speculation
This week February 24, 2018 on Money For the Rest of Us Plus, we clarify the importance of understanding a pension's funding status before choosing the pension via a lump sum payment. We also clarify the risk of investing in crowdfunding platforms in the case of bankruptcy. We explore how investments with positive expected returns can be speculative for individuals and how to manage that speculative risk. Finally, we discuss asset allocation for accounts designated for children. … [Read more...]
192 Plus: Direct Indexing, Water Investing and a Money Manager Review
This week February 17, 2018 on Money For the Rest of Us Plus, we evaluate a money management firm a member is considering. We look at the pros and cons of Wealthfront's Direct Indexing strategy where they hold individual stocks versus ETFs for the U.S. equity allocation. We look at options for water investing. Finally, we look at why it is important not to over allocate to one specific crowdfunding investment platform, such as Peer Street. … [Read more...]
183: How To Invest In Commercial Real Estate
What to look for when investing in public real estate investment trusts ("REITs), private REITs and direct real estate deals on crowdfunding real estate platforms. What are current valuations for REITs and commercial real estate. Photo by Pietro De Grande In this episode you’ll learn: What are real estate investment trusts. How have active REIT managers performed relative to a passive REIT index. What are private REITs What is the cap rate. What to look for in private … [Read more...]
