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Optimal Finance Daily

3420: I Will Never Recommend Crypto by Kevin of Financial Panther on Alternative Investing

10 min episode · 2 min read

Episode

10 min

Read time

2 min

Topics

Personal Finance, Investing, Crypto & Web3

AI-Generated Summary

Key Takeaways

  • Index fund strategy: Buy Vanguard Total Stock Market or S&P 500 index funds consistently over decades rather than chasing individual stocks or crypto for reliable wealth building.
  • Cost minimization: Keep investment costs low by using index funds instead of expensive alternatives, as John Bogle demonstrates in The Little Book of Common Sense Investing.
  • Risk allocation: If seeking higher returns, invest in controllable assets like businesses or real estate rather than giving money to speculative schemes where you have no control.

What It Covers

Kevin from Financial Panther explains why he avoids cryptocurrency and argues that simple index fund investing over decades beats chasing speculative wins.

Key Questions Answered

  • Index fund strategy: Buy Vanguard Total Stock Market or S&P 500 index funds consistently over decades rather than chasing individual stocks or crypto for reliable wealth building.
  • Cost minimization: Keep investment costs low by using index funds instead of expensive alternatives, as John Bogle demonstrates in The Little Book of Common Sense Investing.
  • Risk allocation: If seeking higher returns, invest in controllable assets like businesses or real estate rather than giving money to speculative schemes where you have no control.

Notable Moment

A scammer created a fake Instagram account impersonating Kevin to promote crypto schemes, prompting him to clarify he will never endorse cryptocurrency investments under any circumstances.

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Episode Transcript

When you're ready to start your business, Northwest's registered agent gives you access to thousands of free guides, tools, and legal forms, everything you need to launch and protect your business in one place. Northwest's registered agent has been helping small business owners and entrepreneurs launch and grow businesses for nearly thirty years. They're the largest registered agent and LLC service in The US, with over 1,500 corporate guides, real people who know your local laws and can help you and your business every step of the way. Plus, with Northwest, privacy is automatic. They never sell your data and handle all services in house because privacy by default is their pledge to customers. Don't wait. Protect your privacy, build your brand, and get your complete business identity in just 10 clicks and ten minutes. Visit northwestregisteredagent.com/ofdfree and start building something amazing. Get more with Northwest Registered Agent at northwestregisteredagent.com/ofdfree. This is Optimal Finance Daily. I will never recommend crypto by Kevin of financialpanther.com. Not too long ago, a reader sent me a message letting me know that someone had created a fake Instagram account of me and was DMing people telling them to invest in some crypto scheme. I'm not a big time influencer by any means, so it's a bit flattering that some scammer thought I was a big enough personality to work my persona into their scam. Interestingly enough, though, I write about different things to make extra money, and some of the things I do, like opening new credit cards and bank accounts to earn sign up bonuses, do seem sort of sketchy. It's not completely unbelievable that maybe I could be into crypto. So in the interest of completeness, let me make things clear. I will never recommend crypto. I have personal objections to it, including the following. I think it's a terrible use of energy and resources. Bitcoin, for example, uses more energy than entire countries. It has no value beyond speculative value. That is the only reason you're buying crypto is with the hope that someone else will pay more for it later. And I don't like how it seems rife with scams and how inherently much of crypto seems designed to prey on the uninformed and desperate. For example, see the case of the Crypto Queen who scammed investors out of 4,000,000,000 and then disappeared. Needless to say, if you ever see me promoting crypto or some crypto exchange, you should assume I've been hacked or someone has created a fake account of me. But even beyond my personal objections to crypto, the fact is, for almost everyone, the inherent risk that comes with crypto simply isn't needed. Indeed, for almost everyone, doing anything outside of normal investing and saving isn't necessary. Crypto gets its allure from how much you can seemingly make from it. It's like winning the lottery if you get in at the right time. And while we all want to hit home runs, the truth is we don't …

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  • Buy Vanguard Total Stock Market or S&P 500 index funds consistently over decades rather than chasing individual stocks or crypto for reliable wealth building.
  • by Vanguard

    Buy Vanguard Total Stock Market or S&P 500 index funds consistently over decades rather than chasing individual stocks or crypto for reliable wealth building.

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