Not exact matches
The main
problem is that you will never raise another private round again, as no new
investor will want to
live on top of the termy round.
Not a
problem if you're a young
investor but a
live issue if you're not - so - young.
This isn't a
problem for
investors with long time horizons (say 10 + years to retirement) or large enough portfolios to
live entirely off dividends, but if your portfolio is small and you need to periodically sell shares to fund
living expenses (such as with the 4 % rule), then this short to medium - term risk is something to be aware of as you think about portfolio diversification.
Ultimately, the belief that prices alone will solve the climate
problem is rooted in the fiction that
investors in large - scale and long -
lived energy infrastructures sit on a fence waiting for higher carbon prices to tip their decisions.
As many
investors I have thought about this topic many times... My personal opinion based on experience is just that the high turnover and low turnover of the portfolio brings in real
life a lot of practical
problems..
However, for
investors in the 28 % or 33 % brackets, especially those with large capital gains that may result in the reduction or elimination of the exemption amount and those who
live in states with high income taxes, the AMT may become a
problem.
It begins with my best attempt at laying out the case for passive investing: I explain the
problems with mutual funds and active stock - picking strategies designed to beat the market, and I encourage
investors to focus on the things they can control rather than basing their financial
lives around the pursuit of an unlikely goal.
It's not an unfamiliar
problem, more eclectic & value - minded
investors often trail rising markets — usually they've made the decision to
live with it, for their own peace of mind.
[And this is increasingly true for me & many other
investors too — as people become more mobile in their personal / professional
lives, it can become extremely difficult to even figure what one's home currency / exposures actually are... Of course, people in emerging & frontier markets are already long familiar with that kind of
problem!]
Every crypto
investor faces the same
problem: opportunities to exchange digital tokens for goods and services in our everyday
lives are very limited.
The second
problem real estate
investors face with small multi family properties in Houston is that proforma numbers don't match real
life numbers.
It solves so many
problems first time
investors have... if they're willing to
live with their tenants in the neighborhoods where it makes financial sense to buy these properties (more on that soon).