Dollar Cost Average is a good strategy. For allowance, the amounts are so small so I don't think it's worth it, but in any other scenario it's better to do DCA. Also I think S&P is better for allowance because you would want more consistent returns and less volatility for something that you want to draw from regularly.

Do you give your kid's allowance every week?

Instead of giving them money each week, set up a free brokerage account with a company like Fidelity and invest their annual allowance in an S&P 500 ETF. Then allow them to take any amount that is over their balance at the beginning of the year. For instance, instead of giving your kids $1 per week, invest $52 in an ETF. Then they can cash out on any amount over $52 (likely $3-5) during the year.

Then next year add another $52 to the account and let them draw from any amount over $104 (likely $8-10). By doing this you are teaching your children about the stock market and also you teach them not to live off of their earned income, but to only live off of their investment income, which is a valuable financial lesson that they can take with them the rest of their lives.

If bitcoin drops below the price you paid and never recovers, of course there will be losses. That is a ridiculous claim. Bitcoin could in theory go to $0 just like any investment. Now your belief and confidence in bitcoin is why you invest in it. I also think in the long term bitcoin's value will go up, but there is always a risk especially with cryptocurrencies.

It's just called seller financing or raising capital from investors, not monopoly money. The fact that you are down playing the legitimacy of this strategy shows your lack of experience in this area. Try buying a business or investment property for more than the asking price if the seller will lend you the full downpayment amount for a 5-7 year term. If you can do that and still cash flow, you get a property at zero down, the seller gets more than they asked for. It's a win win for everyone. When the business grows or the property appreciates in 5 years, you can refinance to buy out the seller. You can rinse and repeat that as far as you can scale and are not limited to the cash you have on hand. I've done it with 3 properties and 1 business. It can be done.

You might get 60% returns, but you can also get 60% losses. You also under estimate the power of leverage. You can only invest the money you have, which limits your growth potential. With leverage in buying real estate or businesses, you can achieve infinite returns.

I would be interested to hear your better and more up to date advice...

If your income is:

< $100k invest in yourself and grow your skillsets

< $200k invest in low cost ETFs

> $200k invest in real estate syndicates and private equity

> 400k invest in real estate and small businesses

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