Your Money Or Your Life is a guide for reaching your fuck-you money goal:
VC Part 2: Fuck-off Money
11–20 of 35 posts
Re: VC Part 2: Fuck-off Money
#12The point he makes is good, but the calculation seems wrong. He's using odds interchangeably with percent ownership , when the two are clearly different. 50% odds of making $1 million = you have a 50/50 chance of walking away from the company with $1 million at some point -- not that you're guaranteed to walk away with $500K. You could just as easily walk away with $0. So if your two options are: 1) 50% odds of makin…
there are two sets of percentages in the article, they just happen to be the same. 50% ownership in a company with a 50% chance of making $1 million, versus 20% ownership in a company with a 20% chance of making $20 million. using the same percentages for both thing is maybe a little confusing, and it's not explained terribly well. the numbers are really immaterial to his point -- going for short money on good odds i…
He doesn't talk about ownership, those are "expected value" calculations: basically, how much you would expect to make per deal if you did 100+ of these deals.
Re: VC Part 2: Fuck-off Money
#13If it's me, the chance of payoff is a multiple of their expected multiple. I'm in for the 20 mln.
Re: VC Part 2: Fuck-off Money
#14Isn't it "fuck you" money not fuck-off money? 500K is barely fuck you money, more like "screw you I'm working slightly less each year money"
Pretty sure the author is Canadian. They tend to say things differently.
Re: VC Part 2: Fuck-off Money
#15to answer the article's question: $440k. done. here's the rationale: $200k pays off all the debt i have: mortgage, car, everything, and should leave me with $50K in a working capital cushion. i would continue to work on something, because i'd go crazy if i didn't, but it'd likely be another startup idea of some sort. maybe work on student incubation. $240k goes in a ladder of 1 year certificates of deposit at $20k ea…
The word inflation is conspicuously missing from your analysis. There's a reason why people bother with stocks instead of just plopping all their money in CDs.
(You could buy inflation-adjusted bonds. Last I heard, though, they were running slightly negative yields because of all the other people who want to buy inflation-adjusted bonds.)
The other problem I see here is that this is a steady-state analysis. If you sustain one event that requires you to deplete your capital (like, say, a sudden surge in inflation, a sudden fall in interest rates or market values, an illness... or, god forbid, you decide to get married or have a kid or move to a nicer house) you will immediately suffer an income hit that will require you to go back to work. You should consider budgeting for such things.
Having said that: If you have the discipline to follow this plan, minor holes and all, you'll be in better financial shape than the vast majority of the planet.
(Obligatory investment-book recommendation: William Bernstein, The Four Pillars of Investing.)
Re: VC Part 2: Fuck-off Money
#16to answer the article's question: $440k. done. here's the rationale: $200k pays off all the debt i have: mortgage, car, everything, and should leave me with $50K in a working capital cushion. i would continue to work on something, because i'd go crazy if i didn't, but it'd likely be another startup idea of some sort. maybe work on student incubation. $240k goes in a ladder of 1 year certificates of deposit at $20k ea…
... certificates of deposit at $20k each. at around ~4% interest, each one will yield an income of ~$800/month.
Shouldn't that be "each one will yield $800/year"? That makes the total $800/month.
Re: VC Part 2: Fuck-off Money
#17to answer the article's question: $440k. done. here's the rationale: $200k pays off all the debt i have: mortgage, car, everything, and should leave me with $50K in a working capital cushion. i would continue to work on something, because i'd go crazy if i didn't, but it'd likely be another startup idea of some sort. maybe work on student incubation. $240k goes in a ladder of 1 year certificates of deposit at $20k ea…
... certificates of deposit at $20k each. at around ~4% interest, each one will yield an income of ~$800/month. Shouldn't that be "each one will yield $800/year"? That makes the total $800/month.
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Re: VC Part 2: Fuck-off Money
#18Anyone else using Ubiquity who went to this site? It asked me if I wanted to subscribe to his Ubiquity commands but I don't know what they do.
Re: VC Part 2: Fuck-off Money
#19usually the percentages you see are different: "would you rather have 20% of 10 million or 100% of 0"
Re: VC Part 2: Fuck-off Money
#20Why are you trying to talk about "the least amount of money I can get in order to get by"?
I don't really understand this whole "my odds of doing something really small are high, so f* you all, I'm doing that. F* VCs, f* the world, f* working a lot."
That's a terrible attitude if you actually are in this because you enjoy it and want to make a meaningful contribution to society, and not just make some petty money.
And I can already feel the downvotes. Everyone angry at Mr. Cynical because he crashed the "F* VCS!" rally.
In the words of 8Ball and MJG: "Yo stupid ass ain't gone live twice. If you do anything, do it big. If you do it small, do it big."