New Years Update (Jan '17)


#102

Yeah, I’m not suggesting they just ran down to the bank with a huge bag of cash and put it in a personal savings account. Just pointing out that the potential range of interest rates that they are getting is not necessarily 5-7%, but maybe more like 0.5 - 1%, based on what @dan told us last year

That was after the first year. I don’t math great, but my calculator suggests that $22 is 0.82% the pre-purchase price of basic+filter+shipping (to Ca), or 0.52% of the pre-purchase price of pro+filter+shipping (to Ca).


#103

I wasn’t disputing the rate of return of a well managed investment, my point was that the management strategy used for those returns is one predicated on a horizon of years or decades. At any point during the investment period the amount of money under management may very well be less than the starting amount. It happened in 2008 to even the wealthiest investors. This is perfectly acceptable for personal wealth management (they’re doing fine now.) For corporate finance where the money absolutely, 100%, must be whole and available in a short time frame instruments like Treasuries or equivalent funds/vehicles, or accounts at too large to fail banks like Wells Fargo are used. Or as John Maynard Keynes would say, the market can stay irrational longer than you can stay solvent.


#104

Glowforge is stacked with engineers and S/W people but they still grossly underestimated the time and difficulty in putting a pure technology product out the door. Thank your lucky stars that engineers aren’t picking an investment firm to gamble with our funds.

I’m an engineer that picked poorly. My 401K, after many years, had less money in it than I actually invested. Would have been far better off putting it under the mattress.


#106

Much smaller mattress.


#107

I think I could personally make that work :stuck_out_tongue:


#108

Best thing to do when it comes to investing is bite the bullet and pay the fees associated with a professional investor. Seems like a lot of money until you see what they end up making you in the long run.


#109

Adding those items does come up to the numbers you are posting, but that isn’t what it costs the GF to provide those…that is at least 30% less if not more.

So I would guess that any interest will approach the cost appeasing the masses with the extraordinary delays by the time the units start shipping.


#110

I wish…
the 250 is per account, but in practice the government pays per investor, if you have two names on the account each get 125K. If you have more than one account they pay once and may or may not pay on other accounts. Thats how it was done in the past maybe they changed it but I wouldn’t count on it.
Regards,
David


#111

Humm first year was 2 months long and the total amount was a ramp to 30 million calculations would be very difficult without exact numbers, even the 50 million is just guess work. Like I said not really problem for me I just want some more information. Oh well hurry up and wait:)
Regards,
David


#112

Hi Rpegg,
That sucks but your in the same boat most people are in especially anyone invested in the market around 2008. Thats why I suggested professional help <= okay thats sounds funny. How many time has my wife told me that:)
Anyway there are ways to invest that are better than using a bank. they may be to big to fail, but guess what with Obama gone I think the new guys just might let it happen… Technically speaking a bank is a huge risk but its not my ship to sail so I shall sip my little umbrella drink and wait…
Oh love the mattress photo did you see the one with the drug cartel guys house they had so much money they were packing it into the cabinets etc anywhere they could find inside the house to store it… it was something like a billions dollars… not thats would be a mattress.
Regards,
David


#113

Hi Kennethclapp,
I know wouldn’t you love to have the stock market float in your account… it would only need to be one day:)
Regards,
David


#114

Um, not for this use case. Remember that GF is essentially holding that money in escrow for us. Since risk-reward, and escrow is by definition a non-risk environment use of any other form of investment which is not immediately and face-value liquid would probably be considered financial malfeasance. Since they have stated that any of us can get a refund at any time up until ship, and any includes all, and it could all be on the same day, it has to be 100% liquid.

Yes, technically there is of course the risk of bank default, since FDIC only covers up to $250,000 per bank per account-holder (even for corporate) although with some of the rules put in place by the prior administration after the banking crisis, they have to maintain a pretty sizable asset base, also in liquid assets for just this reason. And assuming GF didn’t put their money in the international bank of fred, we can pretty much assume that BOA or Chase isn’t going bankrupt before July…