Blake Murphy, CIMA ®

Dad, Husband, Financial Planner, Mediocre Golfer, Stats Nerd. Tweets are not financial advice

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

@AdvisorJobs Bigger issue in my experience is PE coming in with big offers the owners can’t turn down and the remaining advisors can’t compete with.

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

@The_DrewFeldman @DadInvest Side w JD, clients are paying you to do it so they don’t have to. However, most clients do want help from their advisor to educate their kids. I’d focus on that.

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

@STLChrisH Some of these are one off’s and some look like annual. What would you say your avg annual spend is?

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

@justmax24 @Cubs Time to switch over to the Pads….

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

Saw a “generational expert” give a talk on this exact topic. His take was that this generation grew up w the ability to edit messages before sending so they could verify the message they want to get across is clear vs. a phone call where they could potentially misspeak. I get his point, but still phone skills are important for anyone that wants to be successful.

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

@nateliason This is one of the best Twitter posts I’ve ever seen 😂

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

@BTCBreadMan Congrats! If it keeps going up just remember at least you weren’t the guy that bought a pizza for like 200 bitcoins

[Charlie Bilello @charliebilello]

Last 10 Years...
Bitcoin $BTC: +39,900%
NVIDIA $NVDA: +34,555%
Tesla $TSLA: +1,621%
Netflix $NFLX: +1,246%
Microsoft $MSFT: +1,204%
Amazon $AMZN: +927%
Meta $META: +758%
Apple $AAPL: +686%
Google $GOOGL: +552%
S&P 500 $SPY: +261%
Gold $GLD: +174%
US Inflation (CPI): +35%

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

@acaseofthegolf1 There are financial decisions then there are lifestyle decisions. If this is a lifestyle/fun thing, finances become less important. Seems like a not great financial move, but if it adds value in other areas it might offset the finances. Food for thought.

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

@carldemaio @grok is this real?

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

@ecommerceshares @DividendWealth_ I think bc people are worried PBMs are toast and that’s 1/3rd of UNHs revenue

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

@baldridgecpa No retirement plan contributions?!? SEP? DB Plan?

[Noah Kagan @noahkagan]

I bought a property in 2017 to Airbnb it.

Purchase price: $315,000
Down payment: ~$63,000
Goal: Passive income, baby!

Today, I sold it for $377,750. 🥳

BUT let's compare that to the return if I put that $$$ into the S&P 500.

For the first 6 years, I made about a 4% cash-on-cash return.

Not bad…Until it wasn’t.

The last 2 years?

ZERO profit.

I broke even after repairs, maintenance, and all the joy of being a landlord.

So, 8 years later:

💰 Cashflow returns: ~$17,000
🏠 Appreciation: $62,750
🏦 Mortgage paid down: $40,173
🧾 Tax benefits: ~$12,500
📉 Selling & ownership costs: -$116,736

👉 Net profit: $11,390
(Yes, really.)

Now let’s say I just put that same $63,000 into the S&P 500 in 2017 and went on with my life…

- No leaky toilets.
- No surprise HOA roof repairs.
- No property managers messaging you at 1AM about parties.

Result?
👉 $108,037 in profit

Let’s recap:
🏠 Rental ROI: 18% total over 8 years
📈 S&P 500 ROI: 171% total over 8 years

That’s a 10x difference.

The hidden truth?

Owning property can build wealth…

But

✅ It is NOT liquid - I had to cover costs for a year while it was listed on the market
✅ Saturation - The market got flooded in Austin with AirBnBs which reduced my returns greatly
✅ Hassles - Even with property managers you will always have issues.
✅ IRR - Compare the returns to OTHER investment opportunities

Otherwise, you're working way harder for less return.

If I could go back?

I'd Index and Chill.

Let the S&P 500 do its thing while I focus on business and life.

As @Ramit says real estate "can" be great—just don’t let the hype make you think it’s passive or guaranteed to outperform. You really have to understand the full costs and hassles!

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

@LouStagner This is your best work yet Lou

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

My wife doesn’t work, and we still have this problem, so “retiring” her doesn’t help this issue. We have a sitter that comes for 8 hours once a week which helps but still, 5-9 is work time. We have another sitter that comes on Thursday from 6-9/10 and do a weekly date night. That’s been our solution, but only once a week isn’t ideal.

[Padre McPadre @Zynx42]

Give yourself a hand @Padres and all Padres fans: (from Reddit)

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

@leftyzag Loma Club, pretty fun. Pure 11s seems like a stretch but I haven’t been there in awhile

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

@LouStagner Totally agree with you Lou. I don’t want my son watching these guys and thinking temper tantrums is acceptable

[Blake Murphy, CIMA ® @BlakeMurphy_SWS]

@Camp4 @texasrunnerDFW Where do you buy those? Don’t think I’ve seen them before