Skip to comments.Freeper Investment Advice!
Posted on 07/03/2012 1:18:55 AM PDT by servantoftheservant
Would appreciate advice from all investment minded Freepers! I've recently come into $100K, and am at a loss as to how to invest it.
The stock market seems to be a lottery of policy rather than market forces. Will there be inflation or deflation?
Buy real estate while it's low? Sink it into Precious Metals? Emergency supplies?
I'm paralyzed, but need to do something with it. Would love to hear what the resourceful people here would do. Thanks for all your ideas!!
I’ve made a lot of money over the years and feel confident I can give you a sizable return.
Do you have the ability to wire monies to Nigeria?
Seriously, that kind of money can be invested quite well in a number of mediums but there are several factors to consider.
How quickly would you like to see a return?
What will you do with the return?
If you don’t need the money today how long can you let it work for before taking a portion of the profits and leaving the rest to continue working for you?
Or would taking the whole amount of whatever the return be your goal?
Invest all your money into Garfield posters.
Don't seek direct investment advice on Free Republic.
Or, put another way: Do you want to know how to make a small fortune? Start with a BIG fortune and then seek investment advice on an Internet forum.
Send it to me and I’ll take care of it. Seriously, congratulations, and I hope you find some options.
Invest it in meeeeee!!!
Fill a shoebox with 1000 $100.00 bills and send it to your Uncle Slayton.
I will send you the exact mailing address in freepmail.
As as added bonus, I will pay for the postage.
To be honest Vendome, I’d like to make the most money on it possible, as quickly as possible! LOL
Really though, I don’t need it desperately anytime soon. I
d ideally look at a 5-10 year window.
I’ve been reading and reading financial articles, and books on investing. But I feel that what’s happening today with the money supply is so strange, that it makes be feel that conventional strategies might not be applicable.
But I’m not confident in that conclusion!
LOL!! Hey, I've read alot of threads on financial topics here, and I think there are some pretty smart people. And I've read lots of websites, and several books on investing. But am really confused by the current macro-economic picture. I might just be inexperienced, but it feels like something unprecedented is happening in the world right now. I'd like to know what folks on this forum (free, stable, conservative, but eyes-open) would do, as part of my research. :)
My investments are long range for retirement (choose a reputible financial planner).
Short term is not an option for us.
Giving the direction our government is taking us, I’m debating on whether it’s better to keep our investments or just spend everything while we still have it.
I hear ya!
>> But am really confused by the current macro-economic picture.
Don’t feel like the Lone Ranger. Even the so-called “experts” disagree vehemently. Too many “what ifs”.
Personally I like carefully chosen US equities — profitible, cash-rich companies that pay a dividend — and I’m also investing in a small farm, which is as much a lifestyle change as an investment.
But that’s just me and my preferences. Many here will disagree, and I don’t claim to know just how the big economic picture will unfold.
Then again, I’m laying up my *real* treasure where moths and rust don’t corrode, and thieves don’t break through and steal. If you know what I mean (and I think you do).
>> Fill a shoebox with 1000 $100.00 bills and send it to your Uncle Slayton.
I’m curious: will that much money FIT in a shoebox?
You sound like a guy who has experience with large amounts of cash packed in a cardboard box. :-)
Amen. Thanks for the thoughtful input.
Excellent for you. Bank savings account is insured to 100K, but you will have to report it to the IRS
“I’m paralyzed, but need to do something with it.”
What is the degree of your paralysis, if I may ask? Are you mobile and independant?
I’m no financial wizard by any definition of the term, but DO NOT turn it over to your ‘friendly banker’ and let them manage it for you. Believe me, please! We learned that lesson the hard way with over 300K. Never again.
I’d pay my monthly bills ahead for the next five years and use the rest to make myself as comfortable as possible. Have fun and do the things you always wanted to do.
Hi Panax, thank you.
I’m paralyzed mentally with deciding what to do with the money — physically, I can still run around! :)
I do have it in the bank currently — may I ask what happened with the 300K you referred to?
I suggest a fee-based investment manager. This is someone that takes a small percentage of your money each year as compensation. The manager benefits from increases in the value of your portfolio, not commissions for trading in your account. There are many with national reputations. Check around.
Take out a subscription to Stansberry. They give excellent advice.
Buy dividend-yielding stocks in world-class companies such as Exxon, Procter & Gamble, Microsoft (seriously), Hershey, Coca-Cola.
Buy silver in physical, hold-it-in-your-hand form. 50 kg of .999 pure bullion bars would be a good start. Tell only one person (that you trust with your life) where you are storing it.
Consider silver and gold royalty companies and senior miners. Avoid junior miners for the next six months - too many of them have serious cash issues.
Hope this is helpful
For example (and I use this only as an example; I'm not an investment advisor but have done well using my own approach over the years):
$10,000 in a short-term savings account or money market fund.
$10,000 in a U.S. government bond fund.
$10,000 in a tax-exempt municipal bond fund.
$10,000 in a foreign bond fund.
$10,000 in an S&P 500 index fund.
$10,000 in a moderately aggressive U.S. stock fund.
$10,000 in a very aggressive U.S. stock fund.
$10,000 in a foreign stock fund.
$10,000 in a gold or other precious metals fund.
$10,000 in a real estate investment trust.
If you can afford to invest an additional $1,000 per month, add $100 every month to each of these. Some will do well, others will not, but over time this should give you some growth while at the same time providing some protection by spreading your money out among many different types of investments. At the end of every year, you should sit down and see how each investment performed and move money from one to the other to re-balance your investments if you think it's necessary.
I have a 100 kids and my latest wife ran off with the UPS man a couple days ago. Could you send me a couple bucks? Say $99,999 or so? Please remit to P.O. Box.......
Desparately seeking cold hard cashola.
Land that grows food.
If I had that money, I’d buy some property in a college town and buy myself an income (obviously, make sure you have insurance in case they wreck the place with their stupid drunken antics).
You have mail.
I would probably avoid the stock market. I invested in the stock market back in 1996 and have been in it ever since.....made money hand over fist until late 1999.......it’s been soft or completely in the tank ever since.
My own meager savings adds up to about that amount and I too would like to know how to get the most out of it.
Property is probably the best investment , but at todays prices you cannot buy enough property with $100,000 dollars to place a Jiffy John on.
Buying CD’s at the banks is the safest way, but they don’t pay squat, and when hyper inflation hits your dollars will turn to crap.
Perhaps you could buy up tax sales when they are auctioned off, they have a 6% interest rate on them if they are paid back, and you get the land if they don’t, but $100,000 still won’t buy you much there either.
In answer, I don’t have an answer.It appears no one else here has any good ideas either. $100,000 dollars is a nice piece of change, but it is too much to just toss away and not enough to do anything with.
Key thing is to get guns at a low-as-possible price, keep them clean and just wait. They have always gotten an excellent rate of return.
This is the wrong place to ask ,, but quite honestly you will have a VERY difficult time finding anyone objective and typical investment advisors are worthless as they don’t see the danger in investing in todays climate... in fact SEC rules handcuff most of them into the same old advice that could lose you a large amount of money in this environment..
I was a stockbroker for many years and made my clients ,, ALL MY CLIENTS , good returns .. I can tell you there are always good investments available but right now I can’t name a single area that isn’t gamed by the big players and isn’t ready to collapse. Don’t get cute and put all your money in paper betting on the collapse either ,, how will you collect? Maybe you can find short term money makers ... I would be shorting alternative energy HARD...
I would buy REAL items ,, 10 acres , goats and cows ,, silver and gold... plant fruit trees...
when i make investments in mutual funds, i always check the 10 to 15 year return history. If you can get a historical return of 9.5 to 12.5%, you will double your money in 7 years..
I weathered the downturn fairly well using this strategy. Go for the long term, and check out where you are putting your money.
In my opinion, you really shouldn't be investing anything until you are familiar with few foundation terms and phrases like stock, bond, money market fund, EFT, mutual fund, load fund, no-load fund, index fund, management fees and expenses, risk tolerance, asset allocation, dollar cost averaging, etc.
The fact that you are asking investment advice from total strangers and total strangers are giving you "investment advice" without knowing your age, marital status, number of dependents, other investments, net worth, employment status, existing retirement plans, short and long terms financial needs, debt load, etc., shows how little you and most importantly, how little they know about personal finance and investing.
Ecclesiastes 11:2 — “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.” (Don’t put it all in one place.)
Don’t plant until you find good soil.
First set up your own solar company. You don’t have to actually hire anybody or buy any equipment. You just have to go through the motions and red tape applications so that your company exists legally on paper. This should cost you only a few hundred in legal and application fees.
Next, you send a ten thousand dollar contribution to the obama re-election campaign. I know that’s a distasteful thing to do, but don’t worry, it won’t cause him to win the election.
Next, you apply to the federal government for a couple billion dollars worth in grants for green research and development fees. Your grant application will be fast tracked and approved. And you’ll be a couple billion dollars richer.
After you’ve got your billions, immediately file for bankruptcy and dissolve your company.
Warning. You have to get this done before Jan 20, 2013.
Open a self directed IRA. There are lots of self directed IRA custodians out there. You may then convert soon to be worthless U.S. dollars into hard tangible goods within the protection of the IRA. Any gains will be tax deferred. One of the absolute best thing you can do in a self directed IRA is make real estate secured loans of less than 50% of appraised value (or even less...like a home equity loan for folks wanting to get a little cash out of their home for stupid depreciating things). You can even hold just plain old bank CDs in your self directed IRA. There are rules regarding who can benefit; you can’t hold the mortgage on your own home or those of certain family members and you can’t, for instance, buy a vacation condo and then stay in it yourself but there are very inventive ways to get around these rules. YOU get to make ALL the decisions not some “expert” that gets paid whether you make money or not. You can even own precious metals in your self directed IRA although you can’t take physical possession of the metal. There are a world of possibilities out there for the self directed IRA holder.
I also need to know their debts and life insurance policies. There is no need to invest in 5% equity dividends and 3% corp/muni bonds if they have $20k credit card debt at 10%, 2 car loans at 4% worth 20k, and less than 50 % equity in their home.
. My professional advice is to spend the first $500-1000 on lunch with a CPA/ atty team. Pay off all debts costing over 6%, and NEVER give or take investment advice off the Internet. There is a reason we are registered with MSRB/SEC/FINRA. If this freeper actually took specific advice and lost any amount, he'd probably very easily find an atty to sue for loss.
Obviously, we don't know anything about your background--your age, your investment goals, your familiarity with the financial markets, your current level of debt, or your risk tolerance.
Outside of an outright Vegas-style gamble, I would consider two things at this point in time. 1) I would dollar-cost average my money into whatever investment you find. That way, you're not buying all-in at the top, only to have the entire investment go south.
2) For any serious investment, I might consider waiting until after the November elections. An Obama re-election will tell lots of companies what the market will be like for another four years, and I don't think it'll be pretty.
I hear the CRACK DEALERS are doing really well!
Purchase a heavy duty tin can, put the money in and bury it...
Just burn the money and you’ll be about as well off.
Looking around the world at all of the countries with huge debt and it makes you realize that only one way exists for paying for that debt: Printing more money. That of course is just another way of saying “go bankrupt.” All of the investments consisting of paper money will eventually be worthless. You may not make any real profits with real goods but the best option may be to not lose it all.
For short term gain, try RGR - Sturm Ruger.
For SHTF investing, with the expectation of high inflation, try VIPSX (a Vanguard fund). I’ve done well with this fund.
As far as fund investments, I look at the charts to see what they did during the 2008-9 period.
Pay off any and all debt, from credit card debt to student loans.
Pay off your mortgage if you have one.
Stock up, with an emergency reserve of food, water and necessities.
Terrible advice. DO NOT buy guns as an investment. I've been collecting firearms for forty years and unless you find a poor widow with her dead husband's gun collection, you'll not make any money. Gun owners are too savvy re gun prices thanx to the internet. And based upon your (the OP's questions) you'll have too steep and expensive a learning curve.
Sorry, but I can't tell you how to invest your money other than to emphasize against buying guns or cars or barbie dolls as investments.
Sorry if you haven't done well - but the guns I bought during previous years have always brought an excellent return on my investment. Are you trying to tell me that you lost money buying pre-64 Winchesters or Lugers or Broomhandle Mausers? What the heck were you buying?
Very helpful, thanks. I’ve followed your posts on other topics for a while. Really appreciate your taking the time.
On silver, do you have any opinion on coins vs. bars?
LOL - true. The nice thing about real estate is that you can leverage the money into alot more debt, and interest rates are very low. But.... deflation is still a scary possibility.
Thanks for the reply. I’m leaning toward REAL stuff too.
The ‘market’ is not acting like a market right now. Everything — earnings, macro economic data, etc — seems secondary to rumors of what central banks will do. Barring central bank intervention, I’d short alot of things right now....but they could intervene! :)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.