Investment suggestions

M

Metaltastic

Member
Feb 20, 2005
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Another random question about life for you folks - if you had a decent chunk of change lying around and had no immediate need to spend it on anything, how would you invest it? Accessibility isn't really an issue, and more importantly I figure the more difficult it would be to access, the higher the interest rates (like a Certificate of Deposit, for example). Stocks (and even mutual funds) just kinda worry me, especially in these tumultuous times, though I guess something could be said for the "buy low, sell high" mentality - I dunno, obviously whenever this faraway time comes that I have such disposable cash (gotta get a new amp first :D), I'll consult with the investment specialist at my bank, but I'm just wondering what you guys' thoughts are.
 
Depends how much it is and what you someday want to use the money for. Is it for retirement? I strongly suggest opening a Roth IRA if you don't have one. It's the same as an IRA except you put in money that's already been taxed and when you retire and withdrawal it you don't have to pay the taxes.
 
Roth IRA. Get in some good lifecycle funds, they are very low risk. I lost so much in my random investments over the past few years, but my lifecycle fund is still growing strong.
 
Real estate. Right now the markets in the shitter and prices are still low but they arent gona stay there for ever if you can afford to put to 10-20% down on a house get a mortgage and rent it out covering most of the cost of the mortgage youll be fukin rollin in cash in a few years, ive heard that some places in the states such as vegas there are properties that where goin for 800K are down to 100-200K.
 
garry666 said:
Real estate. Right now the markets in the shitter and prices are still low but they arent gona stay there for ever if you can afford to put to 10-20% down on a house get a mortgage and rent it out covering most of the cost of the mortgage youll be fukin rollin in cash in a few years, ive heard that some places in the states such as vegas there are properties that where goin for 800K are down to 100-200K.
Click to expand...

What makes you so certain that houses are going to skyrocket in value anytime soon? Historically speaking, houses are still very, very overpriced.
 
Haha, yeah, I'm afraid after that thread you started, I'll pass on Gold Aaron :D And real estate seems like way too much effort, but maybe down the line - anyway, I'll investigate an IRA/Roth IRA (what's the difference?), and I suppose retirement would be a good goal; on the one hand, it's so far away to the point of being ridiculous (I'm 23 :D), but on the other, starting now would probably shave a couple of years off when I can retire down the line, so that's something to think about; would that ONLY be accessible when I retired though? Cuz my motivation for starting this thread actually is more than a little random; there was an article in my local paper about a 50-year-old father of 3 who killed himself because of destitution and unemployment, and while I doubt things will get that bad, it's a situation I'd prefer to avoid if I can help it! :loco:
 
Metaltastic said:
Haha, yeah, I'm afraid after that thread you started, I'll pass on Gold Aaron :D And real estate seems like way too much effort, but maybe down the line - anyway, I'll investigate an IRA/Roth IRA (what's the difference?), and I suppose retirement would be a good goal; on the one hand, it's so far away to the point of being ridiculous (I'm 23 :D), but on the other, starting now would probably shave a couple of years off when I can retire down the line, so that's something to think about; would that ONLY be accessible when I retired though? Cuz my motivation for starting this thread actually is more than a little random; there was an article in my local paper about a 50-year-old father of 3 who killed himself because of destitution and unemployment, and while I doubt things will get that bad, it's a situation I'd prefer to avoid if I can help it! :loco:
Click to expand...

If you're 23 and haven't started saving for retirement yet start NOW. Like today now. Here's a little example about how much compounding returns can help you.


William and James are twin brothers who are 65 years old. 45 years ago (at the end of the year when he reached 20), William started an IRA and put $2K in the account at the end of each year. After 20 years of contributions, William stopped making new deposits but left the accumulated contributions in the IRA fund. The fund produced returns of 10% per year tax-free. James started his own IRA when he reached the age of 40 (just after William quit) and contributed $2K per year for 25 years, making his last contribution today. James invested 25% more money in total than William. James also earned 10% on his investments tax-free. What are the values of William’s and James’s IRA funds today?





William has $1,365,227. James has $218,364.

Think about that for a minute. Never ever too early to start investing for retirement. Only point I can make about this example is that an 8% rate of return is a little more realistic these days.
 
+100 to the post above.

I was told that same problem when I took economics in high school. I am well on my way to having around 2 mil when I can start withdrawing. The debacle a few years ago put a dent in things, but I'm confident it will get better.

If you do go the IRA route, try and put the max in every year. Or just do as much as you can possibly spare. And like I said before, invest that money smart in a life-cycle fund, or have a company(that knows what they are doing) diversify it for you.
 
If I remember correctly the max per year is around $5200 if you're not making any make up contributions.

I'm only 23, been out of college for about 8 months and have about $6000 saved for retirement already. Its all about budgeting and carefully planning your finances. I by no means make a ton of money but I am able to save a good deal and still have a lot of fun with some careful forethought.
 
+1 to retirement. I just started my retirement plan and have around $3k on it, and also invested on my daughter's education already with $100 per month. She'll have her whole college paid when she's 18 and I hope I wont be a homeless in 25 years with that money hehehe

Marcus, there are also some low risk investments you can make if you wanna have your money available to spend at some time. I dont know how it works in the US, but go to a bank, talk to someone and you'll eventually find out a good plan for your money. Just for GOD SAKE dont go stocks - My father lost around $300k with those Merryl Lynch mother fuckers with stocks a few years ago.
 
What's this IRA business? Over here we have Superannuation funds that you invest a portion of your income into, and are eligible to withdraw from when retiring. Is this more or less the same thing?
 
Aaron Smith said:
Gold! Seriously. Gold.

Here's a good rundown: http://gold.bullionvault.com/How/WhyGold
Click to expand...

+1

I'd also say Silver, but to a lesser degree. Just make sure they are .9999 and you'll be set. Think of it as an insurance policy and investment all in one. If the shit ever hits the fan precious metals will be your friend. Also buy the actually metal (bars or coins), not some worthless peice of paper/contract that says you own gold.
 
jangoux said:
+1 to retirement. I just started my retirement plan and have around $3k on it, and also invested on my daughter's education already with $100 per month. She'll have her whole college paid when she's 18 and I hope I wont be a homeless in 25 years with that money hehehe

Marcus, there are also some low risk investments you can make if you wanna have your money available to spend at some time. I dont know how it works in the US, but go to a bank, talk to someone and you'll eventually find out a good plan for your money. Just for GOD SAKE dont go stocks - My father lost around $300k with those Merryl Lynch mother fuckers with stocks a few years ago.
Click to expand...

Stocks are risky but they're a great way to make money if you know what you're doing (ie know how to mitigate risks). My girlfriend is a finance major, and we often discuss what's happening in the market. If you'd have invested in GE right after the market crashed, you'd have made something like 8-10x your money back by now.
 
+1,000,000 to retirement.

My wife and I set up our funds when we were 23, 11 years later we're looking at being able to retire comfortably in our mid/late 50's AS LONG AS the economy here in the US doesn't shit out any more, for a longer period of time.

I look at my in-laws who are retired and take 2-3 week cruises every 6 months and know that we made the right choice to sacrifice small stuff now vs. being able to relax later on :)
 
No NO NO! You might die and not get to spend a penny of it. Fuck your future kids. Cocaine! 45 years for $1,365,227? pft could be had in 1 year. :heh:

J/k or am I? :err:
 
I need to invest too, but I can barely pay my mortgage and feed my family at the same time. :erk:

COCAINE!!!

dethclown.jpg
 
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