Arklatex (09-07-2014)
also, what's a timberking?
back to topic though...i think a good investment would depend on what your goals are. example - if you are investing for normal life, i would say paying your house off would be a great idea. it would give you more disposable income (or money in savings) and get rid of the biggest monthly bill/expense the average person has...however, if you are investing in your future and if the thought of some sort of collapse is inevitable closer than we expect it (which is definitely a scenario) than the extra money you would put into the house (or other long term financial investments) would be better used for things like Inor said...
i do think one thing people neglect though, the simple pleasures...things like books, and board games or cards. crayons for kids/grandkids and paper...
I have served Almost 21 years in the military and retired this spring medically from injuries while deployed. I will exercise my 1st Amendment rights just like MR will and after all those years in service I have learned not everyone agrees and I do not care if everyone agrees with me, but thanks for the word.
omegabrock (09-23-2014)
This is something I came up with a long time ago and was never able to follow through on. Just consider what might apply to you and forget the rest.
What I'd do if I could start over. This is investment/retirement money only, not total income use. It pre-supposes extensive preps and back up funds in place all the time. At least a year of preps, a year of equivalent salary for normal things if income stops, and a large emergency cash fund for the unexpected expenses such as car repairs or medical bills.
The plan is approximately 1/3 each income producing property (35%), more or less regular financial investments, diversified as to type (33%), and precious metals (32%) to spread the risks, no matter what happens. I don’t think it is possible to accurately predict what will work in the future, so I prefer to cover as many bases as possible.
If there isn't a reasonable amount for an item, shift the amount 50/50 to the other assets and PM assets, and then transfer to the item when enough is accumulated.
The Warrant trading account has to be managed, as do the separate parts of the self-managed Permanent Portfolio Fund.
I know that Permanent Whole Life Insurance gets a very bad rap. I think it is unjustified, if one understands just how it works and takes advantages of the possibilities, always knowing that it, like a 401(k) or any retirement fund, is a long term investment and will not have much value, especially compared to what goes into it, during the first 20 years.
But the payoffs are great, and it is one of the few ways to pass an inheritance down to future generations with only minimal tax impacts. And be aware that one of the reasons that I like it is that the investments that pay the dividends are not just conventional stocks and bonds. The applicable insurance companies that one would want to get a Permanent Whole Life Insurance Policy with are the same ones that one would use for Annuities.
And they have a wide portfolio of investments, including hard assets such as raw and income producing property, things like businesses, leasing of railroad rolling stock and motive power, warehouses, trucking fleets, fisheries, and all sorts of things besides just stocks and bonds.
Pretty much the same goes for the Annuities. You will hear lots of bashing. Research everything and think it through.
The rest can pretty much just be watched and changes made when the overall percentages get out of whack.
I'm not an investment person. This is just what I'd do with a significant amount of money I wanted to diversify so as not to lose too much in any one account. Seek professional advice before you make any investments.
For someone starting out, I would build solid credit, maintain a very minimum amount of debt in order to build that credit, and otherwise pay as you go, living a reasonable lifestyle without overdoing the fun, but having some, and always buy quality for a good price rather than just cheap. Keep long range goals in mind even when considering short term decisions.
Just my opinion.
20% - Income producing working farm/ranch primarily as a hedge for bad times so you’ll have food, plus income. Buy in and perhaps even some sweat equity when possible, but not to run and operate oneself.
15% - Quadraplexes on corner lots in small towns with live in manager as income producing property (usually not subject to apartment rules and restrictions in most places that can have rent controls put into place)
5% - Permanent Portfolio Fund (PRPFX)
2% - US Treasury Bonds (28+ years)(self-managed PPF)(equalized each year)
2% - US Treasury Money Market Fund (self-managed PPF)(equalized each year)
2% - Gold coins (self-managed PPF)(equalized each year)
2% - Growth Funds (self-managed PPF)(equalized each year)
5% - Blue chip mutual funds – keep rolling the dividends back into the same funds (PRFDX) (FBGRX)(FBCVX)
5% - Warrant trading accounts – Never buy more warrants than the money would buy of the stock.
2% - Deferred annuity #1 Paid into until retirement for monthly income (Hartford, John Hancock, Met Life, Mutual of Omaha, and Prudential)
3% - Deferred annuity #2 Paid into until retirement for big ticket items (Hartford, John Hancock, Met Life, Mutual of Omaha, and Prudential)
2% - A trust fund to capitalize a few projects I have in mind.
3% - Permanent whole life insurance (dividend reinvested/no withdrawals)(if under 50 else 5% trust fund)(Check the same insurance companies as for the Deferred annuities. Many offer participatory Permanent Whole Life Insurance.)
5% - 1 ounce Gold Eagle (in hand)
5% - 1/2 ounce Gold Eagle (in hand)
5% - 1/4 ounce Gold Eagle (in hand)
5% - 1/10 ounce Gold Eagle (in hand)
2.5% - Pre-1965 silver dimes (in hand)
2.5% - Pre-1965 silver quarters (in hand)
2.5% - Pre-1965 silver halves (in hand)
4.5% - One-ounce Silver Eagle rounds (in hand)
Jerry D Young
Prepare for the worst, hope for the best, and always remember TANSTAAFL
(TANSTAAFL: There Ain't No Such Thing As A Free Lunch - Robert A. Heinlein)
Slippy (02-25-2015)
Slippy (02-25-2015)