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Money, Business & Finance Ground >> What would you do with 20K to invest right now?


9/16/09 7:11 PM
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jaseprobst
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I have an extra 20K lying around doing nothing in a bank account. Don't know much about finance but even T-bill rates suck now, so I figured I'd ask here.

Not willing to take too much risk, though some is reasonable.

I have a very low debt-to-income ratio and own my home with a relatively small payment.

Any thoughts? I'm thinking long term and plan to retire in my mid-50s and have about 80K already saved for that, with pension, etc.
9/17/09 12:23 PM
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koreviewz
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It's an impossible question because the economy is fucked.  The long term picture is screwed based on the condition of the dollar and our national debt.  It's not like you can just sock away money in mutual funds and retire rich like every book in the 90's said to do.
9/17/09 12:36 PM
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jaseprobst
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Thanks man. i was thinking that was the answer.
9/17/09 1:45 PM
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koreviewz
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 Jase, if you were looking for a big return on investment that has risk and you'd need to monitor, I can tell you what's made me money.  Precious metals.  My precious metals stock portfolio has returned 67% since it's inception and my bullion is up well over 100% on Silver and 100% on Gold. 

I'd recommend reading "coming collapse of the dollar" by John Rubino.  I don't sell it and am not affiliated with it.  But it is AWESOME.  It came out before the financial collapse and predicted everything that would happen (including what companies to get out of to the tee).  I followed their advice and have done nothing but make money.
9/17/09 5:20 PM
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Kurle
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This may sound oddly simplistic, but find things you can buy for $.40 on the dollar and sell them for $.80 on the dollar.

I know seems obvious, but I am not necessarily talking about selling on Ebay or anything like that. Currently I have a business where we purchase liens that are tied to personal injury lawsuits. We buy them at a substantial discount and settle them for close to face value. We have to wait on average 12 - 15 months, but the returns make it worth while.
9/18/09 1:49 PM
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jaseprobst
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Thanks guys! I thought precious metals would be a solid move, koreview2, can you recco a good fund/place to invest?
9/20/09 3:04 AM
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koreviewz
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 jase, go to the library and find "Coming Collapse of the Dollar" for stock recommendations.  Swiss America Gold, Midas Resources or Goldline all are good places to buy bullion or numismatic coins.  I would warn you though that precious metals are volatile and you should really educate yourself about them.  But in the last few years the returns have been huge.
9/24/09 8:09 PM
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Harada
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I would get a broker. Most people rely on their banker for investments, and we have seen how the banks are doing.

Edwardjones.com has a search on their web site. I'm sure a Morgan Stanley or Smith Barney broker would love your business as well. I like Edward Jones because they are in almost every town, vs. going to a city for the wire-houses.

FYI, I don't use a banker or broker, but trade stocks on my own. Most brokers have managers or back offices monitoring every transaction, to make sure any recommendations and trades are in your best interest.
10/1/09 3:04 PM
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koreviewz
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Edited: 10/01/09 3:05 PM
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 Jase, I just sent you a message here on mma.tv.  Check your mail. 
10/4/09 7:46 PM
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dunc
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I invest a lot of money into silver and gold and I can tell you it is getting harder and harder for me to keep it up. They may go up or they may go down but the prices right now are clearly high, moreso for gold then silver imo. I just think that very soon the prices will have a huge shift.
10/5/09 3:28 AM
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jaseprobst
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Dunc, what's the best way to buy those metals?
10/6/09 9:56 PM
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alley
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You don't know much about finance, and you're thinking of trading commodities? Bad move, man.

Just invest in a couple of super reliable blue chips. Perhaps a couple of warren buffet picks: maybe Kraft and GE. Then just hold till you're old.
10/7/09 12:43 PM
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jaseprobst
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Robert P Hansson - 
alley - You don't know much about finance, and you're thinking of trading commodities? Bad move, man.

Just invest in a couple of super reliable blue chips. Perhaps a couple of warren buffet picks: maybe Kraft and GE. Then just hold till you're old.


Gold just broke an all-time record. Silver is up over 60 percent on the year.

I'll just leave it at that.


This.

i know enough to know what i don't know.

That's why I'm asking.
10/7/09 8:55 PM
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dunc
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Understand that although it is highly unlikely the dollar wil have some sharp snapback, if it does gold will start to drop fast.

I do not believe that will happen but you should make your own informed opinion about it.
10/7/09 9:00 PM
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jaseprobst
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True, precious metals are a natural edge against a declining currency. I have high confidence it will continue.
10/7/09 11:20 PM
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dunc
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^^^ I am much more invested in silver than gold and agree with you completely.
10/22/09 3:07 AM
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feralpig
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Harry Browne (most famous for running for President on libertarian ticket) came up with the "Permanent Portfolio."

The PP is 25% long bonds (30 year Treasuries), 25% physical gold, 25% stocks, 25% cash. In deflation, the long bonds do well.

In inflation, gold does well (physical is extra security). In recession without big inflation or deflation, cash does well. In good times, stocks do well.

Just something else to think about.

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