Well since we talk about this occasionally, we might as well
share some of the investments we have and reasons for them.
From time to time there are clubs and organizations that do this
might as well do it too.
We might have a portfolio, stocks, bonds, coins, stereos, speakers,
amplifiers, financial instruments, etc.
It might be worth our while to take what we no and share it with each other.
We could take a hypothetical amount say $1,000, $5,000, or $10,000
and invest it, what should we invest in?
Here are some general items to help start the conversation.
There is a time value to money.
There is also a risk free investment rate. That is the rate that someone
would receive on there money if there was no way they would lose the
money the placed for investment. Historically this the federal funds rate.
Or the interest rate the US Government pays for it's notes and bonds.
Typically the rate is less for money loaned for short term 1, 3, 6 months
money loaned for 10 years, 20 years, or 30 years.
Here is the link to the Daily US Treasury yield curves.
See it here: Yield Curve
So if we had the $10,000 usd. What do we want to invest in?
Stocks, Bonds, gold, cars, amps what? In what proportions?
Cheers,
share some of the investments we have and reasons for them.
From time to time there are clubs and organizations that do this
might as well do it too.
We might have a portfolio, stocks, bonds, coins, stereos, speakers,
amplifiers, financial instruments, etc.
It might be worth our while to take what we no and share it with each other.
We could take a hypothetical amount say $1,000, $5,000, or $10,000
and invest it, what should we invest in?
Here are some general items to help start the conversation.
There is a time value to money.
There is also a risk free investment rate. That is the rate that someone
would receive on there money if there was no way they would lose the
money the placed for investment. Historically this the federal funds rate.
Or the interest rate the US Government pays for it's notes and bonds.
Typically the rate is less for money loaned for short term 1, 3, 6 months
money loaned for 10 years, 20 years, or 30 years.
Here is the link to the Daily US Treasury yield curves.
See it here: Yield Curve
So if we had the $10,000 usd. What do we want to invest in?
Stocks, Bonds, gold, cars, amps what? In what proportions?
Cheers,
A lot of that has to do with what you want to achieve. Are you approaching retirement? go safe. If you have a long time to go you can get better return on risky investments, although the chance of loss is greater.
I have shares of stock in Duke Power Company, which I received from the high school science fair many years ago. At some point in time I had it switch to a reinvestment fund so that any proceeds get reinvested. I started with two shares and am up to 20 or so now. Rate of return is not that great, but it was free so I let it roll.
On the other hand besides a 401K at work I have a little money invested in Fidelity Investments Puritan fund. My father invested in the same. Return is reasonable, although it took a few years to recover from the last crash. All dividends and interest are reinvested and I pay taxes on 1099 each year.
With modern tax programs like H&R Block,etc taxes are simple.
I have shares of stock in Duke Power Company, which I received from the high school science fair many years ago. At some point in time I had it switch to a reinvestment fund so that any proceeds get reinvested. I started with two shares and am up to 20 or so now. Rate of return is not that great, but it was free so I let it roll.
On the other hand besides a 401K at work I have a little money invested in Fidelity Investments Puritan fund. My father invested in the same. Return is reasonable, although it took a few years to recover from the last crash. All dividends and interest are reinvested and I pay taxes on 1099 each year.
With modern tax programs like H&R Block,etc taxes are simple.
With modern tax programs like H&R Block,etc taxes are simple.
1031 exchange, one of those things you think are only for the rich. It's like printing money with real estate investments.
A very wealthy person I know says: a third real estate, a third stocks and bonds (diversified, no more than 20% of that third in any single stock), and a third cash.
Not sure your age, goals, risk level, etc. If you have credit lines, credit cards, car-loans, etc, I think paying that off ASAP is smart. Difficult because cost of living limits our month-to-month cash flow. If you have $10k liquid, that's some cash flow! Strategically use that in a way that it pays off something in full, then you can use that extra cash flow in your near future to accelerate your rate of paying down the rest of your debts.
After that, build emergency fund.
Add equity to house. Need a new roof?
If you have all of above done, and have established a retirement fund, 401k or Roth, then look at your Stereo.
Do you enjoy listening to it? What do you want? I believe speakers will make the largest difference to your listening experience, and literally set the tone for the whole system. Good amp next, then source.
Not sure your age, goals, risk level, etc. If you have credit lines, credit cards, car-loans, etc, I think paying that off ASAP is smart. Difficult because cost of living limits our month-to-month cash flow. If you have $10k liquid, that's some cash flow! Strategically use that in a way that it pays off something in full, then you can use that extra cash flow in your near future to accelerate your rate of paying down the rest of your debts.
After that, build emergency fund.
Add equity to house. Need a new roof?
If you have all of above done, and have established a retirement fund, 401k or Roth, then look at your Stereo.
Do you enjoy listening to it? What do you want? I believe speakers will make the largest difference to your listening experience, and literally set the tone for the whole system. Good amp next, then source.
So, this applies to US folks only then?
Good input, nothing like getting professional advice familiar with what is available and sensible for where you actually live. Real estate for instance varies dramatically from country to country.
The million dollar unit here sells for $200,000 a couple provinces over.
We get the "The Property Brothers" IIRC they are local to you and the prices are almost as bad as here.
I'm doing the "live at home with the parents until I can save enough for a down payment" strategy. And then expect roommates for a long_time (with the ultimate hope of a permanent roommate some time down the line).
That's what we're talking about, right?
Frankly it's not enough, but at least maxing out your Roth (for us Yanks) each year puts you better than 80-ish% of working adults. (IIRC)
That's what we're talking about, right?
Frankly it's not enough, but at least maxing out your Roth (for us Yanks) each year puts you better than 80-ish% of working adults. (IIRC)
Actually, for your example of $1,000 to $10,000, I would say you shouldn't invest in anything other than a savings instrument. I've learned a lot over the years watching my RRSP grow (401k for you guys) and have a financial advisor manage it. You need a large enough portfolio to be let into the "club" where you're not being ripped off by hidden fees and other things like currency exchange.
So has waiting until I was mortgage free before having fun.
Nothing wrong with having fun before the mortgage. My first boss told me you will work for 7 yr. and wake up one day and realize you have saved nothing, a change will take place virtually overnight. He was right almost to the month. I did have one advantage, my father believed in no debt of any kind ever.
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Yes mine as well. He even went so far as to not ever have a mortgage. I'm guessing that was easier easier when your first house, right in the city, cost a little over two years salary. He was making $5,500 a year and the house was $13,000.I did have one advantage, my father believed in no debt of any kind ever.
Now where's a time machine when you need it?
Speculation made real estate take *ridiculous* prices; my current house cost U$19000 in 1983, inflation adjustment means U$47000 today ... but actual market value is around U$450000 ... wtf?
I could pay it cash in 1983 after saving 4 or 5 years homebuilding guitar amps, today I wouldn´t even be able to pay interest, let alone capital, if I had to buy it on credit.
I could pay it cash in 1983 after saving 4 or 5 years homebuilding guitar amps, today I wouldn´t even be able to pay interest, let alone capital, if I had to buy it on credit.
Yes mine as well. He even went so far as to not ever have a mortgage.
Me too, we grew up in his mother's house $8000 in 1923 paid off long before I was born. My 93 yr. old mother still lives there.
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