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What Should I Do With My Money?

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_AnCap_ posted on Fri, Aug 3 2012 6:00 AM

I've never had much money laying around but a month ago, I inhertited $200,000 from an aunt that has passed away. I'm not sure what to do with it...perhaps I'm looking for a push or something. Will I buy gold or silver or put it into something else like the stock market? I'm at my wits end worrying about the future. If anyone can shed some light on what I should do I would be much appreciative. Is there a way to make my money work for me? As in invest in something where I'll see a return?

Thanks in advance.

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Answered (Not Verified) Rcder replied on Fri, Aug 3 2012 6:26 AM
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My advice is going to be rather droll, but I'd recommend consulting someone in the financial industry, especially considering how large your bequeathment is.

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Answered (Not Verified) MaikU replied on Fri, Aug 3 2012 6:51 AM
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Buy a house.

"Dude... Roderick Long is the most anarchisty anarchist that has ever anarchisted!" - Evilsceptic

(english is not my native language, sorry for grammar.)

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what Rcder said.  There is a lot of high risk bets out there that you shouldnt get mixed up in unless you know what you are doing.  With that being said have you thought about derivative swaps?  they are all the rage!  JK.

 

Also it would depend on how old you are and expectations on what you want this money to do for you.  Do you want to try and turn it into millions?  if so you will have to take high risks.  Or do you want to help support your income a little every year with like 10,000$ and never touching the principal amount until you retire.  Or are you worried strictly for retirement with options to withdraw your money in emergencies?

 Im assuming since you are asking how to invest money you are pretty young. 

Do you know what you know what you want to do for a career yet?

Have you been to college?

 

thats what i would do if i inherited that money.  Invest it in getting an education, or invest it in starting a business.

facebook is also 20$ a share right now....buy buy buy.  Sony is near its 52 week low and they just revamped their company. PS4 coming out, a new tablet, finally in the smartphone market, readjusting their market more heavily in medical equipment, the new batman was sony, new CEO, ect.  I just bought some facebook stock this week and today, and im looking into sony.  Thats just what im doing with my spare change.

i dont think there is much harm in taking $10k and playing the stock market.  Scottrade/etrade something like that.  I would be a good learning experience.  Before you do anything id ask a professional though.  See if there are any guaranteed 5-10% returns on investments out there.  It would be alright to sit on the money on a very low return while you are figuring out what to do with it.

Eat the apple, fuck the Corps. I don't work for you no more!
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allocate your $200,000 budget across your basket of commodities until each marginal utility per dollar is equalized. 

microeconomics is so helpful. :)

Ambition is a dream with a V8 engine - Elvis Presley

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You should divide it into three parts, assuming you already have an income that provides for your normal expenditures (and plan to keep that income). The first part is your savings. That should be mostly gold and silver, with a smattering of other assets. This is your preparation for bad times ahead. I, personally, would put about one-third to one-half in gold and silver. The other two parts are investment and security. Buying precious metals exchanges risk for stability, meaning youre much less likely to lose purchasing power but you stand to gain less purchasing power over time. Your investments are higher risk, but they have a chance of higher return. I cant tell you what to invest in, but nyse and nasdaq are overvalued in my opinion. The security is so that you retain your life and property. This is where I would get a nondescript house in a middle-class neighborhood and turn it into a safe house. So if you spend 80k on a house (and improvements), 30k on gold, 50k on silver, that leaves you with 40k for investments. I would find a struggling entrepreneur I trusted for the last bit.
Keep the faith, Strannix. -Casey Ryback, Under Siege (Steven Seagal)
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Suggested by David B

I'm going to disagree with Malachi here.

a) You were doing fine before you had the money, nothing should change overnight now that you have it. Maybe you sleep a little sounder but that's it.

b) Pay any debts off, day one

c) Don't buy a house, not in the US at least

d) Don't invest in anything that you don't actually understand, i.e. know how you're going to make a profit before you invest.

e) Remember that the dollar is, unfortunately, an investment, not a vehicle for savings. Ask yourself: Do you understand how the dollar works? Do you know why you're going to come out ahead in the long run by holding dollars? Anyone who can't answer those questions shouldn't be holding a lot of dollars.

f) Gold is the only rational vehicle for long-term savings. But $200K is a lot of gold. You can't store that on your own. You shouldn't store it in any US bank. I would take at least 90% of the cash and put it in allocated gold accounts overseas. You should put half in one jurisdiction (say, Zurich) and half in another (say London or better Leichtenstein, etc.) This will help you protect yourself against the vagaries of capital controls and seizures being enacted by governments around the world, most notably USG.

g) If you're young and unattached, I would recommend that you read everything by Doug Casey you can get your hands on and start thinking "internationally". Learn Spanish, get your passport, learn how to immigrate to Argentina or Singapore and, when you're ready, move. Get the hell out of here while you can. I don't have that option (children, family, other obligations, etc.) but my advice to anyone who does: get out now!

Clayton -

http://voluntaryistreader.wordpress.com
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Bert replied on Fri, Aug 3 2012 12:40 PM

Buy books, invest in alcohol.  This is me sort of speaking retrospectively, for if I bought a book instead of each six pack or bottle of whiskey I've bought, well, I'd have a damn library.

 

I had always been impressed by the fact that there are a surprising number of individuals who never use their minds if they can avoid it, and an equal number who do use their minds, but in an amazingly stupid way. - Carl Jung, Man and His Symbols
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if I bought a book instead of each six pack or bottle of whiskey I've bought, well, I'd have a damn library.

Interesting observation.

Also, I totally thought this was a scam.

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Marko replied on Fri, Aug 3 2012 1:15 PM

Just to counterbalance what some of the others have been saying: whatever you do don't invest on your own! The fact you inherited 200,000 means you can be a capitalist. It doesn't mean you have any qualifications whatsover to be a speculator. 

If maybe you'd like to be a speculator learn it by managing other's peoples money, or by paper trading (making ficticious investments). But don't gamble your inheritance to do it!

Simply be a capitalist. Find a pro investor/speculator that you like and invest with them. You're rich now (for your age) — act like it. Buy a tophat and a cigar, sit down on a sofa and have other people work for you — have a pro specialist with a proven track record manage your investments for you.

Research good fund managers, I guess I would start with Schiff and Rogers (and with whoever manages Ron Paul's money) and invest with them. I'd also buy whatever amount of physical gold I would be comfortable holding, burried under my home or something.

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Buy gold bars and hide in extra secret super safe safe underground.

Clayton- why would you get away from here and learn spanish?

Get a self sustaining food garden.

Buy lots of weapons

Buy lots of water

Buy solar panels.

Live off the grid.

Build a bomb shelter.

Get an anti tank gun (or rpg)

 

“Since people are concerned that ‘X’ will not be provided, ‘X’ will naturally be provided by those who are concerned by its absence."
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Buy gold bars and hide in extra secret super safe safe underground.

 

No. Bear in mind that - while $200K is a windfall from $0 - it's not that much money in the grand scheme of things. It's a lot of money but it will be easy to blow it.

Clayton- why would you get away from here and learn spanish?

Ask Doug Casey, Jim Rogers, Marc Faber, etc. etc. The US has been on a long, very clear trajectory of self-destruction. On our current course, there are only two options... either one or both will happen: economic collapse and/or war. There are no other possible outcomes of the current trajectory of USG policy.

Get a self sustaining food garden.

 

... perhaps, but don't waste money on a garden unless you're serious about gardening.

Buy lots of weapons

One is enough. You should have a handgun for home defense. Get something practical and price/value sensible (IOW, no cadillac Sig-Sauer stuff unless you like to do competitions).

Buy lots of water

 

... a rack of water bottles is enough. Enough to be able to get out of town in the event of a major catastrophe. From there, you can figure out what to do next.

Buy solar panels.

No.

Live off the grid.

 

No.

Build a bomb shelter.

Absolutely not!

Get an anti tank gun (or rpg)

No.

Clayton -

http://voluntaryistreader.wordpress.com
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Hopefully you saw the partial sarcasm. I see your point, the US is turning into a massive police state/economic shithole/war mongering, but at a very slow pace.

I guess i could move to switzerland, or buy your own ship and live on the sea..

The self sustaining food garden isnt a bad idea though.

“Since people are concerned that ‘X’ will not be provided, ‘X’ will naturally be provided by those who are concerned by its absence."
"The sweetest of minds can harbor the harshest of men.”

http://voluntaryistreader.wordpress.org

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well if you would of listened to me you would of made $11080 with your money today by investing in facebook... just an FYI.

though im breaking even, bought it at 22 and today at 20.

Eat the apple, fuck the Corps. I don't work for you no more!
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I dont think my advice was particularly good, but Clayton and myself appear to have a difference of opinion.
b) Pay any debts off, day one
not a bad idea, but why pay debts now when you can pay them according to the schedule you already have and preserve spending power jow, before the crash? Dollars are just going to get less valuable, those are the dollars you want to use to pay down your debts. A windfall should be husbanded. Everyone please note that I havent advocated default, simply continuing to pay debts according to the previously agreed-upon schedule.
c) Don't buy a house, not in the US at least
if he wants to expatriate, most of this advice would be different.
d) Don't invest in anything that you don't actually understand, i.e. know how you're going to make a profit before you invest.
thats absolutely true
f) Gold is the only rational vehicle for long-term savings. But $200K is a lot of gold. You can't store that on your own.
11 pounds of gold is easily storeable by an individual. As far as the risk, well thats an individual's decision. But it doesnt make very much sense, to me, that the only rational vehicle for long-term savings would also be unsuitable for individual storage, and the numbers dont really suggest that to me. I also tend to think that unimproved land, especially with mineral rights is also a suitable goal for long term wealth preservation. But thats because after lunch I mentioned this thread to my bookkeeppeerrr and thats what she mentioned. Overseas accounts are fine if you trust those banks, and want to go expat.
Keep the faith, Strannix. -Casey Ryback, Under Siege (Steven Seagal)
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