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.
Well i think the correct answer for B is pay debts now if you cant find an investment that will make you more than your interest rate. otherwise i agree let it ride.
Well if that was me and assuming you live in the States, I would invest at least half of the money in cash equivalents (short term Treasuries and actual greenbacks). Invest between 20-30% in gold and silver. And if possible, move to New Zealand, Australia, or Canada.
Avoid stocks, bonds, and real estate like the plague.
You can always voluntarily give your fiat money to Aiser. >=)
donate it all to the Mises Institute
First,
I would contact the companies of the four guys mentioned in that intro and see about getting a consultation. Shostak might even get back to you himself: email.
Clayton:b) Pay any debts off, day one
Um. Why?
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 spend all this time asking him if he really knows what a dollar is, but evidently you don't know how many ounces of gold a dollar even buys. Even at spot price (which he won't get), and even if he spends all $200k just on gold (which he won't do, especially if you're expecting him to be dumb and pay off debts right away)...it would be less than 125 ounces.
You're honestly suggesting a human being couldn't store 125 ounces of gold on his own? I could carry that in my damn pockets if I had to. Even in its most common form, you're looking at an ounce per coin, 33mm in diameter. So 125 coins, not much bigger than a quarter. Sure they're a bit heavier. Put em in a fannypack if you have to.
And if that's too many coins to keep up with, he could buy bars with a greater weight, even up to 400 ounces.
"You can't store that on your own."
Are you insane?
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!
To this note, yes, having outside plans is good, even if just for backup.
Check out Doug Casey, Simon Black, Mark Nestmann (and their archives at LewRockwell.com), and if you're really interested, things like this from SurvivalBlog.
Particular good looks in this realm are:
Four Steps to Take Now for a Future Quick Get Away from the United States
Want a Passport? Better Find Your Circumcision Records!
Why You Need a Second Passport
Since I don't have any debts I wouldn't have to pay any off, but I would pay off any family debt.
but I would stay here and probably buy land with minerals on it. I had a very interesting discussion today. Natural gas wells are an excellent source of income, if you can get them.
Listen to this very closely. There is only 1 thing that matters in the investment world right now, and that is what Ben Bernanke, Mario Draghi (Bernanke's European counterpart), and the other central bankers are going to do. Everything else about a stock, such as any technical indicators, balance sheet, P/E, etc...is meaningless. If the banks act, the markets will increase (but only temporarily), and if they don't act, markets will continue to drop. That's it. Unless you are an insider, I would stay out of the markets for now. Don't seek the advice of professionals, they don't know anything more than you do in this scenario. And don't touch Facebook, just horrible advice!
I think the best we can do for now is try to preserve what we have. Don't try to get rich; be content protecting that 200k. I feel the best way to do this is with physical gold to protect against central bank printing, and U.S. dollars for if the banks don't print. In the long term the dollar will get ruined, but for now it's the best play. Paying down debt serves the same purpose of owning dollars. The only other thing I own is an ETF with ticker XLE. XLE is a portfolio of energy companies (Exon, Conoco, Chevron, etc..) I own this for the same reason I own gold, but it has the additional benefit of hedging yourself against Middle Eastern war and rising oil prices. It also has a better dividend than some ordinary savings account.
I also wouldn't be opposed to spending a few thousand on prepping: guns and ammo, water, and food. But don't go too crazy in this area.
Depending on where you live, the only other thing I can think of his buying farmland and sharecropping.
To summarize:
Its eleven eight-and-a-half pounds, and you put it in a briefcase and handcuff it to yourself and have a silenced pistol in the other hand. And if you want to expat you take a cabin cruiser to thailand and buy yourself an estate and hire some fighters to provide security and thereyago. Asia or south america. Dont go to europe or africa, those places are done for as well.
I don't think you guys are comprehending the amount of money we're talking about... it's $200K not $200M.
Clayton -
as for takng the money abroad, that was your suggestion. The cost of things is lower in south america and asia thanin europe. Whereas the security situation in africa is shit, I wouldnt go there with other options on the table. As for thailand, they are a pretty awesome country where its pretty cheap to live, and they are pushing self-reliance recently anyway. Mongolia is another option in asia. In south america I would probably go to chile. There are other good places too. This is just what I would pick. I bet you could get enough landfor a decent estate in chile.
Oh, and 1 more thing. Read every article on Zerohedge every single day!
Maybe we should start a guide for expats meta-thread.
Clayton:[...] $200K is a lot of gold. You can't store that on your own.
Malachi:[...] But the point is that is easy to carry in excess of $200k/gold on one's person.
Bingo.
as for takng the money abroad,
Clayton:Maybe we should start a guide for expats meta-thread.
How about you take the money and upgrade the damn forum that never gets fixed. That's my current suggestion.