Realistically Speaking And Choices....

[BrettGC]

I would get rid of that $841 per month mortgage before I make the move.

 

I'll own my unit outright in March, funnily enough I'm moving in April ;)

[JJReyes]

One simple investment strategy is known as Five Fingers.

 

1. Cash and cash equivalents

 

2. Stocks

 

3. Bonds

 

4. Real Estate

 

5. Precious metals 

 

You don't give equal weight when distributing assets. Cash equivalent include CDs which gives you next to nothing. It is actually a loss because of inflation. The same with bonds if you want the low-risk variety. The heavy weights since the 2008 economic collapse are stocks and real estate. Precious metals do not increase in value. What they do is retain value and a small amount is a good hedge against inflation.

 

Precious metals are in a down cycle at the moment through the manipulation of global Central Banks who, by the way, are also busy printing money. A contrarian is a person who takes a position opposite the majority. A contrarian will say that this is a good time to buy gold. For my portfolio I have been buying precious metals mining stocks in companies that can weather the bad times. These are companies with a minimum $15 billion in assets. My preference includes substantial holdings in Canadian and American mines. Africa and South America are politically unpredictable.

[BrettGC]

One simple investment strategy is known as Five Fingers.

 

1. Cash and cash equivalents

 

2. Stocks

 

3. Bonds

 

4. Real Estate

 

5. Precious metals 

 

You don't give equal weight when distributing assets. Cash equivalent include CDs which gives you next to nothing. It is actually a loss because of inflation. The same with bonds if you want the low-risk variety. The heavy weights since the 2008 economic collapse are stocks and real estate. Precious metals do not increase in value. What they do is retain value and a small amount is a good hedge against inflation.

 

Precious metals are in a down cycle at the moment through the manipulation of global Central Banks who, by the way, are also busy printing money. A contrarian is a person who takes a position opposite the majority. A contrarian will say that this is a good time to buy gold. For my portfolio I have been buying precious metals mining stocks in companies that can weather the bad times. These are companies with a minimum $15 billion in assets. My preference includes substantial holdings in Canadian and American mines. Africa and South America are politically unpredictable.

 

 

Isn't it interesting, that here in Australia, the stock market is officially considered gambling by our state governments.  I only learnt this when I did a Responsible Gambling Services course years ago. 

[JJReyes]

Isn't it interesting, that here in Australia, the stock market is officially considered gambling by our state governments.  I only learnt this when I did a Responsible Gambling Services course years ago. 

 

There is a strong gambling element in the stock markets and, just like Las Vegas casinos, you can't beat the big boys. Since my wife and I are entering our retirement years, we buy what are known as "Widows & Orphans" stocks. These are dividend paying and highly conservative companies whom the manipulators avoid. The manipulators make money in stocks whose prices go up and down in wild gyrations. When someone tells me they are up 10% on a particular stock, I smile and say, "That's fantastic." The same person keeps quiet when the stock is down 20%. What you want is a consistent, steady growth and earning pattern in companies whose minimum stock market value is over $1 billion. Another rule of thumb is no more than 4% of your total assets in one particular company.

[Curley]

I have been lucky also with my rental. I retired this summer on my government pension,but I knew a couple of years ago I wanted to invest in real estate during the housing crunch. I found a turnkey foreclosure home for 85k and with my 30k down payment my mortgage is $841.00 per month for 15yrs..I charge $1275 per month and I found a flat rate property mgmnt co. for $50.00 per month. Thats a $385 per month cash flow and housing is on the up swing here and now my rental property is worth 120K now.My home that I live in here was paid off in 2007 so I will rent this one also whenever I decide to move to Phils on a more permanent basis. I prefer a more solid safer investment then gambling on the stocks!

 

Investing in real estate after a crash is sensible as it is with the stock market, if you had bought into a portfolio of shares when the Dow crashed to around 7000 in 2009 you would be sitting very pretty now at 16000  more than doubling your money plus your dividend payments.

 

Gambling on stocks? With stocks the very worst you can do is to lose all your money (most unlikely). Borrowing money to buy property could mean that you lose the money you put in PLUS still owe the lender money. So which is the biggest gamble? Putting one's savings into ONE property is a big gamble, how would anyone feel if they had "invested" in property to provide a rental income in late 2007/early 2008? The value of the property would have plummeted, the rental value would have decreased considerably as well because a huge number of unsaleable properties were put out to rent.

 

 

My whole point is that as we age I prefer to have my money available at reasonable notice just in case an emergency comes along and I need some cash quickly.

[Curley]

Isn't it interesting, that here in Australia, the stock market is officially considered gambling by our state governments. I only learnt this when I did a Responsible Gambling Services course years ago.

 

Very true, but then, isn't ALL investing a gamble?

 

Thalidamide was stated by governments to be completely safe. As a cynical old sod I have long known not to trust anything a politician tells me.

Edited December 14, 2013 by Curley

[russellmania]

 

I have been lucky also with my rental. I retired this summer on my government pension,but I knew a couple of years ago I wanted to invest in real estate during the housing crunch. I found a turnkey foreclosure home for 85k and with my 30k down payment my mortgage is $841.00 per month for 15yrs..I charge $1275 per month and I found a flat rate property mgmnt co. for $50.00 per month. Thats a $385 per month cash flow and housing is on the up swing here and now my rental property is worth 120K now.My home that I live in here was paid off in 2007 so I will rent this one also whenever I decide to move to Phils on a more permanent basis. I prefer a more solid safer investment then gambling on the stocks!

 

Investing in real estate after a crash is sensible as it is with the stock market, if you had bought into a portfolio of shares when the Dow crashed to around 7000 in 2009 you would be sitting very pretty now at 16000  more than doubling your money plus your dividend payments.

 

Gambling on stocks? With stocks the very worst you can do is to lose all your money (most unlikely). Borrowing money to buy property could mean that you lose the money you put in PLUS still owe the lender money. So which is the biggest gamble? Putting one's savings into ONE property is a big gamble, how would anyone feel if they had "invested" in property to provide a rental income in late 2007/early 2008? The value of the property would have plummeted, the rental value would have decreased considerably as well because a huge number of unsaleable properties were put out to rent.

 

 

My whole point is that as we age I prefer to have my money available at reasonable notice just in case an emergency comes along and I need some cash quickly.

 

I agree as we age we should have money available at a reasonable notice thats why I only put a down payment of 40% of my savings for my rental property. I'm enrolled in the Thrift Savings program from my former employee which does invest in the S&P 500 for me,but I don't actively daily indulge in the stock market.As for emergencys I am fully coverage with Blue Cross and I have $60,000. cash on hand,so I think I'm prepared for life's speed bumps.

[Thomas]

 

Isn't it interesting, that here in Australia, the stock market is officially considered gambling by our state governments.  I only learnt this when I did a Responsible Gambling Services course years ago. 

 

There is a strong gambling element in the stock markets and, just like Las Vegas casinos, you can't beat the big boys. Since my wife and I are entering our retirement years, we buy what are known as "Widows & Orphans" stocks. These are dividend paying and highly conservative companies whom the manipulators avoid. The manipulators make money in stocks whose prices go up and down in wild gyrations. When someone tells me they are up 10% on a particular stock, I smile and say, "That's fantastic." The same person keeps quiet when the stock is down 20%. What you want is a consistent, steady growth and earning pattern in companies whose minimum stock market value is over $1 billion. Another rule of thumb is no more than 4% of your total assets in one particular company.

Well. Corect in general about big boys and daytrading and some index papers,

BUT I suppouse it's possible to beat the big boys, because I have done it some years, I suppouse*   :)    (I haven't checked since 2010, but what I saw from the "experts" before that weren't impressing...)

 

*Or do the big boys in general 2001-2010 realy beat 29 % per year if counting including periods I didn't had my money invested, or 40 % if only counting periods I had shares?

(For instance mine went UP 40 % spring 2001, when the index went DOWN 20%,

and autumn 2008, when the market FELL, then my shares went UP 51 %.)

And that's when I spend only a few hours per week, because having other full time job.

 

That I reached by staying OUT of buying shares in the big companies, because that's where the big boys spend their time and efforts mainly.

[russellmania]

I would get rid of that $841 per month mortgage before I make the move.  There is a big difference in having a paid for house when you obt for long distance landlordingI

Thats why I pay my property manager company monthly to handle any problems that might arise. So far I have been lucky,no problems in a year and a half from my leaser.I have heard the horror storys of people trying to manage the properties on their own,and no thanks. I only owe 50k at 3.75 for 15 yrs and I will pay extra to the priciple to pay it off in 10yrs.And by the way I agree with having a paid off house,because current home was paid off in 2007. This place will at least bring $1300.00 per month when I decide to retire full time to the phils.

[JJReyes]

The goal is to have enough for a comfortable retirement. If you can do it at $1,000, that's terrific. Others require $4,000. Whatever the amount, my recommendation is to set aside an additional 20% as a reserve for unexpected expenses and for future inflation. The $1,000 should really be $1,200 with the $200 as savings.