Smartest thing to do with 5-10k dollars?
Submitted by kfheuser on Mon, 06/18/2012 - 20:52in
I seek the wisdom of the great multitude of intelligent people that pass through this sacred place.
I'm a 20 year-old college student who has saved up 10k dollars over the past 5 years of working as a lifeguard. What is the smartest way to invest 5-10k to make some more money in the short term? I'm loathe to let it languish in a savings account and I would like to have some cushion money when I leave college to pay for loans and what not.
I appreciate any and all advice!
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Invest in precious and base
Invest in precious and base metals !
Investment Advice
I would purchase a depressed foreign currency and wait for it to revalue. ( This is how George Soros made his billions.) Best bet? Iraq Dinar. It was at $3 before we invaded. You can buy one million for about $800.00 (a small investment risk) If it goes up to even one dime, you made $100,000 and risked $800. If it goes to one dollar per dinar, you are a millionaire. Rumor has it that Trump has a $30 million dollar stake in this play. If it hits, he can buy a lot of hairspray. I will spend half of my bonanza on prostitutes and booze. The other half I'll just spend foolishly.
Good luck - to me!!(and you, too)
“...taxes are not raised to carry on wars, but that wars are raised to carry on taxes”
Thomas Paine, Rights of Man
Foreign currency? No.
No. No. When every country is devaluing their currency in a race to the bottom to be competitive? Worse than a casino!
Terrible advice
This is no better than going to the casino with your money!
Ron Paul - Intellectual hero
Get out of debt fast is the best thing to do!
Get out of debt fast is the best thing to do!
1. Save $1000 starter emergency fund
2. Pay off all debt besides house/mortgage using debt snowball
3. Save 3-6 months of expenses for full emergency fund
4. Invest 15% into good growth stock mutual funds
5. College fund for children (if applicable)
6. Pay off house early (if applicable)
7. Build wealth and give!
http://www.daveramsey.com/new/baby-steps/
These are the basic Dave Ramsey baby steps. I highly recommend you check him out. He's a best seller (My Total Money Make Over, Entreleadership) and host of The Dave Ramsey Show radio show. He is the only person in america giving sound financial advice these days.
"Live like no one else, so that later you can live like no one else." - Dave Ramsey
http://www.daveramsey.com/
DISCLAIMER - I AM NOT AFFILIATED WITH DAVE RAMSEY, HE SIMPLY GIVES GREAT ADVICE!
Ron Paul - Intellectual hero
Pay down those loans
Or don't borrow to begin with. Then any surplus funds s/b invested in the highest earning long term asset you can find which I would submit is your own future career.
eminent collapse
the next 3-6 months are going to be grave.
Put your money into commodities ie. silver, guns, etc.; tools and education.
The bull has left the building, time to turtle.
estanislao
I don't know about the bulk of it
But certainly a subscription to the Daily Paul is the a great investment and will pay dividends for years to come.
For Freedom!
The World is my country, all mankind is my brethren, to do good is my religion.
Nothing...
5,000 dollars is a good emergency fund. If you are completely debt free that will put you in the top 30% of Americans. America's addiction is not porn, but rather credit. They borrow on everything and government encourages this action. Don't play that game. Some really great advice on this board. Great question.
Krugman would say buy
Krugman would say buy consumer products made in China. Maybe a $400 pair of shoes, a new set of golf clubs, buy some rims for your car, and spend the rest on your girlfriend! Then we're on the way to prosperity.
I'd say as long as your saving most of it, you are in better shape than most. If you are looking to the stock market, try to diversify the best you can over a wide variety of industries(oil, healthcare, technology, etc). Also, make sure you buy some gold/silver mining stocks and gold. The textbooks tell you 5-10% of your portfolio should be gold, but i'd boost that to atleast 25% personally.
"Where liberty is, there is my country." -Benjamin Franklin
my .02 worth says to
my .02 worth says to evalutate your situation. Look at the cars you drive, the clothes you wear. While others say invest in gold/silver. Those are fine if you just want a store of value. While it will increase nominally with inflation its not gaining any true value. There is a balancing act here. Storing value is fine, but it's not really gaining you anything. Is there anything that you NEED that will increase your human capital? I suggest this because experience is HUGELY important when looking for a job. Lets say you are an engineering major. I would HIGHLY recammend finding a job that applies to your field. DO NOT work at McDonalds (or lifeguard) during college. How does this apply to your savings? It applies because that saved money could "pay" you the extra price you potentially take in pay cut from McDonald's to find a suitable experience job.
If your career is health care related, (ie nurse, doctor etc) lifegaurd may be a good stepping stone, but continually be looking for the next step up (volunteer ambulance driver/fire dept or anything remotely related). but i would use the savings as a subsidy towards living minimally while taking slightly lower pay at a job that builds experience towards your college degree.
What is the #1 thing employers are complaining about right now? They can't find good help! Sure there is a glut of people looking for work, but they can't do the jobs that employers want/need. If you are a mechanical engineer and have 8 years of lifeguard experience what does that matter? (I guess it shows that you go to work on time and do the requested job) What if you had been a mechanic at the local car shop? MUCH better. What if you worked for the university in their engines lab? MUCH MUCH better. What if you had an intership in a real company as a mechanical engineering intern? MUCH MUCH MUCH better.
I would invest in yourself, find a job that applies, GET EXPERIENCE that matters.
07 Daytona 675
Don't Tread on Me!
If you take an internship it
If you take an internship it may mean a commute (you'll need a good car), it may be several states away (might be worth buying a small truck and trailer). You might relocate for the internship to a location where cost of living is significantly higher so you'll need more funds for that. You may need a nice suit for interviews. Continue to improve you personal capital above all else. Human capital is exponential in investment.
Spend time reading, and LOTS of time writing. If you have to take a couple days off of work to focus on your resume, use the savings as a subsidy for that.
Consider all investments in human capital first and foremost. Also consider interest rates. Does it make anysense to "save" the money at 1% when you are taking out student loans at 6%? If gold is nominally increasing at 10% per year it's a better investment than a loan at 6%
The trick here is to look at the "entire package". and weigh/balance all options, including all "time investments" as well.
Everything has pros and cons. weigh them carefully.
07 Daytona 675
Don't Tread on Me!
Gold & silver
Since you don't need this while you are in college and it is doubtful an inexperienced investor can pick a productive asset. (OMG, do not trust stock brokers.) So, you need a store of value. Cash: Dollars, Euros, Yuan? They are all manipulated and a bad store of value. Diamonds, art? Market dependent, not a good store of value. What has no counter-party risk (if the guy on the other side of your transaction defaults, you lose too) and never had its value go to zero? Gold and silver. Good even in deflation or inflation/hyper-inflation. Right now with the gold/silver ratio so high (about 1:55, historically 1:16) I would buy silver. It has industrial uses as well as being a store of value, potential upside very good. Don't buy big bars, get American Eagles, 1 oz rounds, junk silver. Gold is fine too, compact and portable, easy to hide. Take physical possession, do not trust ETFs, storage accounts (even if run by your church), etc., you have counter-party risk there. Precious metal mining stocks? Again counter-party risk, ok if you have the time to research the management, in ground reserves, equipment age, etc.
Physical
Silver
"A living Constitution is a dead one" -Ron Paul
This
No silver stocks.
Buy 1oz coins and have them delivered to your possession
There is one good Keynes quote to remember:
"The market can stay irrational longer than you can stay solvent."
I own gold and silver myself and actually think the current price level is a decent accumulation point, but wouldn't want to blow my whole load on precious metals right here.
I believe in the Austrian economics thesis, but that quote by Keynes above is actually a very good one. Many great Austrian adherenets, including Dr Paul himself, have commented on being surprised on how long the powers-that-be can keep a fundamentally unsound system patched together. For some people, an irrational system can remain patched together for longer than their lifespan.
So, just don't forget about LIQUIDITY. Precious metals are not exactly illiquid, but could possibly drop in dollar value for a good amount of time. Your rent, food, bills, etc will presumably be denominated in US dollars (aka FRNs) for the foreseeable future. Risk is everywhere and nobody knows what the future will hold. Don't get carried away in the notion that a hyperinflation, SHTF, barter-society is positively a few months away. The chances that the economy could carry on as-is for a matter of years is a distinct possibility that you should also be prepared for.
This is coming from a guy who owns significant precious metals, a Berkey water filter, etc.
Wise advice
If I were in his shoes, I would:
- put 2k in physical silver to start
- keep the rest in a local credit union
- get the water filter
If you are patient
and can afford to wait - buy gold.
The waking up manual: http://www.dailypaul.com/168937/the-waking-up-manual-how-to-...
If you are asking here...
You need to take a few hundred, buy several dozen highly rated on Amazon books on investing, and read them.
bro
your gunna need that 10k when the Student Loan bubble explodes.
http://youtu.be/mn9DGXzVKWM
Ron Paul IS The Golden Standard
What is Capitalism?
http://youtu.be/yNF09pUPypw
agreed
keep saving it. 10k is a decent amount of money for a college graduate, but not enough to invest and risk losing. Hold onto it, you'll need it.
+1
+1 again. (Remember, he said "Short Term", you cannot buy common necessities at the current time with gold and / or silver. He may need the money in the short term to get up and "bug-out". Longer term, I would say what most others are saying, gold, silver, seeds, land, guns, ammo, etc.)
What can be said of a people who would sell their own children into slavery, using the rationale that it is to protect their freedom?
Stuff you'll need
Right NOW buy physical silver. It's real money.
Fed notes /paper dollars lose value every day through inflation.
-storeable food...you'll always need to eat anyway
-barter items (tobacco and alcohol would be the most popular)
-fuel/propane/gasoline
-gun(s)
-lots of ammo
You'll find this interesting about college,
It's a great hour long documentary that'll save you a fortune.
Dr Paul makes brief appearance
http://www.youtube.com/watch?v=A75KERKwEQM
Side Note
Good Documentary but beware of the NIA.
A couple of ideas
1) If you need the money the answer is likely nothing.
2) If you are willing to risk on such a short horizon the casino may be your best option.
3) Paying off debt is a guaranteed, after tax return and should be done first.
4) What is your major? If it's not likely to get you a high paying job the best return you could have would be to not waste any more time or money on the degree (if we are strictly dealing with financial issues). Most liberal arts majors get lousy returns on their money.
Pay more attention to keeping what you have
In todays economy dollars are losing value while you are reading and bernanke is printing money and will not quit.(Absolutely do not buy anything on credit or take out any more loans. Do not go into debt) You should preserve the wealth you have right now you have more wealth than most Americans. You will have to diversify to protect your wealth. Just my take, buy some silver from a local dealer that does not require your name and address. Maybe a thousand or two of your money. Junk silver(90%) old us coins like dimes,quarters halves and silver dollars are easy to barter with and will grow in value. Don-t tell anyone you have it and hide it somewhere safe. Buy yourself a nice 22 rifle and as much ammo as you can say 5,000 rounds. I don't know if you are on your own or live with your parents but build a close family relationship. You will need a place to store drygoods. Buy yourself a Berkey water filter because water is the most important item in sustaining life. Buy like one poster said things like bic lighters, some alcohol(not to drink but to trade) The economy if Ron Paul does not become president will be barter. The things people need to survive is what you should buy when you see them. If you wish to start a new business with whats left and my suggestion would be invest in used tools and survival gear to resell. People will be looking for food, things to stay warm, ect. You could even sell your filtered water down the road if things get where they get tough. People will always trade for alcohol and cigarettes. Maybe rolling papers and tobacco would be good. Good us made tools are always good trading stock. You will survive any downturn if you do this. Buy at garage sales and auctions. Money will not do you any good soon. Used Comodities that are well made will hold their value. Always keep some cash as well just for the short term. You should do just fine.
http://www.meetup.com/Run-Ron-Paul-2012-Mid-Valley-Chapter/e...
If you saved $10k at age 20
Then you are probably a pretty bright and disciplined person.
While this crowd will wisely convince you to invest in canned tuna fish and ammunition, I would consider doing something fun while you are young. Travel to Europe or Africa if that floats your boat. Write a rock opera or publish your first novel. Take someone pretty out dancing.
Currently consuming: Free Domain Radio; Virtue of Selfishness; Human action;
life is short
but the amount of time left until the Economic meltdown is much shorter. It is unwise to Spend your Savings, in fact you are a loser if you are saving government fiat paper in general. The rich and intelligent are doing what is called Hedge their money - when something goes down, something else is going up. why spend it All when you can get more from it later.
http://youtu.be/1AhYev-0ERo
Ron Paul IS The Golden Standard
What is Capitalism?
http://youtu.be/yNF09pUPypw
+1 For physical gold/silver.
+1 For physical gold/silver. I've been buying silver myself, but if I had more cash I would probably pick up some gold as well.
Correct. It's stupid to put
Correct. It's stupid to put your money in a bank. You can find more lose change on the bus than you'd ever earn in a savings account. Plus the bank and the gov't can take your money anytime they want. It's vulnerable.
The stock market is as volatile as a woman on her period so you have to convert the worthless cash into something of value like gold, silver, real estate (land) not a home.