Posted on 02/02/2022 6:45:33 PM PST by Mr. K
I have a friend who has $150,000 in a CHECKING account.
He basically has no bills, house and car paid for, makes good money so bank account is growing significantly each month, and current age is 64
In fact, I need to follow my own advice here.
Send to moovova@venmo.com immediately.
my bank account.....
Plenty of idle cargo ships to plunder for supplies.
Have him look into the Online Trading Academy
I lock properties using only a $1,000, properties that are worth millions on a 6 month options. Then I flip those contracts before they are due to big money developers.
I am talking about real estate. $150K your friend can lock up $10 million worth of properties in one year. For me it will be $50 million. Even if he closes 10% of the million dollar worth of properties he will still make money. A million in exchange for $15K of his money or even $150K to lock up that value is worth it.
Even you lock properties that worth 100K for only $500 for a 6 month option, you will still make money by flipping that property if you think it will worth 120K in 6 months.
Just an example of how your friend can invest on himself without putting it in the stock market.
And Yes I was a Stockbroker for 21 years with a series 7 & 63.
Firstly, your friend needs to sequester an emergency fund (3/6/12 months, whatever); ensure adequate supplies of food and other needs (pew), and of course remove all money-sucking debt if that hasn’t already happened.
For what’s left: Ditto replies for diversification. Picking individual winners ... not IMO a great idea. On the one hand you’ve got massive data science crunching machines analyzing trends, and on the other government/corporate collusion (what *is* that name for a government that rules autocratically by letting cooperative corporations do its bidding?) means that as the snarky comment said, unless you follow Pelosi’s trades good luck.
Nor can I guess whether any given crypto will rocket up or down, and again one word from a government official sends them off and running.
I almost got into commercial real estate for income — glad I didn’t, this was just before COVIDmania and businesses shuttered or stopped paying.
So my diverse recommendation (and not necessarily in order; do the footwork to see what risk/return is best for you, your goals, your age and self/family situation):
- Some in one of the S&P 500 low-load index funds
- Some in an index fund of those dividend ‘aristocrats’ that keep increasing their dividend, reinvested
- Some maybe in bonds — given your ‘friend’ is still working the municipal bonds are kinda cool as they’re federal taxless and, if in your state, state taxless too (low return, but think of them as higher by *1+(your tax rate) due to that feature
- Almost certainly some in real estate, maybe personal (home/vacation house). Prices have gone wacky so don’t expect more leaps (maybe?) but assuming you can pay the various taxes there’s that intangible of getting to enjoy the place. Lastly ‘out there’ a bit reduces the bootprint of the deep state somewhat, if chosen wisely (which, remarkably in these times, is where everyone’s moving — and it remains to be seen if the ‘blue refugees’ will vote for the hell they fled)
Lastly one might consider, if one has a nest egg and a job with company match, maxxing that out rather than adding to a static bank account.
https://www.google.com/search?client=firefox-b-1-d&q=vanguard+wellington+etf+equivalent
from link:
“Is there an ETF for Vanguard Wellington?
Vanguard Wellington Fund - Vanguard U.S. Quality Factor ETF is an exchange traded fund launched and managed by The Vanguard Group, Inc. The fund invests in public equity markets of the United States. It invests in stocks of companies operating across diversified sectors.
“—————————————————————————
Vanguard’s Wellington is nice for people who don’t want to make a lot - or lose a lot. Also Vanguard has an ‘inflation protected securities’ fund... Low expense ratios for both funds, Vanguard has people and programs to help a person diversify their money.
Bump for FR investment advice.
I like the life stage structured mutual fund families that are simply structured by age. 20-30yo, 30-40yo and so on up to retirement age. As a person gets older, the family of funds progressively invest more conservatively as preservation of capital increasingly dominates over rate of return.
I've liked the quality of professionalism by Fidelity for this. Also, I am very good at some things but am out of my competency for active portfolio management. These mutual funds have hundreds of millions in assets with competent management and resources I could never duplicate. Other investment companies other than Fidelity have similar product families.
Start an automatic investment plan where he transfers $3k a month into a low cost S&P 500 index fund. Take advantage of dollar cost averaging that way. Vanguard VFIAX or Fidelity FXAIX. Maybe stop after 36 months if he doesn’t want to end up all in.
Lots of downside potential in Commercial Real Estate right now as leases expire and work from home remains strong, coupled with a continued contraction in retail. Depending on location, residential is at the bubble stage.
Five years ago I would have agreed, and probably will in five more years. But right now, be careful.
What to do?
Simple,,,
Buy $150,000 worth of weapons, ammo, and storable nourishment...
During the late 90’s that’s what I did, although the total nut was only about $7,000...
Of course, $150,000 today could not purchase as much as I got between 95-99...
Cases of 1000 (7.64, .223) @$58.00 per, 9mm @ about $0.25 per round, BMG @$65.00 per round, 30.06 @ fraction of today’s cost, 12GA (all variations) dirt cheap, and .22LR almost free...
In addition, AR-50 for $2400, 4-each rifle in .223 & 7.64, 2-each rifle in all other calibers dirt cheap...
For many years, now, 95% of everything has been in the hands of my children, grandchildren and great grandchildren...
They will never run out of weapons, ammo, Confederate banners, and MAGA hats...
bill gates is buying up significant farm land in many countries
.......................................
Reports are that the Chinese are now buying up thousands of acres of farm land in this country.
Real estate. Potentially Absentee run businesses.
Mainly real estate.
You buy ETFs just like a stock.
If you have a brokerage account with any broker, you should be able to buy SPHD
Honest?
Income comes in many forms. Not all of it is monetary.
If your friend has that kind of spare change, he or she should enjoy it. Take a trip to a foreign land for a month. Give some to a person who is worthy, and enjoy watching them grow. Buy some outrageous toy or two and enjoy that.
What is the purpose of money, beyond security?
If you don’t need the money over the next 5-10 years put half of it in QQQ (the tech sector) and the other half in SPY (the S&P 500). It gives you good diversification and growth prospect.
But hold back $50K in “cash” (CDs, short term treasuries...) for emergencies and for sleeping at night.
As an aside, those dollars not earning anything are actually doing very well compared to what the market has been doing lately. So that cash sitting in the bank is actually appreciating (quite significantly) vis-a-vis the market. You just have to decide the point at which the market bottoms.
But that ain’t easy, so dollar cost averaging now is a smart way to go.
Here’s a tip from Tracy Lawrence.
“Some was spent on gambling, a lot was spent on women
A little on some good Cabernet
Three or four divorces, at least that many horses
Who never left the starting gate
Diamond rings and furs, swampland in new jersey
That week I spent a year in L.A
I hate to admit it
But I threw the rest away”
BKMRK for later investment ideas.
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