| What to do with $50,000 ??? |
|
|
|
|
|
Rockrz
Contributing Member
Cash: $ 8.45
Posts: 41
Joined: 04 Dec 2008
Location: I'm right here
|
| What to do with $50,000 ??? |
 |
|
Say a fella has $50,000 to invest somewhere, and he obviously wants to make this money grow as much as possible....
What's a good investment to get in to that has a reasonable expectation of making some money?
Someone said Freddie Mac and Fannie Mae would be a good investment since they are both so cheap right now and they are both being held up by the US taxpayer.
Is this worth doing, or is there something better to look at?
|
Thu Dec 04, 2008 2:31 am |
|
|
Rockrz
Contributing Member
Cash: $ 8.45
Posts: 41
Joined: 04 Dec 2008
Location: I'm right here
|
I'm 43+ and I don't really "need" the money.
I figure investing is like gambling...only use what you can afford to lose.
As a business man that runs a sucessful business, I'm not interested in losing the money as I want to make it grow.
So, if I don't have a good gut feeling after doing my due dligence...I won't do the deal and leave the funds in my current FDIC insured money market account where I at least know it's not going anywhere.
Why, do you have a suggestion?
I'm simply trying to see if anyone has some good ideas
for investments that have reasonable expectation to
make money.
Not looking for high risk. If I were, I'd simply go to Vegas!
|
|
Thu Dec 04, 2008 5:05 am |
|
|
Rockrz
Contributing Member
Cash: $ 8.45
Posts: 41
Joined: 04 Dec 2008
Location: I'm right here
|
No, I'd rather study and learn how to invest for myself because advisors are good at losing people's money and then they expect to be paid for a job not well done...
I'm a business guy who runs a profitable business, so if others (including "advisors") can learn different forms of investing, I can too.
I don't believe this is something only a special gifted few can accomplish.
I'm in the process of learning how all this works, and I'll be up to speed shortly.
I have just as much chance at success as any advisor does.
You have to admit...this is gambling.
This recent economic downturn has stumped most advisors and caught them by suprise. The proof is most of their clients have lost their back side.
|
|
Thu Dec 04, 2008 3:40 pm |
|
|
Rockrz
Contributing Member
Cash: $ 8.45
Posts: 41
Joined: 04 Dec 2008
Location: I'm right here
|
Maybe I shouldn't say "gambling", but over the years I've seen alot of people lose money playing with stocks & investing.
And I probably should say "gut check" either, but to me that means if I'm not confident about something and have learned a good deal about it, I won't do it.
I know I have alot to learn, so I will start paying closer attention to what's going on so I can get up to speed on this investing business.
|
|
Fri Dec 05, 2008 3:08 am |
|
|
oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
|
|
|
|
quote:
wants to make this money grow as much as possible....
I figure investing is like gambling...only use what you can afford to lose.
leave the funds in my current FDIC insured money market account where I at least know it's not going anywhere.
I have just as much chance at success as any advisor does.
You have to admit...this is gambling.
This recent economic downturn has stumped most advisors and caught them by suprise. The proof is most of their clients have lost their back side.
Rockrz - with your concept of investing, along with your aversion to risk - I would advise you to avoid the market, stay with the FDIC - you are NOT going to like your results.
Risk and return are directly proportional, there is no free lunch, no short cuts - if you want a higher return you must look for higher risk. And higher risk means added year-over-year variation/volatility - investors take that into account - their investments are long term, decades, not one year.
You would need to understand risk assessment and learn to define your own goals - you have to define it as "I want to triple in 10 yrs" or "I want a 25X in 30 yrs", and then calculate the risk level required to do that - instaed of just saying that I wish to make big money? For example, you think 'advisors were caught by surpricse and lost their backsides'. But maybe they have made 12%/yr for 30 yrs WITH 2008 averaged in. And naybe they know that the the ones who 'added to' and ''held forever' rather than tried to trade the cycles were the ones who earned 12%/yr - while the traders got about the same return as a CD holder, ie 3%?
|
|
Sun Dec 07, 2008 4:28 pm |
|
|
Rockrz
Contributing Member
Cash: $ 8.45
Posts: 41
Joined: 04 Dec 2008
Location: I'm right here
|
|
|
|
Well, I'm not interested in paying someone who is supposed to be a "professional advisor" that didn't even see this coming.
The signs of market collapse were all there, and very few of these so-called advisors saw it. Plus, most advise based on what they can make in commissions, not what's best for their clients. (kinda like doctors run their practice to make money FIRST, and if anybody gets well along the way then that's secondary)
So, if there is money to be lost...I can lose money myself without having to pay somebody to lose my money for me. Whatever I put into the market, I can afford to lose...otherwise, I wouldn't be putting it in the market in the first place.
I still like GM, which has the best hybrid technology right now.
They are so big that somebody is going to come up with some loans to help them if the government doesn't.
So, basically if I lost the $50,000 then I'll have that to write off my taxes which means I'll still get that value back through the write off.
I'm willing to buy very low and sit on it for 5 or 10 years.
GM will rebound here in a few years, just like the market will.
I already make 6 figures annually through my business so I can afford to lose this money if it comes to that. Not worried in the least.
|
|
Sun Dec 07, 2008 4:51 pm |
|
|
oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
|
|
|
|
I'm not sure where you're going with this - your first post was about Freddie Mac and Fannie Mae and where to gamble with $50k?
Now we are at 'hating professional advisors' and "anyone could see this coming"??
And now we are looking a GM?
OK, as for 'anyone could see this coming" - investers don't screw with 'timing the market', that is why they become wealthy - the 'timers' are forever jumping in and out whenever they get spooked, and they seldom make a returm higher than a CD. And you don't need an advisor. investing isn't that complex.
And GM? Most industries that have been hobbled by Overzealous Unions are failing or have failed. Steel, Airline workers, and now Autos. Unions have interferred with and dominated business decisions (you can't idle an obsolete plant, you can't lay off workers in a markety downturn, etc) in addition to winning obscene benefits. The only hope for the Auto's is to rewrite the Union contracts - if that doesn't happen, global auto manufacterers will dominate the world market including North America within 10 yrs.
And Obama is in a tough spot to fight unions, they were a big help toward electing him, both with money and votes. So you can't expect a lot of help from him - so Auto's may not get Union relief for 8 years?
As for hybrid tech, take a look at Teslin - full electric, no gasoline engine, no pollution. Sports car performance, 250 miles on a charge. When batt research gets that 250 miles up to 800 miles, you could drive for a full day on a trip w/o a plug-in. Or drive around home for about 3 weeks?
|
|
Sun Dec 07, 2008 10:47 pm |
|
|
Rockrz
Contributing Member
Cash: $ 8.45
Posts: 41
Joined: 04 Dec 2008
Location: I'm right here
|
|
|
|
quote:
Originally posted by oldguy
The only hope for the Auto's is to rewrite the Union contracts - if that doesn't happen, global auto manufacterers will dominate the world market including North America within 10 yrs.
I agree...and GM is probably going to get bought out or otherwise come under the control of foreign money, which will push GM's manufacturing outside of the US.
GM already does most of their manufacturing outside of the US, and a large part of their sales is outside the US so it won't take much for them to become a globally dominated company.
And, yes most of the financial advisors failed their clients by not seeing this economic downturn coming so they could tell their customers to take their money out of the market before the value of their investments bottomed out causing them to lose money.
All I'm saying is...if I'm going to lose money, I can do that on my own without having to pay someone to lose it for me...and I won't actually be losing the 50K since I can write that off of my taxes.
So, since the market is so low right now...it's time to get in!
|
|
Sun Dec 07, 2008 11:08 pm |
|
|
oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
|
quote:
and I won't actually be losing the 50K since I can write that off of my taxes.
Ha. Yeah, but that isn't much help - your write off a $25,000 loss and you get a $5000 break on taxes? 
|
|
Sun Dec 07, 2008 11:29 pm |
|
|
Rockrz
Contributing Member
Cash: $ 8.45
Posts: 41
Joined: 04 Dec 2008
Location: I'm right here
|
No, I can write off the entire 50K over several years...which I'm not going to have to do anyway cause GM is going to rebound so this ends up being a mute point
|
|
Mon Dec 08, 2008 12:22 am |
|
|
Rockrz
Contributing Member
Cash: $ 8.45
Posts: 41
Joined: 04 Dec 2008
Location: I'm right here
|
I'm not sweating it either way since GM is going to rebound nicely here in a few years...
|
|
Mon Dec 08, 2008 5:04 am |
|
|
Rockrz
Contributing Member
Cash: $ 8.45
Posts: 41
Joined: 04 Dec 2008
Location: I'm right here
|
There's no reason to dismantle GM.
All they need to do is aquire Chrysler and get rid of the Union contracts so they can operate more efficient
|
|
Mon Dec 08, 2008 2:21 pm |
|
|
Rockrz
Contributing Member
Cash: $ 8.45
Posts: 41
Joined: 04 Dec 2008
Location: I'm right here
|
That's OK. Sounds like a good plan to help them get back to growing the business
|
|
Mon Dec 08, 2008 2:45 pm |
|
|
jimcal
First Time Poster
Cash: $ 0.20
Posts: 1
Joined: 08 Dec 2008
Location: Virginia Beach, Va.
|
Hi,
I would buy Exxon stock and sell some January 2011 110 calls. That would give about 40 point profit potential, some downside protection and a little dividend income.
Thanks,
Jim
|
|
Mon Dec 08, 2008 9:29 pm |
|
|
Rockrz
Contributing Member
Cash: $ 8.45
Posts: 41
Joined: 04 Dec 2008
Location: I'm right here
|
quote:
Originally posted by jimcal
....and sell some January 2011 110 calls
So, what are "January 2011 110 calls" 
|
|
Tue Dec 09, 2008 2:14 am |
|
|
|
