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Posted: 4/25/2016 5:29:53 PM EDT
Nothing much at all, just some money that my Grandfather has set aside for all of us for when he passes, but is allowing us to run it how we want.



Early in the year, I pulled half of it out and put it into a cash equivalent account.




I'm fully planning on pulling most of it right before the elections this fall, presidential cycle and all that (plus a certain D wants to get another D into office, so it has to look like all is well), but I have been torn as to what to do for the rest of this year prior to November.




Put it back in or just sit back and watch what happens (with the half already out)?




My Grandfather's adviser has most of his pulled out of the market, and they are "watching to see what happens".




I've been watching China and commodities, seems like oil has bottomed out (for now), gold/silver relatively flat.




I know that hay stupid cheap up here right now, less than $1/bale. Don't know what that means.




I understand the demographics issue as well, but I don't know if that is a long term issue or if it can lead to a crash.




Any advice on what to do with my meager money is appreciated!
Link Posted: 4/25/2016 8:18:12 PM EDT
[#1]
What is your single goal? What is your risk tolerance? What is your timeline? What is your amount?
Link Posted: 4/25/2016 9:47:46 PM EDT
[#2]

Discussion ForumsJump to Quoted PostQuote History
Quoted:


What is your single goal? Make money, but more importantly not loose it. What is your risk tolerance? I would say minimal. I like breaking up the investment into a couple sections where one can be more risky, but higher gain potential, while the other is conservatively invested. What is your timeline? I'm only 30. What is your amount? Don't know exactly, less than 20k I can play with at the moment.

View Quote




 
Link Posted: 4/25/2016 10:03:36 PM EDT
[#3]
It seems to me that you are paying too much attention to random economic indicators for a person that young.

You dont need the money right away? Then hay, oil, or presidential candidates dont mean much. Decide where you want to go long term and start that direction.

Time is what you have and time is what it takes to make money. Rentals? Stocks? Mutual funds? Pick a few ideas and keep it spread out.

For most people, all of these economic indicators mean very little. Find an investment and model that works for you and implement it. Dont get too hung up on whats in the news.

I like rentals and mutual funds. Im still buying and wont stop. Ive been through a lot of downturns in my young life. Especially at my day job (milk production). We are getting hammered right now and probably will until the end of the election. Everyone is losing money. Thats just the cycle of business.

You cant time the market. Get the money in and let it ride.

Write down your goals at 40, 50, 60, 70, 80. Work backward from there with realistic numbers and determine what it takes to get there. I have net worth and budget projections years in advance. I cant get where im going if i dont have a plan.
Link Posted: 4/26/2016 2:53:14 AM EDT
[#4]
Time in the market beats timing the market.

I'm a big fan of dividend growth stocks. For every 1000 dollars invested today in a company that pays 3% (30 dollars a year) dividend will in 20 years grow to 254$ a year (allowing for 5.7% dividend growth rate).  At that rate, after 28 years, you will get back almost 100% every year of your initial investment. But this is a very boring investment stratedgy and holding the stocks through the downtimes really tests a persons nerves.

http://www.dividend-calculator.com/quarterly.php
Link Posted: 4/26/2016 9:36:05 AM EDT
[#5]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Time in the market beats timing the market.
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Read the above quoted statement several times.

If your timeline is long, which it seems your's is, then economic events today (barring a complete collapse) mean very little.
Over all the market has always gone up.  This is supported by inflation making it a safe bet.  Sometimes the market gets ahead of inflation, but it always corrects eventually.

All of the above supports not even bothering trying to beat the market when you can BE THE MARKET.  The "be the market" you just buy one mutual fund that covers the entire market, such as Vanguard's Total Stock Market.  On top of that you get a mutual fund with industry leading cost efficiency which means on average you will out perform actively traded mutual funds.  Mutual funds give instant diversification beyond what you can get with your level of investment whic hgreatly reduces risk.
Link Posted: 4/26/2016 10:08:40 AM EDT
[#6]
I agree with the others, get it invested and leave it there. I personnally like dividend paying stocks or funds.

My take on hay prices, everyone is getting rid of lasts years crop to make room for this years which will start in a few weeks.
Link Posted: 4/26/2016 7:36:56 PM EDT
[#7]
The market is up and down, it's a futile effort to time it. Even the investment banks don't get it right. My parent's financial advisor didn't invest much of their money in the stock market after the 2008 crash. On the other hand I doubled my 401K contributions during the crash (buy low ) and later was making close to 30% 1 year returns during the recovery. I'm still at a 9% return over the last 5 years.

The key is to just invest it in different mutual funds or ETFs in different market segments and just make regular contributions. Just forget about it until it's time to use the money for something else.
Link Posted: 4/26/2016 11:53:34 PM EDT
[#8]
Quoted:
Any advice on what to do with my meager money is appreciated!
View Quote


first, buy a book:
http://www.amazon.com/About-Asset-Allocation-Second-Edition/dp/0071700781/ref=dp_ob_title_bk

ar-jedi

Link Posted: 4/28/2016 10:49:13 PM EDT
[#9]
If your timeline is long your risk tolerance is higher than you think. You have time on your side. Time is money.

Get it in some diversified funds and leave it alone. Unless you are really going to trade the money (and there is nothing wrong with that) day to day news and the other factors you mention are more or less irrelevant.

Learn to not fear risk; embrace it intelligently, especially with time on your side. You can tolerate risk and with risk comes higher rewards. Take your access to those rewards now while time is plentiful.
Link Posted: 4/28/2016 10:53:32 PM EDT
[#10]
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Any advice on what to do with my meager money is appreciated!


first, buy a book:
http://www.amazon.com/About-Asset-Allocation-Second-Edition/dp/0071700781/ref=dp_ob_title_bk

ar-jedi



I also endorse this book.

Another on my list if you are going to trade is "The Intelligent Investor"
Link Posted: 5/3/2016 11:06:54 AM EDT
[#11]
Not sure what book was quoted earlier but:





Link Posted: 5/3/2016 12:50:22 PM EDT
[#12]
Get your $ back in the market.  Your situation is not the same as your grandparent or his advisor's, time is your friend.  The market has weathered two world wars, recessions, depressions and a civil war.  Do you really think Hillary getting elected is going to mean shit in the long run?  Guess what, her husband made us all a lot of money.  Learn to separate investing and politics.
Link Posted: 5/3/2016 3:23:17 PM EDT
[#13]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Get your $ back in the market.  Your situation is not the same as your grandparent or his advisor's, time is your friend.  The market has weathered two world wars, recessions, depressions and a civil war.  Do you really think Hillary getting elected is going to mean shit in the long run?  Guess what, her husband made us all a lot of money.  Learn to separate investing and politics.
View Quote


that's crazy talk.  don't you know the market is going to crash on monday?
http://www.ar15.com/forums/t_1_5/1762727_Get_ready_for_Market_Collapse_2_0_on_Monday.html&page=1

ar-jedi
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