Financial Advice - Nubblies.net Forums

Orgazmo · 07-30-2009, 03:16 PM

I know next to dick when it comes to finances.

I mean, I know how to pay all of my bill on time, how to advise someone on not taking on debt at 29% (ahem, bt), and how to not generally be a complete dumbass with money.

That's fine.

What I don't know what to do is how to be efficient with money that I don't necessarily need right now, most notably cash that's sitting in my bank collecting .0x% interest.

So...what kind of options are there? And what kind of pros/cons do they have? I know that each person's situation probably warrents a different action...and that's fine...but I wouldn't mind a little education on the matter. I just feel like I could be doing something better.

Thanks for any advice.

THEINCREDIBLEdork · 07-30-2009, 03:47 PM

Well you certainly came to the right place, an internet message board is a great place to help you decide where to put your life savings.

Orgazmo · 07-30-2009, 05:08 PM

Firstly, I said I'm looking for a little education on the matter. Obv I'd take any advice you give and wipe my ass with it. There are certainly Nubblites with a good head on their shoulders, though. Why not take some of that wisdom?

Secondly, I'm not looking to take my savings and dump it into the first reasonably-written reply. As stated, I'd simply like a little insight into options.

Thirdly, go fuck yourself. Because I hate you.

THEINCREDIBLEdork · 07-30-2009, 05:10 PM

yea right

Orgazmo · 07-30-2009, 05:11 PM

I hope you have a bad night.

THEINCREDIBLEdork · 07-30-2009, 05:15 PM

Orgazmo · 07-30-2009, 05:45 PM

Ugly Bastard · 07-30-2009, 05:46 PM

I'm not touching U.S. stocks except for maybe large-cap consumer staples (like McDonalds). There just aren't many great spots for your money right now. Everyone thinks the economy will just magically recover soon, but I think it's primed for another dip back down to Dow ~7k while unemployment creeps beyond 10%. This government is awful and things can still get a lot worse. The Japanese have been in a recession for 20 years. There's no guarantee that we'll get out of this.

Leaving money in cash is bad in the event of inflation, which is a very likely outcome over the next decade when our debt is so high and tax revenue not as large as Obama thinks it will be (3-4% economic growth in the upcoming years, my ass) that we're left with little choice but to just print our way out of debt. In that scenario, precious metals and commodities will do very well.

Foreign currency could be an interesting investment as well. Basically if you're putting money away long-term right now, I'd recommend stuff like Euros, silver, and ETFs exposed to commodity prices.

THEINCREDIBLEdork · 07-30-2009, 05:52 PM

What about CDs and Bank Bonds?

Ugly Bastard · 07-30-2009, 05:59 PM

What are CD rates right now? Like 2%? I mean... it's better than just leaving your money in a checking account I suppose, but I'd bet on gold to outperform that.

f3lix · 07-30-2009, 07:53 PM

The longer you don't need to touch the money, the better. If you can put it away for 10 years, there are some nice 4-5% annual bonds. This will likely just lose to inflation though, thus you'd humorously be better off spending it now.

There are bonds with inflation built into them. I'm discussing those with my financial advisor right now, because as UB stated, I think we're in for a mega-inflation decade and I want my money to be just as valuable ten years from now as it is right now.

I'm also cashing in all my savings bonds (matured and unmatured) and putting them in gold based companies.

One last thing. While I agree the stock market sucks right now (it was good 2-3 months ago for a nice hit and run) there are some big dividend stocks in the health care industry that are paying 7-8% dividends per year, paid quarterly. This is a sexy option for a REIT stock that is generally* pretty stable.

*Nothing is really stable anymore, but these are moreso than others. Health Care Properties is one that I'm tits deep in right now.

http://finance.yahoo.com/q?s=hcp

ninjaface · 07-30-2009, 08:02 PM

Fuck. I don't know what any of this shit means. I feel like I need to take a week off work to learn about all this stuff so I'm not so financially incompetent.

DJ FC · 07-31-2009, 02:15 AM

I wont touch stocks with a 34 kilometer pole. There's just no point anymore.

As for me?

I've been dabbling in P2P lending. I wrote a thread about it somewhere...

Personal Loans & Investing with Peer Lending - Lending Club and Personal Loans and Online Investing | Peer-to-Peer Lending - Prosper: Loan Investing Marketplace are the two big ones. You take extra cash and lend it to people at 10%+ You help them do things like refinance credit card debt, pay for weddings, car purchases, moving expenses, medical bills, etc.

So far I'm seeing about a 2% default rate on my loans, so the results are very encouraging. I hope to net around 9% per year.

Edit: Also, let me know if anyone is interested as there are incentives for referring new lenders. You may get a free $25/50 and I'll probably get $25.

Ugly Bastard · 07-31-2009, 03:07 AM

Quote:

Originally Posted by George W. Bush

I wont touch stocks with a 34 kilometer pole. There's just no point anymore.

<3s company

07-30-2009, 03:16 PM	#1 (permalink)
Orgazmo COME ON YOU YANKS Join Date: Feb 2002 Location: Indiana Posts: 15,732 Internets: 311447	Financial Advice I know next to dick when it comes to finances. I mean, I know how to pay all of my bill on time, how to advise someone on not taking on debt at 29% (ahem, bt), and how to not generally be a complete dumbass with money. That's fine. What I don't know what to do is how to be efficient with money that I don't necessarily need right now, most notably cash that's sitting in my bank collecting .0x% interest. So...what kind of options are there? And what kind of pros/cons do they have? I know that each person's situation probably warrents a different action...and that's fine...but I wouldn't mind a little education on the matter. I just feel like I could be doing something better. Thanks for any advice.

07-30-2009, 03:47 PM	#2 (permalink)
THEINCREDIBLEdork Emperor Meow Join Date: Sep 2004 Posts: 9,352 Internets: 290966	Well you certainly came to the right place, an internet message board is a great place to help you decide where to put your life savings.
	#YOLO

07-30-2009, 05:10 PM	#4 (permalink)
THEINCREDIBLEdork Emperor Meow Join Date: Sep 2004 Posts: 9,352 Internets: 290966	yea right
	#YOLO

07-30-2009, 05:15 PM	#6 (permalink)
THEINCREDIBLEdork Emperor Meow Join Date: Sep 2004 Posts: 9,352 Internets: 290966	NO U
	#YOLO

07-30-2009, 05:45 PM	#7 (permalink)
Orgazmo COME ON YOU YANKS Join Date: Feb 2002 Location: Indiana Posts: 15,732 Internets: 311447	No.

07-30-2009, 05:08 PM	#3 (permalink)
Orgazmo COME ON YOU YANKS Join Date: Feb 2002 Location: Indiana Posts: 15,732 Internets: 311447	Firstly, I said I'm looking for a little education on the matter. Obv I'd take any advice you give and wipe my ass with it. There are certainly Nubblites with a good head on their shoulders, though. Why not take some of that wisdom? Secondly, I'm not looking to take my savings and dump it into the first reasonably-written reply. As stated, I'd simply like a little insight into options. Thirdly, go fuck yourself. Because I hate you.

07-30-2009, 05:11 PM	#5 (permalink)
Orgazmo COME ON YOU YANKS Join Date: Feb 2002 Location: Indiana Posts: 15,732 Internets: 311447	I hope you have a bad night.

07-30-2009, 05:46 PM	#8 (permalink)
Ugly Bastard Senior Member Join Date: Feb 2002 Location: U.S.A. Posts: 13,643 Internets: 247330	I'm not touching U.S. stocks except for maybe large-cap consumer staples (like McDonalds). There just aren't many great spots for your money right now. Everyone thinks the economy will just magically recover soon, but I think it's primed for another dip back down to Dow ~7k while unemployment creeps beyond 10%. This government is awful and things can still get a lot worse. The Japanese have been in a recession for 20 years. There's no guarantee that we'll get out of this. Leaving money in cash is bad in the event of inflation, which is a very likely outcome over the next decade when our debt is so high and tax revenue not as large as Obama thinks it will be (3-4% economic growth in the upcoming years, my ass) that we're left with little choice but to just print our way out of debt. In that scenario, precious metals and commodities will do very well. Foreign currency could be an interesting investment as well. Basically if you're putting money away long-term right now, I'd recommend stuff like Euros, silver, and ETFs exposed to commodity prices.

07-30-2009, 05:52 PM	#9 (permalink)
THEINCREDIBLEdork Emperor Meow Join Date: Sep 2004 Posts: 9,352 Internets: 290966	What about CDs and Bank Bonds?
	#YOLO

07-30-2009, 05:59 PM	#10 (permalink)
Ugly Bastard Senior Member Join Date: Feb 2002 Location: U.S.A. Posts: 13,643 Internets: 247330	What are CD rates right now? Like 2%? I mean... it's better than just leaving your money in a checking account I suppose, but I'd bet on gold to outperform that.

07-30-2009, 07:53 PM	#11 (permalink)
f3lix Gangnam Style Join Date: Oct 2003 Location: DH's Massage Parlor Posts: 6,383 Internets: 213510	The longer you don't need to touch the money, the better. If you can put it away for 10 years, there are some nice 4-5% annual bonds. This will likely just lose to inflation though, thus you'd humorously be better off spending it now. There are bonds with inflation built into them. I'm discussing those with my financial advisor right now, because as UB stated, I think we're in for a mega-inflation decade and I want my money to be just as valuable ten years from now as it is right now. I'm also cashing in all my savings bonds (matured and unmatured) and putting them in gold based companies. One last thing. While I agree the stock market sucks right now (it was good 2-3 months ago for a nice hit and run) there are some big dividend stocks in the health care industry that are paying 7-8% dividends per year, paid quarterly. This is a sexy option for a REIT stock that is generally* pretty stable. *Nothing is really stable anymore, but these are moreso than others. Health Care Properties is one that I'm tits deep in right now. http://finance.yahoo.com/q?s=hcp
	Last edited by f3lix; 07-30-2009 at 07:54 PM.

07-30-2009, 08:02 PM	#12 (permalink)
ninjaface Level 20 Holothetan Join Date: Dec 2002 Location: Space Posts: 5,245 Internets: 210144	Fuck. I don't know what any of this shit means. I feel like I need to take a week off work to learn about all this stuff so I'm not so financially incompetent.

07-31-2009, 02:15 AM	#13 (permalink)
DJ FC MURICAN Join Date: Jul 2004 Location: Virginia Posts: 5,136 Internets: 253094	I wont touch stocks with a 34 kilometer pole. There's just no point anymore. As for me? I've been dabbling in P2P lending. I wrote a thread about it somewhere... Personal Loans & Investing with Peer Lending - Lending Club and Personal Loans and Online Investing \| Peer-to-Peer Lending - Prosper: Loan Investing Marketplace are the two big ones. You take extra cash and lend it to people at 10%+ You help them do things like refinance credit card debt, pay for weddings, car purchases, moving expenses, medical bills, etc. So far I'm seeing about a 2% default rate on my loans, so the results are very encouraging. I hope to net around 9% per year. Edit: Also, let me know if anyone is interested as there are incentives for referring new lenders. You may get a free $25/50 and I'll probably get $25.
	The basis of our governments being the opinion of the people, the very first object should be to keep that right; and were it left to me to decide whether we should have a government without newspapers, or newspapers without a government, I should not hesitate a moment to prefer the latter. But I should mean that every man should receive those papers and be capable of reading them. Last edited by DJ FC; 07-31-2009 at 02:24 AM.

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