what to do with money saved up???

im 28 and I just recently got married. My mom passed away a year ago, so me and my wife live with my dad for company support. i have a good sum of money saved up and we have been looking for a good house opportunity for the past year probably. Every time we find a good deal, someone grabs it with all out cash offer... so we keep waiting and keep looking. As we keep waiting and looking the dollar is falling and economy is getting worse... even tho our news tell us otherwise.

Im not sure what to do with my money currently, i would love to invest some into a house and have some on the side in case i loose my job and still have enough left for a year or so of payments.

i was thinking of maybe converting my money into euros? dollar is falling, wich makes euro more expensive in dollar amount. i was thinking about gold as well... but that seems like a bubble ready to burst.

are there any other options? no matter where i think to invest it seems like it will hit the fan no matter what... nothing seems stable now. what are you guys doing with your money and feel like its 100% safe for it to be there and it will keep its value?

reply to post by NickT916


Dont fall for all this nonsense.

Converting your money to Euro's is a dumb move, not being mean, but it is.

If you have a real sum of money talk to a financial advisor and not a conspiracy message board.

share the wealth with the poorer member of ats
like me

Send it here! I need a small computer built by Nvidia to do some 3d animation... I only need $12 k, see and- *sees dirty looks* Kidding!

Gold, Silver, precious metals. Get coins, not bullion. Don't blab about what you have for obvious reasons.

reply to post by NickT916


Buy youu some land somewhere..... Then put you a double wide one it.... Eventually build your dream house.

reply to post by NickT916


Sorry Nick, economics is not my speciality.

I think you better can either invest it or spend it on something / someone or a group of ppl that will help ya save your Soul

Euro's wont be worth much in a couple of years

reply to post by NickT916


This sounds like a question for Susan Orman CNBC not ATS.

I'll help you with my thoughts.
First you need a $10,000 emergency fund in cash.
For an investment i would open a Scottrade Account.
$7 a trade
Verizon (VZ) good quarterly dividend 5%.
JNJ is also safe.
Need a check? Make a call and have a check mailed to you.
-------------------------------------------
Owning your own home is the best investment.
Pick a good one in a great location.
Think 10 years ahead not 10 minutes ahead.
-------------------------------------------
I like 1 ounce American Eagle Gold and Platinum Coins.
mint.gov
-------------------------------------------
Pay off all of your credit cards.
Surround yourself with good assets and zero liabilities.

reply to post by GreenBicMan

Putting some percentage of cash in another currency...EUROs for example..is a smart move. There are other currencies than the Euro which would be better but if one wants to stay in cash...the dollar is not the place to have your whole nest egg.

Remember the hot shot wall street stock trader that put himself up against a class of grade school kids.. and a chimpanzee?? Well the Chimp won! I have the same attitude about most "financial advisors". Want to find liars, cheats, and thieves?? Banks, Wall Street, and Congress.. would be the first place to start!

Don't switch your money to euro's. Currency trading is very risky and even the professionals lose money as often as they make it. I also wouldn't invest in the stock market right now as this feels like a suckers rally to me. Gold may go higher, but keep in mind those who bought at the last top in the 1980's still haven't made their money back, and over the last 20 years an interest bearing checking account would have beat the return on gold.

My advice? Keep looking for a house there are many bargains out there, but unless you know a lot about construction don't buy out of foreclosure as those are "as is" sales. Alternatively You can look into TIPS (treasury inflation protection securities) or a simple Money Market account. Municipal or corporate Bonds might also be a good way to go. Bottom line find something safe, wait and see.

reply to post by expat2368


You are referring to random walk.

I promise you professionals in the marketplace did not divulge all their proprietary secrets in trade. If a pro has an edge, guess the chances of sharing?

Other than that, who says the Euro should be a stronger play than the dollar long term? Have you not heard of Greece lately, or the downward momentum put in place on Euro banks by the potential Dubai problem?

Why go into Euro's when the dollar is so weak? Why not when you can get a better deal?

Like I said, the best thing to do would be to log off the internet and go talk to a real professional.

Have a good weekend

reply to post by NickT916


You are married so I suppose that hookers and blow is not an option.

I'm not an economist or financial advisor, but if it were me, I'd just sit on it. That pile will only grow larger.

Like the above posters responded...pay off
all credit cards. Work toward becoming debt
free. Pay no interest if possible on all purchases
made. Then go to a Strip Club and have a great
time! Note: Taking the wife with you would be
optional!

reply to post by NickT916

i was thinking of maybe converting my money into euros? dollar is falling, wich makes euro more expensive in dollar amount. i was thinking about gold as well... but that seems like a bubble ready to burst.

Forex (Foreign Exchange) markets only reap profits with MASSIVE leverage.. 10k/1 for example.. in order to get any profit or relative return of your investment, you need to be prepared to loose a huge portion of your savings.. some people cannot bare the thought of such a thing. My advice: If you don't know Forex, stay AWAY from Forex.

Buying Euros might gain you a few pennies. Literally. If you just outright convert your savings.

Me other bit of advice: Talk to a Financial Adviser/planner ... I'd stay clear away from banks and corporations like Fidelity, Aliance, hartford etc .. they are selling one set of products and it's their job to get your money.. Talk to a guy who's job it is to explain your options, risks, future instances where you will need money, who you are saving for, and so on .. so seek an independent adviser, planner. They cost about as much as a lawyer, but if you really have no idea, it's your safest bet, buy a planner for a few hours.

Good luck.

And don't seek investment advice on the internet.

reply to post by NickT916


I inherited a very large sum of money. Along with it a very savvy financial advisor. Got me through the recent "troubles" relatively unscathed. Just remember a real financial advisor will charge you by the hour. The rest are just salesmen. Be wary of any advice you will get on this or any website. Keep looking for your house. Land is always a good investment. I recently purchased a 1.5 mil dollar house for half price. It's a buyers market. A cheap holiday in other people's misery perhaps. Welcome to capitalism. Good luck.

Originally posted by NickT916
im 28 and I just recently got married. My mom passed away a year ago, so me and my wife live with my dad for company support. i have a good sum of money saved up and we have been looking for a good house opportunity for the past year probably. Every time we find a good deal, someone grabs it with all out cash offer... so we keep waiting and keep looking. As we keep waiting and looking the dollar is falling and economy is getting worse... even tho our news tell us otherwise.

Im not sure what to do with my money currently, i would love to invest some into a house and have some on the side in case i loose my job and still have enough left for a year or so of payments.

i was thinking of maybe converting my money into euros? dollar is falling, wich makes euro more expensive in dollar amount. i was thinking about gold as well... but that seems like a bubble ready to burst.

are there any other options? no matter where i think to invest it seems like it will hit the fan no matter what... nothing seems stable now. what are you guys doing with your money and feel like its 100% safe for it to be there and it will keep its value?

Nick:

Tough one. Being just married your wife is no doubt wanting some significant level of stability on the homefront before she will be willing to potentially entertain children?

GreenBicMan is quite right that you need some professional advice, but do remember that 99.99% of them always have an ulterior profit motive, so it's best to find a more neutral party like a trusted uncle (or whatever) that can put the whole personal picture into perspective for you. Namely, the HUGE and DECADES long committment associated with purchasing a first home, along with what that means to your new wife for stability purposes in her mind.

Some say real estate has always been a good long term investment. I call bull# on that one. Real estate is simply there to be used for your personal and family comfort. No more, not less. Just USE it within your means and get out of debt as quickly as you can.

Have humble expectations, it will pay off in the long run.

You also have to ask yourself whether you are likely to be stable homeowners for decades to come, or whether you will likely be moving around. If you are likely to be moving around a lot, and this is your first purchase, it can be a far more daunting task for the long run. Moving withing various regions has an enormous price impact - as it will on your potential debt level.

The only other comments I will make for you is that when a real estate sector turns, it is not a 1 or 2 or 3 year event. Real estate price movements are a multi year event, and sometimes a DECADES long event, once the bloom comes off the rose.

So just keep in mind that real estate prices rise and fall, but your debt level never changes.

Good luck out there and best wishes for a happy marriage.

The first real estate purchase is always the biggy - and the one your will wear - so don't be in any hurry in this market.





[edit on 11-12-2009 by leo123]

Originally posted by Doglord
Gold may go higher, but keep in mind those who bought at the last top in the 1980's still haven't made their money back, and over the last 20 years an interest bearing checking account would have beat the return on gold.

Question ?

How much purchasing power have those dollars sacrificed over the last 20 years ?

Here's another perspective: Those that bought @ $35 an ounce just 6yrs earlier when Gold ownership was legalized (Dec 1974) are up approx 3,000%. I often see the $850 1980 peak used to justify Gold as a poor investment. The reality is that Gold only traded at that level for a couple of days. When you consider that the average yearly price was approx $600 , one could say that Gold has doubled since 1980... a triple since 1983.

Investments are cyclical. Anyone can cherry-pick an arbitrary price-point in a given cycle , and use it to justify his side of the argument.

In the past 8yrs Gold is up something like 375% , while the dollar has lost about 45% of it's overall purchasing power (against other majors) , and about 20% of it's domestic purchasing power.

It's pretty clear that the current cycle favors Gold...you just have to know when to hold it..and..when to fold it.

I would love to own little Gold , lots of high yielding blue-chips , have a healthy currency and a bright economic outlook for my 13yr old...unfortunately I just don't see it at the moment.

Personally I've been bullish precious metals and related stocks for several years , but I'm not in a position to recommend them. In fact , if a prospective investor harbors any reservations whatsoever...I would think long and hard about it first.

I would suggest what someone else said, and perhaps buy gold. Its (what i believe) doubling constantly, paper (us) will always fade...but if one thing that has always been consistent is; gold, diamonds,gems...
they always have had a REAL VALUE in the economic history.

I'd be afraid to buy land. I keep thinking the government will just seize it all later anyway.

A house while a good investment in the long run , is a liablity in the short term. If you must have a place to live other than your current sutuation consider a two family or mult family house. This is not always the most convenient and possibly not the right fit for your lifestyle but at least consider it. There is a rent check or two coming in every month to help pay the morgage and utilities. Research rental rates in the area . Do your homework.
Don't be afraid to ask people you trust if they would recomend a financial advisor they know.
The economy is in bad shape right now and people are right in saying to stay debt free.
If you decide to hold onto your cash try looking into an Everbank account.
You can hold cash in whatever currency you want very easily.
Holding gold and silver is cumbersome and the commisions can be high to buy the metals. Consider gold and silver mining companies instead . they can be bought and sold easily in an online account
Be sure to fully fund an IRA and 529 account each year for the tax savings.
Ask questions and double check anything people tell you.
If someone offers you a return that sounds too good to be true ask for a guarantee. His or her answer will tell you the level of trust they have in that investment.
When it comes to stock investing I stick to index funds. ETF's are less volatile than individual stocks and cheaper to own than mutual funds.You get a built in diversification of many companies with one transaction. Remember something like eighty percent of fund managers fail to beat the overall returns of the major indexes and they are pro's.

Good rec MOD. EverBank works well for currency diversification , and they provide great customer service. Another convenient option is opening an account with one of three specific Internet brokerages. Interactive Brokers allows me to log-on and change my base currency with a key-stroke , daily if I choose , or I can use their IDEAL platform to place a non-margined FOREX order. If the goal is diversification outside of the US , two other online brokerages provide this service; Saxo Bank London/Copenhagen , and Boom Securities Hong Kong.

If you're someone that prefers the "convenience" of owning precious metals in certificate form , ostensibly held in custody somewhere , by someone , EverBank also offers non-FDIC insured allocated & unallocated Gold/Silver pool accounts...ahem!...but I sure wouldn't recommend them. One of the weakest arguments against physical Gold ownership is storage and security. A twenty ounce tube of Gold Eagles stands under 3" tall , and an inch and a half wide. A million dollars fits in half a shoe box. With dose of common sense and a modicum of creativity , security options are numerous.

The premium paid on bullion purchases can usually be recouped by selective selling. Higher premium investment grade coins like GAE's bring premium prices on resale.

Edit Add: We buy Gold as a store of wealth. We buy Gold stocks to gain leverage against the POG. It follows that more leverage , implies more risk , and mining is risky business.

Most folks are advised to start conservatively with unhedged seniors.


[edit on 12-12-2009 by OBE1]