# You come into some money-what do you invest in?



## Mr.penguin (9 mo ago)

Picture this you are young, single and just started making real money. You don't own much, but you aren't in debt either. Once your job probation is over what do you start investing in?


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## SigInt (4 mo ago)

Disclaimer: this is not financial advice. This is simply what I would do in such a scenario.

Land (not housing, actual land). It's one of the only reliable investments at this exact moment in time since its value is squarely determined by utility which remains constant regardless of money markets. Land really only has an upwards trajectory in value barring severe natural disaster or war. If one chose to develop it or use it as a site for business, one can naturally scale up your investment parallel to most markets (although one's hypothetical customers' ability to buy one's hypothetical product _would_ be impacted by market conditions).

Right now is a terrible time to buy in to most investment markets since central banks are in disarray about how to balance hyperinflation against a depression in every single western country. The choice for these banks really is one or the other: to reduce inflation, you have to slow money velocity. But if you slow money velocity, businesses make less, and margin calls start coming in, and before you know it your essential services of energy, transportation, food production, etc. are all liquidated.

I would argue against getting in to precious metal markets at the moment even for a true SHTF scenario. We've seen some pretty disconcerting reactions in those markets throughout this economic fiasco suggesting it's not as good a hedge against inflation as previously thought. Furthermore, in a true collapse, people aren't going to want gold nearly as much as they want ammunition, fishing hooks/line, seeds, actual food, etc. Of course, if you were looking to start a new bank in such a scenario, then having gold reserves may be a good option. But for the world we're in now, land is probably a top-tier hedge against inflation and a depression.


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## Kauboy (May 12, 2014)

Land is an excellent option. Over a long enough time frame, it will almost always outpace inflation and the stock market.

With the Fed trying to curb inflation (instead of leaving well enough alone), savings account yield percentages are seeing quite the uptick as the federal funds rate is increasing. My CreditKarma account is sitting at 2.73% APY.
CDs are pushing over 3% at the moment.

Starting young has tremendous advantages. I would strongly, almost forcefully, encourage you to max out any retirement match your company may give you. Find any retirement calculator online. Put in your details, and compare the result to the same details, but starting 10 years later. Depending on your age, the difference can be staggering.


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## Chipper (Dec 22, 2012)

I'd wait a little for the land but would keep my eye open for a deal. Think prices will cool off when interest rates sky rocket. Thanks Joe and Kammy. Save up the cash and be ready to buy. Cash in hand will buy a lot more then a bank deal. Especially to someone about ready to lose the farm. 

I'd start with whatever you need to survive the next year. Guns, gear, food and a good reliable rig. If things tank like they say there will be plenty of land vacant but not much food. The piece of mind this will give you in the near future is priceless, IMHO.

Biggest thing is STAY OUT OF DEBT. Live within your means and save up. Don't squander your wealth and youth.


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## Tango2X (Jul 7, 2016)

Land, in a place you want to be


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## Maine-Marine (Mar 7, 2014)

a house with land
a second house with land
a third house with land

fruit trees, garden, cows


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## mathmonger (4 mo ago)

Diversify. Don't put all your eggs in one basket. Don't speculate on stuff that you hope will go up in value. Buy stuff that will immediately give you a cash income stream. 

I like commercial real estate - server farms, cell phone towers, warehouses. It's like buying a house and renting it out, but you are dealing with 10 and 20 year contracts. It is more predictable. Real Estate Investment Trusts trade like stocks. 

Physical gold has high fees and it's risky to store and all you really have is a hope that it goes up in value. And, realistically, it's probably not going to be that useful in a SHTF situation. Instead buy a productive gold mine (not an explorer). It's tough to imagine a situation where owning a company that pulls gold out of the ground would be a bad thing. Some of those are publicly traded and easy to buy. 

Invest in electrification. All the cheap oil on this planet is basically gone. The world is going electric. That is totally inevitable and it's going to take a ton of metals and stuff that we don't have enough of. Buy copper and uranium and lithium and anything that will benefit from that. 

Prepping, obviously. 

If you're single, invest in a partner. Don't blow all your money chasing tail, but don't be too cheap there either. It's kind of important to find a quality partner. 

The rate on I Bonds just dropped, but they are still paying 6.5%. You can get up to $10,000 of those per year, so that is still a no-brainer for guaranteed high yield. Open an account on treasurydirect.gov. 

Boring stocks with high dividends like utilities.


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## mathmonger (4 mo ago)

Learn about covered calls. It works like this:

Say you buy shares of company XYZ for $50. Then you sell an option to buy them for $60. If somebody thinks they are going to the moon, they will gladly pay a few bucks for that option to buy them at $60.

If they DO go to the moon and the other guy exercises the option and buys them from you at $60, you are happy because you only paid $50. You also get to keep the money he paid for the option. You'll be wishing you hadn't sold that option and you could sell them at the moon price, but you are still making money.

If they go nowhere and stay at $50, the option to buy stocks at $60 is worthless and expires. You get to keep whatever he paid you for the option as profit. You also get to keep any dividends that got paid out as profit. Then you can repeat the process and make even more money. 

If they go down a little bit, you lose a little money, but that is offset by the money you got for selling the option and any dividends. Maybe you make a few bucks. You still own the shares. Repeat the process and make more money. 

If they go down a lot, yeah, you'll lose some money. But you still get to keep the option premium and dividends. It's bad, but not as bad as a big drop in a naked position.


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## CapitalKane49p (Apr 7, 2020)

Land. 

As long as you pay the taxes it's always a place you can go to if the shizzy hits the fizzy. 

Godspeed


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## rice paddy daddy (Jul 17, 2012)

First, make sure you have at least one year's supply of non perishable food put back.
Do that before investing in anything else.


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## stowlin (Apr 25, 2016)

Study Dave Ramsey, 

stay out of debt, 15% to retirement, the balance to a home


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## MGNick (Dec 28, 2021)

Mr.penguin said:


> Picture this you are young, single and just started making real money. You don't own much, but you aren't in debt either. Once your job probation is over what do you start investing in?


Don't loose sight of the fact that what you are calling money is nothing but currency. Just paper, backed by nothing but your current faith in it. Depreciating at about 20% a year per the current inflation rate, if not more. Gold and silver are money. Not paper currency. Your focus should be on some farm land in a place that you might want to land later in life (or maybe shortly). However, with all of the insanity in play these days, I would make sure that I am very well armed, have plenty of long term food stored and access to a good supply of fresh water first. Back up meds and good Com's as well. I would at minimum have some paper currency out of the bank, in my hand and at least a small bag of junk silver. Just as a little back up. Later on you can sock back a little gold when / if things get better. Stay out of debt. Don't bite off more than you can chew. If things go south for you financially, you will quickly find yourself in trouble. That can happen quicker than you think. 

For you guys out chasing down long term food storage supplies, the LDS stores are a great resource. They don't have a large selection like most of the online places that are on the net but they do have a good selection of basics for almost half the price. Link:






Food Storage


Food Storage




providentliving.churchofjesuschrist.org





I have been really loading up lately. If some "entity" lights off a nuke, you can kiss your cattle, hay, wheat, milk and veggies goodby for a good while. Not to mention the financial system / banks.


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## AndyFrank (Jul 20, 2018)

Forest acres and living parks that feed you and keep you relevant. Private camping if you will?


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## Kauboy (May 12, 2014)

MGNick said:


> If some "entity" lights off a nuke, you can kiss your cattle, hay, wheat, milk and veggies goodby for a good while. Not to mention the financial system / banks.


A nuclear attack would not be leveled against fly-over country. Large cities would be the focus. High altitude EMP wouldn't affect cows or veggies much unless they require electricity to feed or water. I don't think the threat of nukes should detract one from seeking out a good farm/ranch setup.


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## Rhodester (7 mo ago)

I agree with the land first. Then mutual funds on a regular basis. If you employer offers a 401k program, GET IN!
My wife and I starting investing in the stock market (mutual funds) about 50+ years ago and are now happy members of the FU club. A great feelng.


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## myhouseisinorder (3 mo ago)

SigInt said:


> Disclaimer: this is not financial advice. This is simply what I would do in such a scenario.
> 
> Land (not housing, actual land). It's one of the only reliable investments at this exact moment in time since its value is squarely determined by utility which remains constant regardless of money markets. Land really only has an upwards trajectory in value barring severe natural disaster or war. If one chose to develop it or use it as a site for business, one can naturally scale up your investment parallel to most markets (although one's hypothetical customers' ability to buy one's hypothetical product _would_ be impacted by market conditions).
> 
> ...


right but i had something more in mind if the sky was the limit id rebuild the midwet missippi valley in basalt fiber concrete dome structures. the idea would to build structures that provide every thing needed to satain life all webed together with tram systems to get from one place to the other to harden the midwest for attack from foreign or domestic actors with is own economy and it own freedoms with nothing left to chance, my dream is that America live for ever after I'm gone. even if we give an inch of soil, i'd isure "they' could never tare out her heart. giving it a chance and means to reuild with out suffering threat.. making her as strong as bed rock.🥰 America for ever. freedom always.


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## SigInt (4 mo ago)

MGNick said:


> Don't loose sight of the fact that what you are calling money is nothing but currency. Just paper, backed by nothing but your current faith in it. Depreciating at about 20% a year per the current inflation rate, if not more.


You do have to be careful with this mindset. While it is true, if you take it to heart, then there's an immediate incentive to take on as much debt as possible right now and then pay it off more easily when the dollar's value decreases, netting you a profit. Needless to say, taking on debt in this current economy would be a big mistake because all banks are entering a credit crunch.



MGNick said:


> Gold and silver are money. Not paper currency.


While historically true, gold and silver were valued because they were the paper of the time. Their relative scarcity and ease of standard division was what made them good conduits of value, not so much their inherent utility. Thus the idea that precious metals will retain value in a true shtf scenario is questionable: who cares about some metal you can't use for anything valuable when you need to feed your family? PMs are a decent hedge during an inflationary crisis that doesn't hit the point of societal breakdown, the problem is we are a globalized economy, so an inflationary crisis in the US may very well hit that point.


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## Kauboy (May 12, 2014)

SigInt said:


> While historically true, gold and silver were valued because they were the paper of the time. Their relative scarcity and ease of standard division was what made them good conduits of value, not so much their inherent utility. Thus the idea that precious metals will retain value in a true shtf scenario is questionable: who cares about some metal you can't use for anything valuable when you need to feed your family? PMs are a decent hedge during an inflationary crisis that doesn't hit the point of societal breakdown, the problem is we are a globalized economy, so an inflationary crisis in the US may very well hit that point.


This.
PMs are excellent means to move wealth from one period to another. They are physically stable, don't deteriorate, can be hard to steal, and can be reliably tested during normal times.
In an SHTF period, the only people who'll be willing to take it are those who don't need anything else. And they'll give you squat for it, knowing your belly is grumbling, they have the food, and you can't eat shiny rocks for sustenance. They'll make a killing after normalcy returns.
In an SHTF scenario, you don't want to be the guy trying to buy things with PMs. You want to be in a position to fleece those people. Shiny rocks are mostly useless when priorities shift to acquiring daily food/water and maintaining adequate protection.


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