DC Tom Posted April 14, 2010 Share Posted April 14, 2010 There are only two things for money less that 2 years. Liquidity and safety. That is checking, savings, money markets and CDs and CDs sometimes are not that liquid. I recommend nothing else for that time frame. Except coffee cans. And what about silver? Link to comment Share on other sites More sharing options...
Jim in Anchorage Posted April 14, 2010 Author Share Posted April 14, 2010 Reasonably safe, not CD safe, but a step up from there. Thx Chef Jim. I got a hot tip at Batavia Downs in the fifth. I tell ya, it's a sure bet. Link to comment Share on other sites More sharing options...
keepthefaith Posted April 14, 2010 Share Posted April 14, 2010 Except coffee cans. And what about silver? Silver's a bit high right now IMO. Link to comment Share on other sites More sharing options...
Jim in Anchorage Posted April 14, 2010 Author Share Posted April 14, 2010 A friend of mine was doing something similar. He had about 20 rental houses in Florida. About 6 years ago, his net worth was about $1.5 million. He ended up taking out home equity loans to buy some additional prepeties. Today, he is down to about 8 properties, most of which he is trying to sell through short sales. His net worth is now negative. In addition to the rental properties, he also operates a home repair business. Since the majority of his work has been done on his own houses, he has reported very little income from his business. [ As a result, he has paid very little social security taxes over the years. He's now in his late 40's, he has pretty much lost all of the rental property that he was going to use to retire on, and his projected soc sec benefits are squat. Basically a reminder that we all need to diversify. Put as much money in IRA's and 401k's as you can afford. Try to save 10% of your income toward your retirement and start EARLY. Make sure that you diversify your investments. Take advantage of Roth ira's. There are a lot of benefits to Roths in addition to the tax free withdrawals. I just caught that. Was he not reporting rental income? I don't what to say anything about me personally since according to some posters here this forum is monitored constantly by the man. Link to comment Share on other sites More sharing options...
Fan in San Diego Posted April 14, 2010 Share Posted April 14, 2010 No my problem is that typically you're an !@#$ to me (which I could care less about) but then when you want free advice it's all please and thank you. And there is nothing creative for 3-6 months you dolt. Who treats who like crap? You have got to be kidding me. I have had more crapped dished out by you and DC Tom the past whatever months, where I stayed classy and didn't start name calling. I noticed in one of your posts that you are starting an investment firm, god forbid that maybe I could become a client, but you would rather hurl insults. If a CD is the only real thing, fine, you dont have to insult me, I was thinking there might be some index fund or something that might fit the bill. I'm busy making money not researching dynamite places to park money. I thought that was what you do for a living? You seem pretty sharp so I thought I would ask and see if you had some clever ideas. Sorry I bothered you. Link to comment Share on other sites More sharing options...
Chef Jim Posted April 14, 2010 Share Posted April 14, 2010 Who treats who like crap? You have got to be kidding me. I have had more crapped dished out by you and DC Tom the past whatever months, where I stayed classy and didn't start name calling. I noticed in one of your posts that you are starting an investment firm, god forbid that maybe I could become a client, but you would rather hurl insults. If a CD is the only real thing, fine, you dont have to insult me, I was thinking there might be some index fund or something that might fit the bill. I'm busy making money not researching dynamite places to park money. I thought that was what you do for a living? You seem pretty sharp so I thought I would ask and see if you had some clever ideas. Sorry I bothered you. You thought I gave free investment advice on a message board? And I think you wished some sort of painful death on me some time ago. By the way, it was no bother at all. Link to comment Share on other sites More sharing options...
Fan in San Diego Posted April 14, 2010 Share Posted April 14, 2010 You thought I gave free investment advice on a message board? Lots of people give free advice on this board. But if I liked where you were headed I would become a client. And I think you wished some sort of painful death on me some time ago. That was so long ago, you got to let it go. By the way, it was no bother at all. Thx Link to comment Share on other sites More sharing options...
Chef Jim Posted April 14, 2010 Share Posted April 14, 2010 To tell you the truth I thought you were being sarcastic and setting me up in your original question you posted to me. I had no idea you were being serious. But I'm still sticking with the coffee can recommendation. Link to comment Share on other sites More sharing options...
manateefan Posted April 15, 2010 Share Posted April 15, 2010 A friend of mine was doing something similar. He had about 20 rental houses in Florida. About 6 years ago, his net worth was about $1.5 million. He ended up taking out home equity loans to buy some additional prepeties. Today, he is down to about 8 properties, most of which he is trying to sell through short sales. His net worth is now negative. In addition to the rental properties, he also operates a home repair business. Since the majority of his work has been done on his own houses, he has reported very little income from his business. As a result, he has paid very little social security taxes over the years. He's now in his late 40's, he has pretty much lost all of the rental property that he was going to use to retire on, and his projected soc sec benefits are squat. Basically a reminder that we all need to diversify. Put as much money in IRA's and 401k's as you can afford. Try to save 10% of your income toward your retirement and start EARLY. Make sure that you diversify your investments. Take advantage of Roth ira's. There are a lot of benefits to Roths in addition to the tax free withdrawals. His problem was that he got sucked into the "boom" period, figuring that if he bought more property using the equity he had he'd get his money back quick. Sorry the balloon burst and property values tanked. Many "speculators" lost their butt for the same reason. He should have stayed with just his 20 rentals. That's six years paid on the mortgages (if he has them) and as long as you have tenants paying you still have income. Link to comment Share on other sites More sharing options...
manateefan Posted April 15, 2010 Share Posted April 15, 2010 Depends who. My mom retired with about 150K and rental income. Then again, my mother supported 4 kids on a 20K salary, half of that as a widow. Now we take care of her My mom had a 401K (not great but supplemented her SS) and a rental property (a double, two flats). She lived in one and the other was rented out. She signed the property over to us kids but had the right to live there and get the income during her life. The rent paid most of her living expenses. Link to comment Share on other sites More sharing options...
whateverdude Posted April 15, 2010 Share Posted April 15, 2010 Is anyone here putting money into High Yield Corp. bonds right now? Junk bonds scare the hell out of me! In general stocks and bonds seem a bit over priced for me right now, but I think you can make some cash right now in junk. What do you think? Link to comment Share on other sites More sharing options...
Chef Jim Posted April 15, 2010 Share Posted April 15, 2010 Is anyone here putting money into High Yield Corp. bonds right now? Junk bonds scare the hell out of me! In general stocks and bonds seem a bit over priced for me right now, but I think you can make some cash right now in junk. What do you think? What do I think? I think you're confused. Link to comment Share on other sites More sharing options...
whateverdude Posted April 15, 2010 Share Posted April 15, 2010 What do I think? I think you're confused. Ok i'm confused than.....but what am I confused about? Link to comment Share on other sites More sharing options...
Chef Jim Posted April 15, 2010 Share Posted April 15, 2010 Ok i'm confused than.....but what am I confused about? Junk bonds scare the hell out of you but you think there's money to be made there. Sounds rather confused to me. Link to comment Share on other sites More sharing options...
meazza Posted April 15, 2010 Share Posted April 15, 2010 Is anyone here putting money into High Yield Corp. bonds right now? Junk bonds scare the hell out of me! In general stocks and bonds seem a bit over priced for me right now, but I think you can make some cash right now in junk. What do you think? Of course junk bonds scare the hell out of you. That's why they're junk bonds. Link to comment Share on other sites More sharing options...
meazza Posted April 15, 2010 Share Posted April 15, 2010 Junk bonds scare the hell out of you but you think there's money to be made there. Sounds rather confused to me. http://www.canadianbusiness.com/markets/st...426_10009_10009 I'm confused. Will Transformers 3 be a safe bet? Link to comment Share on other sites More sharing options...
Chef Jim Posted April 15, 2010 Share Posted April 15, 2010 http://www.canadianbusiness.com/markets/st...426_10009_10009 I'm confused. Will Transformers 3 be a safe bet? Hell I've been selling Hollywood short for years. Link to comment Share on other sites More sharing options...
whateverdude Posted April 15, 2010 Share Posted April 15, 2010 Junk bonds scare the hell out of you but you think there's money to be made there. Sounds rather confused to me. Yes, risk frightens and confuses me. I Like to make lots money with very low risk but going forward it looks like i'll have to risk more to make more. So, I was seeing if anyone else here is taking a risk on high yield these days even though its scary. Link to comment Share on other sites More sharing options...
Fan in San Diego Posted April 15, 2010 Share Posted April 15, 2010 Yes, risk frightens and confuses me. I Like to make lots money with very low risk but going forward it looks like i'll have to risk more to make more. So, I was seeing if anyone else here is taking a risk on high yield these days even though its scary. My biggest risk is loaning people money for real estate deals, I loan up to 50% LTV and I have to like the project before I loan/invest. I only look at projects in So Cal. Link to comment Share on other sites More sharing options...
meazza Posted April 15, 2010 Share Posted April 15, 2010 My biggest risk is loaning people money for real estate deals, I loan up to 50% LTV and I have to like the project before I loan/invest. I only look at projects in So Cal. http://etf.stock-encyclopedia.com/BRIL.html This is the best short term investment you can get. Though if you hold it for more than a day, you're !@#$ed. Link to comment Share on other sites More sharing options...
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