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Advice on Safe Investing

Oldmansmith

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#1
So out of the blue we are getting 56 k gifted to us, now and next month, from Mother in law. We have no debt, but not a lot of money so this is not nothing to us.

I have (for us) plenty of gold and silver, and Mrs Old is ok with that, but not with more.

I know, hookers and blow, but I’m afraid of hookers and when I tried blow once inte 1980’s I knew I would never do it again- a drug that doesn’t really get you high but makes you want more. Great....Anyway, Mrs. Old, the source of this windfall, would divorce me.

Not touching stocks now, until everyone is crying.

What are the best yielding “safe” investments?
 

hammerhead

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#4
Buy my news letter for only two payments of 20k each. I'll give you great advise.

Have you considered real estate?
 

solarion

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#5
Perhaps a peer to peer lending portfolio could be right for you OMS.

https://www.lendingclub.com/

Returns are much higher than you could expect with traditional forms of bankster products in an environment with such low interest rates. Annuities, CDs, MMs, etc are pretty much all below expected inflation rates.
 

Bottom Feeder

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#6
Invest in yourself. Upgrade the bathroom in your home. Pave the driveway with concrete. Build a storage shelter for food (a good one) and stock it. Invest in a metal roof for your house.

see what I mean?

BF
 

searcher

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#9
Congrats on the 56k. Not an everyday happening. Good luck no matter your decision.
 

nowon

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#10
Raw materials:

China's Silk Road is going to take a lot of raw materials. The chart below, which compares the Standard & Poor’s GSCI Total Return Index (24 raw materials) against the S&P 500, says that raw materials are CHEAP compared to company valuations.




So, raw materials (ETFs, etc.) are cheap and are going higher, or stocks are going to get cheaper, or a combination of both. The upside is pretty good even if only by half, jmho.
 

EO 11110

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#11
don't swing until a fat pitch presents itself. everything is high right now - except for what nowon posted above. commodities, including oil, gold, and silver are the only things with ANY value left in them.

i would say pick out what you want to buy and wait for the inevitable implosion that brings it down -- then you can buy stocks or real estate or bonds or even the commods - they'll also get hit, even though they aren't bubblicious like the rest

i see that you mentioned safe. real safe is a ladder of cd at your bank/credit union. safe-ish with some risk and bigger yield -- a blend of the best mlps (master limited partnerships) - most of those are energy sector - which has been beaten down pretty good

the middle ground might be a mix of cd and a blend of biggest/safest mlps
 
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Silver

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#12
Aggregates. Which means land. I know several people that have made pretty big money just from digging a big hole and separating the dirt, sand, and rock - then filling the hole with water and making a lake.
 

Irons

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#13
Unless she gives it in cash you get to pay taxes on it. Then after it's legally taxed and tracked FRN dots on a screen you have to make it disappear again without being hauled in as a terrior or a drug dealer.
You are a wise old soul Mr Smith so you 2 will figure something out, there's no rush.

It's a good thing I don't have any money. Too much work and worry for old Irons.


.
 

Silver

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#14
Unless she gives it in cash you get to pay taxes on it. Then after it's legally taxed and tracked FRN dots on a screen you have to make it disappear again without being hauled in as a terrior or a drug dealer.
You are a wise old soul Mr Smith so you 2 will figure something out, there's no rush.

It's a good thing I don't have any money. Too much work and worry for old Irons.


.
That's right, forgot about the gift tax over 10k (if it is still 10k?)
 

FunnyMoney

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#16
56k is a nice chunk of money, you could start a business, buy one, or use RE as a business by trying to get around even cash flow on a rental.

Since you said NO to silver / gold, then I would look at platinum, it is lower than it should be right now, I made a trading move there, buying in recently (letting you know my money is where my mouth is).

You could also open a brokerage acct and wait for a big opportunity to present itself or even become a trader with those funds and trade the markets. I made a move at 1239 and am now waiting to see what happens this time in the 1300 area before pulling that off (this has nothing to do with my investment accts, which are all physical, the ones not lost in the major boating accident...)

I wasn't smart enough to get in on the crypto craze and too old myself to put much in there at these levels. I could see a small investment given a really good inside track into the "next" BTC candidate or something.
Oh wait, the title says "SAFE investing," probably best to skip the cryptos.

Good luck.
 
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solarion

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#17
Meh. Convince mom to gift both Mrs. Old and yourself each 14k this year then have mom wait to gift each of you another 14k next year.

Stupid taxation thefts are stupid and should be avoided.
 

Goldhedge

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#19
Meh. Convince mom to gift both Mrs. Old and yourself each 14k this year then have mom wait to gift each of you another 14k next year.

Stupid taxation thefts are stupid and should be avoided.
Yeah, that's what I would suggest as well. Or maybe some kind of trust fund that doles it out that way?

No sense in giving the IRS more than they deserve...

As for investing? Sheesh! That's a shot in the dark these days.
 

solarion

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#20
No sense in giving the IRS more than they deserve...
It's beyond insanity that the crooks tax funds going from mother to daughter/son-in-law and we put up with it. That'd be ridiculous even if the funds weren't already taxed 1k ways from AtenDay.
 

Usury

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#22
Unless she gives it in cash you get to pay taxes on it. Then after it's legally taxed and tracked FRN dots on a screen you have to make it disappear again without being hauled in as a terrior or a drug dealer.
You are a wise old soul Mr Smith so you 2 will figure something out, there's no rush.

It's a good thing I don't have any money. Too much work and worry for old Irons.


.
Nope...MIL would pay gift tax...not the Olds. Hope she realizes that.
 

Usury

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#23
Meh. Convince mom to gift both Mrs. Old and yourself each 14k this year then have mom wait to gift each of you another 14k next year.

Stupid taxation thefts are stupid and should be avoided.
I will second this motion. However perhaps that's the plan already as $14k x 4 = $56K if my math is right.
 

Usury

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#24
If you want "safe" and may invest in the stock market later, then I'd suggest opening a Fidelity brokerage account along with a Fidelity FDIC insured savings account. Then do a couple bs trades to understand how it works and be prepared to pounce if and when there's a big market drop. In the meantime you're in an FDIC insured savings. You can also buy some treasury notes through Fidelity at Treasury auction rates and
Prices with no Fidelity mark-up and no Fidelity fees at purchase and have the flexibility to sell through Fidelity later if needed prior to maturity.

Fidelity has some very low cost index ETFs and mutual funds just like Vanguard for things like S&P 500 if and when. You're ready to go into the stock market later.

Lastley, to muja's suggest, there's something to be said for buying strong dividend paying blue chips. You can get a higher return than savings or treasuries and still potentially have price gains. There is also downside risk, but that's on paper and doesn't matter until if and when you sell. If you're anticipating keeping for a really long time then this could be a good option.
 

solarion

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#25
I will second this motion. However perhaps that's the plan already as $14k x 4 = $56K if my math is right.
Your maths are a go sir. Since the max is 14k/yr I harbor similar suspicions, but I always default to a position that ensures the fun IRS dudes see as few $$$ as possible.
 

Usury

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#26
Gold, check. Silver, check. Next a nice fat roll of buried 20s or two. Bullets beans bandages. Know the local gun market.
Obviously (to us all at least), but sounds like he's got these bases covered.....
 

smooth

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#27
I will second this motion. However perhaps that's the plan already as $14k x 4 = $56K if my math is right.
Did the gift tax limit go up? I thought it was at $10,000.
 

Goldhedge

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#28
I think it went up to $14k recently...


Of course, you could always invest in Etherium... $739.33 today

Screen Shot 2017-12-28 at 9.18.07 PM.png
 

edsl48

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#29
Go and look at diehards.org
Determine what your risk preferences are and back test any possible decisions and outcomes
Vanguard.com also has various outcomes based upon past history
However past results are not guaranteed to predict the future
Best of luck because all in all...if anyone knew the financial future at 100% the wouldn't be hawking their opinions
 

solarion

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#30
Not sure why people are suggesting stocks after the OP specifically disqualified them. I wouldn't go near that swamp at this point either.
 

Weatherman

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#31
I have (for us) plenty of gold and silver ... What are the best yielding “safe” investments?
Physical gold and silver are insurance against a potentially terrible future. Just like fire or auto insurance, you don't want to sell your insurance policies even if their price rises. Besides, it is a PITA to move a mass of metal to capture small to intermediate gains. I suggest buying Wheaton Precious Metals Corp. (WPM - the new name for Silver Wheaton). WPM is a stock, but different than the Dow or the S&P, which at current levels are little more than hopium riding a Unicorn. WPM pays a nice dividend (which can be reinvested through a DRIP), so there is less pain while waiting for silver to rally. When silver does move up, WPM is leveraged to make higher gains. A very conservative strategy is to write (i.e., sell short) calls against a higher price for your WPM stock to capture the expanding bullish premium when silver moves up. Interestingly, WPM has been strong in 2017, even when silver was very weak (charts below), so big money is pushing it higher. My WAG is that silver could rise to $20-22 in the next few months, and then drop back again for the summer in the typical seasonal pattern. That small increase would not warrant selling real metal, but would generate substantial profits in WPM stock which is easy to sell (by April?) and buy back (by July?).
WPM:
WPM.jpg

Silver
Silver.jpg

Ratio of WPM divided by silver:
Ratio WPM to Silver.jpg
 

hoarder

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#34
OMS, what you and your wife do for a living might factor into your strategy. For one thing, if you're looking at a possible big tax bill, it may be the right time to quit your job for a year, since you will be working for the gummit.
If you're in business for yourself, there may be ways to enhance that business and reap the benefits in the coming years.
If it were me, I would just buy silver. It's safer than paper assets. Maybe some more land if I found the right deal.