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What assets are the best to accumulate in the short to near term?
08-29-2016, 12:17 PM
I am mostly focused on paying off debt (school loans) since I can't get the kind of return on investment that is any good (my loans aren't that high - paid off the 6-7% now I'm averaged down to 3% but a good chunk of money to go, which is possible now I'm making loot).
Beyond being debt free though, what are the best assets to get given the bad shape of the US economy? Get real estate or look towards acquiring it as a long term play? I have something in mind away from a big city that I think is worthwhile. Guns? Gold?
I'm brainstorming because I'm in between all of these with spare cash, but I don't trust the market at all. I could see a big drop coming next year. Also, I'm wondering if the more likely scenario is that we turn into Japan and just have a stagnant economy for 20 years or so if there isn't a brutal crash. Just trying to consider the options all in between the potential for crash, just a big correction, or pull back but economic stagnation due to the fact that taxes are high, regulation is high, and jobs are just not what they used to be for a majority of people.
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08-29-2016, 12:29 PM
I'm in a similar position, I have 28k student debt, but the interest wont start until April 2017. Its tough because I want to travel, purchase firearms, invest, but it would be better if all was put on hold to pay the loans off.
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08-29-2016, 12:36 PM
I converted almost all my investments to cash or near cash equivalents. Per my financial adviser I am being too pessimistic. However, I see too many major issues. The two biggies (for me):
1. IMHO the Federal Reserve re-inflated the housing bubble. There will be another housing crash (but not as dramatic as the one in 2007 to 2009).
2. I don't see a strong growth in productivity and profits to justify the run up in stock prices. To me, I think this market is being driven by stimulus. I won't be surprised if the market is down 20+ this time next year..
I have been buying some physical gold, silver, and platinum. Small amounts only for now. I don't look at the metals as an investment... more of something to use if we enter a really shit hitting the fan moment.
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08-29-2016, 12:38 PM
Accelerated Lead
But seriously...bullets can't be a bad investment considering the precious metal values rising and future scarcity from possible legislation.
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What assets are the best to accumulate in the short to near term?
08-29-2016, 12:41 PM
Considering the political climate and the Clinton's history with gun control (if she wins, they're good as gone), probably best to start off buying guns.
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08-29-2016, 12:48 PM
Quote: (08-29-2016 12:41 PM)Spectral_Observer Wrote:
Considering the political climate and the Clinton's history with gun control (if she wins, they're good as gone), probably best to start off buying guns.
Let's not fear monger. No president is going to be able to abolish the second amendment. Even if they tried, we would just buy our guns illegally. The part of the population in the US who likes to be armed, will still be so. Don't put too much stock in this sentiment.
"When in chaos, speak truth." - Jordan Peterson
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08-29-2016, 01:04 PM
Quote: (08-29-2016 12:48 PM)Kaii Wrote:
Let's not fear monger. No president is going to be able to abolish the second amendment. Even if they tried, we would just buy our guns illegally. The part of the population in the US who likes to be armed, will still be so. Don't put too much stock in this sentiment.
It's not that she's going to get rid of the 2A, she'll be more likely to usher in an assault weapons ban 2.0 and I don't know if you read Feinstein's updated version of the AWB she proposed after Sandy Hook but it practically banned all semi-auto weapons currently on the market.
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08-29-2016, 01:05 PM
This thread applies to me although I am currently based in the U.K. I am looking into buying assets that can lead to trickles of investment. Housing in the U.K seems to be a no go, well mainly in South East England. I was looking overseas, buying in a poor region but beautiful part of Europe and look after it during the summers, however corruption in Southern and Eastern Europe could make that a very risky investment.
Any ideas or solutions I will be listening to. Too many people in our generation are interested in consumables and are not thinking about the long term.
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08-29-2016, 01:53 PM
Start a business entity so you can begin writing off certain expenses.
If you have a full time job and a part time business you can legitimately write off a portion of your cell phone bill, transportation expenses or a computer because it was used towards your business. Then you get a bigger tax refund.
If you succeed, you build a business! If you fail, you lower your tax liabilities. Simply reducing your tax liabilities is a way to retain more personal wealth long term. From there you can find assets like real estate / rentals / air bnb to store your wealth and again find ways to reduce tax liabilities.
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08-29-2016, 05:35 PM
Quote: (08-29-2016 01:53 PM)TheOllam Wrote:
Start a business entity so you can begin writing off certain expenses.
If you have a full time job and a part time business you can legitimately write off a portion of your cell phone bill, transportation expenses or a computer because it was used towards your business. Then you get a bigger tax refund.
If you succeed, you build a business! If you fail, you lower your tax liabilities. Simply reducing your tax liabilities is a way to retain more personal wealth long term. From there you can find assets like real estate / rentals / air bnb to store your wealth and again find ways to reduce tax liabilities.
Good answer and even better way thinking. Not all your investments are material. I recommend investing in knowledge and in the short to near term, knowledge that you can put to use right away in the way of making money. A second occupation, thus you start your business at the same time. You can't write off the education you take for switching trades but yes you can deduct all continuing education. Also, you invest all that you can back into the business; then you attain relatively low taxes and grow your business. Very important to pick a trade you really enjoy doing. Just my words.
"A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects."
— Robert Heinlein
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08-29-2016, 09:57 PM
This thread is reminding me that I should register my music studio as a proper business and sign off my rent, utilities, and other various living expenses. I could write off groceries for feeding my clients. That would save me a big bit of money annually...
I have a friend who invests in firearms and ammo. It's actually a pretty solid racket as long as you know what you're getting into. Requires a lot of research obviously, but a lot of stuff He's got has become banned/limited since and they are worth sometimes up to 10x what he originally purchased them for.
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08-30-2016, 02:58 AM
The oil price is currently pretty low - it's on lowest levels in 13 years. That's something you might consider. I doubt it can go much lower than current levels, and there is a real possibility it will rise in the near future. This is why you might think of investing in oil companies' stock, or find a petrocurrency (for example CAD, NOK) to invest your savings in.
I believe the US Presidential election this year will have a long-term impact on the oil price. There are two possibilities:
1) Trump victory. His platform calls for more fossil fuel development, which means less regulation for oil companies etc. In that case, the price of oil could remain a current levels due to an increase in US production, but the value of oil stocks will increase.
2) Clinton victory. Hillary wants to curb fossil fuel utilization and invest in clean energy. In that case, the value of oil stocks won't increase, but...there's always a but. Hillary is an aggressive warmonger. Look at the US-led intervention in Libya in 2011, which was her brainchild. If she becomes the next POTUS, the odds of a major geopolitical disaster happening in the Middle East rise considerably. That itself could drive the oil price higher.
I wouldn't invest in real estate unless it's in a very good location and you can rent it for a hefty sum. Otherwise it's just not worth it in my opinion.
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08-30-2016, 03:17 AM
I think I stay cash until the next stock market crash, then buy a handful of SP500/DOW and hold until the next. Have some gold too for emergency and its shiny.
Deus vult!
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08-30-2016, 04:00 AM
I rode the bubble up and went to all cash back in jan/feb. I'm waiting for the next big "pop" to occur before I rush back in. My biggest mistake was missing out on the 07-2012 ride up. Too young to know better.
Real estate in the UK is a f*cking joke. I'd rather invest in American rentals. Even then, the cost of most property is over valued.
Gut feeling and conjecture:
I really think TPTB will cause a market crash when Hillary becomes unelectable for whatever reason. They'll blame it on "Trump" being a wild card and people losing confidence in American markets. This will set the stage for a good cleansing and the next massive bubble up which will lead to sovereign debt defaults since so many foreign loans are priced in dollars.
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08-30-2016, 12:27 PM
I have a few AR-15 lower receivers (complete and blank), and several completed guns ready to sell. Whether Hillary wins or not, the price of guns will skyrocket.
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08-31-2016, 03:01 PM
I agree now is definitely the time to buy guns. We are living in the golden age of the AR-15. Anything considered an "assault weapon" will probably never be less expensive than right now. I just ordered a new BCM upper receiver yesterday in anticipation of the panic buying shortages and price increases.
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08-31-2016, 11:49 PM
I have to agree with WeekendCasanova here. I'm hedged out vs Mad Max with firearms and ammo but owning precious metals is a no go. In a true apocalypse scenario canned food, gas, ammo and a firearm is gonna take you a lot further than some gold.
Ask yourself if there is any real true value in a SHTF scenario in which PMs are really gonna pull thru for you? The guy you are bartering ammo for gold is more then likely to just take it from you.
I see 1 real use for PMs. They are fairly portable as a store of value. Wanna move 1 mil by wire? There's a paper(electronic) trail. 1M in gold is actually fairly portable.