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BFranklin Offline

Registered: 11/27/09
Posts: 33
Loc: Boston
What is the best method you have found to protect and increase your wealth? Does anyone have a favourite way to invest that they think is fairly reliable and profitable?

I was finally able to start putting some money aside this year. Noting that the stock market had been expanding healthily since spring 2009, I made the mistake of putting my meager savings into two mutual funds. Of all days to invest, I chose (Ödrum rollÖ) MONDAY, MAY THIRDÖThe very day the market tanked. I have thought about the nature of the stock market these past two months, and have come to the conclusion that the stock market is an exercise in insanity. Iíve started a back of the envelope list of more solid ways people invest their money and make it grow, with relative safety.

Here are a few from my rough list:

1) Trading rare items which inherently increase in value, like a collection of rare wines or antique cars. Things which are immune to an increase in supply, and which can be sold ten years down the line at a huge mark-up.
2) Buying land. There is no way there can be a surprise increase in the supply of it, like there is with fuels and other goods (until we finally get off of this planet). Demand may go up and down, but land will always be needed.
3) Investing in other property. This was the best move my parents made with their retirement funds. (Iím not in that league yet.)
4) Currency swapping: I am toying with the idea of opening a few foreign currency bank accounts. Buy a foreign currency when it is low, and move the money when it is high. With the developed nations one can be fairly well assured that a given currency will eventually rebound, relative to another one. (I do NOT consider this as risky as the stock market because currencies of developed nations tend to fluctuate within historic margins.)

Any thoughts?
"Democracy is 2 wolves and a lamb deciding what to eat. Liberty is a well-armed lamb"
-B Franklin

#39833 - 07/02/10 11:04 PM Re: PROTECTING ONE'S WEALTH AND MAKING IT GROW [Re: BFranklin]
ceruleansteel Offline
active member

Registered: 10/15/07
Posts: 784
Loc: Behind you
I've always been one to keep an eye on politics and the economic climate of this country and to a lesser degree, other countries. If you are thinking of investing in foreign currency, you HAVE TO.

I think right now is a bad time to consider making any investments in any kind of currency (well, Yen doesn't send any red flags up for me) but with The Greece Situation trying to pull the Euro down and our own imminent threat of disaster, you might be better off to move out of America and use a different currency to invest in the dollar. We're no where close to being out of the woods with our own economy. Matter of fact, it's partly because of China getting sick of carrying our asses, which is why they are strengthening.

I have always thought buying land was the best bet. You can still get undeveloped land around here for as little as 350/acre. All you have to do with that is sit on it. Not to mention (oh, I'm a survivalist, by the way), you will have something to fall back on should the shit completely hit the fan.

Investing in other property is good too, but to me that takes way too much luck because you still have to count on the stock market to ensure that the house you just bought for 50K doesn't wind up being worth 15K tomorrow with you paying a loan for 75K. This happened to a lot of people when all those subprime mortgage bubbles burst a few years back.

Anyway, if you want to be truly conservative with your savings, the only solution is to physically buy things of value and sit on them. Putting your cash into the bank is no guarantee (the value of the dollar goes up and down) and investing in trade/stock/blahblahblah is risky on it's best day. I say options 1 and 2 are your best bet, with perhaps 10% devoted to options 3 and 4 on those days that you're feeling lucky.

Undeveloped land, metals and gems, guns and ammo...these are all good things to buy and hang onto. Wine and cars are fine, but they depend too much on a strong economy to move, I think.

#40069 - 07/08/10 02:46 PM Re: PROTECTING ONE'S WEALTH AND MAKING IT GROW [Re: BFranklin]
William Wright Offline
active member

Registered: 10/25/09
Posts: 924
Loc: Nashville
Great subject, one Iíve been thinking about a lot lately. Probably the best thing someone can do to protect their wealth is to not hand it over to creditors. If youíre in debt, get out. If youíre not in debt, stay out. Debt is a killer. Anyone who has been in over their heads in debt and calculated how much interest they ended up paying knows what Iím talking about. Of course, some debts canít reasonably be avoided (such as a home loan), and some debts can prove beneficial (like a business loan). But as a general rule, pay as you go and youíll save yourself a lot of money, and stress, down the road.

What Iíd say regarding increasing your wealth by investing is first consult with someone you trust who has a proven track record of success. At the very least, do your homework first. Ignore the compulsion to just ďjump inĒ. Yes, itís important to take action Ė but taking the wrong actions can be disastrous. Be careful and clear-headed. Investing is like any other discipline. It takes a lot of time and effort to master.

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