As much as I love mutual funds, what are some good ideas on alternative investments?
Question of the Day, Dec 30
As much as I love mutual funds, what are some good ideas on alternative investments?
One fund or investment or another, if they’re paper markets they’re all going to track the same if things go south which is what we need to be worried about today.
IMO, I’m no expert.
My son is going to invest (purchase) a rental storage unit. If he’s done his math correct a $200k investment will return $7k a year, and he will own the property as well.
I think he’s a year or so early purchasing real estate as this is still a sellers market, but what do I know.
Crowd Funding – carefully pick your spots.
Gold, Silver, Copper/Lead/Brass mixture and Cash. All physical. 🙂
I heard the investing in corrupt politicians can have a pretty good return.
…that investing in…
I, myself, have switched from software development, to can and bottle collecting.
I bought state general obligation municipal bonds during the financial crisis since I figured everything would go to zero anyway if there was complete economic collapse, but if not, I’d get paid, since states cannot declare bankruptcy. So I came out of that smelling like a rose. But you can’t get any yield right now on a municipal with at least an A-rating, and there’s a lot of rubbish floating around the municipal market these days (e.g., Illinois) that I wouldn’t touch with a 10-foot pole.
Virtually all common stocks are grossly overvalued, as are all junk bonds and junk funds. There’s a world of hurt coming down the pike for people who hold common stocks, junk bonds, or junk bond funds. And the banks are going to get hammered hard during the next financial crisis.
If I had cash to invest, I would look for non-bank preferred dividends, such as one of the Central Harvest States preferred series, or fixed income utility securities that trade like stocks, such as Southern Co’s SOJA, or Next Era Energy’s NEE^J. Utility common stocks are overvalued, but their closed-end debt securities are probably ok. People do need electricity to power their homes and their iGadgets.
Be sure to do your own due diligence. I’m not an investment advisor.
Long term: Land, like gold, will never be worth nothing. And if it has no improvements, generally makes for a quick and hassle-free liquidation when the need arises.
Short term: There is no quicker/easier buck than a poker game with a sucker or two at the table. A Lefty in-law makes a good sucker because they can’t believe they would ever be one.
+100 for Francis Marion
I use the team of Dewey,Cheatham & Howe for investment advice. They said you should bet it all on Happy Jack in the 5th race tomorrow .
One good place is the tax auctions in the counties of your state . In South Carolina the interest rate/ return can be as much as 12 percent . Some states have higher returns from what I’ve seen . Plus if they don’t pay the taxes you get the property after one year .
This is from the South Carolina Tax Lien Sale law :
Interest Rate: 03% to 12%. First three months three percent (3%) of the bid amount. Months four, five, and six six percent (6%) of the bid amount. Months seven, eight, and nine nine percent (9%) of the bid amount. Last three months twelve percent (12%) of the bid amount (Sec. 12-51-90)
Buckhed, Wyoming pays 3% up front then 12% a year, but there is a small fee. We had one last year, made 30 bucks.
I forgot, takes four years to get the property there. Great idea though, assures that all property taxes are collected. All states should do it, instead of raising everyone else’s taxes to support the deadbeats.
@VegasBob
I would disagree with just one of your assertions. “….the banks are going to get hammered hard during the next financial crisis.”
I don’t think so. The banks own this country. Getting “hammered hard” (which I do 3 to 5 nights a week) would actually best describe what will, once again, happen to the unlubricated asses of all us non-bankers.
Mike…In S.C. we have a one year redemption term. A few properties get lost each year but they are few and far between. I had a friend who got a two acre tract years ago for 200 bucks…sold it for 4000 bucks .
The average is 3% return for three months…not bad on your money. Especially since the banks aren’t paying squat .
I never lost money on real estate. Had years of great free vacations on properties which we later sold at a decent profit. Having an eye for aesthetics and a knowledge of value will give you a step up.
If you live in the city or burbs, 5 acres in the country can give you independence, and possibly freedom. A family can live on 5 acres and produce enough income to buy whatever else is needed to live well.
Gryffyn said: “A family can live on 5 acres and produce enough income to buy whatever else is needed to live well”.
If 4 of the ‘5 acres’ are dedicated to intense, underground indoor marijuana propagation, then maybe you could ‘live well’. You have obviously never lived ‘in the country’. Stupid is not a sin though. So you could still make it to Heaven.
Guy who drinks too much,
I have lived in the country most of my life and you have probably lost a dangerous number of brain cells. There is an old, though still useful book titled “Five Acres and Independence” which validates the possibility of living well in the country. It requires hard work and intelligence, which may be beyond your capabilities. Drink on….
Try to identify viable markets with ‘blood in the streets’ and get a mop. In our current depreciation paradigm coupled with rising dollar, just sitting on cash might be decent tactics, until the blood flows, in commodity sectors it might not be far from flowing.
Sustainable access to water, food, and shelter is nice, the means to defend said access could be clutch investing. If the sky darkens badly, booze, cigs, Toilet Paper (thanks Maggie or Suzanna), ammo, propane, butane, batteries.
Machine Guns are fabulous, if you can own one, do it. Since the cap in 85 the cheapest Mac-10 has gone up 600%, 500$+/- to 6000 +/- and the more desirable ones like HK sear have gone from 500$ to 30000$. There can never be anymore in the civilian market so I watch the HK sears appreciate between 3000 and 5000 a year.
So yeah nice return plus you have the Machine gun.
Ottomatik,
Good post. Forget money. If you want to be ready for the uncertain future, prepare for the worst. I have a farm at the end of a long road and a bunch of good, multi-skilled neighbors. When collapse happens, survival depends on having adequate supplies and enough kin and neighbors to defend your turf. It will take a critical mass of well-supplied intelligent people to fend off the unprepared scavengers.
@Gryffyn
You are so right! I have killed more brain cells from drinking than you and your ‘country’ clan could ever ….# burp # puke # spit #, I’m sorry, where was I??
Oh yes, I remember! You need to run for national office and have your campaign theme be: Five Acres and Independence!!! You so smart!