$1000 to invest for a 2y/o - options and storage
- Thread starter donut132
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TheCracker
Member
I like the idea of gold or silver on hand a lot better than a gun. A lot can happen in 16 years and what if the gun u buy becomes illegal. Then it's really worthless.
LeadCounsel - Nice manifesto. I give you an A+ for the best written "ultimate gloom and doom" piece. It's a preppers dream come true...a financial "insider" who lets out the secrets and tells how it's "really" going to be.
Here is a guy asking for advice on how to invest his kids college money and you try to sell him a story that America is coming to an end and in 16 years they'll need a gun more than an education.
You basically take every worst case scenario and string them together in what basically resembles any number of the post-apocayptic novels that have popped recently, then assure us it's all bound to happen...no other scenario is possible.
Sure...we're in tough economic times...and our fiscal house is a mess...but this isn't the first problem America has face and weathered and in my view...won't be the last.
To be sure...I am no fan of much of what I see in government today...but it's all changeable with votes. When the American people have had enough they'll vote the bums out.
With regard to your statements on todays youth lacking values and morals and being lazy...I say you are choosing to see the glass half full. I see a tremendous number of todays youth that are fighting and winning wars on behalf of our country right now. Young men and women who put their lives on hold...and on the line...so they could serve their country. I see lots of youth volunteers in my community. I’ve seen them do habitat for humanity projects, church mission trips, going to old folks homes, boy scouts performing community projects...maybe I’m not spending enough time in Detroit...but I see huge potential in todays kids.
To focus on inner city crime and trends in reality TV and try to extrapolate that to an entire generation of people is mis-guided. But hey...that stuff sells...just like being a stockbroker again isn't it?
Here is a guy asking for advice on how to invest his kids college money and you try to sell him a story that America is coming to an end and in 16 years they'll need a gun more than an education.
You basically take every worst case scenario and string them together in what basically resembles any number of the post-apocayptic novels that have popped recently, then assure us it's all bound to happen...no other scenario is possible.
Sure...we're in tough economic times...and our fiscal house is a mess...but this isn't the first problem America has face and weathered and in my view...won't be the last.
To be sure...I am no fan of much of what I see in government today...but it's all changeable with votes. When the American people have had enough they'll vote the bums out.
With regard to your statements on todays youth lacking values and morals and being lazy...I say you are choosing to see the glass half full. I see a tremendous number of todays youth that are fighting and winning wars on behalf of our country right now. Young men and women who put their lives on hold...and on the line...so they could serve their country. I see lots of youth volunteers in my community. I’ve seen them do habitat for humanity projects, church mission trips, going to old folks homes, boy scouts performing community projects...maybe I’m not spending enough time in Detroit...but I see huge potential in todays kids.
To focus on inner city crime and trends in reality TV and try to extrapolate that to an entire generation of people is mis-guided. But hey...that stuff sells...just like being a stockbroker again isn't it?
ny32182
Member
If you got 4% a year for 20 years on your $1k (unrealistically low over the long term) and never added another dollar between now and then, you'd have 2191.12.
If you got 8%, which is a very safe bet on an index fund over the long term, you'd have 4660.96, again if you never added another dollar over the next 20 years.
If you add even $1k a year between now and then, you get compound interest throughout the timeframe on all that money, and will have a nice chunk of change to hand the kid at 21 that he could use for any number of productive things such as education or a house downpayment, etc.
There is no gun or commodity that is going to reliably keep up with that... period.. end of story. A gun is a terrible use of the money.
If you got 8%, which is a very safe bet on an index fund over the long term, you'd have 4660.96, again if you never added another dollar over the next 20 years.
If you add even $1k a year between now and then, you get compound interest throughout the timeframe on all that money, and will have a nice chunk of change to hand the kid at 21 that he could use for any number of productive things such as education or a house downpayment, etc.
There is no gun or commodity that is going to reliably keep up with that... period.. end of story. A gun is a terrible use of the money.
leadcounsel
member
Totally unfair comparison. First, if you could guarantee 4% return, you'd be a billionaire. Banks 'guarantee' under 1%. An 8% return is far fetched to maintain in TODAYS markets. And the individual is 2, and will start college presumably in 16 years, not 20. The best current 5 year CD rates are under 2%, or below the cost of inflation.
By the way, inflation since the year 2000 has been 35%! Thirty Five percent!!!! That eats away at most investments. Throw on taxes, lost opportunity costs, and risks... and the markets are not that attractive anymore. That's nearly 3% per year in lost money simply due to the cost of inflation. Your cash lost 3% and even an unrealistic 8% return during that period is only 5% purely due to inflation (not counting all other costs).
Second you're talking about compounding interest at rates that are not common for standard investors, and dollar cost averaging. Do the same with guns, ammo, and other tangible items like gold, silver, land, etc. and the individual would be much better off. The cash won't be enough to dent a college plan at current rates. And they are rates that are not likely in the future. I'll repeat, our wealth is built and based on fiat currency, loads of borrowing, formerly cheap and plentiful oil, and world dominance. These are all slipping away rapidly. The party is over brother.
I know my guns and ammo that I bought 10 years ago and over the last decade did better than the markets overall, AND I had something tangible.
Remember the panic when people lost 1/2 of their assets and retirements in 2008 in a matter of days? I learned a long time ago to stop putting money into a fiat investment pyramid scheme...
The fallacy that we can just beat this debt crisis, and looming other problems... the problems are built in to the way our government operates. We depend on:
1. Oil. Read up on Peak Oil. It's a finite resource that is irreplaceable at the investment/return rate.
2. Manufacturing. Gone and hard to bring back. We've lost the infrastructure, and for complex global-political reasons we cannot compete with foreign markets in manufacturing. Companies can't pay American workers and consumers can't afford American manufacturing (in general - there are notable exceptions).
3. Political structure that is inherently defective once the social welfare programs are implemented because nobody will cut them because that's political suicide. We need only look at the currently divided landscape and petty infighting among our leaders.
We are fighting ourselves, human nature, and science/math. The greatest generation won wars because we could kill our way out. We lost wars because we could not, nor could we adapt to the way our enemies fought. Same is true now with the debt war. Sadly, the only solutions are 1) stop spending or 2) pay it back or 3) a combination. Sadly, we demonstrate every year we don't have the appetite to stop spending and are accumulating massive interest debt, and we also just don't have the money to substantially repay the debts. We can't bomb or negotiate our way out of this mess. And much of the world wants us to collapse... Nobody will make the tough cuts ... and we're in a death spiral. Refuse to see it. I don't care. Just giving my educated and experienced opinion.
As far as young people - I try to be optimistic. But remember that I'm part of the less than 1% of young men and women that served in the military. Sure, maybe another few percent volunteer or do other pay-it-forward activities. But let's be real. Contrast those few percentages that give back to society to the 1/2 of America that is on public assistance.... or the 'on the dole.'
PS - in the 5 minutes it took to write this, our National Debt accumulated another $10,000,000 ... http://www.defeatthedebt.com/understanding-the-national-debt/how-much-do-we-owe/
I have drifted, and know this is not a tutorial on investing or my theory of we are all doomed. So I will simply say now:
Take that money, buy a $700 AR, 10 mags for $100, and $200 in ammo. Put it away. You'll thank me.
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ny32182
Member
I see a difficult retirement in your future.
huntsman
Member
sure when you view the future through the Pollyanna prism of the past. If this thread has reveled anything it's that some think everything is hunky dory and we'll see glory days continue ad infinitum, while others view the economy in a state of collapse and so previous answers won't work, if this view is correct than it's not about return on investment it's return of investment and guns/ammo PM's are what I believe will work.
leadcounsel
member
deleted. off topic.
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burrhead
Member
This thread has really gone astray. Time for a moderator to close this mess.
Agreed.
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