Best long term investment vehicle for my niece.

[nl3004.kind]

@retro, you are playing at such a higher level than i... i just bought some stocks for long term investments... bought them low last year or so, holding on until they actually start making money... blue chips mostly, but other than gm (which f---ed me) they are making money for me right now... hopefully they will be worthwhile in the coming years...

 

[guy incognito]

The sounds of a stock that will return boku bucks sounds too good to be true. If the stock will return 20% of the value in dividends within a year AND keep going up in price, why isn't everyone and their brother buying it? Also how could that possibly be sustainable long term?

And how was the housing market not predictable? The idea that a commodity could rise in price faster than wages and other things without actually having a valid reason (like houses and/or land becoming more scarce raising their relative value) makes no sense. If house prices rise faster than wages the price of a house would eventually just become some abstract number that no one would actually be able to pay. I mean if inflation is 3%, and houses rise 10%, what happens in 100 years? Houses will cost some astronomical number that you couldn't afford. Mortgages would need to be multi-generational to even be paid off. Anyone with even a rudimentary understanding of economics should have seen how this was unsustainable and didn't make sense.

I don't have a ton to invest. Only like $50. It's not really a major investment, but with savings bonds only gaining 0.6% a year I would rather just give cash. 0.6% is retarded. I just want to use the money I would normally spend on garbage for her xmas present. She doesn't need anymore toys or anything, and probably wouldn't even notice another $50 in shit. She will however notice the culmination of 18 years of bday and xmas gifts when she gets it all in a lump sum.

Edit: I don't want anyone to think i'm being an asshole or anything. I appreciate everyones input. The stock advice just sounds too good to be true on first glance. And a bunch of people DID predict the housing crash. They were laughed at. In hind sight though it is painfully obvious how the housing market was unsustainable.

 

[Johnny Retro]

Yes, after the fact its so clear to see. Also the 2nd and 3rd mortgages didnt help at all either. And high dividend yielding stocks is a real thing.
anyway, not trying to be an asshole but 50 dollars isnt going to get you far at all. maybe buy a 50 dollar silver coin. It takes money to make money man

 

[nl3004.kind]

silver is silver is silver, same same with gold... the dude with the idea that was something like "if you were a kid and got a sack full of gold, wouldn't you think you got some treasure?" that is a bada-- idea, and bears some serious thought... also remember that the money you can invest now is not the same level as it will be in the years to come... 50 bucks isn't a lot, but if you start small but consistent, you'll have a tidy little nest egg... good luck!

 

[budsmoker87]

johnny retro's talk about investing in stocks has bumped my interests enough to get me studying a lot more...i'm still saving in order to build a sufficient enough bankroll to trade with...but i've been following 15 stocks for the past 2-3 months, sorta pretending in my mind what I'd "bought" and tracking it...the homework part can be slow but i guess you need to want to learn- learn everything- the company's history, the employee satisfaction, their potential for growth, what might affect them negatively....

idk yet, but i know one thing- wealth isn't money saved....it's money invested...

any videos/books/etc you'd like to recommend me johnny? here...or a PM, works

 

[budsmoker87]

idk, i see what johnny's saying here....$50 to start does sound extremely low, even for day-trading penny stocks....dissociate emotion from the money, don't think of it as cash that you worked hard for, that could skew your judgement

 

[Johnny Retro]

sent ya a pm bud

 

[guy incognito]

I think you guys are all missing my intent. I do not want to start investing or anything. I have my own money and my own investments. What I want is to use the $50 I would normally spend on some xmas gift for my niece on something like a government bond. Something that can be purchased for $50, and can then be forgotten about until she is 18. I don't want to actively manage anything, nor am I out to make a huge profit. I just think it is retarded to buy a bond when the interest is so low. It will only gain 0.6% per year for the next 20 years. After 20 years it will be adjusted to the face value of the bond. So the value of the $100 bond (purchased for $50) will remain close to $50 for the entire 20 year maturation period. Again, this is retarded. She won't get the full value of the bond until she is almost 25 years old, at which point she shouldn't be in need of the money. She will be in need of it when she is 18 imo.

So a savings bond is out of the question. I would rather start her an actual savings account and put the money in that for her. That doesn't seem like a good option either as it won't even keep up with inflation.

 

[puffntuff]

Guy go with the woodmen of America annuity. I think that is your best bet.

 

[NoDrama]

I think you guys are all missing my intent. I do not want to start investing or anything. I have my own money and my own investments. What I want is to use the $50 I would normally spend on some xmas gift for my niece on something like a government bond. Something that can be purchased for $50, and can then be forgotten about until she is 18. I don't want to actively manage anything, nor am I out to make a huge profit. I just think it is retarded to buy a bond when the interest is so low. It will only gain 0.6% per year for the next 20 years. After 20 years it will be adjusted to the face value of the bond. So the value of the $100 bond (purchased for $50) will remain close to $50 for the entire 20 year maturation period. Again, this is retarded. She won't get the full value of the bond until she is almost 25 years old, at which point she shouldn't be in need of the money. She will be in need of it when she is 18 imo.

So a savings bond is out of the question. I would rather start her an actual savings account and put the money in that for her. That doesn't seem like a good option either as it won't even keep up with inflation.

Silver, only $35 or so for an American Silver Eagle. There is more refined gold than there is silver. shhhh its a secret. USGS says silver will basically be extinct as a metal by 2035. Silver is indispensable to life as we know it. Almost no electrical device can exist without silver. The last time gold made all time highs was 1981, gold has just made all new all time highs the last 2 years. in 1981 silvers all time high was $50. Inflation adjusted that would be the equivalent of $116.50. Over the last 6,000 years Silver has historically traded at a rate of 15 to 1 in gold. In other words 15 ounces of silver could get you 1 ounce of gold. Today that ratio is 50 to 1. All things eventually come back to the mean, so silver at a ratio of 15:1 gold would currently put silvers price at $92.33. Precious metals are a great hedge against inflation, almost always holding their value throughout time. You can hold it in your hand, Fell the weight. Also makes a very distinct ringing sound when dropped on a hard surface and it is the most reflective of metals. Some call gold drops of the sun and silver tears of the moon. The spot price of silver rose 72% in the last year alone. The only commodity that did better was cotton at 102%.

 

[nl3004.kind]

and seriously who wants to sit on a frickin bale of cotton for years and years???

 

[NoDrama]

and seriously who wants to sit on a frickin bale of cotton for years and years???

When trading Commodities, you usually do not take possession.

 

[nl3004.kind]

@drama: i know that man, that's what makes it so funny... could you imagine the look on someones face if the farmer came up and was like, "ok, where do you want me to put the pork bellies" or like "where do you want all this orange juice?" i'd be laughing my ass off... and then cooking cooking cooking...