Getbig Millionaires Advice on how to invest

[RAZA-BLADE]

For those millionaires out there, I need advice.  I am currently married and living in a moderate apartment paying rent.  We have no plans to have children, and feel no need to purchase a large home and are considering renting as long as possible as we can save and invest much more this way.  Our focus up to this point has been to invest agressively in my 401K, but now that we have no debt at all, I want to invest outside of the 401k.  I am a Canadian living in the US, so I don't know a whole lot about investing here.  Our goal is to reach retirement as young as possible, but I know its not smart to have all your eggs in one basket.  I have read about a roth IRA, and am familiar with mutual funds.  Is there anything you could suggest as to the best way to invest.

Bodybuilding related in that, when I retire I will be focusing on entering the masters Olympia. lol

[danielson]

Why are you renting instead of buying? Also, have you ever considered moving back to Canada to set a good example for all the Beaners who we want to get the fuk out of here?

[El Diablo Blanco]

For those millionaires out there, I need advice.  I am currently married and living in a moderate apartment paying rent.  We have no plans to have children, and feel no need to purchase a large home and are considering renting as long as possible as we can save and invest much more this way.  Our focus up to this point has been to invest agressively in my 401K, but now that we have no debt at all, I want to invest outside of the 401k.  I am a Canadian living in the US, so I don't know a whole lot about investing here.  Our goal is to reach retirement as young as possible, but I know its not smart to have all your eggs in one basket.  I have read about a roth IRA, and am familiar with mutual funds.  Is there anything you could suggest as to the best way to invest.

Bodybuilding related in that, when I retire I will be focusing on entering the masters Olympia. lol

401k is/was designed to be a supplemental retirement plan that most people ended up using 100% for retirement.  It is like eating only multivitamins and no food.
Trusting some high school graduate to manage you money is a shame.  Put a small percentage of your money into a 401k and invest the rest on your own.

[RAZA-BLADE]

401k is/was designed to be a supplemental retirement plan that most people ended up using 100% for retirement.  It is like eating only multivitamins and no food.
Trusting some high school graduate to manage you money is a shame.  Put a small percentage of your money into a 401k and invest the rest on your own.

Ok.  Where do I invest on my own?

[RAZA-BLADE]

Why are you renting instead of buying? Also, have you ever considered moving back to Canada to set a good example for all the Beaners who we want to get the fuk out of here?

Renting instead of buying can pay off.  I pay in rent less than one would pay for a moderate home in disposibles per month (ie. interest, insurance, maintenance, gas bills, electric bills, taxes, etc.)  The amount that home owner actually puts on the house principle per month, I will be investing and growing at a better rate then the house will be gaining value per year.

[danielson]

Renting instead of buying can pay off.  I pay in rent less than one would pay for a moderate home in disposibles per month (ie. interest, insurance, maintenance, gas bills, electric bills, taxes, etc.)  The amount that home owner actually puts on the house principle per month, I will be investing and growing at a better rate then the house will be gaining value per year.

You listen here you cowardly Canadian. You are a guest in our country and we don't need anymore renters, leave that to the Beaners who live 15 in an apartment. Now is a good time to buy a house.

[RAZA-BLADE]

You listen here you cowardly Canadian. You are a guest in our country and we don't need anymore renters, leave that to the Beaners who live 15 in an apartment. Now is a good time to buy a house.

haha you are right, it is a good time to buy a house.  However, I don't feel like it is a need for me right now.  I'd rather live moderately and retire early to your beautiful beaches!!! haha

[Les Grossman]

Renting instead of buying can pay off.  I pay in rent less than one would pay for a moderate home in disposibles per month (ie. interest, insurance, maintenance, gas bills, electric bills, taxes, etc.)  The amount that home owner actually puts on the house principle per month, I will be investing and growing at a better rate then the house will be gaining value per year.

Historically housing will return about 8% long term without factoring in tax credits. As the economy stabilizes and the foreclosure/short sale "renters" move back into the housing market you're going to see homes appreciate quite significantly in certain areas of the country (not back to 2005/2006 levels, but certainly gain back a good chunk of the 50% or more they've lost). Banks will see the shift and want a piece of the action, so don't be surprised if mortgage rates don't head back closer to 8-9%, with much tougher lending criteria and higher down payments. The banks will hold a large home inventory and will attempt to steer market forces to create an artificial  "buyers frenzy" to increase profit.

House values have stopped dropping and have essentially stabilized in most markets. More than 75% of American homeowners believe the value of their home will increase over the next year. These indicators apparently show that the housing market has hit bottom and the slow climb out has begun. The recovery won't be "V" shaped but will be a gradual "U".

The stock market is seeing decent gains, but is still quite volatile. Since you're young you can buy in cheap now and ride out the storm the next few years. Since the 401K is pre-tax, maximize your contributions if you can.

First off...get a good Financial Planner (not your local H&R Block dweeb).  I've been with mine almost 20 years and he has helped with my investing tremendously.  

[bigdumbbell]

go back to canada a buy a small apartment building across the way from detroit, michigan and rent apartments to beaners

[RAZA-BLADE]

Historically housing will return about 8% long term without factoring in tax credits. As the economy stabilizes and the foreclosure/short sale "renters" move back into the housing market you're going to see homes appreciate quite significantly in certain areas of the country (not back to 2005/2006 levels, but certainly gain back a good chunk of the 50% or more they've lost). Banks will see the shift and want a piece of the action, so don't be surprised if mortgage rates don't head back closer to 8-9%, with much tougher lending criteria and higher down payments. The banks will hold a large home inventory and will attempt to steer market forces to create an artificial  "buyers frenzy" to increase profit.

House values have stopped dropping and have essentially stabilized in most markets. More than 75% of American homeowners believe the value of their home will increase over the next year. These indicators apparently show that the housing market has hit bottom and the slow climb out has begun. The recovery won't be "V" shaped but will be a gradual "U".

The stock market is seeing decent gains, but is still quite volatile. Since you're young you can buy in cheap now and ride out the storm the next few years. Since the 401K is pre-tax, maximize your contributions if you can.

First off...get a good Financial Planner (not your local H&R Block dweeb).  I've been with mine almost 20 years and he has helped with my investing tremendously.  

Good advice.  Thank you.  Now its just trying to find a good finacial planner that will be the tall task.  Seems like so many of them are being busted constantly for stealing money.

[leadhead]

I would buy a modest house if I were you first. I only put enough money into my 401k and Roth to get the maximum company match and then invest the rest myself. The stock market is unstable presently but I still like investing in mutual funds/stocks. Just diversify and invest in quality companies if you're going to hold them for years. Another hint- Don't learn to trade penny stocks, it's one of my hobbies and I take alot of time I should be working to trade them .

[Whiskey]

Good advice.  Thank you.  Now its just trying to find a good finacial planner that will be the tall task.  Seems like so many of them are being busted constantly for stealing money.

Start reading books about investing,the economy and stock market.

Talk to people who invest regulary in the stock market, its not a secret world you d be surprised investors
are very open and I ll bet are willing to pass on decent advise.When you feel comfortable find out how to open an etrade account
and start buying up some quality blue chip stock like walmart.

The problem with financial planners most of the time they dont have your best interests (work on commission) also stay away from mutual funds
they charge too much in fees and charges and often underperfom the market anyway.

Start getting involved in your own finances and using your most important asset - your brain

Good luck

[RAZA-BLADE]

Start reading books about investing,the economy and stock market.

Talk to people who invest regulary in the stock market, its not a secret world you d be surprised investors
are very open and I ll bet are willing to pass on decent advise.When you feel comfortable find out how to open an etrade account
and start buying up some quality blue chip stock like walmart.

The problem with financial planners most of the time they dont have your best interests (work on commission) also stay away from mutual funds
they charge too much in fees and charges and often underperfom the market anyway.

Start getting involved in your own finances and using your most important asset - your brain

Good luck

Good advice.  I actually have an etrade account already, and it has performed quite well.  I've just been hesitant at putting large amounts of money in.  I'll do some more reading and consider going that route.

[Whiskey]

Good advice.  I actually have an etrade account already, and it has performed quite well.  I've just been hesitant at putting large amounts of money in.  I'll do some more reading and consider going that route.

Now is the time to be buying quality blue chip stock why? Because you get it at a discount.
Instead of thinking "shit im losing money and my portfolio is shrinking" turn it to your advantage and say
thats a good price im buying this company for today.

I know exactly where your coming from when you say your hesitant at putting large amounts of money in, im in the same boat
myself although I invest in the asx (australian stock exchange) that market has also be taking a hammering lately especially the mining and
energy sector but try to look through these short term fluctuations because if their quality companies thats all the really are "short term"
and the end result will be a good one.It depends on your time frame.I might be a bit biased because im more of a value investor (buying a good company
at a cheap price and holding it for a long time)

Anyway food for thought....

[RAZA-BLADE]

Now is the time to be buying quality blue chip stock why? Because you get it at a discount.
Instead of thinking "shit im losing money and my portfolio is shrinking" turn it to your advantage and say
thats a good price im buying this company for today.

I know exactly where your coming from when you say your hesitant at putting large amounts of money in, im in the same boat
myself although I invest in the asx (australian stock exchange) that market has also be taking a hammering lately especially the mining and
energy sector but try to look through these short term fluctuations because if their quality companies thats all the really are "short term"
and the end result will be a good one.It depends on your time frame.I might be a bit biased because im more of a value investor (buying a good company
at a cheap price and holding it for a long time)

Anyway food for thought....

You're right.  I am looking at investing long term.  I'm only 27 years old, so this is not something I'm looking to just get in and out to make a quick buck.  I've began looking into what you are suggesting, and I will give it a shot shortly.  Thanks.

[MindSpin]

I haven't read all of the thread so this might be redundant.  I would advise you to buy property.  It's a great time to buy...

[noworries]

simple....... real estate or Goodrum's new personalized Magic Stick dipped in Bee Pollen

[Whiskey]

You're right.  I am looking at investing long term.  I'm only 27 years old, so this is not something I'm looking to just get in and out to make a quick buck.  I've began looking into what you are suggesting, and I will give it a shot shortly.  Thanks.

Sounds like you have a good head for investing.

People think if they have a good education that they ll automatically be good at investing/trading, this is not true.
Intelligent investors have 3 important character traits

1. Willingness to learn
2. Discipline
3. Patience

If you can develop these then your well on your way to financial independence.

If you get a chance I would recommend buying a book called "The Intelligent investor" by Benjamin Graham.

Ben Graham is the father of value investing and a man truly ahead of his time, he also was the professor and idol
of warren buffett (most famous and wealthiest investor in history)

Anyway best of luck..

[hazbin]

silver will be hundreds of dollars per ounce in a couple years.

[stuntmovie]

I haven't had a chance to read all of the above yet, but my advice is somewhat simple.

INVEST IN NECESSITIES! Your own first! And then the necessities of others.

Your main necessity throughout your lifetime is a home of your own.

Renting is somewhat like the old serf days when you paid the king for your right to live on his property and that king alone decided how much you had to pay for that right each year. And sometimes you had to move because he demanded to many sheep or too many bushels of wheat.

I used to rent a beachfront house for $600 a month, but I decided to buy a small place one block from the beach with a 30 year mortgage of $300 a month.

Over the next few years those beach front houses were renting for $3,000+ a month and all my old renting surfing friends realized that they could now only afford to rent places that were 20+ miles from the beach.

And those houses/apartments that were 20+ miles from their beloved beach now cost them $1,200 to $1,800 a month to rent and were now priced so high that they couldn't afford to buy one of their own

But I lived most of my life in my own mortgaged abode less than 50 yards from one of the world's best beaches for $300 a month. (No sheep! No wheat!)

And then almost for free when that damn mortgage was paid off.

There's gotta be a lesson here someplace.

I suggest that you initially invest in what you decide are your personal necessities and then (and only when you can afford it) the necessities of the remaining world's population such as the basics of life ... food and fuel and living space.

The above is based on actual experience and is definitely not earth shattering advice .... but it is advice that is seldom taken.

[Trav]

Take my advices- investing is cyclical- spotting trends and getting in and out at the right times are the name of the game.  As a 25-35 y.o. male, you're in a prime position to identify the cool, new trends that are sure to be money makers down the line.  More than those 40+, who lack any idea of what's cool...

For examples:

Netflix is a genius idea- a whole new model for renting movies- that is now snowballing into a way to stream next to anything, for next to nothing, for the consumer AND for the company.  Stock is up HUGE in the last 24 months, far outpacing the industry and index, and will likely double again by the end of the year...  Get in now.

Ford is a company that I made a 338% return on in less than 12 months last year.  Bought around $2.30 a share and sold just shy of $8.00 around when GM went bankrupt and everybody got "iffy" on them making it.  Thought I'd wait till the stock hit $10, when it will enter the stock screeners of a wider array of investors, then get back into it- but positive sales hadn't occurred, and that was a priority for my "risk threshold".  Now, sales ARE positive, the products are much more competitive (or "way cooler"), and the top competitor Toyota is down due to the whole recall thing...  Good time to buy.

A couple more recent buys:  
Sirius Radio (Stern is staying, car sales are going up, there is NO competition)
Live Nation (merged with ticketmaster, no competition)

Get a Scottrade account and for a $500 minimum investment you can get $7. trades and all the investment info, analysis, and screeners that you'll ever need.

[RAZA-BLADE]

Take my advices- investing is cyclical- spotting trends and getting in and out at the right times are the name of the game.  As a 25-35 y.o. male, you're in a prime position to identify the cool, new trends that are sure to be money makers down the line.  More than those 40+, who lack any idea of what's cool...

For examples:

Netflix is a genius idea- a whole new model for renting movies- that is now snowballing into a way to stream next to anything, for next to nothing, for the consumer AND for the company.  Stock is up HUGE in the last 24 months, far outpacing the industry and index, and will likely double again by the end of the year...  Get in now.

Ford is a company that I made a 338% return on in less than 12 months last year.  Bought around $2.30 a share and sold just shy of $8.00 around when GM went bankrupt and everybody got "iffy" on them making it.  Thought I'd wait till the stock hit $10, when it will enter the stock screeners of a wider array of investors, then get back into it- but positive sales hadn't occurred, and that was a priority for my "risk threshold".  Now, sales ARE positive, the products are much more competitive (or "way cooler"), and the top competitor Toyota is down due to the whole recall thing...  Good time to buy.

A couple more recent buys:  
Sirius Radio (Stern is staying, car sales are going up, there is NO competition)
Live Nation (merged with ticketmaster, no competition)

Get a Scottrade account and for a $500 minimum investment you can get $7. trades and all the investment info, analysis, and screeners that you'll ever need.

Great advices...Thanks

[funk51]

For those millionaires out there, I need advice.  I am currently married and living in a moderate apartment paying rent.  We have no plans to have children, and feel no need to purchase a large home and are considering renting as long as possible as we can save and invest much more this way.  Our focus up to this point has been to invest agressively in my 401K, but now that we have no debt at all, I want to invest outside of the 401k.  I am a Canadian living in the US, so I don't know a whole lot about investing here.  Our goal is to reach retirement as young as possible, but I know its not smart to have all your eggs in one basket.  I have read about a roth IRA, and am familiar with mutual funds.  Is there anything you could suggest as to the best way to invest.

Bodybuilding related in that, when I retire I will be focusing on entering the masters Olympia. lol

after the divorce she'll get half your shit.

[bigdumbbell]

I haven't read all of the thread so this might be redundant.  I would advise you to buy property.  It's a great time to buy...

qft  baltimore, detroit, dearborn   lol

[240 is Back]

do the opposite of whatever they're telling you on CNBC.