Help me invest?

[MrNick]

I just paid one huge debt down, 2000 left on credit cards and 600 on my car. I'll have the car paid off in 3 months max and the credit cards by next December. So starting next week I'll start to have some extra money in my pocket 400-500 a month and I'm looking to invest. I know gold and silver are great, so I'm looking to invest 2,000 in those, but should I go for that first or try to invest in oil first?

My next question is, I know I need to get out of the dollar and into foreign markets BUT since i'll have to spend Dollars, should I invest in Oil using scottrade and buy physical gold and silver and then the rest of my investment's go through EuroPac? I'm hoping to have around 4-5,000 to invest this next year even though that probably won't make a difference in the end.

 

[eric_cartman]

since you're only investing a few thousand, i would just stick with physical gold (and silver if you can find it for a good price).

 

[DFF]

I like Ameritrade better than Scottrade...regarding not making a difference, believe me, if the dam of counterfeit Fed money bursts, $4500 in gold/silver/oil will make a SHITLOAD of difference.

 

[MrNick]

If I invest in oil, can I do that on the US market, maybe USO or DXO?

 

[DFF]

Yes. And I like USO better.

 

[Frederick B]

I'm just a clerk in a home improvement store, who got out of debt (simular to yours) just about a year ago. and I do not earn a lot of money

As a "Pauler" I bought a couple gold coins, but I mainly keep enough FRN's in a savings account for a rainy day, and the rest in I-Bonds.

With I-Bonds...Due to deflation, your interest could possibly be lower after May 2009... but may possibly increase back again in November 2009. (Wish I knew for sure)

 

[tremendoustie]

I just paid one huge debt down, 2000 left on credit cards and 600 on my car. I'll have the car paid off in 3 months max and the credit cards by next December. So starting next week I'll start to have some extra money in my pocket 400-500 a month and I'm looking to invest. I know gold and silver are great, so I'm looking to invest 2,000 in those, but should I go for that first or try to invest in oil first?

My next question is, I know I need to get out of the dollar and into foreign markets BUT since i'll have to spend Dollars, should I invest in Oil using scottrade and buy physical gold and silver and then the rest of my investment's go through EuroPac? I'm hoping to have around 4-5,000 to invest this next year even though that probably won't make a difference in the end.

Buy some extra non perishable food for your pantry, and spend the rest on paying the credit cards down faster. Not kidding at all, get those nasty buggers over with, then we'll talk about gold+silver, etc.

Think about it this way, it's like a guaranteed return of whatever you're paying in interest, which is almost certainly over 10%, might be as much as 20%. I strongly recommend paying them off as soon as you possibly can.

 

[MrNick]

My worry is, Gold,Silver and Oil might sky rocket by the time I pay off the credit cards. But then again If I just paid them off first, I could have it done by the end of March and my car would be paid off too.

 

[Matt Collins]

I just paid one huge debt down, 2000 left on credit cards and 600 on my car. I'll have the car paid off in 3 months max and the credit cards by next December. So starting next week I'll start to have some extra money in my pocket 400-500 a month and I'm looking to invest.

Follow Dave Ramsey's financial plan. And then follow Paul Winkler's investment advice. I've run the radio shows for both of these guys based out of Nashville:


http://daveramsey.com/
http://paulwinkler.net/

I know gold and silver are great, so I'm looking to invest 2,000 in those, but should I go for that first or try to invest in oil first?

None of the above are investments; they are commodities which is akin to gambling.

An investment is in something that will grow or producer such as a company. Buying individual stock is not a good idea. A broad-based well-diversified investment portfolio in the proper asset categories over the long-run is a guaranteed way to create wealth.

should I invest in Oil using scottrade and buy physical gold and silver and then the rest of my investment's go through EuroPac? I'm hoping to have around 4-5,000 to invest this next year even though that probably won't make a difference in the end.

Day trading is also a bad idea. People who do it over the long run lose more money than they gain. It's gambling and remember the gambler always loses over the long run.

 

[Matt Collins]

since you're only investing a few thousand, i would just stick with physical gold (and silver if you can find it for a good price).

Again, gold and silver are commodities, not investments. Putting money in there is either gambling, or possibly so you don't lose money over the long run. But it won't create wealth and is not investing.

 

[DFF]

Gambling my ass. You put money in ANYTHING that you don't consider "gambling" and I'll allocate mine strictly in commodities. Then at the end of 09' we'll compare portfolios. I BET yours will look like shit and mine like spring flowers.

 

[tremendoustie]

My worry is, Gold,Silver and Oil might sky rocket by the time I pay off the credit cards. But then again If I just paid them off first, I could have it done by the end of March and my car would be paid off too.

I very strongly recommend this. I doubt they'll skyrocket before then, and even if they do, you'll be able to invest a lot more money at that point, since you won't have to worry about payments on debt.

The top investors in the world would kill for a 20% return, and so would I (well, not literally of course). You've got it guaranteed, take the opportunity. It's sound advice in any market, especially with high interest debt like yours.

If you want to make yourself feel better, and be hedged against a total monetary collapse, buy a few oz of silver first (but, just maybe $100 worth or so) -- I really recommend losing the debt asap.

 

[Matt Collins]

Gambling my ass. You put money in ANYTHING that you don't consider "gambling" and I'll allocate mine strictly in commodities. Then at the end of 09' we'll compare portfolios. I BET yours will look like shit and mine like spring flowers.

Investing is for the long term, not the short term. Over 40 years if you want to compare portfolios, I guarantee that I'll win.

Short of nuclear war or an asteroid event, or some other major catastrophe (larger than WWI and WWII combined), the economy WILL grow over the long run; it always has.

 

[ILUVRP]

When I was going to econ classes the first thing we learned was " an investment is a return on your money and a return of your money, everything else is a speculation "

Now days the return on money is about zero or less if you throw in inflation.

I ONLY BUY GOLD.................................... BUY 1/20 OZ, 1/10 OZ COINS OR CREDIT SUISSE GRAMM BARS ON EBAY.....................

 

[Zippyjuan]

If you want to get yourself into a better position for the future, you will first want to get rid of your debt. Especially that credit card. After that is done, stock away enough funds to be able to pay all of your bills for at least six to eight months to cushion you if you were for some reason unable to work. After that you can start to gamble with your money if you want.

 

[MrNick]

If you want to get yourself into a better position for the future, you will first want to get rid of your debt. Especially that credit card. After that is done, stock away enough funds to be able to pay all of your bills for at least six to eight months to cushion you if you were for some reason unable to work. After that you can start to gamble with your money if you want.

I completely understand this is correct under normal circumstances but with the next few years being very questionable, my worry is by the time I pay off my debts in the next few month's it'll be too late to invest. I don't know how bad things will get nor how fast, I worry too much that it'll happen to quickly and I'll have waited too long. Now if this plays out for a few years, I'll definitely have enough time to invest and have my debts paid off.

I only pay for credit cards, car payment and gas, my parents pay for everything else. I make about 1,000 a month after taxes, so I could pay off all the debt by mid to late March and then earn 1,000 a month without any bills assuming things to get too bad to quickly. I know where I work our sales are doing very very bad. I work for a small business and they used to easily do 1.5 million a year, but our sales are down 35 percent since last year. So holding onto the job for over a year may be hard, I just know my boss will do everything in his power to keep me and everyone employed, he's a great guy but there is only so much he can do.

 

[No1ButPaul08]

Day trading is also a bad idea. People who do it over the long run lose more money than they gain. It's gambling and remember the gambler always loses over the long run.

The gambler always loses over the long run? My Pokerstars account disagrees. (not killing them by any means, but definetlely a long run winner) Anyway, there are 2 forms of gambling. The first is against the casino, with slots and games like roulette, blackjack, craps, state lotteries, etc. In these games, the casino has a mathematical advantage, and do always win in the long run. Over the years, players have found ways to beat the casino in these games, however, the games are altered or the players are banned to ensure the casino has an advantage.

The other form of gambling involves gambling against people. This includes sports betting, fantasy sports, horse racing, poker, and the stock market. Often, a third party, usually a casino, is involved to facillitate the transaction, and of course, receives a fee to do so. However, after the house rake (or broker commision, trading fees) is taken out, the winners and losers in the long run are decided by the skill level of the players in that game. In the long run, excellent poker players like Doyle Brunson and Howard Lederer become millionaires. The same is true for any these people vs. people forms of gambling, these games can be beat. However, because of the house rake, many of the above average players do end up losing run, but the best find a way to beat the rake and the players.

That being said, most people probably shouldn't become day traders, i would imagine it's very hard to be successful. But day traders aren't automatic losers because it's gambling, couldn't be further from the truth. They're losers because they're bad day traders. Just like a bad poker player loses over the long run, because well, they're a bad poker player. Day trading is a little different in that you're playing against the whole market, not just other day traders, but surely one can be a succussful day trader, although i don't have the first clue about it.

 

[Matt Collins]

I completely understand this is correct under normal circumstances but with the next few years being very questionable, my worry is by the time I pay off my debts in the next few month's it'll be too late to invest.

Why is that?

I work for a small business and they used to easily do 1.5 million a year, but our sales are down 35 percent since last year. So holding onto the job for over a year may be hard, I just know my boss will do everything in his power to keep me and everyone employed, he's a great guy but there is only so much he can do.

All the more reason for you to be out of debt ASAP so that if you get the axe you won't be forced to make payments.

 

[Matt Collins]

In the long run, excellent poker players like Doyle Brunson and Howard Lederer become millionaires. The same is true for any these people vs. people forms of gambling, these games can be beat. However, because of the house rake, many of the above average players do end up losing run, but the best find a way to beat the rake and the players.

That's a social skill however. No one can really apply or equate that to investing.

That being said, most people probably shouldn't become day traders, i would imagine it's very hard to be successful. But day traders aren't automatic losers because it's gambling, couldn't be further from the truth. They're losers because they're bad day traders. Just like a bad poker player loses over the long run, because well, they're a bad poker player. Day trading is a little different in that you're playing against the whole market, not just other day traders, but surely one can be a succussful day trader, although i don't have the first clue about it.

Over the long run day traders will lose money, or at least not make as much as they should if they were to properly invest for the longterm..

 

[tremendoustie]

I completely understand this is correct under normal circumstances but with the next few years being very questionable, my worry is by the time I pay off my debts in the next few month's it'll be too late to invest. I don't know how bad things will get nor how fast, I worry too much that it'll happen to quickly and I'll have waited too long. Now if this plays out for a few years, I'll definitely have enough time to invest and have my debts paid off.

I only pay for credit cards, car payment and gas, my parents pay for everything else. I make about 1,000 a month after taxes, so I could pay off all the debt by mid to late March and then earn 1,000 a month without any bills assuming things to get too bad to quickly. I know where I work our sales are doing very very bad. I work for a small business and they used to easily do 1.5 million a year, but our sales are down 35 percent since last year. So holding onto the job for over a year may be hard, I just know my boss will do everything in his power to keep me and everyone employed, he's a great guy but there is only so much he can do.

Then the last thing you want is to be out of a job with credit card debt.