Where to invest money?

[tyler811]

Title says it all.

Time is not very important I can leave it in as long as I have too.

CD's? What are they paying? Mutuals? Will I see return this year? Money Markets? GASP Stocks?

Any help would be great. Thanks

 

[Vette73]

WAFFLES!!!






But really US stocks. very low and most REALLY bad ones have hit bottom and/or are not around anymore.

 

[mundane]

I don't think the market has hit bottom yet, but I tend to be more of a pessimist - an optimist is rarely pleasantly surprised

 

[ivan2]

index fund.

 

[chuckywang]

If you had purchased $1,000 of Delta Air Lines stock one year ago, you would have $49 left. With Fannie Mae , you would have $2.50 left of the original $1,000. With AIG, you would have less than $15 left.

But, if you had purchased $1,000 worth of beer one year ago, drunk all of the beer, then turned in the cans for the aluminum recycling REFUND, you would have $214 cash.

 

[Modular]

Originally posted by: ivan2
index fund.

Lemme guess, you're over 50?

Get some actively managed funds that are well diversified and ... Profit!

Investing is a long term thing, so if you can actually leave the money there for 5-10 years, you'll be fine.

 

[Kirby]

I think most CDs are around 4 or 5 percent.

 

[buck]

Orange Juice.

 

[Cattlegod]

national city has a promo - 4% money market savings on a new account with 5k opening deposit.

Otherwise pick 5 diversified and strong stocks and pick them up. wait it out a year and you will probably see good gains.

 

[Injury]

Originally posted by: chuckywang
If you had purchased $1,000 of Delta Air Lines stock one year ago, you would have $49 left. With Fannie Mae , you would have $2.50 left of the original $1,000. With AIG, you would have less than $15 left.

But, if you had purchased $1,000 worth of beer one year ago, drunk all of the beer, then turned in the cans for the aluminum recycling REFUND, you would have $214 cash.

No.

This is wrong on very many levels.

Assuming you live in one of the states that gives a 5 cent refund on cans, first off the 5 cents isn't a freebie for recycling, it's a refund on a DEPOSIT. So ideally you're investing in the cans to get the cost of them back. By the time you return them you'll have some piss down the drain from all the beer and you'll have broken even from getting refunded on the price of cans.

Assuming you think this because you are going to recycle the cans, then you should know depending on the size and thickness of the cans, 1 pound of aluminum is about 25-35 cans. 1lb of used beverage cans (UBC) sells for anywhere from 30-60 cents depending on where you take them... unless you're going to do part of the work of shredding, cleaning, and baling the cans yourself. Even at the max of 60 cents, you would need about 350 pounds of cans to get $214. Which means that even at the max of 35 cans per pound, you'd need to find beer at 12 cents a can to get $214. Even the cheap stuff usually doesn't go for less than 50 cents a can meaning that (again assuming the max amounts here) $1000 of beer would net you about $34.

Now, $34 is still pretty good compared to the $2.50 from FM and the $15 from AIG, but you're forgetting that these are only the prices of your stock if you decide to cash out. Once you recycle those cans you have $34 in hand and a lot of piss down the drain. With the stocks you may sure be in a high-risk situation but 10 years from now the company could bounce back and you could instantly be back to your original investment of $1000. Or you could have $34 worth of more beer and a drinking problem.



PS: If you know a beer that sells for 12 cents a can you could probably make more than $214 by selling it at 200% markup at college campuses around the nation. They might even let you keep the cans. Now THAT would be an investment.

PPS: You're welcome to do your own research and find better numbers here, but I don't think you're going to get too much close to $214. Feel free to correct my math if it is wrong.

 

[Drakkon]

Originally posted by: Injury

Originally posted by: chuckywang
If you had purchased $1,000 of Delta Air Lines stock one year ago, you would have $49 left. With Fannie Mae , you would have $2.50 left of the original $1,000. With AIG, you would have less than $15 left.

But, if you had purchased $1,000 worth of beer one year ago, drunk all of the beer, then turned in the cans for the aluminum recycling REFUND, you would have $214 cash.

No.

This is wrong on very many levels.

edit with details coming.

You do realize its a joke right? one of those email spams thats been going around lately...

 

[Injury]

Originally posted by: Drakkon

Originally posted by: Injury

Originally posted by: chuckywang
If you had purchased $1,000 of Delta Air Lines stock one year ago, you would have $49 left. With Fannie Mae , you would have $2.50 left of the original $1,000. With AIG, you would have less than $15 left.

But, if you had purchased $1,000 worth of beer one year ago, drunk all of the beer, then turned in the cans for the aluminum recycling REFUND, you would have $214 cash.

No.

This is wrong on very many levels.

edit with details coming.

You do realize its a joke right? one of those email spams thats been going around lately...

Yes, I realize that, but it could still be a little more accurate and show the point.

 

[UglyCasanova]

Emerging markets. South America. If time is not an option I'm assuming you are young. Take risks, get (potentially) large payouts. If you lose out, well, you have time to make it back up.

 

[DisgruntledVirus]

Originally posted by: Drakkon

Originally posted by: Injury

Originally posted by: chuckywang
If you had purchased $1,000 of Delta Air Lines stock one year ago, you would have $49 left. With Fannie Mae , you would have $2.50 left of the original $1,000. With AIG, you would have less than $15 left.

But, if you had purchased $1,000 worth of beer one year ago, drunk all of the beer, then turned in the cans for the aluminum recycling REFUND, you would have $214 cash.

No.

This is wrong on very many levels.

edit with details coming.

You do realize its a joke right? one of those email spams thats been going around lately...

He still needs to DIAF for posting it.

There is a special place in hell reserved just for people who post/forward/IM/PM/or any other form of communicating this joke.

 

[PhoenixOrion]

US Domestic Stocks.

Leveraged buy using wide scales on some beaten-down blue chip, bellwether stocks or some unknown small caps with good cashflow and of course need to have innovative products/services.

 

[ObiDon]

Originally posted by: Marlin1975
WAFFLES!!!

i've invested my life savings in pumpkins. they've been going up the entire month of october!!!
i have a feeling that they'll peak sometime in november...

edit -- darn italics...

 

[ivan2]

Originally posted by: Modular

Originally posted by: ivan2
index fund.

Lemme guess, you're over 50?

Get some actively managed funds that are well diversified and ... Profit!

Investing is a long term thing, so if you can actually leave the money there for 5-10 years, you'll be fine.

nah, that's what I did when I donno wtf I was doing and I still hold about 25% index fund in my portfolio to fall back on.

now I long individual stocks and use about 10% of my funds for high risk option tradings to par the losses.

 

[Modular]

Gotcha, but you have to realize that there are many managed funds out there that have less risk and easily outperform index funds. You just have to do the research.

 

[Special K]

Originally posted by: Modular
Gotcha, but you have to realize that there are many managed funds out there that have less risk and easily outperform index funds. You just have to do the research.

Right, the trouble is picking them consistently and knowing in advance which ones are going to beat their benchmark index in the long run. The majority of actively-managed funds fail to beat their benchmark index in the long run after all expenses are taken into account.

Also, many funds that perform great for 1-2 years go on to dramatically underperform the market in subsequent years. Survivorship bias also comes into play, as the results of poorly-performing funds that were closed down or merged into other funds are often not shown to new investors. Fund companies may also create several "incubator" funds to see which idea takes off. They will then close the funds that performed poorly without advertising this data to the public, and then advertise the amazing results of the one fund that did perform well. Of course, the amazing performance they advertise was during a period in which the fund was not open to the public, so no average investor was actually able to obtain those returns.

After reading The Boglehead's Guide to Investing and A Random Walk Down Wall Street, I am convinced that indexing is the way to go. There is way too much misleading and plain wrong information out there to be able to consistently pick winning actively-mananged funds. Most people who claim to have some special insight into what "hot" funds to buy end up being terribly wrong or are simply trying to make a quick buck by selling newsletters to gullible investors.

I am still a young investor so my opinion may change over time, but I believe the above 2 books make a very strong case for passive investing.

 

[chuckywang]

Originally posted by: DisgruntledVirus

Originally posted by: Drakkon

Originally posted by: Injury

Originally posted by: chuckywang
If you had purchased $1,000 of Delta Air Lines stock one year ago, you would have $49 left. With Fannie Mae , you would have $2.50 left of the original $1,000. With AIG, you would have less than $15 left.

But, if you had purchased $1,000 worth of beer one year ago, drunk all of the beer, then turned in the cans for the aluminum recycling REFUND, you would have $214 cash.

No.

This is wrong on very many levels.

edit with details coming.

You do realize its a joke right? one of those email spams thats been going around lately...

He still needs to DIAF for posting it.

There is a special place in hell reserved just for people who post/forward/IM/PM/or any other form of communicating this joke.

WHY SO SRS?

 

[chuckywang]

Originally posted by: Injury

Originally posted by: chuckywang
If you had purchased $1,000 of Delta Air Lines stock one year ago, you would have $49 left. With Fannie Mae , you would have $2.50 left of the original $1,000. With AIG, you would have less than $15 left.

But, if you had purchased $1,000 worth of beer one year ago, drunk all of the beer, then turned in the cans for the aluminum recycling REFUND, you would have $214 cash.

No.

This is wrong on very many levels.

Assuming you live in one of the states that gives a 5 cent refund on cans, first off the 5 cents isn't a freebie for recycling, it's a refund on a DEPOSIT. So ideally you're investing in the cans to get the cost of them back. By the time you return them you'll have some piss down the drain from all the beer and you'll have broken even from getting refunded on the price of cans.

Assuming you think this because you are going to recycle the cans, then you should know depending on the size and thickness of the cans, 1 pound of aluminum is about 25-35 cans. 1lb of used beverage cans (UBC) sells for anywhere from 30-60 cents depending on where you take them... unless you're going to do part of the work of shredding, cleaning, and baling the cans yourself. Even at the max of 60 cents, you would need about 350 pounds of cans to get $214. Which means that even at the max of 35 cans per pound, you'd need to find beer at 12 cents a can to get $214. Even the cheap stuff usually doesn't go for less than 50 cents a can meaning that (again assuming the max amounts here) $1000 of beer would net you about $34.

Now, $34 is still pretty good compared to the $2.50 from FM and the $15 from AIG, but you're forgetting that these are only the prices of your stock if you decide to cash out. Once you recycle those cans you have $34 in hand and a lot of piss down the drain. With the stocks you may sure be in a high-risk situation but 10 years from now the company could bounce back and you could instantly be back to your original investment of $1000. Or you could have $34 worth of more beer and a drinking problem.



PS: If you know a beer that sells for 12 cents a can you could probably make more than $214 by selling it at 200% markup at college campuses around the nation. They might even let you keep the cans. Now THAT would be an investment.

PPS: You're welcome to do your own research and find better numbers here, but I don't think you're going to get too much close to $214. Feel free to correct my math if it is wrong.

Let me start with the part where you state you can get $34 worth for the cans. So let's take that as the truth. You have $34, but then you're saying it's not better than the $15 you have from AIG since AIG could bounce back? WRONG! You can use the $34 to buy AIG stocks now and when it does bounce back, you would have twice as much than if you had invested $1000 in AIG from before.

 

[Injury]

Originally posted by: chuckywang

Originally posted by: Injury

Originally posted by: chuckywang
If you had purchased $1,000 of Delta Air Lines stock one year ago, you would have $49 left. With Fannie Mae , you would have $2.50 left of the original $1,000. With AIG, you would have less than $15 left.

But, if you had purchased $1,000 worth of beer one year ago, drunk all of the beer, then turned in the cans for the aluminum recycling REFUND, you would have $214 cash.

No.

This is wrong on very many levels.

Assuming you live in one of the states that gives a 5 cent refund on cans, first off the 5 cents isn't a freebie for recycling, it's a refund on a DEPOSIT. So ideally you're investing in the cans to get the cost of them back. By the time you return them you'll have some piss down the drain from all the beer and you'll have broken even from getting refunded on the price of cans.

Assuming you think this because you are going to recycle the cans, then you should know depending on the size and thickness of the cans, 1 pound of aluminum is about 25-35 cans. 1lb of used beverage cans (UBC) sells for anywhere from 30-60 cents depending on where you take them... unless you're going to do part of the work of shredding, cleaning, and baling the cans yourself. Even at the max of 60 cents, you would need about 350 pounds of cans to get $214. Which means that even at the max of 35 cans per pound, you'd need to find beer at 12 cents a can to get $214. Even the cheap stuff usually doesn't go for less than 50 cents a can meaning that (again assuming the max amounts here) $1000 of beer would net you about $34.

Now, $34 is still pretty good compared to the $2.50 from FM and the $15 from AIG, but you're forgetting that these are only the prices of your stock if you decide to cash out. Once you recycle those cans you have $34 in hand and a lot of piss down the drain. With the stocks you may sure be in a high-risk situation but 10 years from now the company could bounce back and you could instantly be back to your original investment of $1000. Or you could have $34 worth of more beer and a drinking problem.



PS: If you know a beer that sells for 12 cents a can you could probably make more than $214 by selling it at 200% markup at college campuses around the nation. They might even let you keep the cans. Now THAT would be an investment.

PPS: You're welcome to do your own research and find better numbers here, but I don't think you're going to get too much close to $214. Feel free to correct my math if it is wrong.

Let me start with the part where you state you can get $34 worth for the cans. So let's take that as the truth. You have $34, but then you're saying it's not better than the $15 you have from AIG since AIG could bounce back? WRONG! You can use the $34 to buy AIG stocks now and when it does bounce back, you would have twice as much than if you had invested $1000 in AIG from before.

Well perhaps you could also use all the money you get from the sale of the stocks 10 years down the road to invest in a time machine... because if we're talking about buying $1000 worth of beer or $1000 worth of stocks a year ago then there would be no possible way to know the value of the stocks this time last year. If you could see far enough into the future to know that a company's stock would drop that much why would you buy it in the first place?

Additionally, you must be able to find someone willing to sell their shares at that price in order to be able to buy it. Shares of a company are a limited item, and while some companies have a surplus of people willing to ditch them, I think that anyone with half a brain could tell you that if their stock went from $1000 to $15 they wouldn't waste the time and fees associated with selling it and they'd rather risk losing the last $15 on the chance that their money could come back vs the chance that the company goes under. I mean, if you've lost $985 of your investment, what the hell would you WANT to cash out for at that point?

I get that you're (hopefully!) just joking around, but I figure if the guy is asking a serious question we can at least try to maintain some level of sense in the thread... even though this IS ATOT haha

 

[bctbct]

Online CDS 4% range is a good return these days.

 

[speg]

With the price falling on almost every stock in the past 3 months, I would like at some dividend paying stocks whose yield is now sky high... (ie 10%+) There are still some solid companies out there that will be paying out for a long time to come, and now is the perfect time to pick them up.

 

[jpeyton]

AMD