quote:

Originally posted by VBVAGUY:
Silver. God Bless

“Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants – but debt is the money of slaves.” Norm Franz

David, we are going into an economic scenario that cash will be king . Your rental property will need to be protected from rent non payment or partial payment. Your fixed carry costs on your rentals ie real estate taxes and insurance will need a cash cushion . West Texas intermediate oil today closed at -$37 per barrel, that minus sign is not a typo.

We just bought a house and need to raise some capital for a few projects. I’ll give you 3% on a 5 year note. Beats the hell out of CD rates!



-Rob

What would I invest in?

Consider what you would earn on a "safe" investment vs what you are paying in interest on the rentals. I would consider retiring that debt then banking the increased cash flow.

20,000 barrels of oil.

I was thinking about a Nemo Omen with a Nightforce Beast...

Would you have any property loans of some kind that this can be applied to as principal? Not the most exiting thing if you still have one, but not having one sooner would be nothing short of spectacular.

That or you could shop for a project Viper to fill up all of your spare time. Listening to a V10 on the way to work would never get old.

Low or no fee index fund. Not sexy, but reliable.

These are the funds where they don't buy and sell - buy it and forget it. Fees are almost nothing.

Me ? I'd stick it in a safe deposit box.

$11,000.00 is pretty much nothing these days.

but then I do not have 36 months of bill paying money in the bank, in case health or income issue's come up.

I have close to no health insurance , again if health issue's come up.

Mine is a one income home. so , no back up.

in my mind "investing" is gambling, and you know what they say; never, ever gamble with money you can't afford to lose.

ESPECIALLY when you are letting others role the dice for you

This message has been edited. Last edited by: bendable,

quote:

Originally posted by lkdr1989:
Before you start looking at investments:

Do you have any debt? If so, put some of your $11k toward it.

If no debt, and you're quite a few years from retirement, put some of the money into your IRA or up your 401k contributions.

If you have access to funding a HSA, max out your contributions; you can usually invest in mutual funds through your HSA and if you don't need to tap it, imagine it as a medical IRA

No Emergency fund, start one.

*free internet suggestions

that was my yfirst thought!!

quote:

Originally posted by jhe888:
Low or no fee index fund. Not sexy, but reliable.

These are the funds where they don't buy and sell - buy it and forget it. Fees are almost nothing.

This would be my recommendation as well. Personally I like Vanguard funds. If you are really set on the oil sector the Vanguard fund VDE has a good energy sector mix.

With all the money being printed to pay for helping the unemployed and small businesses we can expect inflation will be the next problem coming at us. Investing in precious metals might be a good idea. A lot of younger people today don’t know what the Carter years were like.

11 ounces of physical platinum. Looking at the charts it seems like a great time to jump in.

Ruger AC556f and magazines...enjoy a historically appreciating toy!

Does that count as Precious Metal?

I’d go find some silver coins and put them somewhere quiet...

Or, since we have everything else paid off except our home, I’d dump it all into the house(principal). And maybe keep a grand in the safe for emergencies.

I'm holding on to my Caterpillar and John Deere.
I figure heavy equipment will be in demand once the economy goes BOOM in the coming months/year, but I too am looking for something else to add with a little free cash on hand.

quote:

Originally posted by Graniteguy:

quote:

Originally posted by David W:

quote:

Originally posted by Graniteguy:
Oil at $2.70 a barrel is scary. I believe it was $18 Friday.

If any of us were ever going to buy oil in our lifetime - today is probably the day.

That's what my wife has been saying, I just don't know what to buy i.e. Exxon or some small oil company in Texas?

Exxon-Mobil, Chevron. Be wary of the smaller refiners - they may not survive this.

However, make you sure you have established a cash safety net and manageable debt. (similar to other comments)

The one thing I would not do is put it in small oil and gas companies, Graniteguy is correct, some of those stocks are going to go to zero.

Some advice I thought was good years ago from someone that thought mutual funds were diversified, but also diluted. If you invest in a mutual fund your money can be spread out among 500 companies. Their thought was if you had your money spread out in 12 companies your were diversified (as long as you don't pick 12 small oil and gas companies). If you want to get into individual stocks, my suggestion is pick 11 companies and buy $1,000 worth of each. You will learn a whole lot in a year, and likely make some money.

quote:

Originally posted by Krazeehorse:
Consider what you would earn on a "safe" investment vs what you are paying in interest on the rentals. I would consider retiring that debt then banking the increased cash flow.

I would NOT pay down towards any long term debt such as a fixed rate mortgage right now. If you get in a bind and need cash, you can't get it out without refinancing, if you even can refinance when interest rates are dirt cheap and nobody wants to lend money long term like in a recession. Short term debt like a credit card, absolutely because you can pay your bills with a credit card (essentially getting back the cash you paid down back into circulation).

I'd stick with something you know and understand. If you do not have a thorough understanding of investments, leave it to the professionals.

A conservative balanced fund (30%-50% stocks is my preference). Fidelity FBALX, and Vanguard VBINX, are both about 60/40. Fidelity FTANX gets you into a more conservative investment index fund, 30/70, I think.

My caution is because you may want the money in less than a year, and you will want all of it back. That is where the conservative approach might be advisable. From an internet forum type of query. A good bank and trust company will put you in a 20 year annuity at guaranteed 6%, and is a great way to sock money away.

Given your position-almost debt free, alternative income from rental property's and truly extra money--look at 1 or 2 undervalued stocks that provide dividends.
You need to predict 1) Recovery 2) Future earnings

Oil is in too much debt to predict recovery. What WOULD you buy on sale at this uncertain time?