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What investment will keep up with inflation that is not the stock market? Gold?
- Thread starter callbay
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I agree- paper investments, and banks "should" be fine. It isnt often planes fly into buildings but it could happen.
People have very short memories.
Indymac bank was paying more than the prime rate and many customers put over their FDIC amount in, and when indymac folded during the sub prime crisis over 1B was lost. Worldcom, freddymac, AIG, Lehman brothers - the list of public theft goes on.
IF you have so much gold you cant carry it in one hand you have other issues.
My real estate has handily beat gold, as do ther instruments, but gold is a unique form of wealth preservation and as such should be considered by anyone looking to diversify an already well prepped portfolio.
Security and Secrecy are inverse proportional to each other. If you have something you can trace back you can have more security, but then no lose the secrecy because now the man can find out where you make your money and tax you accordingly.
Seriously in the US, even if you hoard a bunch of gold, you will not be able to use a large amount (like buying a car in cash or buying a house in cash) of it without being detected and not being taxed. If you can think of it then the drug cartels and weapon smugglers have thought of it, and used it. Remember, those guys would gladly pay taxes to launder their dirty money clean, not how you cash only mom and pop restaurants owners would dodge them in chicken scratch amount.
The best use of gold is really the last line of defense emergency fund when the whole world collapses. Most of us probably are just maximizing retirement funds between 100k to 10M, you won't be able to hoard physical gold in significant amount with low security cost and reliable long term growth vs S&P500 or real estate.
Since when did this turn into tax evasions? Paying taxes is fine if you're making a good return. You can minimize taxes by investing in a 401k or IRA or delay the taxes by buying an ETF so you only pay when you sell. Can't exactly do that if you're buying physical gold.
One year I had very big short term capital gains and got hit pretty bad.
Some would laugh or cringe at the amount, CPA rechecked 3 times for accuracy .....
But taxes need to be properly filed and paid, not be like Willie Nelson and IRS go after you.
Some would laugh or cringe at the amount, CPA rechecked 3 times for accuracy .....
But taxes need to be properly filed and paid, not be like Willie Nelson and IRS go after you.
Paying a ton of income tax is a great problem to have.One year I had very big short term capital gains and got hit pretty bad.
Some would laugh or cringe at the amount, CPA rechecked 3 times for accuracy .....
But taxes need to be properly filed and paid, not be like Willie Nelson and IRS go after you.
I wish I paid more! Heck, maybe be in my own bracket!
I was talking about your holdings in the stock market and that is typically through a company like Schwab, Fidelity or Vanguard. The shares that you keep there have never disappeared and they've never gone belly up although it's possible. Just hasn't happened yet so I don't think it's a real concern. I think you have more to worry about if you think civilization in this country is going to collapse to the point where you need physical gold handy. That hasn't happened yet in 200+ years. There's a difference between real and perceived risk. The likelihood of these doomsday scenarios are very low and I don't waste time planning about them. It's true though that at times of high volatility like last year during the market down turn, it was hard to get someone on the phone but you could still do transactions online.
Nobody expected those other calamities to happen either, but they did.
I'm not too worried about civilization collapse, or id have larger metal and alternative holdings.
I am concerned about inflation eating my dollars.
I am concerned about the inflation eating our life styles.
Sometimes you cannot pick the right time, like if you are cashing out to buy a house because you need the space or family is growing. Not everything is about money and gain in life.
Back in the days International Market would buy Treasury note, but that basically becomes only useful as the foreign reserves of their own money (because gold price can be volatile and without a semi-fixed exchange rate they would be at a trade disadvantage). Once T bill is out people started buying Fanny and Freddie MBS, as well as other higher risk profile derivatives. That too becomes a bit risky or too low of a yield. Now tech startup and VC funds are all the rage, but I'm sure one day it too would be too risky for the return. Why don't they buy S&P500 instead, I suspect it is because they would skew the market if they all buy the same 500 companies so they need to get into new market, not because they are looking for higher than S&P500 return.
Everyone in the world is printing like crazy, because we are all getting away with it.
Personally I think there is no guarantee other than paying down future expense for us small fries. Pay off student loans, buy a home, get married and have kids if you can afford, early instead of late, with maybe a foreign citizenship and a 2nd home in a low cost up and coming nation with good and affordable healthcare. The rest just invest in something long term and don't sell, so no gain to be taxed on.
I think you're starting to get political there but no matter.
First it's not criminal spending. The government makes the law so if you violate the law, then it's criminal. Their spending doesn't violate the law so it can't be criminal.
A Ponzi scheme is an investment that offers large financial returns and uses funds from recent investors to pay profits to early investors. The government isn't an investment and there are no investors, just citizens that are taxed. And there are no profits to disburse just taxes to redistribute. So it's not a Ponzi scheme.
Well of course nobody expects the Spanish inquisition.
Nobody expect certain calamities as they are extremely rare. There are many other possibilities that haven't come to pass than have come to pass so just citing the fact that the unexpected has happened doesn't mean that other unlikely possibilities will happen. Otherwise you'd waste a lot of time preparing for unlikely possibilities rather than the likely ones.
I am not sure what you mean about "the right time". If you are lucky enough to pay high income taxes, count your blessings.
Actually is is a Ponzi scheme.
Well at least you agree it's not criminal so you're half way there.
It's not a Ponzi scheme as you don't understand what a Ponzi scheme is. But it might seem like it. Basically it's spending that exceeds income. But declaring bankruptcy or paying pennies on the dollar isn't a Ponzi scheme and those aren't the only two alternatives. You could always tax your way out of it.
Part of every paycheck always went to the government so to think that it's all yours isn't correct. Even back in the Roman days and before government had taxes. When was every dollar you made ever totally yours? That's why the old saying, the only certainties in life are death and taxes is still true no matter what government you live under.
Real estate, specifically rental properties. Hands down the best investment I’ve made. I’ve got 15 properties - townhomes and single family. All of them but 1 are less than 5 years old (l’ve been doing 1031’s to newer properties). I have about half paid off, the rest are leveraged. On paper - for taxes - they barely make any money. In the real world, I’m cash flow positive in the healthy six-figures. Appreciation has averaged around 4% annual, except for the last 2 years that have been over 10%. Rental income has grown steadily, especially the last 2 years. My ROI on most of the properties has been around 10%, not including the incredible tax benefits of real estate.
It’s not that hard to get started either. Find a decent property and put enough down to make it cash flow positive. Use the surplus to pay down the loan quickly. Or, invest the surplus until you have enough to buy another, and another, and another. I’ve used the equity in some of my properties to buy additional properties several times. And, with mortgage rates at 3% - even for investors - this is probably the best time ever to be leveraged in real estate.
I have money in the market w/ a Vanguard advisor. I’ve also dabbled with crypto the last 2 years. Neither have been as consistently good as real estate.
Your mileage may vary…
CUBAN CIGARS! They've outperformed all other commodities in the last 20 yrs.
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