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I've been hovering around city-data for awhile but for some reason, never got to this Finance section until recently. Reading lots of posts and WOW, what a wealth of knowledge y'all have. Don't tell the other forum sections, but the posts here are by far the most intelligent.
OK, butt kissing completed.
I need a little advise. One of my commercial properties has piqued the interest of a group as it meets their specific needs so they want to buy it (and I didn't even have it on the market).
I don't trust the current world financial situation enough to put the proceeds into any "paper" venture so I want to invest into real assets.
Kids have several years before they're college bound but do want to take care of their tuition (or similar need) out of this sale and am looking for wealth preservation of the investment I make for them as well as where best to put the remainder.
Therefore, I want to tap into your insights on where to invest.
A couple things before we proceed. I'm debt free, have a nice nest-egg, decent job... so I don't have any immediate need for the money myself.
My main thoughts for investments are:
- Precious Metals
- Real Estate
I'm thinking of buying (outright) a house or 2 and renting until one of the kids is ready to take occupancy. The houses would be nearby and I'm a jack-of-all-trades kind of guy so maintenance won't be an issue for me. When it comes time to boot our kid out our door, they'll be close so they can still tap into dad's wallet and mom's loving arms but they'll learn some independence under our tutelage. If they don't want the house, it could be sold and that's their college money.
As for precious metals, I'm a big fan of silver but would mix it up (bars vs coins, gold & silver...). These could/would be sold as needed in several years for their tuition or other monetary needs.
Between silver and real estate, I would choose RE. Its a tangible asset and actually serves a purpose. Also considering that you would be able to take care of it is also another plus.
Silver and Gold, while standards internationally, IMHO are not really for singular investing if you have no experience with it. If you have an existing portfolio that is diversified already, its an asset that wouldnt hurt to have in the mix. But going all chips in might not be the wisest.
If RE or precious metals are not for you, then try some luxury goods that are either one of a kind or rare (art, cars etc). They are tried and true investments. RE comes a close 2nd.
Metals cost storage and insurance or you can hold and take the trade effort but still have the volatility risk.
RE has the issue of taxes on top of maintenance and volatility.
Being a landlord can be a demanding part time job.
Personally I do have 'paper' investments but know full well they are not risk free. Maybe an oil trust that combines a little of both with regular income.
As I mentioned above. You absolutely cant wrong with tangible luxury goods that are rare or collectible (cars, art etc.) Follow the money and take a look at how high some collectibles are selling for.
hint: its not because these buyers are necessarily the biggest fans of said item or nostalgia.
So considering we do have a complete meltdown, why not just open a Swiss Bank account? They are just about one of the safest ways of depositing your money if that is the case. Its fairly easy to do.
Personally, I still think you are ok investing in US paper or Treasuries.
I don't know what the real estate market is like in your area but like the other posters say real can't be that bad in the long run, i think.
as for precious metals, i personally have lost good money in it because it is so...volatile...silver has been sitting around the $30 something for how long now? but i remember before the american QE1, 2, 3,...217 came out silver was like $15 $20? (maybe i am just not that good at investing)
On the other hand, real estate is not bullet proof neither as we all know...
My advice: diversify, diversify, and do your numbers. If you like them both do both of them but portion them appropriately...or you could operate a small business...
Right now, I'm not looking for any kind of huge return. It's the kids college fund so I don't want to gamble with it.
You could always consider farmland and then cash rent it...although how much you may have to buy and so forth might be prohibitive.
Then you don't have to deal with tenants and so forth.
However, prices are through the roof and could subside by the time you need the money....depending where you live.
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