Best investment while we travel

[pickpaul]

No one has mentioned cryptocurrencies. 1% into bitcoin would be good diversification into this new asset class with lots of upside. Just my .02 cents worth.

[HBWT]

The amount of bad advice here is truly astounding.

Just some FYI, if you are a US resident with US based investments.

REITS are both traded (fairly safe but have limited gains <5%) and non traded (risky but can have a larger annual yield 6-10%)

Gold/Silver Precious Metals should NOT exceed 5% of your total diversified portfolio. Don't believe me. Just do a simple google search. Going heavy on precious metals is a tin foil hat investment advice that is often peddled on to seniors and conspiracy theorist that believe our 20 Trillion debt will bankrupt our country.

Annuities are high fees but do offer a protectionist position. There are some complex products that offer 5-8% guarantees, may be a suitable choice but make sure you understand them in detail before you sign anything. They are very complex financial products and can be a huge benefit or a portfolio killer.

Bonds have a inverse relationship with rising interest rates. If rates go up, bond values go down. Be very careful of bonds and especially bond funds while the Fed is currently in the process of raising rates.

Funds (mutual) are a huge field of investments both good and bad. I think only one person so far has recommended low fee index funds from companies like Vanguard. This should be the basis of your investment portfolio. Make sure the risk of bonds vs. equities meets you current risk profile.

Rental Property, this can be a huge benefit or a death nail. We have 2 retired couples on our dock that lost their shirt in 2007. One had over 150 rental properties, now they have none. I love when someone complains about fees with annuities and managed funds and recommends property. The fees and expenses you will experience with a rental property will absolutely exceed fees in a annuity or mutual fund. Both management, property tax and maintenance will be a huge liability. There can be a significant return depending on location and property profile. DO not go in with the idea that it is recession proof or a guarantee of income.

Lastly, do not "cash out" your current investment profile. First, meet with one or several certified CFP "fiduciary" financial planners and find out what they advise (this is often no cost or less than $1,000 for a personalized financial analysis and a planning strategy report. Then pick the one you feel most comfortable that defines the same objectives you are looking for.

[barnakiel]

Originally Posted by pickpaul

No one has mentioned cryptocurrencies. 1% into bitcoin would be good diversification into this new asset class with lots of upside. Just my .02 cents worth.

A case of skin in the game perhaps?

Cryptocurriencies are likely the WORST investment around. You clearly know very little about Bitcoin.

This is a subject for another thread, in another forum.

Cryptocurriencies are vastly more risky than derivatives and should, under no circumstances, form a part of anybody's cruising/retirement money.

Cheers,
b.

[buzzstar]

Originally Posted by pickpaul

No one has mentioned cryptocurrencies. 1% into bitcoin would be good diversification into this new asset class with lots of upside. Just my .02 cents worth.

Watch this one carefully. It is unclear if he/she even understands that the claimed input is not 2 cents, it is 2/10 of one cent.

[pickpaul]

Originally Posted by barnakiel

You clearly know very little about Bitcoin.

An interesting assertion based upon a simple suggestion to put no more than 1% of assets in cryptocurrencies and untrue. I've been involved in various ways for several years and am considered very knowledgeable by most in the field. I have 35 years computer experience.

Do you have "skin in the game" by recommending US Dollar based investments because you have dollars?

I dare suggest you have some learning to do. I recommend The Age of Cryptocurrency: How Bitcoin and the Blockchain Are Challenging the Global Economic Order https://www.amazon.com/dp/1250081556..._btR9xbH3BCYRZ

The authors are Wall St journalists FYI.

Cheers, Paul.

P.S. why would you think bitcoin should not be included in a discussion on investment/finances?

[DsquareD]

Avoid advice from anyone who suggests that their recommendation is recession proof or "can't lose".

Real estate is extremely risky if you're not there to manage it. Good luck trying to sell your upside down property after tenants trash it. I have first hand experience with this. If you pay someone to manage it, there goes all the profits. If you are not already experienced in real estate, then this is probably the best way to lose your shirt.


Dennis

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[Bulawayo]

Odd, we receive a pretty good passive income from our property portfolio - and also have first hand experience. I would suggest that a single experience is not always typical? It about location, location and location.

Originally Posted by DsquareD

Avoid advice from anyone who suggests that their recommendation is recession proof or "can't lose".

Real estate is extremely risky if you're not there to manage it. Good luck trying to sell your upside down property after tenants trash it. I have first hand experience with this. If you pay someone to manage it, there goes all the profits. If you are not already experienced in real estate, then this is probably the best way to lose your shirt.


Dennis

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[valhalla360]

There is no magic pill that will have low risk, high return and you don't have to pay attention to it.

Annuities can be many different things. While I wouldn't recommend it, a simple fixed annuity is fine if you are risk adverse and want some guaranteed income. BUT stay away from variable annuities, buy back guarantees and other add ons. That's when they start to go bad.

Don't become a landlord unless you are already experienced. It's a great way to lose money and keep your stress level high if you don't know what you are doing.

First question really should be where is your money now? Your average retiree has 20-30yrs to go, so a good chunk should be invested for long term returns as you can ride out a downturn with 2-5yr worth of money in lower return but less risky investments.

[DsquareD]

Originally Posted by Bulawayo

Odd, we receive a pretty good passive income from our property portfolio - and also have first hand experience. I would suggest that a single experience is not always typical? It about location, location and location.

It's not odd at all. I've made some and lost some. I certainly would not suggest it as a recession proof or can't lose investment to someone who has no experience in real estate.

With experience, good reliable managers, and a good amount of luck you certainly can make money. It sounds like it's working for you.

I've tried both residential and commercial. I thought I was recession proof until the recession vacated my commercial office building. I would not recommend it for someone who has no experience and is planning to be away and probably not within easy communication on a regular basis.


Dennis

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[msponer]

$500k is enough that you should make a good decision.

I recommend reading some books. John Bogle, William Bernstein, Benjamin Graham, and Burton Malkiel are all very good, respected authors with educated and mainstream views.

I was very lucky in work and was able to retire early. I decided that my retirement job is 'Investor', since that is now the way I make money. I read dozens of investing books for the first year, and I am so glad that I did. I started off completely uneducated and could have easily made a huge mistake. I know highly intelligent people who make awful choices with their money because they have never spent the time to learn, but are convinced they know what they are doing.

[pickpaul]

Originally Posted by buzzstar

Watch this one carefully. It is unclear if he/she even understands that the claimed input is not 2 cents, it is 2/10 of one cent.

Ha! My bad. It does however raise the point that with bitcoin I could send 2/10ths of 1 US penny anywhere in the world instantly. It would still cost less than a penny with transaction fee included. Try that with paypal or western union :-)

[Stu Jackson]

Originally Posted by msponer

......................I read dozens of investing books for the first year, and I am so glad that I did. I started off completely uneducated and could have easily made a huge mistake. I know highly intelligent people who make awful choices with their money because they have never spent the time to learn, but are convinced they know what they are doing.

Good points.

Just like boat electrical systems!!!:sm ile:

[Larry Florida]

Whatever you decide, funds, annuity or other, see if it's available from Vanguard. Vanguard is the most reputable investment firm for the individual.

[Bulawayo]

Dennis. As I said, it's very odd, but I also said it's location, location. You are talking about your own situation as a single perspective. If I invested in Zimbabwe then I would have made a huge mistake. Instead, I invested in SE England which is a pretty good place to invest and my profits continue to be reinvested there. It's actually pretty difficult to go wrong there with the property shortage. There are no restrictions to foreign ownership. I did my homework. It's not luck.



UOTE=DsquareD;2229164]It's not odd at all. I've made some and lost some. I certainly would not suggest it as a recession proof or can't lose investment to someone who has no experience in real estate.

With experience, good reliable managers, and a good amount of luck you certainly can make money. It sounds like it's working for you.

I've tried both residential and commercial. I thought I was recession proof until the recession vacated my commercial office building. I would not recommend it for someone who has no experience and is planning to be away and probably not within easy communication on a regular basis.


Dennis

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[DsquareD]

Originally Posted by Bulawayo

Dennis. As I said, it's very odd, but I also said it's location, location. You are talking about your own situation as a single perspective. If I invested in Zimbabwe then I would have made a huge mistake. Instead, I invested in SE England which is a pretty good place to invest and my profits continue to be reinvested there. It's actually pretty difficult to go wrong there with the property shortage. There are no restrictions to foreign ownership. I did my homework. It's not luck.



UOTE=DsquareD;2229164]It's not odd at all. I've made some and lost some. I certainly would not suggest it as a recession proof or can't lose investment to someone who has no experience in real estate.

With experience, good reliable managers, and a good amount of luck you certainly can make money. It sounds like it's working for you.

I've tried both residential and commercial. I thought I was recession proof until the recession vacated my commercial office building. I would not recommend it for someone who has no experience and is planning to be away and probably not within easy communication on a regular basis.


Dennis

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[/QUOTE]


You should write a "how to" for the rest of us then. I would have no clue where to begin with real estate in England.

The best I've done so far, since liquidating my real property, is an REIT called PSEC, which has been paying monthly dividends of 12% per annum. However, I don't recommend it, as I do not believe it is sustainable. I've already divested half of my holdings and will be selling the rest soon. At least it's liquid and I can get rid of it quickly.

I've frequently pondered how well I could live on a boat with just that one investment, but then I realize how dangerous it would be to put too much in one basket.


Dennis

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