Where do you invest your money these days?

anjcollection · February 10, 2003 9:20AM

If you could roughly break it down, where does most of your 'saved' money get invested?

(Mine used to be heavily on vintage PSA cards... now, its mainly in the bank..)

crazysc · February 10, 2003 9:25AM

For the next 3 months? Speculate on gold/silver. Past that, I don't like anything that isn't gauranteed (T bills, etc.) until I see the economy turn around some and we get over the war potential.

braves72078 · February 10, 2003 9:48AM

I agree, Gold is looking good at least short term and I also buy a couple of dividend paying stocks as well. An 8-12% dividend is nice in the current market.

Krems · February 10, 2003 9:57AM

All of the above...except for modern packs (although I usually grab a pack or two when my wife drags me to Walmart). I put a decent percentage of my salary into 401k, and try to max my and my wife's roth IRAs each year. I try to build up a cash reserve in my money market account but whenever it gets a little money in it I seem to see a baseball card or cards I just can't live without. My vintage cards are almost self funding, but I usually buy a couple thousand more than I sell each year...dont really consider it investing though, maybe building equity with the cards...only time will tell.

mikeschmidt · February 10, 2003 11:27AM

Always max out my 401K and Roth IRA each year. Just put a good deal of money in a private placement offering at Embassy Bank, located in the Lehigh Valley, PA. My family has done extraordinarly well over the course of my lifetime on bank stocks -- particularly the small regionals that have private placement offerings that grow significantly and eventually get gobbled up by the bigger banks.

aconte · February 10, 2003 11:31AM

Mikeschmidt is a smart man!

aconte

chrisrenaud · February 10, 2003 11:35AM

Connecticut and Greenwich tax free bonds - cannot beat the after tax yields with the security

XM Satellite Radio Bonds -

Turkish Eurobonds (although we are getting ready to sell ours)

getting ready to short Eurobonds denominated in dollars versus Eurobonds denominated in dollars - once the war starts

I think gold/silver is too late (too risky and all of the money has been made) - although there are a lot of interesting trades to be made between gold indices and the broader dow indices

I invest in baseball cards when I am right on investments like the above, not before

chrisrenaud · February 10, 2003 11:38AM

I meant in the third investment getting ready to short Eurobonds denominated in Euros to buy Eurobonds denominated in dollars

LuxuryWines · February 10, 2003 1:07PM

First off I maximize my 401 K every year and put $250 every month into a money market account ( I call it my emergency fund). After that I invest in stocks generally I am very conservative and invest in Good Companies that have strong brands and pay dividends (Phillip Morris is always a favorite I bought heavy a couple years ago when it was in the teens.) I also buy some small regional banks stocks my DAd (former banker) clues me in on. Lately I have been investing more in PSA graded cards it is more fun and I take 10% off each sale (make or lose money ) and put it in my brokerage account.... Unfortunately I think I invest a lot more in PSa cards than I sell ...OH well.

aro13 · February 10, 2003 1:14PM

Real Estate.

KING KELLOGG · February 10, 2003 2:24PM

I'm definitely with aro13........

The right piece of dirt is all you need......

Larry

BugOnTheRug · February 10, 2003 2:31PM

1988 donruss wax cases!!!!!

BOTR

mikeschmidt · February 10, 2003 9:32PM

Whatever you do -- start early is my best suggestion. I'm only 26 years old, and I think I have more money in my retirement funds than 50% of people twice my age. It's a pretty simple philosphy overall: I'm young, and I have not spoiled myself yet [despite some of my card purchases, I live in a very modest rowhome and don't spend tons of $$$ on frivilous every day things]. I told myself five years ago when I joined the workforce: If I can put away 15% of my yearly salary now -- I am set for life. Yes, it will mean less beer and less beach vacations and a less fancy card, etc. But if I could save that much when I was 21 -- it would only get easier and easier as I climbed up in the world. And it has. Start early w/o getting trapped into silly "lifestyle" choices that you really don't need to begin with.

Heck -- I'm all set to go back and get my MBA this fall, and I have enough $$$ saved up already and will not be sacrificing much in lifestyle, as I do not live extravagantly to begin with.

The only way that I can see the picture being complicated in the future is when my wife and I have kids.... I am sure we can handle that intelligently and still save money, but I equally know that the financial picture will change a lot, overall.

Basilone · February 10, 2003 10:05PM

Wow...MS...I had no idea a certain "professional services organization" paid that well....I guess a chain of grocery stores with your name on it does not hurt either.

John

acowa · February 10, 2003 10:24PM

<The only way that I can see the picture being complicated in the future is when my wife and I have kids.... I am sure we can handle that intelligently and still save money, but I equally know that the financial picture will change a lot, overall.>

Very prophetic!!! You are a wise man.

Regards,

Alan

rocknrollbeernhockey · February 10, 2003 10:50PM

mikeschmidt,

you are living a very sound philosophy my friend. I applaud you. It takes a lot of discipline to do that, but if you're investing like you are, and your 401k is making a modest increase for you every year, the math says that you will be a millionaire, and able to retire at 50 or earlier. Best of luck to you.

Davalillo · February 10, 2003 11:03PM

100% of "free cash flow" goes to vintage cards psa 8 and btter...of course I have my home paid off, my retirement secure and my kids college all set up.

Davalillo

JasP24 · February 10, 2003 11:28PM

I tend to try and spread my investments to all areas. Some Mutuals, a CD, Savings and also PSA. My PSA's are a combo hobby/investment because I do not plan on ever selling my core collection unless I am in dire need. But explaining to my wife that they are "investments" allows me to spend more. My ultimate plan for my PSA's is to pass them on to the grand kids (or great grand kids if I'm lucky..lol). But the cash I do spend on PSA cards is always the "leftover" money.

I think for my income level ( Active Duty Army), I've got to have one of the best "per capita" collections out there. Valued around 33% of my yearly salary...LOL

JasP24

AlanAllen · February 10, 2003 11:30PM

I'm pretty much in the same boat as Marc. My wife and I both max out our Roth IRA's and 401(k)'s every year, which with our company match %'s and automatic pension desposits works out to over $3000 a month. We've been doing this since we graduated college 6 years ago and we're way ahead of the game. There is nothing more important in retirement planning than starting early - as Albert Einstein said, "compound interest is the greatest mathematical discovery of all time."

After that, we've been meaning to save for a down payment for a house, but I end up just blowing it on cards or she spends it on art supplies. Neither of us can believe how expensive the other's hobby is

.

Joe

Stump · February 10, 2003 11:33PM

70% Real Estate
25% Stock Market( Blue chips only)
5% Cash Bank Money Market

They aren't making any more dirt.

0% sportscards hobby only. If my family chooses to cash in after I am gone thats their choice. The only thing I would sell the cards for is health or more real estate. You can always buy the cards back. Right now I will keep my cards. Selling only the ones I have extra or dont collect.

Dave

FB · February 11, 2003 4:20AM

60% Real Estate
20% Market
20% Just livin...

Agree with Dave - not making any more dirt - or in my case, sand. I've found that property (2 family houses and/or vacation rentals) is pretty constant from year to year. The dips are very mild but the upside can be tremendous! And after the 6 figure beating that I took in the market over the last few years I appreciate the land even more!

The cards aren't being counted as an investment. If they're worth what I paid for them or more when the time comes to sell them - I'll be happy as can be. If they're worth a lot more, I'll tell my wife that I knew what a great investment they were all along but wanted to surprise her!

toppsgun · February 11, 2003 10:51AM

The Bible generally speaks of dividing one's wealth to business, loans and land. Translated to modern-day vernacular, that's roughly 1/3 to owning your own business or stock ownership (via mutual funds), 1/3 to loaning to others (bonds, banks, etc.) and 1/3 to rental real estate.

More specifically, Ecclesiastes 11:2 (written by arguably the richest and wisest man to ever live) says, "Give a portion to seven, and also to eight; for thou knowest not what evil shall be upon the earth."

I interpret that to mean diversifying one's wealth, but not necessarily equal portions, in today's investment environment to:

- cash (savings, money market, T-Bills)
- bonds (tax-free or taxable, depending upon after tax equivalent rate of return)
- blue chip stocks (large cap, dividend-paying), both growth and value
- small stocks (emerging companies not yet fully recognized)
- foreign companies, probably large cap "blue chippers"
- developing markets (third world countries)
- real estate (all-cash, no mortgage, triple net leased rental properties)
- catastrophic hedge (gold, precious metals)

Anything else (commodities, futures, currencies, baseball cards) is mere speculation, if done for investment purposes, IMO.

Where do you invest your money these days?

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