A bit depressed in hindsight.
gecko109
Posts: 8,231 ✭
The year was 2003. I had spent 4 years as a member of the Chicago fire department. We had gone without a contract (raises) for 4 years by July 1st of 2003, and then had settled on a 16% pay increase over the previous 4 years. A couple of months later, the city issued me a check for $12,800 clear (retro pay). I was 28 years old, and coming from a very modest background, that was more money than I ever had at any point in my life previously. I had my eye on a 1997 Jeep Wrangler that I wanted to buy for $7,500. I bought it the same day my check had cleared! Then it was off to Colorado with my then girlfriend for 2 weeks of relaxation and fun....another $3,500 expense. I probably gambled away the remaining $1,800 over the next few months, I dont recall exactly.
During that time, silver was dead at around $5/oz and I couldnt give a frog's fat ass about the "other" metal. Even though I had been dabbling in gold at that time, it was always just a 1/10th oz here and a 1/4oz there.....no real meaningful purchases. Now I cringe at the thought of how much silver I could have bought back then with almost 13 large. Had I taken the entire check, and converted it into silver, I would now have about $78,000 worth of hard assets from that. Instead, all I have to show for my stupid decisions are memories of a Jeep thats long gone now, and an ex girlfriend who is long gone as well. Ahh, to be young and stupid!
Although all hindsight is 20/20, I hope my story is a lesson to all you younger people who are getting into investing. I was too dumb to understand at the time that cars are just cars, and will eventually be gone...no matter how cool you think it is now! Take it from me....if given a chance between some instant gratification, or something that could be MANY times more rewarding in the future....go with the investments....especially when young. There will be plenty of time for the "toys" later in life if a little sacrifice is made today.
During that time, silver was dead at around $5/oz and I couldnt give a frog's fat ass about the "other" metal. Even though I had been dabbling in gold at that time, it was always just a 1/10th oz here and a 1/4oz there.....no real meaningful purchases. Now I cringe at the thought of how much silver I could have bought back then with almost 13 large. Had I taken the entire check, and converted it into silver, I would now have about $78,000 worth of hard assets from that. Instead, all I have to show for my stupid decisions are memories of a Jeep thats long gone now, and an ex girlfriend who is long gone as well. Ahh, to be young and stupid!
Although all hindsight is 20/20, I hope my story is a lesson to all you younger people who are getting into investing. I was too dumb to understand at the time that cars are just cars, and will eventually be gone...no matter how cool you think it is now! Take it from me....if given a chance between some instant gratification, or something that could be MANY times more rewarding in the future....go with the investments....especially when young. There will be plenty of time for the "toys" later in life if a little sacrifice is made today.
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Start working on a time machine, that will allow you to go back and rectify the past
Or, move on and do better from now on.
_Reset
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My goal of educating my four on the concept of money will pay physical and emotional dividends for decades for them. Two of my children have come up to me and asked me to buy some gold with their savings. I bought a few sovereigns for them. That was two years ago. Their realization of how investments can make you money (and lose) is priceless.
I knew it would happen.
Another guy could have bought silver for $9 an ounce back in 1984.... and sat on it for almost 20 years as it lost value. As you said it was trading for $5 in 2003. He would have been kicking himself for not taking the trip and having some fun.
Although I blame many things on my youth, like a bad knee and back playing sports all out, and I mean all out, and having a physically demanding job from 18-26 years of age, I wouldn't take any of it back. Except for one...I wish I would've spent half of the money I spent on partying, on Ag. I still would've had a hell of a time lol.
Of course he went bankrupt a couple of years ago, but hey...
Edited to add a wink
MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>Didn't you just by a Vette as a third car recently?
Edited to add a wink
MJ >>
Yes, but I had my financial house in order when I did that. Nobody says you cant have toys...but prioritization is the key.
Bruce
Is it a B.B. King song? Cheaper to keep 'er. lmao!
Kwitchyerbichin.
TD
At least you didn't once have lots of shares of this stock, and sold most of them too soon, too soon (sigh)
did most of my buying 1993-1995, most of my selling 1998-2001
Liberty: Parent of Science & Industry
One of my brothers turned $7k into $1.6M in that timeframe. He's STILL livin off those trades, as are you I'm sure you still are.
<< <i>Phil, if that is the greatest regret of your life, you are danmed lucky.
Kwitchyerbichin.
TD >>
Really dude. This thread is about some rich guy that is depressed over missing out on a few months of pay basically. $78k is maybe six months at Gecko's family income level, so would likely make zero material difference in his life today. What would it go towards? Probably a bigger stack of metals, or maybe a fourth car.
The other point is in 2003, if Gecko were to invest that money, I'd guess 80% chance it would have gone into stocks. Certainly if he had gone to a traditional investment professional at age 28, single, high income, the pro in 2003 would have put him into stocks or stock mutual funds. Likely the same story had Gecko asked his smart friends, they would have steered him to real estate or stocks, anything but silver. The average investor didn't get rich investing in 2003. So odds are that Gecko would have gone with stocks (and not Apple), and that money would have done essentially nothing from 2003 to 2011, with the chance that he would have sold at the panic lows in 2008 at a huge loss. Think about how depressed someone might be had he skipped all that fun and put the money into a dud investment on the advice of some broker, along with paying the broker a healthy fee. That's the average person's reality, not a hindsight fantasy.
Finding a healthy balance is good topic. At 28, I say, enjoy life a little. Sure if someone could guarantee an investment that goes up 600% or 6000% in eight years, that would be great. Any 28 year old reading along putting their entire nest egg into silver is unlikely to do near as well. I'd say the odds are better that silver will do nothing in the next eight years, than go up another 600% to $180 an ounce. Hindsight can be a depressing thing. Had Gecko actually invested in silver back then, instead of buying the Jeep, and taking the trip and enjoying life, he might not have married the same wife. What attractive 20-something woman wants a Scrooge Jr. as a boyfriend? What kind of young woman wants to marry that kind of man? Gecko's whole life might have been different. Hopefully, it is a wonderful marriage, and that might be worth 10x the $78k he is pining for. I can see another person writing the same story, except that person invested in silver or whatever, had no fun as a young person, never got married, and it turned out to one of the great regrets of his life. There is a lot more to life than piling up cold metal. Again, a healthy balance is the place to be, and each person has to answer that his/her own way.
Anyway, Gecko has a huge pile of metals, a good income, a good marriage, good health, the health of his family. That's a lot of blessings. Be thankful, be grateful, each and every day. $78k is basically a blip for someone like that, no reason to be depressed. Cheers.
Knowledge is the enemy of fear
Box of 20
This thread sucks, hindsight is ALWAYS 20/20.
Hindsight is only useful to learn from, not dwell on.
Too many positive BST transactions with too many members to list.
<< <i>I coulda had a V-8.
This thread sucks, hindsight is ALWAYS 20/20. >>
Liberty: Parent of Science & Industry