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  #21  
Old 10-03-2014, 03:31 PM
col b col b is offline
 
Join Date: Feb 2010
Location: Huntsville, AL
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Depends on your tax bracket and risk aversion tendency. Certainly high interest credit cards and other loans are a good place to start. I like high yield national muni CEFs. Low default rates, more diversification, more liquid than bonds, pay monthly, federal tax-free, effective comparable taxable yield about 10% depending on bracket. But, watch the interest rate risk and stay away from heavy pieces of CA, NJ, IL, and PR.
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  #22  
Old 10-03-2014, 04:08 PM
hi-revr hi-revr is offline
 
Join Date: Oct 2012
Location: Missouri
Posts: 414
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A good accountant would tell you paying off debt or investing in something depends on the interest rate of the debt and potential payoff of the investment. That's the principle on which nearly all companies operate. Personally I hate owing anyone money.

The OP said "spare" 10k. I take that as investing in something a little risky or unusual. Pick 4 or 5 stocks that have a chance of big growth. Only one needs to actually hit big. The best area for that is Biotech, Pharmaceuticals, and related industries. Small to medium sized.

LCI. Lannett.
UTHR. United Therapeutics
REGN. Regeneron
CELG. Cel gene
BMRN. Biomarin
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  #23  
Old 10-03-2014, 05:04 PM
park ranger park ranger is offline
 
Join Date: Nov 2013
Location: far western Maryland
Posts: 590
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I won 10,000 in the lottery a few years back. Spent $9500 on women and booze, the rest I just wasted.
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  #24  
Old 10-03-2014, 05:43 PM
Bayonet Bayonet is offline
 
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Location: West Virginia
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DO NOT depend on guns and ammunition increasing in value at a premium rate. Too many things that might happen that would possibly stop that from happening.

Obviously new laws, Federal or State, could possibly make it harder to own and sell firearms - see California, New York, New Jersey, Connecticut etc.

Guns are not all that liquid an investment. As the prices go higher, the number of potential purchasers go down. In my area military firearms are not selling well even though the prices have not changed much in the last 2-3 years. Trying to sell several at once (if you need the money quickly due to health, retirement, college costs, etc.) is not easy and the "quick" ways to sell (auction, dealer) costs you quite a bit in auction fees or wholesale pricing to dealers).

Those of us who have been around for awhile (I have been involved in military collecting for nearly 60 years now) can tell you that some things really don't appreciate all that much. My father had a small collection of Pennsylvania Long Rifles and right now I am having trouble selling the last one, a nice flintlock fullstock, for what I could have easily gotten 10 years ago.

Civil War longarms were very hot when I started seriously collecting them 50+ years ago, but in the last several years they have hardly kept pace with inflation (except for the rarest versions or the top condition). For an average condition Springfield rifle musket the price has been nearly stable for some time. Although there are still a lot of people involved in reenacting and living history, most of them use reproductions and not too many collect originals.

Not only guns have this problem. My mother collected Victorian period table china, especially better grade German, Austrian, French and British pieces. She bought carefully, bought only better pieces by well known makers and without damage. In the last few years I sold most of the collection to dealers who are having problems selling them for less than she paid for them in the 1980s. Collecting interests are often somewhat of a fad, and what is hot today may not be so in 20 years.

I totally agree that if you have "extra" money, pay off all debt beginning with Credit Cards (most of these have interest rates in the teens now) and other higher interest debt. Even an extra $50 a month toward your mortgage will amaze you on how much you will save in the long run.

Buy guns and ammunition for enjoyment and personal interest, NOT as an investment. You may make some money in the long run, but if that is your primary goal, you will likely be somewhat disappointed.
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  #25  
Old 10-03-2014, 05:47 PM
m1ashot m1ashot is offline
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Join Date: Nov 2009
Location: 40 miles from NS car kows the way
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If you know what your doing. Study each gun. You can do well. You need to be well funded. Stocks suck. My friend have lost a ton in 401. Say you bought 10k of AP at a cost of .36 per round, and resold at a average of $1.00 per round, no capital gains. And a non taxable event. but know one I know does this. I have never resold any Cmp purchases in last 20 years. I have a 1973 2.5 diamondback NIB bought by a shrink at JL Hudsons in Detroit with all paper work. Current value 3000, he paid 255.00. If you know what your doing. You are never going to loose money, like massive 401 losses. But you need to become a expert. More experts in stock market have lost a lot more than serious gun collectors.
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  #26  
Old 10-03-2014, 05:50 PM
SEANinMICH SEANinMICH is online now
 
Join Date: Oct 2009
Location: Howell Michigan
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Quote:
Originally Posted by M1ashot View Post
If you know what your doing. Study each gun. You can do well. You need to be well funded. Stocks suck. My friend have lost a ton in 401. Say you bought 10k of AP at a cost of .36 per round, and resold at a average of $1.00 per round, no capital gains. And a non taxable event. but know one I know does this. I have never resold any Cmp purchases in last 20 years. I have a 1973 2.5 diamondback NIB bought by a shrink at JL Hudsons in Detroit with all paper work. Current value 3000, he paid 255.00. If you know what your doing. You are never going to loose money, like massive 401 losses. But you need to become a expert. More experts in stock market have lost a lot more than serious gun collectors.
If you buy AP at .36 and sell it for $1 that IS a taxable event. ANYTHING you sell for more than you paid for it IS taxed. You may opt to evade taxes and not declare it, but it IS taxed

Also, our 401K and IRAs are BOOMING right now. If you know someone that is down right now, there is a major problem. No one's accounts are down now.
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  #27  
Old 10-03-2014, 06:14 PM
DaveHH DaveHH is offline
 
Join Date: Nov 2009
Posts: 4,709
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Never invest in something that half the population hates or something that can be legislated away. They will steal your money but at least it is slow. Why not buy Beanie Babies?

I have not been in any kind of debt beyond my house since 1980. I've not made a car payment for 35 years. The result is you get an 800+ credit rating which you never use, but you keep a lot of your money. I've paid cash for my last four cars which were all new. Once you break the debt cycle, you wonder how you ever could live that way.

The stock market is rigged top to bottom so only buy stocks that pay fat dividends (which are out there) BPT 11+% annually, EPD 3.66%, RWT 6.77% volatility doesn't matter you are not selling these.
I know a guy who had $2.5M worth of company stock when he retired. A broker advised him to sell it all and buy bonds which would have netted him $100K a year and never touch the principle. He decided to wait and within a month the stock was worth $200K. People are swimming in a pool full of sharks and think it is all legit.

The Roth IRA is the best thing since cut bread.
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  #28  
Old 10-03-2014, 07:25 PM
GGaskill GGaskill is offline
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Debt is a strange thing. While I have owned two houses outright and love the freedom from loan payments, as I get older I look at the situation and say "I can pay off these loans with the 50 dollars of the future instead of the 100 dollars of today and try to increase the number of dollars in the mean time." Obviously the future dollars may go up in value but they haven't for many years. You can't predict the future; some people make lucky guesses and some make unlucky guesses.
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Last edited by GGaskill; 10-06-2014 at 02:21 AM.
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  #29  
Old 10-03-2014, 09:23 PM
7.62 Nitro Express 7.62 Nitro Express is offline
 
Join Date: May 2010
Posts: 362
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Quote:
Originally Posted by M1ashot View Post
If you know what your doing. Study each gun. You can do well. You need to be well funded. Stocks suck. My friend have lost a ton in 401. Say you bought 10k of AP at a cost of .36 per round, and resold at a average of $1.00 per round, no capital gains. And a non taxable event. but know one I know does this. I have never resold any Cmp purchases in last 20 years. I have a 1973 2.5 diamondback NIB bought by a shrink at JL Hudsons in Detroit with all paper work. Current value 3000, he paid 255.00. If you know what your doing. You are never going to loose money, like massive 401 losses. But you need to become a expert. More experts in stock market have lost a lot more than serious gun collectors.
1) Buying AP ammo at below market value from the CMP and flipping it at the next gun show isn't "investing," it is "arbitrage" and it is certainly taxable. The capital gains rate on "collectibles" is 28%

2) $255 invested in the S&P index in 1973 is worth $4500 today. If you've only got $3000, you are behind the curve.
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  #30  
Old 10-03-2014, 09:48 PM
captaincalc captaincalc is offline
 
Join Date: Apr 2010
Location: Ohio
Posts: 3,010
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Depends on your age. If you're going to be around in 30 years, we'll ( they'll) be doing the 100 year anniversary of WW2. If it's promoted well, everything WW2 will be hot and desirable - even the guns, if still legal to own. Argue as much as you want, but 150 years is not a magic number... the War of Northern Aggression will be a hot item from 2061 till 2065 ---> two hundred year anniversary. Guns etc from that era will be desired more at that time. They can buy quality stuff from both - even documented weapons from the 1860's. Don't get junk. Take good care of it - lock it away. Sell when you're ready to retire. Older guys - you shouldn't have lots of high debt --- the rule has always been: "In" has to be a bigger number than "out". In between age guys: a ROTH is probably going to do you best. Younger guys can also get some acreage with trees with resale potential when you're old - fifty years added growth will be good - insure them. May not be able to get much property, but even ten good trees on an acre will have some dollar value later on. Get the bullets and stuff on the fly over the years as opportunities pop up. Befriend some of the guys on the forum here and get in their wills.
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