Best long term investment vehicle for my niece.

guy incognito

guy incognito

Well-Known Member
When I was young my aunts, uncles, and grandparents bought me US savings bonds. When I turned 18 I had a whole pile of them matured and it was pretty nice.

My niece is 4 now and doesn't need anymore shit for xmas or her birthdays. The interest rates on savings bonds is dismal right now. EE bonds won't even mature before 20 years, and if you cash them in before that they will be garbage because the interest rate is 0.6%.

It also seems retarded to start a savings account with how terrible interest rates are. None of these option will even keep up with inflation.

So what should I invest in for her that will pay off in the next 14 years (when she turns 18)?

I don't want to actively manage anything either. I like the idea of buying a bond and putting it in a filing cabinet to await her adulthood. I do not like the idea of losing money because the bond won't even keep up with inflation.
 
Smuggler

Smuggler

Active Member
Silver is the next gold. It's trading for about 32 an ounce and the historic ratio between silver & gold is 19 to 1. With gold being at roughly 1,450, silver should be at almost 76 an ounce. S
 
Johnny Retro

Johnny Retro

Well-Known Member
High yielding dividend stocks. How much money are you investing? if you dont mind me asking. PDLI, CIM, AGNC are a couple good ones

For example. You have $5000 You put that into AGNC which has a yearly dividend of $5.60. 5000 dollars will get you 140 shares of the company. 140X5.60 = $952. So you would get around 1000 dollars a year. plus if the stock goes up in the next couple years you can sell IT at higher price thus making even more money. OR instead of taking the money every year, you can reinvest it into that stock and make an even larger yearly dividend payment
You would need to check on it a couple times a year. but dude, thats 20% on your investment. Thats a great return

Dont hop on the gold/silver train. That bubbles bound to burst sometime soon
 
dam612

dam612

Well-Known Member
Johnny Retro said:
High yielding dividend stocks. How much money are you investing? if you dont mind me asking. PDLI, CIM, AGNC are a couple good ones

For example. You have $5000 You put that into AGNC which has a yearly dividend of $5.60. 5000 dollars will get you 140 shares of the company. 140X5.60 = $952. So you would get around 1000 dollars a year. plus if the stock goes up in the next couple years you can sell IT at higher price thus making even more money. OR instead of taking the money every year, you can reinvest it into that stock and make an even larger yearly dividend payment
You would need to check on it a couple times a year. but dude, thats 20% on your investment. Thats a great return

Dont hop on the gold/silver train. That bubbles bound to burst sometime soon
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so you net 1000$ every year just by investing 5000 as long as you dont sell? what happens when the stock falls, or can that dividend price drop?
 
Johnny Retro

Johnny Retro

Well-Known Member
dam612 said:
so you net 1000$ every year just by investing 5000 as long as you dont sell? what happens when the stock falls, or can that dividend price drop?
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The past 2 years AGNC has gone from a 10 dollar stock to a 29 dollar stock. Its in a steady uptrend. Great company with a great dividend. The chances of this company going under are unlikely.
 
Smuggler

Smuggler

Active Member
Johnny Retro said:
The past 2 years AGNC has gone from a 10 dollar stock to a 29 dollar stock. Its in a steady uptrend. Great company with a great dividend. The chances of this company going under are unlikely.
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Why are the chances of this company "going under" unlikely, yet the dollar crashing and silver/gold not going up unlikely? Dude, the dollar bubble is the train that's heading for the next big crash, not gold & silver. It carries its value beyond inflation and the coming global depression. S
 
Johnny Retro

Johnny Retro

Well-Known Member
A bubble is somthing that runs up and up then eventually pops and drops. This is a steady company thats not going anywhere because it makes money off of people mortgages. They are payed indirectly from the government. Gold and silver are rising TOO much. You'll see it pop in a year or two
 
Pipe Dream

Pipe Dream

Well-Known Member
I agree with the precious metals. Unlike many other thing it's a physical asset and not just based off interest. Imagine inheriting bunch of gold and silver it would be like finding treasure. 32$ an oz for silver?Holy hell I wish I didn't have to sell most of mine a while back replacing the sets is gonna be a nightmare.
 
NLXSK1

NLXSK1

Well-Known Member
Johnny Retro said:
A bubble is somthing that runs up and up then eventually pops and drops. This is a steady company thats not going anywhere because it makes money off of people mortgages. They are payed indirectly from the government. Gold and silver are rising TOO much. You'll see it pop in a year or two
Click to expand...

Gold and silver are priced relative to the value of the dollar. While I would love to entertain your *popping* idea, with the deficit spending and purchasing of our own debt, there is no way the dollar is going to suddenly strengthen. More than likely it will go the other way.
 
Johnny Retro

Johnny Retro

Well-Known Member
My popping idea..lol
Its the idea of many financial advisors, as well.
Gold has made its run.
Silver's got alittle more life.
My point is you can make alot more money in other investments than precios metals. Which i have been doing for the past couple years
I started out with a 1000 investment and ive made alittle more than 40 times that. And thats just in dividend stocks. I also daytrade to pay the bills. This is my job
Believe what you want lol
 
NLXSK1

NLXSK1

Well-Known Member
Johnny Retro said:
My popping idea..lol
Its the idea of many financial advisors, as well.
Gold has made its run.
Silver's got alittle more life.
My point is you can make alot more money in other investments than precios metals. Which i have been doing for the past couple years
I started out with a 1000 investment and ive made alittle more than 40 times that. And thats just in dividend stocks. I also daytrade to pay the bills. This is my job
Believe what you want lol
Click to expand...
I would love to believe you. Please come on in 2 years to tell me *I told you so*
 
Smuggler

Smuggler

Active Member
The fundamental disagreement that I have with your advice is that you are failing to consider the following:
1. The economy needs to produce enough jobs for people to pay their taxes. No income = no taxes.
2. If the gov. isn’t collecting taxes they just print more money to pay the mortgages and everything else, further weakening the already anemic dollar.
3. The mortgages are usually a fixed amount that won’t keep up with a hyper inflationary dollar.
4. When the government is forced to deal with out of control spending, social programs will be the first to go.
Even municipal bonds are tanking now, much less mortgage notes.

Here I am left with my always valuable metals and you are left with paper…I win. S
 
NLXSK1

NLXSK1

Well-Known Member
Smuggler said:
The fundamental disagreement that I have with your advice is that you are failing to consider the following:
1. The economy needs to produce enough jobs for people to pay their taxes. No income = no taxes.
2. If the gov. isn’t collecting taxes they just print more money to pay the mortgages and everything else, further weakening the already anemic dollar.
3. The mortgages are usually a fixed amount that won’t keep up with a hyper inflationary dollar.
4. When the government is forced to deal with out of control spending, social programs will be the first to go.
Even municipal bonds are tanking now, much less mortgage notes.

Here I am left with my always valuable metals and you are left with paper…I win. S
Click to expand...
Oh yeah? Try wiping your ass with valuable metals... Eww...
 
Johnny Retro

Johnny Retro

Well-Known Member
I recive a check from AGNC for 7000 a year. And ive got 4 more companys doin the same thing.
Your jumping on a bandwagon. Im jumping into smart plays that I have analyzed.
Dont get me wrong. I own GLD and some different silver stocks. Their not makin me the money that dividends are makin me
 
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