MINIMAL MONITORING – GOLD - LAND
Dear Uncle Jim,
THANK YOU for your show.
Would you be kind enough to address the following please?
May I have your recommendations for investments that require minimal monitoring?
Currently family priorities and self employment commitments afford me little time and even less expertise for investments.
Would you explain the pros and cons of gold?
Purchase in what form/offerings?
Land (perhaps ocean front).
Thank you for your advice.
Very sincerely,
Karen ;o)
Karen,
Please help – call these questions in on Saturday.
Uncle Jim has no credentials, therefore, offers opinions not advice.
[Line by line]
May I have your recommendations for investments that
require minimal monitoring?
[Treasury Issue, Bank Certificates, Savings Bonds are low maintenance but also low yield.
Mutual Funds are managed and vary in risk from high to moderate or even low risk.
Emerging Companies,
Growing Companies,
Established companies,
Major Corporations,
Dow Stocks
Dividend Yielding
Portfolios of various blends are available. Funds are managed but work best for long term investors, but greater volatility demands more attention.
Mortgage and Bond Funds of varying risk are available and offer better returns than “bank” issue. Issues are graded from AAA down. Worth looking at.
Funds are easily monitored online or in print. Do some study. Establish your risk factor and join the fray. Monthly contributions work well over the long term.
On the home front:
If you have kids you trust, finance a car, write a mortgage or down payment. If your kids are solid, this requires little management.
RED FLAG: INSURANCE ANNUITIES, WHOLE LIFE (CASH VALUE) LIFE INSURANCE, even when sold in banks.
When looking long term, factor in inflation. Uncle says, “You give them dollars; you get back dimes.”]
Gold:
“Gold” is available in various “metal” funds, bullion, coinage and jewelry.
Speculating in gold is not for the faint of heart or casual investor. Uncle Jim uses it as an insurance policy against inflation. Gold (and silver) coinage is easily purchased and traded. Nationally advertised companies offer it, as do retailers and individual traders. Bullion is difficult to carry (100 oz bars) but coinage is easy. Gold coins would be priceless in real economic chaos but make good keepsake gifts for our children. Uncle Jim suggests you consider gold jewelry that has 80% value in gold. We all like a piece of attractive gold ornamentation – looks good and retains value. Vintage coins and collectibles require some expertise. Think - gold for value, style secondary. Silverware, tea sets (not plated), etc. come under the same the ornament to value consideration. Silver coins are inexpensive and make great gifts for kids. They stimulate historical interest and economic awareness.
Video games fade; silver is forever.]
Land (perhaps ocean front).
[Land:
Very long term for retirement:
Do your research first - utilities, roads, usage, covenants, taxes.
Don’t just poke and hope.
Small parcels (building lots) sold by developers: extreme caution!
Shore property:
Will it be there after the next hurricane?
Is insurance available?
Will public usage and access be a problem?
Could be worth a fortune; could disappear.
Professional INDEPENDANT appraisal should be considered in all cases.
The ideal investment is liquid, risk free, high yielding and self managing. Unfortunately, I don’t know of any. Higher yield requires skill, devotion and luck. You do not have to be genius to build your personal nest egg. You do not have to know “everything about investments.” Define your risk tolerance, keep an eye on the broader market, but totally understand every egg in your nest.]
Everybody’s Uncle
