Where to put money?

[Broncojohnny]

Invest in my daughters future,my house and then go take my ass to the mall.

He probably wants to take your daughter's ass to the mall

[03DARKSHADOW]

Invest in my daughters future,my house and then go take my ass to the mall.

[Slowhand]

Im sure you know all about investments, stocks, whatever it is you do. But you cant sit there and tell me that you can not make money on acreage. It may take much longer than other ways. But I look at it as enjoyment aswell. I cant go hunt,fish, or shoot my guns on a stock investment. But I can enjoy some land.

Just sayin

<<<< going back to being broke now,, haha

[slow99]

As usual, thanks. I will have to take you up on your option three offer. Despite what the thread title is called though, I am not looking for someone to tell me where exactly to put my money as much as just trying to explore other ways/options of investing outside of stocks.

PS what is your opinion on FNSR now? I see they adjusted its 12 month prediction. I am glad I got out of that when I did! lol

I am restricted from expressing an opinion on FNSR right now. I will say that if you figure out the supply chain corrections with that company, you have the story (ie, buy, sell) figured out.

[01yz2nv]

Fuck, you figured me out. I have absolutely no way to argue with n=1 anecdotal data.

<--- Going back to being "not too savy".

Im sure you know all about investments, stocks, whatever it is you do. But you cant sit there and tell me that you can not make money on acreage. It may take much longer than other ways. But I look at it as enjoyment aswell. I cant go hunt,fish, or shoot my guns on a stock investment. But I can enjoy some land.

Just sayin

<<<< going back to being broke now,, haha

[slow99]

You obviously are not too savy with land are you?
You buy land now for as cheap as you can get it and sit on it. Look at craigs ranch in Mckinney. Several years ago that was just shitty old farm land in the middle of no where. Now its worth millions.

No favorable tax treatment? How about running cattle on it. Buy calves for $600-700 a head, raise em and sell them for around $1400 a head. Not to mention you then get AG exempt on your taxes, and your turning profit.

But thats probably to much work for you in "an investment bank"

Fuck, you figured me out. I have absolutely no way to argue with n=1 anecdotal data.

<--- Going back to being "not too savy".

[Slowhand]

You obviously are not too savy with land are you?
You buy land now for as cheap as you can get it and sit on it. Look at craigs ranch in Mckinney. Several years ago that was just shitty old farm land in the middle of no where. Now its worth millions.

No favorable tax treatment? How about running cattle on it. Buy calves for $600-700 a head, raise em and sell them for around $1400 a head. Not to mention you then get AG exempt on your taxes, and your turning profit.

But thats probably to much work for you in "an investment bank"

lol. Jody, where to begin here?

[347Mike]

First of all, nobody can tell you what's right for you without knowing a ton more details... we've covered this several times.

Next, you need to think about allocation. I assume that you're young with a lot of years until retirement and no significant windfalls headed your way. The NPV of your future earnings is called "human capital" and your accumulated wealth is called "financial capital". Right now, the NPV of your human capital is worth way more than your financial capital. While you're in the accumulation phase (moving from human capital to financial capital) you need to think about the qualities of your income stream that comprise your human capital. Is the stream backing your human capital more equity like or more fixed income like? Given a young age, you can start with a high allocation to risky assets... then adjust from there.

Now, if you're talking about putting funds toward risky assets, long-term ownership of equities cannot be beat...from a nominal and risk-adjusted basis. Again, nobody can tell you this without knowing more details, but if you want to take a passive, or semi-active approach to equity investing, I have a couple things I like.

1. Juicing the efficient frontier via leverage. (Google Markowitz efficient frontier for a full explanation). The idea is basically that no person can really tell you how risk averse they are. If I asked you if you could handle a portfolio standard deviation of 15% a year, how would you really know that? So, what you do is put an amount of your portfolio that's known and set every year... put this in the risky equity market via S&P 500 options, expiring in one year. The beauty of it is that you know exactly the amount you're risking each year... and in the mean time your set capital earns a "risk-free" rate, plus inflation factor if you go with TIPS. Let's say you had $100k, wanted to risk $10k of it this year in the equity market. Put $90K in TIPS for the year (which will earn interest) and buy $10k of at-the-money calls on the SP index expiring in 1 year. The option factor lets you leverage and "juice" the return on the equity market while earning a rate on your cash holdings.

2. A concept called "contingent immunization" done with equity and again, TIPS or some other cash-like, low risk instrument. Figure the amount you want to have saved in 20 years (25, 30, whatever) and adjust for inflation if you'd like. Now, discount this by the number of years and an assumed risk-free rate (nominal or real depending on how you figured your future amount). The NPV of this calculation is how much you need to put today into TIPS, treasuries, money market, CD, whatever it may be. Any excess amount, put to work in risky assets. Revisit every XX number of months.

3. I can also walk you through how to setup a "no loss" portfolio with options. You will be set to not lose an amount, but you will give up upside over XX% (15% per year, let's say) and you can do this relatively easy with options. We can talk about this offline, I'm not about to type the instructions out for that one.

As far as my money, I alternate between counting it and rolling around naked in it.

As usual, thanks. I will have to take you up on your option three offer. Despite what the thread title is called though, I am not looking for someone to tell me where exactly to put my money as much as just trying to explore other ways/options of investing outside of stocks.

PS what is your opinion on FNSR now? I see they adjusted its 12 month prediction. I am glad I got out of that when I did! lol

[01yz2nv]

No income generation, negative cash flows, no favorable tax treatment (depreciation), and illiquidity... where do I sign up??

You obviously are not too savy with land are you?
You buy land now for as cheap as you can get it and sit on it. Look at craigs ranch in Mckinney. Several years ago that was just shitty old farm land in the middle of no where. Now its worth millions.

No favorable tax treatment? How about running cattle on it. Buy calves for $600-700 a head, raise em and sell them for around $1400 a head. Not to mention you then get AG exempt on your taxes, and your turning profit.

But thats probably to much work for you in "an investment bank"

[Captain Crawfish]

most of mine is in emerging market energy plays.

[slow99]

I was gonna say acreage. Cant make any more and its only gonna go up.

No income generation, negative cash flows, no favorable tax treatment (depreciation), and illiquidity... where do I sign up??

[01yz2nv]

Farm land. Even if you don't farm it yourself. It usually pays for itself.

I was gonna say acreage. Cant make any more and its only gonna go up.

[slow99]

First of all, nobody can tell you what's right for you without knowing a ton more details... we've covered this several times.

Next, you need to think about allocation. I assume that you're young with a lot of years until retirement and no significant windfalls headed your way. The NPV of your future earnings is called "human capital" and your accumulated wealth is called "financial capital". Right now, the NPV of your human capital is worth way more than your financial capital. While you're in the accumulation phase (moving from human capital to financial capital) you need to think about the qualities of your income stream that comprise your human capital. Is the stream backing your human capital more equity like or more fixed income like? Given a young age, you can start with a high allocation to risky assets... then adjust from there.

Now, if you're talking about putting funds toward risky assets, long-term ownership of equities cannot be beat...from a nominal and risk-adjusted basis. Again, nobody can tell you this without knowing more details, but if you want to take a passive, or semi-active approach to equity investing, I have a couple things I like.

1. Juicing the efficient frontier via leverage. (Google Markowitz efficient frontier for a full explanation). The idea is basically that no person can really tell you how risk averse they are. If I asked you if you could handle a portfolio standard deviation of 15% a year, how would you really know that? So, what you do is put an amount of your portfolio that's known and set every year... put this in the risky equity market via S&P 500 options, expiring in one year. The beauty of it is that you know exactly the amount you're risking each year... and in the mean time your set capital earns a "risk-free" rate, plus inflation factor if you go with TIPS. Let's say you had $100k, wanted to risk $10k of it this year in the equity market. Put $90K in TIPS for the year (which will earn interest) and buy $10k of at-the-money calls on the SP index expiring in 1 year. The option factor lets you leverage and "juice" the return on the equity market while earning a rate on your cash holdings.

2. A concept called "contingent immunization" done with equity and again, TIPS or some other cash-like, low risk instrument. Figure the amount you want to have saved in 20 years (25, 30, whatever) and adjust for inflation if you'd like. Now, discount this by the number of years and an assumed risk-free rate (nominal or real depending on how you figured your future amount). The NPV of this calculation is how much you need to put today into TIPS, treasuries, money market, CD, whatever it may be. Any excess amount, put to work in risky assets. Revisit every XX number of months.

3. I can also walk you through how to setup a "no loss" portfolio with options. You will be set to not lose an amount, but you will give up upside over XX% (15% per year, let's say) and you can do this relatively easy with options. We can talk about this offline, I'm not about to type the instructions out for that one.

As far as my money, I alternate between counting it and rolling around naked in it.

[slow99]

Yes. Invested in a property group that gets me 15% guaranteed.

Hmmm.

[yellowstang]

Gold and guns.

and girls!