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Amos9:13

Banker's Advice on What to do after RV

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Regardless if we make 1.00 on the RV or .10 cents, one fact holds true...many people "blow" money.  Look into how many people actually get poorer by

winning the lottery!  Ridiculous!!! I do have some advice I can give from a banking stand point.   First I will explain how bank products work.

 

1. The Fed sets a rate in which the banks have to pay to 'borrow' money to make YOUR loans if the deposit growth isn't there.  Right now the rate is low because they want the consumers to "spend".  If you just read or heard on the news...the Fed is taking the training wheels off which means "loans won't be as cheap".  Look at the housing market...rates are going up.  Bottom line....when you make your money from the RV....pay off your house or purchase one while the rates are still lower than what they will be a year from now.  They were in the 3 percentile...now it's up to the 4 percentile.  next year...probably at least 6.

 

2. CD rates, Money market rates are horrible.  DO NOT invest in these types of products (long term/non working capital/savings)....now the Fed will be taking training wheels off which will slowly increase this, but remember you can make more money off of other investments.  Also don't buy into the FDIC insured stuff.  The truth is the Govt only has to back 1 penny on a dollar...so if things went south and the banking sector collapsed...don't expect to get all of your money.  I don't think this would ever happen, but it's good you know the truth.

 

3.  Speak to an investment officer (who ISN'T on commission).  You don't want them to sell you crap.  Ask them about investments that are safe and have been around thru the recession.  Don't put ALL OF YOUR EGGS in one basket.  Keep some working capital in a money market or an interest bearing checking.  Money markets allow you to make 6 withdrawls a month, interest bearing checking accounts don't have a limit on transactions....but they usually have a minimum balance and a lower interest rate.  Move some investments around...I WOULD NOT invest in the stock market, too volatile.  You can also invest in gold, silver, and other currencies such as the Yen (maybe one day China will quit cheating).

 

4. Don't go starstruck.  Remember when buying a larger house, that means a higher insurance cost, a higher electricity bill, a higher property tax...etc.  Be careful in investing in your own business.  It's always best to invest in a business you HAVE DONE BEFORE or Worked In.  Main reason small businesses fail is lack of liquidity and LACK OF KNOWLEDGE.  Be smart!  Even though you have quite a bit of money, take some cuts from the SBA!  The govt sometimes gives kick backs on small businesses!  Believe it or not small businesses make up over half of the GDP in the country!

 

5.  We are ALL going to buy another car rather we need it or not.  Currently I have a bmw 335I (twin turbo...insert Tim the Toolman Taylor grunt here "ho ho ho").  I would however trade it in for a Porsche 311 turbo S any second once I had 40 Gs.  My suggestion NEVER buy a NEW car.  Why?  Because you take about a 25% depreciation hit once it leaves the lot.  Do like I did and find a NEWER model, but one that has been kept nice.  My car had around 36K miles, no scratches,  had nice upgrades, garage kept....like new...but not on the price tag.  Be sure to try and buy cars that will hold value.  I know Ford Mustangs and Chevy Camaros are cool and sound awesome...but instead go with either a foreign car such as a Lexus, BMW, or Audi.  American cars other than collectables (Corvettes, hot rods, Saleen/Rousch Mustangs) don't hold their value and depreciate quicker than other cars.  In other words...their trade in values are horrible if you ever wanted to get something else.  Same thing here...high end sports cars...require HIGHER insurance, and typically higher gas (premium gas, typically worst gas mileage, more expensive parts).

 

6. Put some cash into savings bonds for your kid(s).  Did you know that if you buy savings bonds correctly(title them)...as long as your children use it for educational purposes they don't have to pay taxes on the interest?  There are other programs like that out there as well.  Take a look into them...college will continue to be more and more expensive!

 

7. Last but not least...give to God and charity.  God ask that we give the first offering to him (10 percent).  I have personally been blessed since I've been tithing.  My raises have went up, I've been promoted several times, and just good things have been happening.  Also give to charity...for one it's a tax write off (so is church giving!).....two it's just a good thing to do for what a blessing you received.  Many people are suffering right now with jobs continuing to be cut (not because of the economy but because of greed).  Companies have found they can do more with less...sad shape for the US.  Thank god the dinar is coming thru soon!

 

Hope this info helps some who are still in the unknown territory about what to do with quite a large sum of money.  Just use your head!  Be smart!

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great read and sound advice, Amos.

 

3.  Speak to an investment officer (who ISN'T on commission).  You don't want them to sell you crap.  Ask them about investments that are safe and have been around thru the recession.  Don't put ALL OF YOUR EGGS in one basket.  Keep some working capital in a money market or an interest bearing checking.  Money markets allow you to make 6 withdrawls a month, interest bearing checking accounts don't have a limit on transactions....but they usually have a minimum balance and a lower interest rate.  Move some investments around...I WOULD NOT invest in the stock market, too volatile.  You can also invest in gold, silver, and other currencies such as the Yen (maybe one day China will quit cheating).

 

 

 

Don't you mean the Yuan? Yen is Japan.

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Great advice Amos, but How about moving #7 as #1.  just a suggestion.  Here's hoping we will be facing this real soon, this is getting old, but in it for the long haul if necessary.  Blessings to everyone.

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Thank you, as that will likely be helpful for many whether this things pops or not as it is great general advice.

 

I bought my car with 2,500 miles on it. A normal sticker price for the car new was $22,900, as I only paid $18,900 for it just due to the $2,500 miles. Car felt like it was extremely brand new as it had no flaws on it. I would imagine that some new cars can get a lot of miles just from simple test drives and still hold sticker value.

 

If this were to go the route we dream of, I would be looking to buy a house, nothing special or fancy as it would be something reasonable. I would actually prefer it to be in a newer development as they tend to start cheap and if you live in that development, I would believe that over time the value could go up. Great if your young and look to move in the future.

 

I would also say after you made your simple or fun purchases (boats, houses, cars, paying off debts), that you prepare to live comfortably that you invest the money in safe and reliable areas that provide returns. Never touch the principle and try to live off the interest for living expenses. If your younger, I would say still expect to work, if your older - maybe cut your hours or work part-time, if your pushing retirement you could likely take early retirement and call it good.

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You can definitely have your investments work for you.  I figured up around 250K on a 6 percent spread...not too shabby.  Remember MAKE YOUR MONEY WORK FOR YOU.  You can also look into RD loans (rural development).  You don't have as much cost as you would with others.  They are income based, but I don't think that the "investment' would be considered since it's not your normal working income.  You'd have to speak with a mortgage lender...but something to bring up if you don't mind living out of the urban area.  Always good to get some kick backs!

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Amos ----- wow  mucho thanks -- this is a very good read and one to save for future reminding -- I have quite a few good ones in my wealth management file that if I printed out would have  a very thick notebook -- lol   This is  definitely   some sound advice for all to contemplate and a keeper  -- Thank  you for sharing -  +1 and 2 thumbs up !! UNEEK

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great read and sound advice, Amos.

 

3.  Speak to an investment officer (who ISN'T on commission).  You don't want them to sell you crap.  Ask them about investments that are safe and have been around thru the recession.  Don't put ALL OF YOUR EGGS in one basket.  Keep some working capital in a money market or an interest bearing checking.  Money markets allow you to make 6 withdrawls a month, interest bearing checking accounts don't have a limit on transactions....but they usually have a minimum balance and a lower interest rate.  Move some investments around...I WOULD NOT invest in the stock market, too volatile.  You can also invest in gold, silver, and other currencies such as the Yen (maybe one day China will quit cheating).

 

 

 

Don't you mean the Yuan? Yen is Japan.

w

I believe you may have misinterpreted the phrase. I believe he meant the Japanese Yen, but neglected the Yuan as he claimed their cheating & their value is low which means they may not be a good move at the moment.

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Yeah that's what I meant, invest in Japan right now...maybe China later...but as for now they are still cheating (WTO needs to put a stop to that)

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get a  good wealth management team ask around to see if others have made money with them while investing.  Many will rely on financial advisors to allow them to take your money and yes I mean take your money with making minmal to nothing on ROI.  Its vital to have a plan and to not be back at the same situation you find yourself today.  Be smart because this could be your ONE and only chance.  The chinese will bode good returns on investment i plan to get in to some myself once this breaks.

Edited by easyrider

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Sorry but BMWs do not hold their value. Smart drivers of BMWs have figured this out and have learned that leasing makes much more sense due to the fact that they do not hold their value. The majority of BMW owners who purchased can hear the dirt hitting their roofs from being so buried.........

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Lets see....

new car-check

boat-check

world cruise-check

Asian girls who do anything for money-DOUBLE check

ah......investing? making my money work?

Ah, geez! Back to the drawing board!!! Sumabiatch!

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Very good read ;) ... one way I've always heard investing put in my ol' neck of the woods... "never eat your seed corn".... in other words.... if we are looking at a healthy RV lets take some of those resources and make them keep workin for us... replanting some of our seed for another potential crop keeps the original investment alive and growing.  Think ahead. The best to all ya'll!!!  :tiphat:

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Great advice on what we can expect to happen very soon. TY for this info.

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Sorry but BMWs do not hold their value. Smart drivers of BMWs have figured this out and have learned that leasing makes much more sense due to the fact that they do not hold their value. The majority of BMW owners who purchased can hear the dirt hitting their roofs from being so buried.........

Right, a Honda with low miles is better and still under warranty.

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Right, a Honda with low miles is better and still under warranty.

In this Country of mine ( and I guess all over the World where they are present) KIA is so far the only car brand (  when it comes to "normal" brands... excluding Ferrari and similar...) offering a 7 yr. warranty on all ( I think) models without premium add-ons  ( unlike most brands).

 

My good friend bought a Sportage last year and is extremely happy with it.

Edited by umbertino

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In this Country of mine ( and I guess all over the World where they are present) KIA is so far the only car brand ( when it comes to "normal" brands... excluding Ferrari and similar...) offering a 7 yr. warranty on all ( I think) models without premium add-ons ( unlike most brands).

My good friend bought a Sportage last year and is extremely happy with it.

I bet keepm has the answer to this.

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Yeah that's what I meant, invest in Japan right now...maybe China later...but as for now they are still cheating (WTO needs to put a stop to that)

 

Thank You for clearing that up.

 

Not sure I'd want to physically invest in the Yen--it peaked last part of the year last year the trend is still looking down compared to other currencies ATM.

 

...perhaps in the Nikkei [although you said not the stock market..sure that applies to all markets].

 

I'd definitely purchase the Yuan though---when the shackles come off of it.

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