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You have worked hard and saved. Now its time to take that money you saved and use it as a tool. A tool to make more money. This page is devoted to this goal. It provides some helpful advice on how to proceed and links to websites than can be useful also.

The following was posted in 2009
A little bit of history and it does repeat itself.
Update. Hint Wayfair

Section One - Investing in Gold

Update since this writing gold has settled at 1217.10 an ounce
to a record high on Dec 1, 2009. But even at this price if you
recalculate the examples below you still by far did better in
the stock market

A lot of investment people out there consider this as a really good investment to hedge against inflation and hedge against world crisis but if you take a closer look you can do much better elsewhere.

a. You pay a premium above the daily spot price for an ounce of gold to both buy and sell. The following will explain further.
b. The day of this writing spot price one ounce $955.70 of gold.
c. Bullion dealer quote of a one ounce Krugerrand gold coin $1026.23
d. You decide to purchase 10 ounces of gold, a total price of $10262.30
e. The spot value of our purchase is $9557.00
f. You have spent a premium of $705.30 to purchase that gold.
g. You are already in negative return on your investment which is substantial.
h. In conclusion gold should be less than 20% of you portfolio at one time.





Section Two - Investing in Stocks

Now you will be able to see how your investment dollars can go much further and return a much larger profit. Here are some pointers you should follow before you start.

a. Number one is do your research just like any other purchases you will make.
b. Open an online trading account, these accounts offer low commissions on stock trades.
c. Decide on whether you are going to be a day or week trader or a long-term investor. Both of these are uniquely different in today’s market.
d. Never buy stock on margin. This is where you borrow against the current value of your stock to buy more stock.
e. Never invest more than you can handle as a loss. This is very similar to going to a casino and gambling but your risk can be far less if you do your research.
f. If you would like the advantage of leverage, look in to trading options, but remember this has a big risk reward curve.
g. Follow the news and not just the financial news. This current market is news driven and not driven by fundamentals.
h. Try not to listen to other people’s advice. Even those financial genius gurus can’t predict what will happen tomorrow.
i. Trust you own judgment and learn not to get emotional.
j. Sometimes the rumor of bankruptcy in a stock can be a money maker but be careful if it actually happens it could get ugly.
k. If you’re a day or week trader volatility is you friend.
l. If you’re a long term investor it will stab you in the back.
m. Back to the news, remember the media always blows things way out of proportion.

The following are some examples of where stocks have brought a huge return versus gold

Gold spot price March 6 2009 $938.40 versus today’s spot price of $955.70 you would still be in the red because of the upfront cost of the actual purchase price.
If you had taken the spot price of 10 ounces gold on March 6 2009 and invested in stocks This is what you return would have been.
Original investment $9340

WFC / Wells Fargo Bank
March 6, 2009, $8.61 pre share equals 1084 shares cost $9340
Day of this writing close $28.64 per share times 1084 equals $31,045
Less initial cost $9340 equals profit $21,705 commission on trades
approx $28

RT / Ruby Tuesday March 6, 2009, $ 0.95 per share equals 9831 shares cost $9340
Day of this writing close $7.23 per share times 9831 equals $ 71,078
Less initial cost of $9340 equals profit $61,738 commission on trades approx $28

LVS / Las Vegas Sands March 6, 2009, $1.77 per share equals 5276 shares cost $9340
Day of this writing close $12.25 per share time 5276 equals $64,631
Less initial cost $9340 equals a profit of $55,291 commission on trades approx $28

Writing of this Aug 10, 2009. So as you can see the profit potential in stocks in just a little over 5 months has been huge. Gold not so good. So the potential to make money in stocks is their. Stick with your plan when it comes to stocks and do your research. History repeats itself and that opportunity will happen again.


Well history did repeat itself and it Happened between Mar 18-19 2020
The Market tanked and stocks dropped like a rock but for those who bought in instead of selling did pretty dam good as of July 2020. Here is one that struck gold.

Wayfair ticker W March 19, 2020 about 25.00 a share. July 6 2020 222.10 a share this happens to be a should ah could ah for me but didn't.
There are a lot others that have done quite well. So once again there was money to be made in the market. By the way gold is trading at 1798.00 an ounce a year ago 1444.00 an ounce.





Section Three - Investing in your 401K Plan

Unless you lived in a cave then you have heard about someone or have experienced first hand big losses in your 401K plan in the last year. Here are a few tips you should follow to limit your losses.

a. If you company provides a match have the largest percent of contribution put in the plan from yourself. The match is free money get the most of it.
b. Keep track of your investments. It’s up to you to limit your losses. These people who sponsor these plans could care less if you make money. If you just stuff that quarterly statement in a drawer and don’t even look at it then you are just plain ignorant.
c. Don’t think you can time the market. No one can.
d. If you are in high risk investments and you see even more continued losses consider going more conservative.
e. If you plan on retiring in the next one to three years go as conservative on your Investments as possible. The last thing you need is to loose 30% of your money a year before you retire.
f. Do your own research on the funds that your plan sponsor has. Their out to sell a product and collect a fee so take the time to do your own research.
g. Every one say’s it’s a bad idea to borrow against your 401K but if you need to reduce your debt and improve you credit score then borrow the money here.
h. Know what your 401K plan restrictions are. The following is a link to
FAQ’s About Retirement Planning

Section Four - Investing in Real Estate


Today’s real estate market is unique in its challenges than just a few years ago. The days of fixing and flipping for a cool $100,000 profit are long gone. If you do you research and be thorough there are still ways to make money in real estate. It still is a great way to invest and have control of an asset with the least amount of investment.

a. Look for foreclosures and short sales.
b. Commercial real estate is the next shoe to fall so count on bargains coming along in the next 6 to 12 months.
c. If you are looking for a long term investment consider multifamily properties. If managed correctly can return a steady stream of income over many years.
d. Take a look at the Housing page on this site it has some great tips and links to get you started.



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