Your Questions About Is It Smart To Invest In Gold

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Ken asks…

Invest in real estate or franchise a business?

Now lets start by saying I’m young, im 18 to be exact. Fresh out of high school and about to join the “adult world”. I’ve been fortunate enough to be working and saving a little bit so I can have some money to try things at a young age. My parents are willling to help me but like any parent I’m told to have a plan. I live in Calgary, Alberta and real estate in this city is like gold. However I can say the same about having a business. The renters market in calgary is good, so a plan myself and parents came up was to buy a home for under $380 000 and rent it out. In calgary with the location of the home you can approx rent it out for 1500-1800 a month. I would put about a 40-60 thousanddown paymentt on the house and mortgage the rest. Granted that because the rates are so low and by the time im ready to move out (maybe 4 years) I turn around sell or move in to the place I would have a head start.That’ss an option, another scenario I’m looking at is franchising a business. I do have the 40-60 thousand dollar range to put down in cash. So i guess what I’m trying to ask is that enough cash to start a franchise? Is it smart to take out a loan for a business if it is not enough? Im looking for the most beneficial return. What will make more money and what is the smarter decision?

financi4 answers:

Real estate is definitely the better investment. But we’ll start with franchising dreams first.

Franchises are great because you can buy into an already popular company like Subway or something and everyone will go because it’s already well known and they know what to expect. Downside for a business owner is if/when Subway wants to rebrand themselves or modernize their stores, they will require you do the same with yours. So unless your business is booming, there’s no way in hell you can keep up with the requirements. Also, franchise fees are expensive just to use their name. So unless you get A LOT of business and make a lot, the franchise fees alone might kill you. A friend’s family friend opened up a Boston Pizza and less than 2 years he went bankrupt because Boston Pizza rebranded so they had to renovate the store, update, new menus, etc and he couldn’t keep up with the costs plus the fees.

Now back to real estate. Real estate is a good investment because even if it’s a slow housing market, you can keep your investment property running with a tenant which means you’re not in a rush or forced to sell. I also recommend NOT buying a house and instead choosing a condo (1 or 2 bedroom only). Why? Because houses would require you to find several tenants or a family or tenants who already want to room together. This is also bad because if tenants have a falling out, you’re screwed and you’ll be spending more money on eviction notices, collections etc than it’s worth the time. Condos are great because 1 bedrooms and 2 bedrooms are easy to rent out (3+ leads to the same types of issues as with houses) and you spend less time maintaining because you pay strata maintenance fees so you don’t have lawns, etc to worry about.

Also, don’t automatically assume that if/when you sell, you will make a profit. Too many dreamers think “oh this is easy, everyone should own investment property!” and that’s not the case. Not all properties sell for a profit! Many people lose money on their homes.

Charles asks…

How is pole dancing exploitative when the girls can earn in excess of £175,000 a year manipulating guys + fit

How is pole dancing exploitative when the girls can earn in excess of £175,000 a year manipulating guys + keeping fit.

So much more fun doing it then brain dead boring repetitive work for peanuts kissing bosses ass.

Say in a call centre where every second you are monitored.

or stewarding or stacking shelves or even poor paid bar work typical of young people.

Why be in debt and having to pay for the gym when you can exercise all day, afford to eat healthy.

And lots of toys, clothes, cars etc.

or if your smart enough not to waste money or silly gold trinkets, drugs or drink or showing crap and invest it in a house in to years and then taking care of a pnesion and putting enough away to live of the interest from investments, cover uni costs and with house, pension, education all covered and paid for, plenty of savings and poss own business.

live a good life with lots of holidays etc.

if not hurting not immoral

If doing what want not dising self
Not getting exploited as its more a case of hypotising silly guys with more money then sense into handing over the contents of their wallet simply to see your butt and milk glands.

And you doing keep fit and flirting.

As said self respect is not letting others push you around.

Main thing is working someehere say with nice boss who looks after the girls with nice bouncers who look after you and wont push you into anything.

Examples Hugh Hefner, Peter Stringfellow etc.

you need the common sense that this wont last forever.

But you can use the money to avoid interest and debts from mortages, student, career and business loans.

And then use brains.

Plus as said you get to live dreams of travelling the worls and you can always workd on this whilst travelling…

1 1 day a month and the rest on the beach and sky diving etc.

whilst the poor boys have to work non stop in boring call centre or building work which is much riskier.

Plus helps pulling..
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Would I mind sister doing it?

No as long as safe and nice boss and happy (safe like any job)

would I loose respect for female mate?

No plus many girl mates went for things like wet t shirt coms or flashed boobs at gigs… sort of see it same way

What if it was my mum?

well shes too old now but when she was young? no would no matter be like if mum had been a model or sex symbol…

What if you found out girlfriend had been one…

again no issue.

if wife or girlfirned… may be a little jeaous… prob not… most likley cool as long as not doing the lap dancing… on stage fine.

It would not be as think disgusting or anything… can imagine just being a little jelous…

Maybe switch to making couple porn instead on the internet.

What some porn stars do…
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Would I mind sister doing it?

No as long as safe and nice boss and happy (safe like any job)

would I loose respect for female mate?

No plus many girl mates went for things like wet t shirt coms or flashed boobs at gigs… sort of see it same way

What if it was my mum?

well shes too old now but when she was young? no would no matter be like if mum had been a model or sex symbol…

What if you found out girlfriend had been one…

again no issue.

if wife or girlfirned… may be a little jeaous… prob not… most likley cool as long as not doing the lap dancing… on stage fine.

It would not be as think disgusting or anything… can imagine just being a little jelous…

Maybe switch to making couple porn instead on the internet.

What some porn stars do…

Its more a single persosn job.

Much like jobs where you are separate all the time
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Whats it to do with religion?

Well look at how relgions like chrisitinity and islam view sex especailly any sexaul activity for pleasure outside marriage as sin…

im saying its only sin if somone being bullied and Silver note all readdy beat you too the what if sister thing.

Bit of reality… guys see girls as sex objects, girls see blokes as sex objects.

If your parents did not see each other as sex objects then you would not be here and the human race would cease to exist.

Most humand however like to get to know, make friends or get close and loving with those they see as sexy.

Either chatting to the girls if both are relaxing and they know the girls not running up a meter.

and would prob say high with many simiply lonley guys looking for company or on birthday or bucks nights where its more of a laugh
As said… beign seen as not stuff is not negative as most dont only see people as sex objects . but the equivalent of a mate with inbuilt Play stations and a Nintendo WII.

Ie a human with inbuilt fun bits
As said… beign seen as not stuff is not negative as most dont only see people as sex objects . but the equivalent of a mate with inbuilt Play stations and a Nintendo WII.

Ie a human with inbuilt fun bits
Why is it the religious would be the ones abusing the girls with their negative sterotypes calling them dirty, sinful, whores, etc.

In many countires like islamic ones the girls may be stoned to death or die in honour killings etc.

Thats the religious element
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Dave sin is witch burning, inquisitions, abusive kids homes and abusing gays

dancing and flirting is not a sin

financi4 answers:

I agree

William asks…

Some questions about investing at a young age..?

I’m 17 years old, been studying things like the economy, stocks, bonds, mutual funds, the dow jones, wall street, etc for quite some time. I’ve had an experienced investor come and teach me a considerable amount of stuff, so i’ll understand your answers, don’t dumb them down because i’m young please. Some questions..

1. At my age, would it be smarter to start investing in a Roth IRA (have a job, make around 4k a year so no taxes would have to be paid now either) or a no load mutual fund? (considering Vanguard’s STAR)

2. Any specific things that have helped any of you become a successful investor? I know of the general rules such as always have emergency money, diversify, etc

3. “Every 10k you earn in investments, buy a solid gold coin” I know the reasons why, just wondering if a lot of you agree with this

4. Any other tips of advice you can give me would be greatly appreciated!

BTW, i have about $4,000 in bonds/savings, haven’t started investing quite yet, plan to invest around 3,000 of it…any specific mutual funds to look into would be sweet too

THANKS, a novice

financi4 answers:

1. You are confusing apples and oranges. A Roth is a tax free investment vehicle. A mutual fund is a type of investment, and can be used in a Roth. If you have a job though, it would be good to max this out every year if you can.

2. The basic time tested wisdom still applies:

Have a goal – know what you are investing for, and choose the right investment to achieve it.

Choose the right amount of risk – neither too cautious nor too reckless.

Do your research – choose what’s right for you – not someone else, especially a sales rep.

Be diversified and allocate your investments properly.

Think long term and avoid the Big Money Fast hype.

Don’t invest according to emotion – especially greed, fear or panic.

Don’t just look at the investment – consider fees/taxes/commissions around it.

3. Never heard of this, and I’ve been doing this a while.

4. Depends on how much risk you want to take on. You have a lot of time, so you can take on a fair amount of risk; but don’t get reckless. It also depends on what your goals are. What are you investing for?
If you want long term capital appreciation, then stocks are a better choice. Some basic staples like the Total Stock Market Index mutual fund is good, and if you want to branch out more, there are small or mid-caps, international funds like Emerging Markets, and sector specific ones like REITs, Energy, Health Care, and others.
Try reading Mutual Funds for Dummies – it can help a lot.
Vanguard is an excellent choice though – they have a lot of variety and the lowest fees anywhere.

John asks…

I make way too much money at 16. Is it healthy?

I run about a $7,000 a month business.

I sell candy, chips, pens, pencils, etc. during school. Whatever you want, I got it.
After school, kids usually meet up with me in the parking lot where I sell burned cds, movies, games.

Last week, I made $2,000. Im also the high school bookie and run about a $5,000 operation.

Within four months of business, I bought a 2007 Ford F-150. I even pay for my own car insurance.
Im very smart with my money though. Ive been putting away for college, investing in gold and silver, stocks, etc. I dont sell drugs and will refuse to do so for the rest of my life.

The school knows what I sell during school hours but doesnt know about me being a bookie or media seller.

I just recently opened up my own removal business with a kid from school. We remove snow, leaves, grass, etc. I even run an extensive craigslist trade.

Is this healthy for my future?
I thought Yahoo removed my question. Sorry for the inconvience.

Oh, and its a 2006 Ford F-150.
It can potentially be unhealthy. It can turn to greed. Right now, im not greedy with it. Just smart with it.

I thought if i went to the business section of Yahoo! Answers, I could get some business insight on the pro and cons of what I do
Well, I dont know how long the candy will stay because ive been doing this since school started. Ive noticed a slight weight increase in the average student. Theres 1,300 kids in my school. I probably serve about 1/2 of the student body everyday.

Once a week I go to Costco wholesale and stock up. Buying from Jewel and Walgreens is too expensive and they dont sell in bulk. Costco offers the most profit
My grades dont suffer either. Im a workaholic. I probably spend 3 hours right after school getting the bulk of my school work done. Then for the rest of the day, im on craigslist, burning cds, taking bets. Its actually great socially. Ive met a lot of good people around school. And thank god I dont have to chase down kids for money for the bets because I pay out when they win.

And why pay 90 cents for a bag of chips at the vending machine when you can find me in a bathroom during a passing period for 50 cents? I dont have to worry about security. Im a pretty hefty kid and a pretty popular kid around the school. I trust my clients
Hefty may be misleading. I mean it in a physical way. Im pretty fit.

Its not like im eating my profit. I dont even touch the things I sell.

financi4 answers:

Stop trying to show off. As if making money can be unhealthy.

Richard asks…

Thinking there is someone better out there for me?

I am a 30 year old, tall, handsome man who has treated my girlfriends better than anyone else. It is hard and stressful but I like to give people chances and hope for the best. Then I often wonder if there is actually a really nice looking female who is smart and not a mental patient? Because I am attracted to extremely beautiful women but all of them have a lot of mental issues that never seem to get resolved. I hear married guys on the net say that their wife is hot and smart but I never seen such a thing. I know of plenty fat and ugly girls who have successful careers and are caring women but I never seen a really good looking one like that.

I am wondering if I should invest all of my time and effort in a smart, successful, independent, beautiful woman than these broken down gold diggers? The problem is that I cannot seem to find those types of women. At first they seem classy and sweethearts but later reveal their troubled past and their mental issues and become emotional train wrecks. I am asking in this marriage category since mostly adults answer instead of 12 year old kids in the singles and dating category.

financi4 answers:

It sounds like you are looking and finding the same kind of women who are attracted to you. Using words like mental and gold-diggers sound like you spend quite a lot of ‘invested’ time in bars/nightclubs.Most people that habitually cruise bars can’t expect to find genuine ladies with morals,similar interests etc. You can’t find them online either. You also never mentioned any ‘quirks’ which you might possess. You must have at least one. You might want to reflect very carefully on what kind of relationship you are really looking for as you come across as being perfect and everyone else is flawed.

Robert asks…

Permanent Portfolio or Index funds based investment?

I’ve started reading books about investing and I’m just about to give it my first go. I’ve set up an account and I am working on my strategy. I’m young and I want to focus on growth. My readings have been divided into two theories:

1. Permanent Portfolio by Harry Browne has proven multiple times that it‘s successful. By allocating 25% to growth stocks, 25% to gold/metals, 25% to long term bonds and 25% to treasury bills, one can overcome every stage of the economic situation and keep building up a nice sum on the long term. There is a stock “PRPFX” which tracks the performance of the Permanent Portfolio, and the performance over its lifetime seems to confirm this.

2. Other books have been telling me to stay away from mutual funds and go for indexed funds or ETF’s, representing a large section of the market or a total market. The number of % in bonds should be matching your age. E.g. if I am 30, I would have 30% in bonds or bond index funds, and 70% in indexed funds or ETF’s. These should focus on either total world index funds such as VT, or indexes such as S&P500 index, or Eurostoxx50. These books say that the chances in the long term of beating the market are much too small so it‘s best to follow the market average and play safe. And by not investing in mutual funds, one takes away all unnecessary fees and all this adds up to the total profits or capital gains.

The books that follow (2) say that investing in (1) is not very smart because it‘s a kind of mutual fund and the fees / expense ratio is too high. Also one should not base their decisions on what the past market performance has been. This is again trying to “outperform” the market average.

So I’m kind of torn between the two. Which would be the best investment strategy?

financi4 answers:

There is no one best way to invest.

The Browne theory is one of many gimmicks you can read about. The basic idea of diversification is sound. However, there is nothing magic about the asset weights. PRPFX strong performance over the last decade is solely because gold has outperformed other asset classes.

Do you understand that index funds are one type of mutual fund? The key difference is actively managed versus passively managed (indexed).

Do not assume that all ETFs are low cost. Simply not true.

If you want to follow a strategy like the Permanent Portfolio, you can do it cheaper than PRPFX. Get familiar with Vanguard, the lowest cost investment provider in the US. You could build your own lower cost Permanent Portfolio using 4 Vanguard funds:

– Total Stock Market
– Total Bond Market
– REIT Index
– Precious Metals and Mining

Recommended investment reading:

One Up On Wall Street – Peter Lynch
A Random Walk Down Wall Street – Burton Malkiel
The Intelligent Investor – Benjamin Graham

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