So you're saying I should go buy art?

The principal of investing is RISK/REWARD. If the risk is 0, the reward should be as well. As you move down the line from riskless to risky, you, theoretically, get higher returns but MORE VOLATILITY in you returns.

Practical example: Stock market is the most "risky" asset class but has returned the most over an extended period of time, usually 8-10% a year. However, if you decided to invest in 2008, you could be down 25-40% on your money right now. It takes a lot of 8% years to get back a 25% loss. This is why people say "never invest what you need in the near future". "Near future" can be defined differently by different people but is usually the next 5 years (maybe 10).

A CD has LOW risk and thus LOW reward. The difference between making 2-3% a year and 8% a year over 20 or 30 years is massive. You can play around with a compound calculator to see:

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

An Index Fund is a low risk/low cost way to invest in a HIGH RISK asset class, equities. The stock market is not low risk. You can lose a lot of money in a very short period of time. However, by investing in an index fund you are selecting the most diversified, least risky way to do it. If you put money in regularly, over time, you are almost assured to beat inflation/other asset classes. You are being compensated for taking risk (volatility) while someone who buys a CD or keeps their money in cash has experienced very little risk (volatility).

Lucky!

Actually, nothing lucky about it at all. He probably worked hard and instead of spending money on things he didn't need, he saved it. It's actually the exact opposite of luck...skill?

I have a 1/2 oz. American Eagle gold coin that I am thinking of selling. Is now the right time? How should I go about selling it?

well, it helped that my parents paid for my college education. Not everybody can say that. What scares me is the devaluation of the dollar as the fed monetizes their debt. How do we leap that hurdle. Investing abroad? Buy Gold? That seems safer than a lot of other avenues.

I'm working hard too, though. We all are.

Send me a PM, friend.

Where did I say you didn't work hard? I commented on your "Lucky!". He is not lucky, unless he hit the lottery. I'm going to go with that not being the case. Anyway, you're just trolling.

RE: Devaluation of the dollar. By owning equities, you are somewhat insulated there. The stock market will go up as the dollar goes down (that's what's been happening the last few months). The reason for this is a large amount (almost half) of corporate earnings are made overseas. So even if it's a U.S. listed, domiciled company, as the the dollar declines the value of their business overseas has not declined so has to be worth "more" in U.S. dollars. It's confusing but the only way to lose money in a hyper inflation scenerio is to own government bonds or be in cash. Holding cash is actually the worst thing to do.

RE: Gold coins. Kris is better explaining the best way to buy/sell those.

Sorry Matt.

Everyone is born with a different hand. Some are born rich, some poor. Some in a 1st world country, some 3rd. Some smart, some dumb. In the end, you need to do the best you can with the tools you have. Regardless of the fact that your parents paid for college, which I agree is huge, you chose not to spend your excess income but save it. Nobody made that decision for you. I'm sure you could easily find a way to spend $30,000. It's a mature decision saving vs. spending.

I know this is Matt's thread, but lemme share this with you (I'll spare you all the commodity stuff): we are headed for interesting times, and rather than put all your eggs in any one investment basket, put them in a lifestyle basket. That is, there is no way to know exactly how this fiscal house of cards will topple. It could go any number of ways (though the endgame is pretty much known). The best course, then, is to remain as flexible as possible and have as few commitments (kids, house, debt, etc) as possible so as to be able to take advantage of whatever opportunities do present themselves whereever and whenever they present themselves.

It's scary that it has to be that way. It just seems that everything that we were taught growing up as far as building your life is so out-dated and short-sided. The problem is, will the end happen in our lifetime. Betting against that is the greatest risk of them all.

As far as the current environment, I think this is a once in a generation opportunity to buy stocks. However, I have no idea where the bottom will be and I think we will be in a bad recession for at least 2 years.

This is not my thread. Please, please, participate. The only thing I ask is to try to keep all the advice practical. All "theory" stuff should go into the econ thread.

Dead serious: Should I sell my Patrick Roy Autograph hockey card now or wait 10 years down the road? I can get at least 500$ for it, but it would most likely sell around 1200 to 1500$. The rarity of this card will always be there - there are only 2 of its kind out there. Will the collectors market crash anytime soon? I probably know the answer to this question, but i would love to hear this from a (presumably) non card collector.

cheers,
Matt

You're a douche and I'm foeing you.

About 15 years ago, I had a sports card business. I used to set up at shows and wholesale autographs. I have not been involved since the mid 90's, however.

In general, sports cards make for horrible investments. However, a very rare card that has been around for a while (it's value is stable and it's not the "hot" thing) is a decent asset. I'd rather own a cash producing business or an asset that has economic value. I have no idea if you should sell your card or not.

I like this thread.

Thanks for the info nonetheless - i guess my presumption was wrong

As someone who's collected for 17+ years, I actually have a rather small collection of cards. I only collect the stable value type and not the "hot" player of the moment. Very good point made by you, sir.