Invest in income-generating assets. Real estate, stocks, venture capital (if you have enough to "play with"), bitcoin mining machines, etc. Put it into a variety of things.
Also, if you haven't read the book Rich Dad, Poor Dad, I highly recommend it.
yip read the book just a little while ago, I think the message is bang on, but I have missed the big money maker "property boom" or as I see it I am on the wrong side of the malinvestment.
My primary investments have all been income generating assets, they have contributed to the progress of civilisation and my dwindling wealth (however they are relative commodities as the industries are highly competitive) the price deflation this competition causes is nicely matched by the inflation in the money supply) The up side is I now don't produce anything and I outsource to China and am earning more than I did as a producer, (the economy is getting stronger by the day
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Real estate is spending money I don't have,
Stocks all went belly up after 911 or 2008 (if my investments can go broke why can't the banks or some EU states),
Venture capital I haven't played with Kick-starter but it has been a 50/50 endeavour, I end up investing more than just money (maybe I have issues).
My dilemma is investing because inflation requires it, is a form of what economic theorists call malinvestment, there are some good stocks out there and I have been a little timid after making some bad calls, but I should go at it again.
My Bitcoin mining rigs are the only shining light in all this investment centric, can't save world, they keep my family warm and my office too. They bring in about 0.4% return per day, and have paid for themselves many times over. (as Mining investing goes, I am at the edge of my comfort level, can't justify more investment without some sure sign)
I have been hesitant to save in Bitcoin because the Keynesian myth "the paradox of thrift" is actualy alive and well in the Bitcoin economy.
Ok so I have invested what should you do next?
You haven't missed the big money-maker property boom. Now is the PERFECT time to invest in real estate (in my opinion)!
- Renting demand is high.
- Real estate is cheap because of the housing crash. (remember that saying, buy low, sell high? Well now is the "buy low" period!)
- If you think we're about to enter into an era of high inflation (which I do), then think about what that'll do to real estate prices.
- Real estate is a finite resource - it will always be in increasing demand as long as world population is growing.
And then I think stocks are a good investment as well, for similar reasons to those mentioned above. My stocks (or rather, 401k mutual funds) have been doing fine through the recession (either stagnant or growing). All your stocks lost 100% of their value?
I agree that inflation encourages over-investment (and bad investments), because an investment that loses 2% a year is still better than losing 3% a year to inflation. But that's all the more reason to invest in something instead of nothing if you have extra money laying around to invest with.
If I had an extra million to invest right now, here's what I'd do:
- Invest half in real estate rental property.
- Invest 1/3 in dividend-paying stocks.
- Keep 1/6 around in very liquid investments (perhaps Bitcoin) to have ready for other investment opportunities that arise.
No, one of his corporations filed for bankruptcy because it was hit with a judgement against it for far more than it could pay.
That said, I lost some respect for the guy after reading that article. He had an agreement to pay a percentage of his earnings to said company, and reneged on it.
