Comments on: Preserving Savings: Stocks, CD’s, or Precious Metals?

By: Yan

Yan — Thu, 03 Apr 2008 15:38:42 +0000

I like the FTI story, but I am afraid it is too late to jump on that train. Just as the ending says, FTI is no stock for bargain hunters. I wish I would have discovered them a year or so back though.

Since stock market is usually ahead of economic news, it may be that we have seen the worst and now is a good time to invest in big cap growth stocks. I particularly like Google and Toyota Motors, both are leaders with what they do, both have plenty of foreign exposure and most importantly each has a big bet on future technology.

By: Alex

Alex — Thu, 03 Apr 2008 15:07:38 +0000

I thought I'd share this info: If you are into stocks there are companies that actually are profiting from the economic downturn. If tabacco/alchohol is not your venue perhaps this would get you interested. FTI Consulting Portfolio Recovery Associates

By: Alex

Alex — Wed, 26 Mar 2008 16:40:02 +0000

“There’s no sin in making money from the sinners” – something to keep in mind ;)

By: Yan

Yan — Wed, 26 Mar 2008 16:30:53 +0000

Thanks for the tip. I like the #2: “open pawn shop”. LOL

Seriously though, I don’t think I am about to invest in sin stocks (out of my beliefs) but I should probably take a closer look at silver as an investment (3-5 years?).

I did buy a few CD’s last year when the rates were not as low as they are now.

By: Alex

Alex — Wed, 26 Mar 2008 15:58:41 +0000

there's a good thread on FW regarding profiting from recession

By: Alex

Alex — Wed, 26 Mar 2008 15:56:33 +0000

VICEX is expensive and according to many forecasts including respected sources like Kiplinger’s and Stratfor we are not heading for a full blown depression so I figured the doom and gloom is not quite there yet.

My personal strategy is to move my IRA to bonds to minimize the short term damage and get the cheap financial indexes while you can.

I wanted to buy gold tracker last year but i didn’t have balls to do so and now I am beating myself over my indecision.

By: Debbie M

Debbie M — Wed, 26 Mar 2008 14:14:30 +0000

I’m not sure what you mean by “shorter-term” savings, but if it’s shorter than five or ten years, stocks may not be appropriate, at least if you’re saving for something that will happen at a certain time, like going to college. But if you’re just saving until you have enough, like to remodel your house, then stocks might be good.

For short-term savings, I have used the following over the years:
* savings accounts
* CDs
* I-bonds
* online savings accounts

Yes, CDs (and I-bonds) have “substantial penalties for early withdrawal,” but sometimes the interest rate is so much higher than for your other options that it’s worth the risk. That substantial penalty is generally never more than all the interest you’ve earned so far (but do check it out before investing).