Question for the older Bus Nuts

[busnut104]

If you want to lose money, buy a bus spent thousands of hours and thousands of dollars and then try to sell it. The stock market would be a better investment. 

[PP]

Bill in Kansas,
I replied earlier in a rather flippant manner, but after sleeping on your question overnight, I began to wonder.....Who in their right mind would ask a bunch of 'nuts' that own buses financial advice? We own buses for crying out loud, isn't it obvious that we have no financial sense?
Seriously though, good luck in whatever you decide to invest in. Like Clifford said about Ford stock, right after the bottom hit in the stock market, you couldn't make a bad investment, even doggie doo was rising daily. Companies with spread sheets that looked more pathetic than my grandkids diapers after corn on the cob were doubling and quadrupling in value. There wasn't any logic to it, but it happened none the less. Since then, some of those companies have been devalued to what they're really worth and even more people lost their money. The best advice I've ever recieved besides buy low and sell high is to invest in what you believe in. If you love a companies way of doing business or their products, then other people probably do to. I think I'll change my handle to 'Envious in Oregon'.
Will

[white-eagle]

Bill in Kansas,
The best advice I've ever recieved besides buy low and sell high is to invest in what you believe in. If you love a companies way of doing business or their products, then other people probably do to.

We started our own company selling products and services. Invest in yourself.  We were able to keep my wife home working and watching our son, eventually trained him also.  
We invested in some companies i believed in.  Someone raided it and the stock tanked, that happened twice.  i'm still waiting to make a killing on the MS stock i bought before 2000.
As someone said, the stock market, commodities, are all about playing the game, not investing in a researched company.  
If you want to invest in stocks, buy a share in a good local company, be keep an eye on what they do so they don't become obsolete.  Best thing is good services that you can't get remotely from China or India, like a custom machinist or mechanic doing specialty work. Find a niche.
Buy a good house, big as you need, in a place that has water close or good well, just in case.  Well insulated.  Don't look at the house as something you can turn into profit, look at it as less expensive than renting.  if you expect to get moved soon, then rent.  if you can at least get your money back on the house, buy.  We lived free in every house we ever had, just because we got enough to at least get our money back, tax write offs, etc.
just don't buy a 5 bedroom mansion as an investment.  that no longer works.

[white-eagle]

one more thing i almost forgot, as i'm watching another stupid credit card commercial.  Don't ever have to pay a credit card fee.  PAY IT OFF EACH MONTH.  If you can't afford to pay it off each month, save the money up first before you buy.
If you have to worry what the credit card percents are, you shouldn't be using it.

[bevans6]

30, own the house, own the toys, debt free.  I didn't get there till I was 45, but I was there none-the-less, and far sooner than I had a right to be.  Made my luck by being in the Internet business at the right time.  I do have advice, serious advice, that I will share, since you asked  

Much depends on your health, your personal situation, your income, the stability of your personal situation, your goals in life, your goals in retirement, your genetics.  If you are like me, good basic health, stable relationship, good income that is stable as it can be these days, I would do this:

Accumulate wealth.  Put 10% to 20% of your pre-tax income into long term investments.  I personally favor a 50/50 mix of what I call tier 2 bonds (government bonds, basically, but not US bonds, the yield is too low) and target a yield of around 3.5%.  That gets you very safe bonds.  I favor dividend paying equities that pay in the 5% range, and are "blue chip" companies.  Your thoughts and what you can invest in happily may be different from mine. but that is what I advise.

Establish a "go to hell" fund.  That's the money that sits in a readily available stash so that no matter what happens, you have three to six months of fully covered living expenses ready to use at any time.

Establish a "fix the stuff I bought" fund, if your cashflow won't support the odd $10K or $20K unexpected bill.  Roofs have to be replaced, the bus engine can explode, you may need to buy a new car or you may need to drop 30 large on a new septic system so you can keep doing number two's in the privacy of your own bath room.  All this happened to me in the past two years.

Enjoy yourself.  Do what makes you happy.  I personally spent about 20% of my income racing cars, building cars, traveling all over the place meeting people and having a good time - racing cars!  I bought a bus to use when I went to race cars!

Build a plan and execute the plan.  Doesn't have to be a fancy plan, but you need to know where you are going so you know when you get there.  My plan is simple - accumulate a net worth of over $750K by the time I am 55 years old so I can retire, fix my lifestyle and have a chance of living the life I want to lead, as opposed to the life I am forced to live to do the work I do.  I'm 54 now, so I'll know if I made it soon...   .  

Brian

[Charles in SC]

You have gotten a lot of good advice so far. What little bit I might add is to follow a lot of markets weather they are real estate, scrap metal, or vintage guitars. You can make money on a wide range of things. I have spent over 20 years messing with rental property and feel like it has done me good, but a lot of it can vary depending on where you live, and if you like real estate, etc.  A friend of mine who went to Harvard Law School And a business school of which I cannot remember the name told me that in business school he learned to "buy low and sell high". In law school he learned to "not get caught".

[WEC4104]

I believe that our country and world are changing, and the advice that was right 30 years ago, no longer applies. As a country, we face unprecedented debt, and a disappearing manufacturing sector.  Baby boomers are reaching retirement age while medical costs skyrocket and the social security program is doomed to tank.

For the upcoming decades, I believe the key to financial success lies in the ability to HIDE your wealth. Simply put, our government is writing checks they can't cash, and they will most certainly continue to raise existing taxes while finding creative new ways to tax.

Thirty years ago, a person in your shoes might focus on an investment's rate of return and only treat the tax implications as secondary.  In the coming years, that will flip-flop.   How wealthy you APPEAR on paper will have far reaching affects on your taxes and a multitude of government programs. 

For example, let's say you are blessed with having two children.  Being a responsible person, you scrimped and saved to put away $100K for their education.  Meanwhile, the folks across the street saved $2K for their kids education, choosing instead to buy every new electronic device that hit the market.  When it comes time to fill out the college financial aid paperwork, your neighbors have the upper hand, unless you have been able to hide your wealth in a way that does not show up on their forms.

So how do your hide wealth?  That's the tricky part. Gold or investment grade rare coins? Create a corporation and put your assets under that name? Off shore accounts? Creative real estate investments? Intellectual property? Art?  Who knows?

If I was younger and exploring more of this, maybe I could tell you what is best.

[Carcrazyguy57]

IRA in mutual funds spread the risk.

[Bill in KS]

Thanks for all of the responses. 

Making money is one thing. 

Making that money go to work for you is a bit different.

Bill in KS