Although withloveshmon.com is dedicated to providing information on high paying tech career, we feel the topic we discuss in this post is very relevant, because once you secure that high paying tech job you’d do well to start thinking about retirement and/or investing early. “Cash is King and works far better than Ambien when you want a good night’s sleep every night.” The quote above really says it all. When you are comfortable financially you will be comfortable in all aspects of your life. When you have 100k or more to invest there are several options available as to where to invest 100000. The two most popular options are to invest in gold or silver or to invest in stocks. There are pros and cons of each of these options.
What are your Investment Goals?
The first thing that you need to determine when choosing how to invest 100k is what your investment goals are. Many people choose to invest their money as a form of wealth preservation or to grow their current funds. Some people invest for safety.
One of the nice things about the different investment options that are available is that they live room for liquidation. This means that if you have to sell off part of the investment you will be able to do so easily.
Once you have considered the reasons that you would like to invest
First Option: Precious Metals
When it comes to how to invest 100k, one of the best options is in precious metals such as gold and silver. History has shown throughout the years that paper money always fails at some point. Gold and silver have been around forever and are always going to be worth something no matter what. This makes an investment in gold and silver one of the best and safest options currently available.
Why Buy Gold?
In the 5000 year history of being used by humans, gold has never failed as money. There is currently only enough gold of an investment grade quality for each person on earth to own about a third of an ounce.
Throughout history gold has been re-valued as a way to account for the excess currency that is in circulation. Just to cover all of the United States currency that is currently in circulation gold would need to have a value of $15,000 per ounce.
Gold is an extremely safe investment especially during a time of crisis. Investing in gold also offers a great potential of increasing your wealth.
Why Buy Silver?
Currently, there is less silver available than gold for investors to buy. In fact, there is only enough silver of an investment grade for each person on Earth to own about 1/14th of an ounce. This is one of the reasons that silver is called the miracle metal because the only other commodity that is more useful at this point is oil.
While silver can be used for money, it also has thousands of industrial uses as well. There are currently no substitutes for the metal when it comes to being electrically conducive, reflective, and thermally conductive.
For the last 30 years the world has used more silver than has been mined and inventories of the metal are at an all-time low.
Types of Gold and Silver Investments
Gold is always going to be the best hedge against the dollar. As the value of the dollar goes down the price of gold is always going to go up. This has happened throughout history and is one of the main reasons that a person should consider having at least a portion of their investments in gold.
There are several different ways to invest in gold. Gold stocks and gold IRA’s are two of the best ways on how to invest in gold. Here are some methods for gold investment:
• Direct Ownership: There are several forms of gold that can be owned directly. Currently, American Eagles, Canadian Maple Leafs, and South African Krugerrands are the best options for gold coins.
• Gold ETFs: there has been an explosion in this type of investment. A gold ETF is a mutual fund that only holds investments in gold. There are currently two ETFs that only have gold as their asset that are traded in the United States. Both can be found under GLD.
• Gold Mutual Funds: This type of fund holds portfolios with stocks in companies that mine for gold. This is a good choice for a person that is nervous about investing in physical gold, but still wants some exposure to precious metals.
• Gold Options: This will allow a person to speculate on the future of gold prices. This type of investment is best for those that are more experienced in investing.
• Gold Stocks: this is a speculative form of investing and is typically an investment in exploration. The potential payoff can be quite high, but the investment is more risky.
Some more resources for information about investing in precious metals such as gold and silver include the following books:
• Invest in Gold and Silver
• The Creature from Jeckil Island
• Rich Dad’s Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future
Here are some videos that will provide you with information about gold and silver investment:
If you would like more information about gold and silver investments you can visit the following websites as well:
TEN COMMANDMENTS FOR BUYING GOLD AND SILVER
WHY INVEST IN GOLD AND SILVER
Second Option: Stocks
When it comes to where to invest 100k or more, stocks are the investment that most people will turn to. There is a good reason for this. Stocks offer a person the chance to invest directly in a company. A stockholder owns a portion of the company and this can pay off well if the company does well. However, if the company does not do well the losses can be substantial.
There are several different kinds of stocks as the market is divided into different areas. Most commonly, the market is considered by the size of the company, the sector, and the growth patterns of the company. For example, when investing you may consider a large-cap versus a small cap stock, a technology versus an energy stock, or value versus growth stocks.
When investing in stocks it is important to consider the short term and the long term value. The behaviour of the market during the short term is mostly based on news, enthusiasm, rumors, and fear. Long term behaviour is based on the company earnings which determine whether the price of the stock will go up or down or remain relatively the same.
How to Invest in Stocks
There are several ways to buy stocks. You can open up an account on one of the many online brokerage sites that are available such as Etrade™ or Scotttrade ™ as well as several others. CoolTrader Pro offers a software program that can help you set up an automatic investing account based on the parameters that you set up.
There are several ways to determine which stocks that you should purchase and every investor will have their own unique formula. A fundamental investor will consider an analysis of the financial information of the company as well as of the business, its competition, and the current economic environment. Some investors will use charts and patterns to determine their trading decisions while others will use multiple variables to come up with different trading models.
Mutual funds are another form of investing that you may want to consider. This type of investment allows you to invest in several companies at once. The mutual fund will be divided into several different investments in different areas. Mutual funds are a bit less risky as the risk is divided among several companies as opposed to just one.
When considering where to invest 100k or more you will need to first consider the type of investment that you want to be involved in. While it is nice to have some cash on hand, this is not going to be the safest or best option for investing if you are looking to grow your fortune.
A good rule of thumb is to consider a very diverse portfolio. Investing in stocks and mutual funds can be a bit risky, especially in the current market. Remember, stock prices are driven by emotion and all it takes is a leak of bad news for a company’s stock prices to fall dramatically.
Consider investing a good portion of your money into one of the precious metals. There are several options available for gold investment and each has advantages and disadvantages. You may want to purchase some gold directly and then consider investing in the stock of a company that is mining for gold as this could have a very high pay off.
“When the going gets tough, the tough have cash.” In my humble opinion today, the saying should be rephrased: when the going gets tough, the tough have Gold and Silver” because gold and silver, that’s real money!
Just remember, when investing should be considered for the long term as this is where you will make the most money in the majority of cases. There are very few who make a ton of money in a short amount of time and history has shown gold is the standard when it comes to a safe investment.