# PM/investment/savings advice please



## jsriley5 (Sep 22, 2012)

OK I have my own thoughts on my circumstances but I"d like some other opinions to either disuade me or help me persaud my Wife to go along withme. 

My Circumstances are having received a back payment finally I have a few thousand sitting in the savings account. I hate to have that kind of money out of my immediate grasp with worries about bank holidays, crashing economies, government shut downs etc. I don't want to see my money go poof. I'd be all for just investing in beans bullets and bandaids except that within a year and a half I have got to purchase a home and move so I need to have money for that. So I need a more liquid way to safely hold my money. I am wanting to purchase PM's but wife wants it to stay in the bank and us add to it heavily ove rthe next several months as a way to show the bank we are capable of handling the payment of a loan. I think it will be just as well to show up with PM's as proof of equity and assurance that we can get cash in short order. Of course though we have a year and a hlaf we could at anytime discover the property we want and need to kick into high gear to get it bought. 

so whats your guys thoughts on this? What would you do in my shoes? oh and to be sure I have beans bullets and bandaids and much more and will still be adding a little to it as we go not as much as I'd prefer but gotta have a roof too I"m too old and decrepit to be tent living. So anyway rest assured Im taking care of prepper basics and I already have a small ammount of silver and gold too and yeah I am a little annoyed if not overly dismayed by the fact it is worth a good bit less than when I bought it. Not skeered though as it still has a decent value and is a LONG term investment so as yet I"m not truly out anything. 

OK having a high pain day and am doped to the gills so Im sure I left huge gaps in what you might need to know to make a opinion so ask away I"ll answer what I can or feel safe doing. I appreciate your time and effort on my part .


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## ZoomZoom (Dec 18, 2009)

I think you answered your own question.

"except that within a year and a half I have got to purchase a home and move so I need to have money for that."

"I already have a small ammount of silver and gold too and yeah I am a little annoyed if not overly dismayed by the fact it is worth a good bit less than when I bought it. Not skeered though as it still has a decent value and is a LONG term investment so as yet I"m not truly out anything. "

If you actually plan on needing your PM's for anything in the next few years to turn back into cash, you may lose. 

If you bought silver at $35 2-years ago and needed to cash it in now (at $19) to buy your house, you lost your ass. If your PM's are just sitting there for a rainy day ("LONG term" as you explicitly said), you can ride out the current lull and recoup or make money in the long run.

I'd stay with the cash since you need it relatively soon.


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## partdeux (Aug 3, 2011)

your money is safe in the bank...

If it's not, you have much much bigger problems

PM's might go up, they might go down, they might remain unchanged 

If you're going for a mortgage, sudden changes in wealth brings unwanted attention.


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## Immolatus (Feb 20, 2011)

I would also stay with the cash, as much as it pains me to say it. 
"I think it will be just as well to show up with PM's as proof of equity and assurance that we can get cash in short order."
While I appreciate your sentiment, I dont think your bank will see it that way.
PD is right, if your money aint safe in the bank, you got much bigger problems and you wont be moving anyway. Maybe wait til after youve purchased the home, then reassess the situation. Pm's are for long term.


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## Tweto (Nov 26, 2011)

Keep it in cash!

From what I know right now, the smart move is cash.


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## jsriley5 (Sep 22, 2012)

OK I suppose as hard as it is for me I"ll admit I was wrong and leave it in there. and leave it in dollars. I have pulled aside a lil bit and will still add some to my PM's but just a small percentage that is to be kept as long term invest and JIC. Maybe Im more worried about the bank doors closing and not letting me do anythiing with my money than I should be. Might still pull a bit of the cash out though and stash it with the metals just to make me feel better  can always use it for TP later.


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## ZoomZoom (Dec 18, 2009)

A bit of cash on hand (not in the bank) is always a good idea.


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## Woody (Nov 11, 2008)

ZoomZoom said:


> A bit of cash on hand (not in the bank) is always a good idea.


I am up to a 6 month supply now of cash in hand, for known regular and expected expences. I feel pretty comfortable with that.


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## invision (Aug 14, 2012)

Since your saying a few thousand, I would look for a 1 year CD and throw it in one of those. Yes the interest is LOW right now, but at least 1-2% interest is better than zero sitting in a regular checking/savings account. Each month as you "add" to your account push it to a six month/ 1 yr CD - you can use these to borrow against for your loan, and they are FDIC insured... I wouldn't invest it in PMs - yes you could see a 5-10%+ jump, but you could also see a 5, 10, 50% drop in value right now...


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## BillS (May 30, 2011)

Don't buy a CD. Buy silver. Real inflation is about 8%. You'd lose money buying a CD.

Have you thought of buying property on land contract? I think that makes a lot more sense if you're a prepper. You wouldn't have to worry about getting a mortgage from the bank. You might be able to find something right now. Plus, if you needed a down payment they would probably accept PM's. I know I would.


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## jsriley5 (Sep 22, 2012)

tell me a lil more Bill S never even heard of that and if I can't find what I want for sale normally how am I likely to find this kind of deal? Thanks OH and wasn't there a contributor here that was a PM dealer? been looking can't seem to find em. Was gona give them a try next purchase as I made my last purchase before I knew we had a contrib here that sold PM's.


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## Bobbb (Jan 7, 2012)

One of my funds had an 18% return in the last quarter. Just sayin'. There's always the opportunity cost to consider, in other words, what you give up from one road when you take another road.


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## farmers (Jul 28, 2012)

Bobb knows much more about this then I do. Land is a safe investment to us. Plus if you can have tax write offs. Just my 2 cents


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## ZoomZoom (Dec 18, 2009)

Bobbb said:


> One of my funds had an 18% return in the last quarter. Just sayin'. There's always the opportunity cost to consider, in other words, what you give up from one road when you take another road.


But the market could have gone the other way and you could have an 18% loss. Don't put money in the market you're not willing to gamble with. A down payment on a house isn't money to gamble with...


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## LincTex (Apr 1, 2011)

BillS said:


> Have you thought of buying property on land contract? I think that makes a lot more sense if you're a prepper. You wouldn't have to worry about getting a mortgage from the bank.


I had a nice down payment, and went with "owner financed". 
Piece of cake.


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## BillS (May 30, 2011)

jsriley5 said:


> tell me a lil more Bill S never even heard of that and if I can't find what I want for sale normally how am I likely to find this kind of deal? Thanks OH and wasn't there a contributor here that was a PM dealer? been looking can't seem to find em. Was gona give them a try next purchase as I made my last purchase before I knew we had a contrib here that sold PM's.


I know a certain amount of land is sold by land contract. I don't know personally of anyone selling who said they would take gold as a down payment. It just makes sense to me that somebody would. On the other hand, you could always sell the gold to get the money you need.


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## LincTex (Apr 1, 2011)

BillS said:


> I don't know personally of anyone selling who said they would take gold as a down payment.


I would if the exchange rate was in my favor. 
I see Craigslist ads all the time that say they'll accept PM's for payment.


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## invision (Aug 14, 2012)

BillS said:


> Don't buy a CD. Buy silver. Real inflation is about 8%. You'd lose money buying a CD.
> 
> Have you thought of buying property on land contract? I think that makes a lot more sense if you're a prepper. You wouldn't have to worry about getting a mortgage from the bank. You might be able to find something right now. Plus, if you needed a down payment they would probably accept PM's. I know I would.


But BillS, buying on land contract versus a traditional fixed rate mortgage is a bad long term investment... My dad made a large % of his wealth by either renting or land contracts - 99% of land contracts are going to be at a much higher interest rate. Right now 100% of all my father 's land contracts - the interest rate is above 8%... Double what a bank would offer @ 30 yr fix.

As for CD, right now rates are miserable - 2% or less... However if you look short term - as I said - 6 months your rate of return versus silver??? Silver 6 mo ago was $31.12 now $20.56 - a loss of more than 35%... I don't see silver jumping over the next six months, do you? If so why?


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## Tweto (Nov 26, 2011)

invision said:


> But BillS, buying on land contract versus a traditional fixed rate mortgage is a bad long term investment... My dad made a large % of his wealth by either renting or land contracts - 99% of land contracts are going to be at a much higher interest rate. Right now 100% of all my father 's land contracts - the interest rate is above 8%... Double what a bank would offer @ 30 yr fix.
> 
> The last time I tried to buy farmland the only way was cash or land contract, no 30 year fixed mortgage was available. Maybe the bank policies have changed since then.
> 
> ...


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## tsrwivey (Dec 31, 2010)

You need this money liquid soon so I would take it out of the bank & keep it as cash on hand. Keeping it in a savings account will earn you so little it's insulting & you'll spend more money on gas getting to the bank than you'll earn in interest. 

Whether the bank will finance anything for you depends largely on your credit score, assets, & income to debt ratio. Putting money in the bank over the next several months just won't help.


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## tsrwivey (Dec 31, 2010)

invision said:


> But BillS, buying on land contract versus a traditional fixed rate mortgage is a bad long term investment... My dad made a large % of his wealth by either renting or land contracts - 99% of land contracts are going to be at a much higher interest rate. Right now 100% of all my father 's land contracts - the interest rate is above 8%... Double what a bank would offer @ 30 yr fix. ?


I have never even heard of a 30 year mortgage on unimproved land, things sure are different in other areas of the country. Here, generally land loans are for a much shorter period of time.

Land contracts & owner financing are for people who can't get financed through a bank for whatever reason & charge a much higher interest rate.


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## LincTex (Apr 1, 2011)

Tweto said:


> The last time I tried to buy farmland the only way was cash or land contract, no 30 year fixed mortgage was available. Maybe the bank policies have changed since then.


Same here in Texas; that's why I went owner financed. I only financed $350 a month for three years.


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## invision (Aug 14, 2012)

LincTex said:


> Same here in Texas; that's why I went owner financed. I only financed $350 a month for three years.


Sorry guys, didn't see it as just land.... However, if you were planning on buying just land and building something on it, then a construction loan that is then converted into a traditional loan... I know my wife bought 8 acres and built on it using a construction loan at first then switched it to a traditional but it was also zoned as residential land... So no clue as to that...


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## jsriley5 (Sep 22, 2012)

Thanks for all the info and opinions so far suprise as soon as I prepare to buckle down and hold on for a little longer we find somthing we are intrested in. Gonna go look at it friday. Definitely in our price range and better than many we had been looking at. Have to see whot it looks like onteh inside first though I can do much fixer upper so it needs to be move in ready after no more than some painting or somthing


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## LincTex (Apr 1, 2011)

invision said:


> However, if you were planning on buying just land and building something on it, then a construction loan that is then converted into a traditional loan...


I put a nice chunk down and financed the last bit for three years. While paying it off, I built a 54x24 pole barn/shop on it with salvaged materials for about $3000.

It doesn't always HAVE to be a "house". Now that I have an established *building* with power and water, The "value" of the place went way up. I can now get a loan to build a house far, far easier than getting a "short term" construction loan.


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