ok, so i made mention of this is in some other threads. starting today (or a few weeks back rather) i decided i would take 3K and invest 1 thousand fiat dollars into 3 seperate investment techniques
LET ME START BY SAYING THAT NONE OF THIS CONSTITUTES AS ADVICE FROM ME AND IF YOU FOLLOW WHAT I DO WITHOUT GETTING A 2ND OR 3RD OPINION YOU DESERVE TO LOSE YOUR ASS!
1) standard t-bill through treasurydirect.gov with repeated reinvestments for the span of 2019
2) i put 1000 into duke energy's DRIP. just autodrafted today and the stock purchase price is around 83 bucks (eww but im in it for the dividen son)
3) i bought a ****ton of knives (1000 dollars worth) that i felt would be easy to sell. my goal is to not profit in excess from the sale of knives but rather to rival the earned slow run interest from the other 2 accounts. bear in mind that the first two require no involvement what so ever after its set up. this 3rd strategy requires i actively sell, ship, or meet
i will update this thread by editing the 2nd post (mine) at the beginning of each month. below is a bit about each investment technique
1) the tbill are short run securities that sell less than the par value; meaning your profit comes from the discount rate the security was sold at. in this case, i chose a 4 week t bill to be reinvested 13 times (4 x 13 = 52 weeks in a year). the issue date for this tbill will be 1/2/2019, although they have already drafted my account. this is all done via a non-compete bid; basically i let treasurydirect.gov know how much and when i want to invest, when the secruity is issued i then find out what my % interest is. in this case i wanted 1000 to be invested, or close to it. in this particular instance my real dollar value for the security purchased was $998.20 - 1000 = net gain of $1.80 four weeks from tomorrow lol. of course this is to be reinvested 13 times, so overall my gain would be $23.40 if the reinvestment bid maintains the same rate.
quite possibly, the tbill remains the lowest earning security aside from the EE savings bonds (which have a laughable paltry amount of 0.1% interest). but if you got cash sitting around and want a relatively secure investment, may be not the worst thing (im betting the i savings bonds, tnotes and tbonds earn better but their longevity is longer than a year which is why i opted for the tbill for this experiment)
2) the dividend reinvestment program (DRIP) is an excellent way to park unused monies and as a way to earn over time. with the DRIP you are buying shares in a private company or holding shares and any dividend payments made to you for your shares will be reinvested in the form of more shares. most if not all publicly traded corporations have one of these. i am very, very risk adverse so stocks to me is kinda new. that being said i did some research and opted for a company that i could directly deal with and would be a slow but stable earner. originally i wanted to use a company such as proctor and gamble or johnson and johnson, who have a very diversified product line and hands in many pots. but ultimately i would need to either use a brokerage firm or go through a 3rd party who manages this. Duke energy has its own interface (probably managed by a 3rd party too lol) but it is also an energy company. energy companies wont earn gross profits, but generally speaking are safe. this is because of many, many barriers for entrance for new firms which means competition isnt as much a concern. also, based on their past performance, the stock has had some dips and rises but mostly is operating on an upward linear path. this is relatively new territory for me so for me to predict what interest would be earned would be jumping the gun IMO. we will see how it does
3) i purchased a bunch of knock off microtech OTF knives. they come in black, red, and green. i chose these knives for 3 reasons= cost, cool factor, and durability. i bought a few a while back just to have and after showing it off and playing with it for a long time i found it to be quite durable (as far as deployment meachanism goes). additionally, alot of other folks (many who arent even into knives) really like the spring operated blade. i mean its fun
the quality of the blade is ok, to be fair i wouldnt recommend using one of these other than as a fun toy or as a letter opener or light duty. i am selling these for a price of 20 each, or all 3 for 45. to be honest as long as i get 15 dollar for each knife i am breaking just a bit above even and im cool. i will then take all the proceeds from the knife sale and place them into my capitalone savings account which earns 1%. i will do this until the end of the year or until i run out of knives whichever comes first. as discussed earlier, the real drawback to this is that i have to actively sell and hussle these htings, whereas the former 2 stratagies is a very sit back and let it do its thing approach
i honestly anticipate all 3 to have roughly the same earnings over time.
here are the 3 obvious problems with each: US gov baked securities interest rates are a joke, the stock market is a"rigged" and how the hell am i going to get rid of all these ****ing knives lol
anyway, tune in at the start of each month to see how not rich i am
shameless plug, if you read this and want a knife, its 15 for the ODTers
and again, i will repeat my earlier warning. not that my strategies are bad but they may not be good. please, as an economist and budding financial guru i will say that you should never trust an economist or financial guru for advice. get a 2nd and 3rd opinion and please research this yourself.
LET ME START BY SAYING THAT NONE OF THIS CONSTITUTES AS ADVICE FROM ME AND IF YOU FOLLOW WHAT I DO WITHOUT GETTING A 2ND OR 3RD OPINION YOU DESERVE TO LOSE YOUR ASS!
1) standard t-bill through treasurydirect.gov with repeated reinvestments for the span of 2019
2) i put 1000 into duke energy's DRIP. just autodrafted today and the stock purchase price is around 83 bucks (eww but im in it for the dividen son)
3) i bought a ****ton of knives (1000 dollars worth) that i felt would be easy to sell. my goal is to not profit in excess from the sale of knives but rather to rival the earned slow run interest from the other 2 accounts. bear in mind that the first two require no involvement what so ever after its set up. this 3rd strategy requires i actively sell, ship, or meet
i will update this thread by editing the 2nd post (mine) at the beginning of each month. below is a bit about each investment technique
1) the tbill are short run securities that sell less than the par value; meaning your profit comes from the discount rate the security was sold at. in this case, i chose a 4 week t bill to be reinvested 13 times (4 x 13 = 52 weeks in a year). the issue date for this tbill will be 1/2/2019, although they have already drafted my account. this is all done via a non-compete bid; basically i let treasurydirect.gov know how much and when i want to invest, when the secruity is issued i then find out what my % interest is. in this case i wanted 1000 to be invested, or close to it. in this particular instance my real dollar value for the security purchased was $998.20 - 1000 = net gain of $1.80 four weeks from tomorrow lol. of course this is to be reinvested 13 times, so overall my gain would be $23.40 if the reinvestment bid maintains the same rate.
quite possibly, the tbill remains the lowest earning security aside from the EE savings bonds (which have a laughable paltry amount of 0.1% interest). but if you got cash sitting around and want a relatively secure investment, may be not the worst thing (im betting the i savings bonds, tnotes and tbonds earn better but their longevity is longer than a year which is why i opted for the tbill for this experiment)
2) the dividend reinvestment program (DRIP) is an excellent way to park unused monies and as a way to earn over time. with the DRIP you are buying shares in a private company or holding shares and any dividend payments made to you for your shares will be reinvested in the form of more shares. most if not all publicly traded corporations have one of these. i am very, very risk adverse so stocks to me is kinda new. that being said i did some research and opted for a company that i could directly deal with and would be a slow but stable earner. originally i wanted to use a company such as proctor and gamble or johnson and johnson, who have a very diversified product line and hands in many pots. but ultimately i would need to either use a brokerage firm or go through a 3rd party who manages this. Duke energy has its own interface (probably managed by a 3rd party too lol) but it is also an energy company. energy companies wont earn gross profits, but generally speaking are safe. this is because of many, many barriers for entrance for new firms which means competition isnt as much a concern. also, based on their past performance, the stock has had some dips and rises but mostly is operating on an upward linear path. this is relatively new territory for me so for me to predict what interest would be earned would be jumping the gun IMO. we will see how it does
3) i purchased a bunch of knock off microtech OTF knives. they come in black, red, and green. i chose these knives for 3 reasons= cost, cool factor, and durability. i bought a few a while back just to have and after showing it off and playing with it for a long time i found it to be quite durable (as far as deployment meachanism goes). additionally, alot of other folks (many who arent even into knives) really like the spring operated blade. i mean its fun
the quality of the blade is ok, to be fair i wouldnt recommend using one of these other than as a fun toy or as a letter opener or light duty. i am selling these for a price of 20 each, or all 3 for 45. to be honest as long as i get 15 dollar for each knife i am breaking just a bit above even and im cool. i will then take all the proceeds from the knife sale and place them into my capitalone savings account which earns 1%. i will do this until the end of the year or until i run out of knives whichever comes first. as discussed earlier, the real drawback to this is that i have to actively sell and hussle these htings, whereas the former 2 stratagies is a very sit back and let it do its thing approachi honestly anticipate all 3 to have roughly the same earnings over time.
here are the 3 obvious problems with each: US gov baked securities interest rates are a joke, the stock market is a"rigged" and how the hell am i going to get rid of all these ****ing knives lol
anyway, tune in at the start of each month to see how not rich i am
shameless plug, if you read this and want a knife, its 15 for the ODTers
and again, i will repeat my earlier warning. not that my strategies are bad but they may not be good. please, as an economist and budding financial guru i will say that you should never trust an economist or financial guru for advice. get a 2nd and 3rd opinion and please research this yourself.
