Cramer: Strategy for Young Adults

If you have a longer time horizon, here are your money making opportunities, says Jim Cramer.

Category:

Howto & Style

Tags:

• bailout
• cramer
• financial
• investing
• money
• stocks
• street
• wall

[Chapstix9]

@be1still

Possibly relevant?

From today's Reuters:

Bullion tumbled more than 4 percent in heavy trade, briefly falling below $1,060 an ounce as escalating sovereign debt fears in Europe prompted investors to bid up the dollar and unload riskier assets.

[be1still]

Once again, I do NOT need the money and wont have to repay it for 6-10yrs at 6.8% interest. You haven't grasped that part. All banks exist today because they do exactly this with other peoples money, I'll do it with the gov money. This is MY "bailout". Had I done this a few year ago, I would have quadrupled my investment. Im getting in B4 its to late. I could bury the coins in my yard and they would still increase in value. I also never said "no" risk, I said "low" risk...And I AM right, thanks

[Chapstix9]

The logic of your idea is not in question.

Basic risk management:

If you need the money don't risk it.

You should know that your gut feeling and enthusiasm don't matter. Of course you do know that already. Evaluate risk not only in terms of the asset, in this case precious metals, but also the third parties that will be involved. Are you buying coins to hide under your mattress? I am just saying that is is natural for you to assess risk as zero, and you will be wrong.

[be1still]

what? are we even in the same conversation? i dont think so. My plan WILL work! Why? It s because i am NOT investing in the market. i am simply taking this extra low interest rate cash and putting it into precious metals. Paper into Gold and Silver, an alchemists dream. You know the best part about it? I dont need this money to live on, its not even in my yearly budget, the risk is low because PM's have an intrinsic value, the dollar does not. Thanks for your advice, but your off on this

[Chapstix9]

ps visit my website.

[Chapstix9]

The reason your idea will not work, is that the market is rigged in ways unimaginable to most healthy minds. Anyone that advises a young person, hell..., ANY person, to invest in the market is irresponsible. The few ways to survive the market, aside from luck, all include losing money as part of the learning curve. How much money? Probably just enuf to fcuk you up. The perfect storm is one that is waiting for borrowed money to be risked. My advice? Don't do it. Don't do it. Don't do it.

[be1still]

Im not sure i understand your logic here, please help me. What does the entertainment /investment business have to do with it? Also how would using my education loan surplus in order to invest affect my education? Seems to be the perfect storm, and if I aim right, I would be set to repay back those loans very quickly. Investors and bankers throughout history have been making money on borrowed money. The major benefit with school money is the extended maturity rate, and low interest rates. ideas?

[Chapstix9]

@be1still

Cramer boasted that he did just that when he was visiting a US university campus. If you have a similar plan, I suggest you get a different plan, unless you are pursuing a career in the entertainment/ investment business, and don't care about your real education. Clever isn't necessarily smart.

[be1still]

can you elaborate on your thoughts here, I have a similar plan but would like to hear another persons ideas on the subject.

[Chapstix9]

Of course taking out a student loan and using that cash for investing/trading instead of tuition would allow greater leverage.