How do you invest your Fiverr money?


#1

I’m just curious. How do you invest your Fiverr money, or money in general? Do you spend it all? Do you put it into your savings bank account? Or do you invest in stocks? Bonds? Mutual funds? If so, do you pick stocks and mutual funds on your own or do you get help? How about index funds?

I’m just curious, as your investment strategy would reveal a lot about your country. In India, we basically put our money into fixed deposits in public sector banks as we consider that to be safe, and it gives us an interest of 7% to 8%. (Mutual funds are slowly getting popular as well.) In the US, I would imagine you would be investing in several different types of mutual funds. So, I don’t want to know how much you make, just want to know about your investment strategy.


#2

You get 7-8%? We get 1% if we are lucky.

The best investment where I live is in housing. My Indian friend here owns condominiums which she rents out and lives on what she gets from that. She rents out small condominiums for $1400 per month each. Many people do that here. There is nothing the banks can do that pay much interest that even keeps up with inflation.
I like gold personally and have invested in companies that buy large quantities of gold, which you buy shares in and can trade like stocks. I watch the price of gold.


#3

Yeah, but interest rates are coming down here as well. Yesterday when I went to the bank, I found out that the new interest rate was 6.8%. (I invest most of my money in bank deposits in my mother’s name…she gets 0.5% extra as a senior citizen, and 1% extra as ex-bank staff, so I get 1.5% extra in addition to the normal interest rates.)

Yes, I agree with you that real estate is an excellent investment, and rental properties provide a very good passive income. About gold - gold is a good investment when there is a recession or the rest of the economy is tanking. It’s your hedge against inflation and stock market crashes. Right now, the US economy is set to grow very fast, with Dow Jones hitting record levels, so I think this is a great time to invest in the stock market for you guys.


#4

Also, if you’re going to invest in gold, I would advise you to buy physical stock of gold, and not just to invest in gold bonds or in shares of companies that invest in gold. Gold is your hedge against an economic collapse and when that happens, you will want to have physical possession of gold, because the bonds/shares may well become untradable in such a scenario.


#5

I max out the PPF account always, for the following reasons :slight_smile:

: it is a government scheme so it will not be randomly dissolved
: interest rate is around ~9%
: the money is used for nation building purposes
: the interest earned on PPF is non-taxable

Max out the PPF every year and put the rest in Mutual Fund SIP every month. This gives 9% to 12%.

Simple as that. My investments end there.

The % interest rate that your bank offers you on savings account, FD and even PPF is NOT fixed by some central authority. The bank branch manager is given enough flexibility by the bank to make competitive offers to retain their customers, so he can offer alternative rates if you negotiate.

MF is THE best. It is the golden middle between having the safety of a PSU FD (8% returns capped, no risk), and the uncertainty of the free market stock exchange. (returns not capped but risk is unlimited)

@misscrystal earning form real estate requires at least 2 properties, one to live in and another to rent out. That is where most commoners are dissuaded. Entry barrier is too high.

This is a great thread. @taverr might be interested in contributing his views. I’m quite eager to see the various options that are available to us and how creative one can get with exercising those options.


#6

The world’s stock markets are on the verge of collapsing, btw. It’s held up by lies and desperation. The only thing I plan to invest on is a house with a nice big garden (well, field) so I can become a farmer. Preferably way out in the sticks where the soil’s good and the climate favors it.

You can’t eat gold… and the works’ a lot more honest. Anyway, assuming this economic collapse does take place, gold radiers will be all over your shit. And mine too, as I have food and stuff (assuming I have the pastoral dream). Either way, having had a little experience with farming in the past few years, it’s not easy. Fiverr is. But if the world economy collapses and takes the dollar down with it, then livestock, crops and clean water will become more. Also, bandits. Look up how the Cretans fared during WWII.

Writer… forget trade. If economic collapse happens, then you need arable land and a farm. Assuming the collapse isn’t accompanied by a nuke orgasm. Maybe putting stocks/whatever in your mother’s name is OK in India, I don’t know, but it raised an eyebrow here.

Don’t believe the lies though. Get a nice farm or Fallout-style bunker. I have no investments and I don’t plan to. The waffle above should give you an idea of my future anyway. But I don’t go into it with any illusions.


#7


#8

Yeah, but PPF can only hold Rs.1.5 lakh per person per year, not more than that. It is also tax deductible. I max out PPF account both for myself and my mother every year. The new interest on PPF is only 8.1%.


#9

The article starts out with shitting gold, silks. Which means that there’s no nutritional value. You might as well call yourself a bling Albert Fish and put a ring on it.


#10

Hm. I am writing more words because character limit, but hm.


#11

I don’t share such a pessimist’s view of the world. If the national/global economy collapses, everybody goes down, so we go down as well, no big deal.


#12

That’s all we can do, that’s what I recommend to everyone. Max out PPF, then put the rest in MF.

MF is quite good, especially Indian MF which invests in Indian infrastructure companies like Tata and Aditya Birla who build metros, flyovers, things people use for transporting their daily necessities like food and other things from all over the country. No matter what happens to the global stock market, people might stop buying electronics but they’re not going to stop eating food, and the infrastructure MFs are going to keep making profits from toll plaza collections. So your investments are fairly insulated from global fluctuations if you put it in Indian infrastructure MFs.

If you go for MF, I highly recommend doing it yourself instead of going via a broker. The broker charges 3% commission on every transaction. It’s avoidable. Just print the form from the MF company website, attach the cheque and send it to their head office (this is what the broker does anyway).

(People who were working in TCS weren’t fired even during the worst recession in 2008. The company kept paying because it had other sources of income (infra) to keep their other consultancy ventures afloat.)


#13

See, the value of your stocks and mutual funds is based on whether they are traded or not. If the economy collapses, taking down the banks with them, then nobody will have any money to pay for the stocks and mutual funds. So, they will become worthless as well. They don’t have an inherent value, their value is based on what others are willing to pay for them.

So at this stage of my life, because of my circumstances, safety is more important to me than capital appreciation. Hence bank deposits, postal and PPF.


#14

In India, we have a tradition of investing in our family members’ names. My mom and dad invested in stocks and mutual funds in my name when I was a child, now I put money in bank deposits etc in my mother’s name. No big deal.


#15

Asian parents invest heavily in their children’s education, and correspondingly, the children are happy to return the gesture. Instead of borrowing education loan from banks, we get interest free loans from parents and pay them back when we start earning. In fact the reverse of the very things which raises eyebrows there raises eyebrows here.

For example, moving out of the nest (as a broader Euphemism for cutting financial dependency on each other) is considered an underhanded move in all Asian societies. Most kids do move out physically and get their own apartments in their city of employment, but they continue to sustain their parents financially (medical/insurance bills and of course personal presence). Asians follow that a de facto social security system, Chinese do that, Vietnamese, Malaysians, all follow that system.


#16

This is what I have heard as well.


#17

50% - Bitcoins and other cryptocurrencies, the rest - bills.


#18

Talking about investing in anything that involves banks and government in South Africa is a joke. The interest rates are very low and over longer terms. There are are a lot of investment options though, but for me, i invest mostly in Crypto currencies. I have a few mining rigs running which i keep adding gpus from time to time. I also trade Bitcoin/ crypocurrencies which is fairly good and too volatile as well.


#19

So did you make bank on the recent upsurge of BC?


#20

Me too.

Gold was $1775/oz circa 2010/11, then dropped rock bottom to almost $1000. It hasn’t gone back to that value yet. And isn’t going to for the foreseeable future.
It has been currently trading between $1100 - $1280 for the last 4.5 years.

Sucks for people trading gold and gold bars.

For those residing in the States, FUTURES are the way to go, or if you stay tuned to the global market and have a bit of play money then surely Forex is another avenue. (The most popular)