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 Replies: 22 / Views: 2,118 |
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Pillar of the Community
United States
1348 Posts |
Ok so here is my dilemma;
I am int he Air Force and when you deploy (which I will be in October) they have a program called the Savings deposit Program. This program essentially lets you put in a max of $10k into a guaranteed 10% annual interest fund account for 9 months. I haven't done the math exactly buy I'm pretty sure that's like $750.
My other option is to buy silver and let it ride. See where the market goes and potentially make more than the guaranteed 10% I know it seems like a pretty common sense (go for the 10%) question, but with everything that's happened int he past year I think silver will go up more than $4 in 9 months......POTENTIALLY
What would you do?
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Valued Member
United States
397 Posts |
A guaranteed return is something that is usually only dreamed about. However, this guarantee is backed by the full faith and credit of the U.S. government. While I still believe this is the greatest place to live on earth - I am less than sanguine about our financial state. What happens if TSHTF halfway through your deployment and they're forced to take the guarantee away?
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Pillar of the Community
United States
830 Posts |
That's a tough one...  Do you have a good storage option for the silver? If not, go with the 10% guaranteed, that's a good deal. |
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Moderator
 United States
14463 Posts |
 even if you have a good storage option for the silver, you could always go 50/50. Half invested in silver, half in the Savings program |
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Valued Member
United States
304 Posts |
Quote:
even if you have a good storage option for the silver, you could always go 50/50. Half invested in silver, half in the Savings program Diversification, this is something you'll hear a lot of financial advisers mention to combat market uncertainty. With uncertain times ahead, it makes the most sense. |
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Pillar of the Community
United States
3345 Posts |
Diversify! |
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Pillar of the Community
United States
931 Posts |
Take the 10%. impossible to get 10% unless you loan out to a problem borrower. Silver could easily make 25% in a matter of days, but will it do it without a doubt? Also you are tied in to what the silver is worth when you get back. Is your deployment stateside where you could easily sell your coins and take profits? I wouldn't put it into paper silver in this market, although if you are more risk-tolerant than I am you could go with the SLV.
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Valued Member
United States
362 Posts |
it really comes down to risk. A guaranteed 10% is a great deal, you have a chance that silver will skyrocket and you might look at 50% or more... or it may not and you might not get anything more.
10% sounds like a great safe deal to me, but it really comes down to what you are really willing to risk
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Pillar of the Community
United States
570 Posts |
Quote:
I haven't done the math exactly buy I'm pretty sure that's like $750. The math comes out to $695.61 with 10k up front and no additional payments. I agree with diversifying all your investments to mitigate your risk. |
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Pillar of the Community
United States
1745 Posts |
I would take the 10% and thanks for serving our country.
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Pillar of the Community
United States
759 Posts |
There is not enough info provided to make a well informed decision from a financial planning perspective, but it seems like your gut is saying take the 10%. Your gut is pretty smart. :)
What I would do should be irrelevant to you, except as a data point.
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Pillar of the Community
United States
5832 Posts |
My Financial Advisor that I spoke to today, says Nationwide also offered a guaranteed of 10% interest per year for 10 years.
So, if you put in $100K in year one, you get at least $200 after 10 years guaranteed, and if the market crashes, you're still good for that amount. And if you play it well, it can go above what you put in.
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New Member
32 Posts |
There is so much silver in the world compared to other precious metals that many analysts are saying it is at an unrealistic high like it was in the 1980s right now. There is little chance that it will go much higher then the $39 mark that it is due to just too much supply versus demand. It will likely drop back down again and I wouldn't want to be invested in it when it falls like a rock like it did in the 1990s until the U.S debt caused a recession a couple of years ago. People are using silver as an investment tool and the world is actually not really using any of it for anything else. So eventually it will drop when people decide to sell. *** Edited by Staff - Please Review the rules that you agreed to when you registered. *** |
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Pillar of the Community
United States
5854 Posts |
I agree that the 10% is a heck of a deal. Compare that to a 1 yr T-bill that only pays 0.22%, short term investment grade bonds at about 1.5%, and stocks over the long term at about 8-10%. Diversification is a good strategy and the amount that you would put into each option would depend on criteria like your risk tolerance, other assets you own, goals, etc. If it were me, I would put some money into that program.
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Pillar of the Community
United States
2661 Posts |
 Take the 10! |
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Pillar of the Community
United States
759 Posts |
Well, if nothing else, we've proven that investment advice obtained here is worth exactly what you've paid for it.
BTW, I figure your $750 is dead on, given the max that can accrue interest and quarterly compounding. You can even achieve an effective rate a bit higher than that 10% since deposits on the 10th or before accrue interest from the beginning of the month. No tax advantages to your program. I believe the 28% collectible rate is still in effect for PMs. Good luck. Stay safe.
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Replies: 22 / Views: 2,118 |
Posted 08/01/2011 2:01 pm
