Showing posts with label investing. Show all posts
Showing posts with label investing. Show all posts

Monday, January 02, 2012

Investing

What if I was to tell you that I had an investment vehicle you could put $100 into today and for 4 years you get nothing on it....But! From the 4th year forward you would get $200 in return every single year for the rest of your life from your original $100 investment. Would you take it? There's not a mutual fund in the world that has returns like that so where could you possibly get that kind of ROI for such a long period of time? Fruit trees! Yes, fruit trees.

Take your average Peach tree that you can get at a nursery in a 5 gallon bucket ready to plant for about $65 or $70. Now, I couldn't find specific data for here but according to Aggie Horticulture a peach tree growing in the Galveston area will produce about 100 pounds of peaches per year. Looking at the Economic Research Service's Data on Fruit and Vegetable Prices in 2008 Americans paid an average $1.84 per pound for fresh peaches. So that's $184 per year from an initial $70 investment and a few hours of digging a hole and tending your tree now and then. Really not bad all things considered. Don't like peaches? You'll get similar results from most other fruiting varieties. If you really want to get into some money makers check out pretty much any kind of berry producing bush or vine. Blackberries for example averaged $5.18 per pound in 2008. Whether you eat the fruit yourself thereby avoiding having to buy them at the grocery store or take your surplus down to your local farmer's market and sell it off it's still like money growing on trees.

Don't have much space you say? Look into dwarf varieties you can grow in containers on your balcony, patio or in a greenhouse. Can't eat them all at once when harvest time comes? You can freeze some to use later or learn about canning and preserving. There's a lot to be said about the wisdom of our grandparents who knew these skills and lived a much more self sufficient life than we tend to today. Food on the shelf is like money in the bank. When the government tells us what the "core inflation rate" is they strip out the "volatile" food and gas prices to make the numbers look more palatable. Now, how much of your household budget goes into food and gas? When those prices are rising (as they often do at a double digit rate) do you feel that inflationary bite in your budget? Anything you can grow and store yourself today may mitigate that bite later and if you're like most people I know you're going to eat sooner or later anyway.

Most people who know me know that I am big time into supporting your local economy. Not because I have anything against people who live and work in other countries. They need to provide for themselves and their families too and I am all for everyone in the world having an opportunity to pursue their own life, liberty and happiness. But I don't personally know anyone who lives and works in China, Bangladesh or Indonesia. I do personally know people who live and work in the United States and especially in the Dallas / Fort Worth / Arlington area in Texas because that is where I live. So if my buying stuff here helps people here that is all the better in my opinion. Especially when most of the stuff that is hauled in from other places is just making some fat cat who already has more money than anyone would know what to do with all the more rich while exploiting workers by paying barely livable wages in unsafe working conditions that they can get away with in other countries. Anyway, I'm getting off on another tangent here. Sorry about that. My point is that while I enjoy supporting local economies there is no economy more local than the one in your own household.



"Even if I knew that tomorrow the world would go to pieces, I would still plant my apple tree"....Martin Luther

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Friday, December 30, 2011

Look At This Quarter

See this dirty old quarter right here? Nothing particularly remarkable about it. Give it to a kid to put in a gum ball machine and it might get you a piece of candy or a little plastic toy that might last 5 minutes. It would take about 12 of them to buy you a gallon of gas if you shop around today. The last time I passed by a QuikTrip station the other day the going price was $3.09 per gallon and just before Christmas it was $2.99. It would take a bunch of quarters to fill up a gas tank.


But look a little closer. This quarter was made in 1955. Hmmm, I wonder what it would have bought you back in 1955 back when it was brand new? Let's take a look: Prices for 1955 Well how about that! In 1955 that quarter could have bought you a gallon of gas all by itself and leave you a couple of pennies over. Add one more penny to that and you could get a postage stamp. Hmmm, anybody drop a penny around here? Or you could get a loaf of bread and a couple of postage stamps with it. I bet you could get something decent out of a gumball machine too! Interesting indeed. Now here's another interesting fact about this dirty old quarter. It's made of 90% pure silver. If you were to melt this quarter down the silver alone in it today would be worth a little over 5 bucks! Check out the melt value over at Coinflation.com. Now 5 bucks today would buy you a gallon of gas and still have a couple of dollars left over. Hmmm, maybe this dirty old silver quarter has kept it's value over the years after all. Compare what $5 today would buy you with what that quarter in 1955 would buy you and it's easy to see that just the silver alone in that quarter has held up very well over the years.


The Coinage Act of 1965 was passed because the cost of silver compared to the constantly devaluing dollar caused coin shortages. People were taking the silver coins out of circulation because they were worth more than face value. And over time they have continued to hold value against the dollar as inflation has eaten away at it. If you were to stick a bunch of dollars under your mattress for 20 years then take them out they wouldn't buy nearly what they will buy you today. However if you had stuck a bunch of silver away 20 years ago you would be able to sell it at todays prices and be much better off. It might be worthwhile to keep an eye on those coins that pass through your fingers or maybe go to a coin shop and pick up a few now and then. ;-)


By the way... Go back to Coinflation and have a look at the melt value of a modern day nickel. Hmmmm, it's melting at about 100% of face value. Oh my goodness! Look here: Congress has been talking about replacing the venerable nickel with a steel nickel. Ya know, there are a lot of nickels in circulation right now and you can get them for a nickel a piece. Might be something to think about. ;-)

Thursday, December 04, 2008

PERSONAL MONEY MANAGEMENT

I used to own both of these books until an ex-wife took off with them several years ago. I bought them both when I was about 20 years old and living in an apartment in Grapevine, Texas. Among other things, these books inspired me to start at that early age to begin putting money into my company 401k account and to buy, not rent, a house as soon as possible. Both decisions I have never regretted. Even though the books are fairly old now the advice in them is timeless and I plan to re-quire copies of them soon so I can re-read them and refresh my memory. I can highly recommend them both to anyone who wants to get a handle on their personal finances and to be in control of their money not let it control you...


'Sylvia Porter's Money Book:'



Andrew Tobias' 'The Only Investment Guide You'll Ever Need'