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/biz/ - Business & Finance

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1609515 No.1609515 [Reply] [Original]

>Taking advice from 4chan

So after the election, my parents asked me for advice on how to change their portfolio.

They are still working, but now have to start taking money out of their 401Ks where they have ~$400k there managed by Fidelity and have $25k in cash to invest.

I honestly have not studied this enough to give them enough advice besides Gold and Silver are good.

Main goal here is not so much to get crazy returns, but to keep the money safe in case the US defaults on it's debt, or crazy $ inflation starts, or Deutsche Bank falls, etc.

So what advice do I give them? Mind you, they won't just do what I say, I have to make a good argument for doing it.

>> No.1609569

>>1609515
>keep the money safe in case the US defaults on its debt, or crazy $ inflation starts, or Deutsche Bank aflls, etc
A bunker, 6 months worth of food and 2,000 boxes of 7.62

Invest the rest in trading sticks (and keep them in the bunker).

>> No.1609578
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1609578

>>1609569

I am not saying I think the economy won't survive any of those scenarios, but double digit inflation is possible, a serious drop in the stock market, or US having to seriously cut the budget.

What do you guys think of the More Metal technique, where you use the ratio of the price of gold and silver to trade it back and forth instead of worrying about it's $ value?

>> No.1609586

Ok, different question:
What professional's advice should I trust?
Is the investment banker from Fidelity going to give my parents good advice?
Does it matter if he is a "feduciary"?

>> No.1609588

>>1609515
They need the money to live on or they are scared of the market?

If they are really that scared they could just put it all in TIPS. Safe as cash and hedged against inflation.

Personally, I would focus on avoiding fees and allocate to fixed income based on time horizon. You might want to check out the "boglehead" ideology.

>> No.1609589

>>1609578
Elaborate

>> No.1609594

>>1609586
Forget the fearmongering buy gold crap. Find a fee only fiduciary advisor!

>> No.1609600

>>1609594
Thank you for taking your time to help.

>Find a fee only fiduciary advisor!

Sounds like good advice. Where should I look? Will Fidelity have one, or do we need someone more independent.

>> No.1609612

>>1609589

Ok, so the idea that I heard is this:

Instead of hoarding gold, you look at the historical limits of the ratio between Gold and Silver, When the ratio of the prices is closest you imagine your investment as 100% Gold, when it is the largest (Meaning that you can buy as much Silver with your Gold as at any time before in history) you want to hold 100% silver.

Each time the ratio changes, you convert some of your Gold to Silver, or vice versa. So that the volatility in the relative price of Gold and Silver is slowly giving you more and more ounces of Metal.

>> No.1609617

>>1609612

Something software based is probably necessary to keep up with all of the price fluctuations.

Granted I picked up this Idea from
>the fearmongering buy gold crap proponents

>> No.1609626

>>1609594
>Find a fee only fiduciary adviser!

The closest ones are 130 miles away. How would you communicate with one? Do they use Skype? Or is driving down there necessary?

>I am feeling so stupid asking all of these noob questions
>sorry /biz/, is there a FAQ I could read?