by Gobirds66 » Mon Feb 10, 2014 3:20 pm
My Story:
Well, as a kid, I never really had anyone to talk about things like investing and so forth. My dad was a federal government worker with a pension plan that he would always have until he died, my mom was a stay at home mom, and my one grandfather was a foreman at a steel plant, again, with a great pension. As I grew up, I saw my grandfather retire and find a guy to invest his money. I never had interest in investing as a kid as I always wanted to go play ball, but I noticed he always had money to take us places and go on vacations, so he was doing well. He took hits in the market in the 80's like everyone but he still did well. My grandmother never liked the market and kept all her money in the bank. Well, I needed to invest but no idea where, when, or how and I never wanted to ask my grandfather.
Well, I went into the military for life. And, life lasted 6 years because the economy was booming in the 1990's and I was in tech, so I was set for life. I got out, got a job, started investing in the 401K. This is pretty easy stuff. The company matched my contributions and after 40 years, I would use compounding to make my fortune. Well, after 9/11, I started listening to talk radio and I heard everyday about gold going higher and higher. The investment folks on the radio said it was never going to last and not to invest because $400 an ounce will not last. Well, I had no idea where to buy gold, so I just kept socking into the 401K because slow and steady wins the race.
then my grandfather died after a long stay in assisted living. He gave us all a nice chunk even after the tax man and it being split up among all the family. It paid for my wedding, honeymoon, and a down payment on a house. At that point, I looked at my 401K and realized that what I was doing was simply not going to work. I needed other things. So I started trying to educate myself on stocks but with so much advice, and so many numbers, I did not know where to start and I did not want to be the guy that makes his broker rich and never sees any of the money. So I started paying off my house. I decided that real estate was something I could understand and I could buy more properties and rent to folks once I had enough equity (in my area, real estate does better than most areas even in bad economies). So I had my path. Then the revelation hit.
We started sorting out my grandfather's stuff. I got his WWII stuff and we split a box of coins. They were old, and my mom asked me to do research and split them fairly. So I did. In the research I saw just how much they could be worth. Most were common dates and such, but I saw dollar signs. I knew coins had silver, but the old coins kinda got me interested. Not long after this, I was riding the motorcycle and stopped off at McD's for a McDouble. I gave the guy 2 bucks and he gave me change, and in the change was a 1961 Franklin Half. This was a sign from my grandfather that I should get off my but and collect old coins. So I started researching what to buy. I watched those overprice coin shows on cable, I got on the web, and I started getting knowledgeable. This was April 2011, so my sign from my grandfather coupled with the rising price of silver got me hooked.
I found an LCS who is owned by a older guy. Runs it out of his house, and is semi-retired. He took the time to explain all the kinds of silver and why and how I may want to consider buying. I did not have enough for gold so I started the focus on silver. I went home, cashed in all $1700 of my circulated state quarters (that I thought may be worth something) and ran back to buy silver at $49 an ounce. That was the start. Then the price started falling.
Well, I could stay in and hope it went up again, or get out and take my losses. So, not wanting to take a loss, I started buying on the way down. I learned what Dollar Cost Averaging was. If the prices would have gone up, I probably would have just taken a gain at some point and gotten out of silver and gold.....so losing money right off the bat was the thing that kept me going. Now my DCA is way low due to the pricing and the volume I buy that I stand a chance over time to create some wealth from this. Worst case, it is a store of wealth, but I will likely benefit given I have time on my side.
I also decided that sorting in my free time could benefit me and it was a calming hobby for me. I started with pennies, graduated to pennies and nickels, and will take a crack at halves and quarters if I get the chance. That really brings the DCA down. LOL! I save the copper bullion and wheats, as well as War Nickels and pre-60's. I sell some of the copper bullion and pre-60's Jeffersons if the price is right, but otherwise I just save. My proceeds go back into the kitty to get more coin from the bank. My bank is great with ordering me coin, so it works out well.
Since then, I have used the silver/gold market to teach myself more about the stock market and I am starting to feel more comfortable with that. Soon I will slowly dive into that as well. Of course, I still have the 401K. I may not ever be independently wealthy, but I am making strides to be able to live once I retire.
If they give you lined paper, write the other way....