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What would you do with $40,000

I am a college senior who happens to be in a very lucky unique situation. I will be graduating with a $40,000 nest egg due to savings from scholarships and savings and I need some advice on how to best use it. I've been following the daily paul for about two years now and I know this is the place to get the kind of advice I'm looking for.

My tentative plan so far is to find a way to purchase land and build a sustainable cabin/shelter off the grid. I've read a few posts that recommend Colorado, but I don't know how easy it will be to get there from Indianapolis when SHTF. My question to you, the wise members of this fine online community is this:

If you were a 22 year old living in Indianapolis who just received 40 grand, what would you do to weather the coming storm?


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The key word is "risk"...

You could lose it all on Day 5. Granted, not the whole nest egg but without studying day trading and knowing what he's doing, day trading isn't that easy. More people go broke than make money or at least that's what the "experts" say. Same with commodities.

Take some time to study it. Do some paper trading first. Then, maybe put some money in it.

I'm assuming you're a gazillionaire already. I'd love to day trade to replace my online poker winnings that were stolen from me by our wonderful government but had a couple of friends lose thousands attempting it.

Good advice

"Take some time to study it. Do some paper trading first. Then, maybe put some money in it."
Anybody can do what I do.
Right click on the chart to "View Image".


wolfe's picture


Hindsight trading. Anyone can show a chart and say "if you bought here and sold here" you would be a millionaire in a week. Show us the trades you made at those times and then, and ONLY then will I take you seriously on the subject.

That is the first rule of listening to -any- random "stock advisor". Make him show you that he acted and not merely performed hindsight trading.

We all know the best times to buy and sell in the past. And please, don't feed me the "technical" trading crap as that is voodoo trading. Everything works until it doesn't, and nothing works until it does.

And lastly, paper trading is NOT the same thing as real world trading. It may be decent training wheels, but that is all. In the real market you are subjected to volume pressures that cannot be simulated on paper.

The Philosophy Of Liberty -


Still parroting slogans and catch phrases from other people's articles (and minds). That's why you're out.

You don't have a clue. You just proved it by missing what I just revealed in that chart. If you were a decent trader you'd recognize what's right in front of you. But you don't.

Your description is so far from the reality I live everyday it's ridiculous.

The key -- literally -- the key -- to taking profits everyday -- every trade -- is right in front of you and you can't see it because your head is full of that stuff you spout. That squiggley little line across the bottom of that chart predicted with precision every buying and every selling opportunity BEFORE they played out.

That's one of the things I love about trading my way.
People like you and 'prominent' financial experts spout, spout, spout.
As if they know something.
FYI: You don't know and neither do they.
You just proved it.
Congratulations, You're consistent... Consistently wrong!

wolfe's picture


Let's see the trades...

Didn't think so.

The Philosophy Of Liberty -

Like I said...

Congratulations, You're consistent... Consistently wrong!

OK. Then the other extreme would be to go for safety

Bank on Yourself AKA Infinite Banking
1. Contractually guaranteed return on investment.
2. Ability to borrow against cash value without penalty or loss of guaranteed, annual growth. Your annual dividend is calculated and paid to you as if you never borrowed any of the principal (Can't get THAT anywhere else!)
3. Take profits tax free in the form of a loan
4. Death benefit will cover any estate tax and provide for beneficiaries tax free.


buy bitcoin and litecoin

buy bitcoin and litecoin

f___ all forms of govt.

what is your goal with this cabin?

Do you actually want to live off the land? That's a full time job. Is that the kind of life you want? You should apprentice on a farm first to see if that kind of a life suits you.

I would blow about $10,000 on traveling the world for a year. Do it now, while you are young and without commitments. The world will not end in the next year. The cabin can wait.

"It may be a hundred years before a computer beats humans at Go - maybe even longer. If a reasonably intelligent person learned to play Go, in a few months he could beat all existing computer programs." - Piet Hut

That would be enough for me

That would be enough for me to get a jump start on buying property and pursuit of building a container home.

My goal would be to cut out the banksters for their crimes against Americans, to bring them to their knees.

I would then not build a permanent structure, to cut out government taxes as it would not be permanent, because the government was in on the housing meltdown with their cohorts in crime, the banksters. They are as guilty as the banks; they fed the appraisal values and got all that tax money on ill gotten gains, despite the fraud that was before our very eyes, and they knew it, but they couldn't see past the billfold $$$$$$$

I'd see what was left to get a supply of water or tanks. I'd look towards some solar. Look at some temp living like an RV to park on the property, and if anything left, look at getting started a greenhouse.

Goal would be self sufficient, debt free, the complete opposite of what our government is doing to us collectively.

Be Your Own Media!!!

Nice position to be in!

I would get out of debt, help my girlfriend with her business, and buy some gold and silver. In your case it would depend on what you wanted to do, going off the grid is a good idea, but so is owning a kilo's worth of gold! In my opinion :-)

Fear knocked on my door and Faith answered!

Two Options for you based on my 23 years experience...

First you could buy off grid acres of land for as little $5,000 or pay $110 down/$110 per month --Go here and see for yourself. www.landtobuy.com

Second you could invest safely with me as I buy cash-flowing apartment buildings for positive long term income & equity. www.tdlcapital.com


Yes, please BUY this wonderful libertarian BOOK! We all must know the History of Freedom! Buy it today!

"The System of Liberty: Themes in the History of Classical Liberalism" ...by author George Smith --
Buy it Here: http://www.amazon.com/dp/05211820

Buy land...

Build a house yourself with no debt if you can.

Start a business making your own money.

I'm an investor here in Indy, Zionsville is a great town with land. The rental market here is wonderful, but the way to win in the rental game is owning the properties outright.

I would pay off my few

I would pay off my few thousand dollar debt I racked up as a younger idiot, buy a new server, get an apartment, buy a car, and put the rest into silver.

Please come join my forum if you're not a trendy and agree with my points of view.

I would use it to

make more. Double the amount, triple it, quadruple it, and so on.

Buy a remote piece of property in Alaska

You'll get a lot for your money there and start setting up a bugout location as the person below mentions. Land goes for roughly 1000 an acre, if you buy larger parcels and you can get waterfront property.

The winters are rough but a small very well insulated cabin can be heated with a wood stove and about 5 cords of wood a season. I know of a guy who bought a small stove for an rv even that heated it with 1 cord.. really efficient stove though.

Anyway, I'd stockpile ammo and a few guns along with starting a small animal farm.. Rabbits, goats and chickens with a couple of years of food storage to get you started so that you can have time to grow a garden.

Those kind of things.

Patriot Cell #345,168
I don't respond to emails or pm's.
Those who make peaceful revolution impossible will make violent revolution, inevitable.

I like your idea about making a bug out location

Have you thought of going southeast, towards the Republic of Appalachia?

Check out the area around London, Kentucky; it's only a four hour drive from Indianapolis. That area looks like a nice mix of rural living and small metro living.

Google Maps:


Also, listen to The Survival Podcast with Jack Spirko, he really knows his stuff, and talks a lot about doing exactly what your proposing:

And read Glen Tate's prepper fiction book series "299 Days," it's right along these same lines too:

Join the Republic of Appalachia, we're forming a Constitutional Confederacy after the collapse.

You are either going to put

You are either going to put it to a use that will increase it or decrease it.

im in the same boat, without

im in the same boat, without the college part.

Buy a 1500 square foot house

3 bedroom, 2 bathroom with a small yard. Make sure it is less than 15 years old. If you get a bigger home with more toilets, you'll have more residents, more toilets, and more maintenance calls. Under $130k is a good price point, because you'll make money with rents below $1000, which is a key psychological barrier.

Use a property management company that has the best advertising in the area. Find them by pretending to search for a rental house yourself.

You can write off the depreciation, mortgage interest, property taxes, home insurance, personal liability insurance, advertising, repairs, improvements and management fees, which will usually be about twice your rental income.

Be sure you buy a house with neighbors close by on all sides, so that your renters get the cops called on them pronto if they start up a meth lab. Rural rentals go bad quick. I had a friend with a remote, rural rental that got the door kicked in four separate times.

Good luck, and be sure to get a fixed-rate mortgage.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.


Also author of Stick it to the Man!


Great outline!

You covered all the details.

Be a pillar of your community

and prepare them for the coming collapse.

http://www.bart-mart.com/vincent <<< become a dealer.

If I had $40k - I would use it to travel and start as many bart-marts as I could before I was broke.

buy silver or gold

and stack it!

Invest in a "prepared" lifestyle.

What you are talking about will be lovely if / when SHTF, and make a nice vacation cabin the meantime. Then, you get to live day to day paying rent, power, buying poisoned groceries...
Buy close enough that you can live there, and start living the most simple lifestyle you can NOW. If SHTF and you have time / inclination / need to leave, have a good "bug out" RV ready, but investing in your LIFESTYLE is how to begin living as a free man right now.

Love or fear? Choose again with every breath.

I want to add one thing about

I want to add one thing about the "looming disaster." Nobody knows if/when it's going to happen. Many people make predictions on this site and others alike, but not one individual or "guru" has been correct so far and most have been embarrassingly incorrect--it doesn't seem to phase them or their predictions, too.

I personally believe a day of reckoning is upon us, but in my theory it could take decades to happen, and it will never happen like everyone guesses. I believe the unraveling is going to be very slow until the end.

As it stands now, we are under a fiat banking regime. In order to buy anything, we need to use that regime's currency, whether we like it or not. In other words, in order to buy gold, land, guns, commodities, you need casino chips to do it.

At your age, you need to be worried about two things; a) How to get more casino chips to buy real assets, and b) How to have fun and hopefully find a partner. This is why I offered my earlier advice about teaching abroad.

The world is too big and too fabulous for a young person to run off into the wilderness like some kind of monk to try and live "off the grid." You've got a lot of learning, loving and discovering yet to do... and the last thing you need to think about is the end of the world.

Be smart, buy some gold, then go out and live your life.

Just my 2 cents....

I agree as someone in their 50's....

if i had it all over to do again, I'd travel the world.

Establish an Import-Export business, write-off your travel expenses and go find opportunities to make money..... and have some fun.

Oh, date as many women as you can but don't go broke doing it.


Buy a new Ford Econoline van or a pick up with a big bed. I have an AWD vehicle with high ground clearance but a van would just as be a good choice for me. I would be happy with no frills commercial models where I could add whatever I needed and wanted. Also a tow line. I just bought one good for 18000 lbs, it is only nylon so cut that number in half lol ..it was on sale

Next a whack load of emergency supplies, camping supplies, heavy duty clothing, signalling device, etc.

Also those plug in car coolers might also be useful..I have one, not great but better than nothing in the hotter times.

And of course a decent bicycle.

I would not speculate where to settle at this time, this is just for immediate unfavorable conditions.


My advice (For what it's worth)

I don't think anyone has answered this question with any consideration for what kind of time frame you anticipate for the upcoming disaster. I just don't believe the advice would be the same if you thought total economic collapse was coming 2 weeks from now as opposed to 2 months from now or even two years from now.

Here is why I think the time frame matters: The first thing that will kill you is a lack of oxygen. You only have minutes. So that is most important as far as immediate need. Next is water, because the death clock starts ticking after about 72 hours. In extreme weather, you might place shelter before water because hypothermia or heat stroke can kill you before a lack of water does, so adjust accordingly. After oxygen, water, and shelter, food is next. After that comes the other things such as the desire for social interaction, etc.

If an economic disaster was real close, I would suggest buying some land, an RV, put in a well and septic, some seeds and enough food to get you through a harvest, and a poor harvest at that. I would suggest a small piece of land that had the well, etc., already since you wouldn't really have time to put that stuff in.

If the disaster was a few years off, I would suggest a down payment on a piece of land that is likely to yield more food than you would need because in a crisis, extra food can buy you just about anything you need. Get a well, septic, and start building permanent shelter. Do that while also acquiring a year's supply of food.

The longer you feel that the disaster is off in the distance, the more time you have to consider the opportunity cost of various investments. The hardest part about investing right now is the high rate of inflation. I don't know if you could even keep up if you were earning less than 10% on your investment. Also, the longer it is invested and the less illiquid the investment, the more possible that you will be invested in an asset that will only convert to a pile full of useless dollars.

So figure out what your time frame is and that might help us with better answers based on your assumed risk.


Since you asked, this is what

Since you asked, this is what I would do.

1. Take half of it and buy gold coins and store them in a safe at your parent's house.

2. Take 200 - 300 bucks and get a TEFL certification. Example: http://www.teflonline.com/

3. Look at Asia for work in the above industry. Japan was a great experience for me, and even though it's a developed country, there are still tons of opportunities. Also, if emerging markets interests you, look at S.E. Asia. Where I would avoid is China and S. Korea. I have friends who went there and they all have had bad experiences with little gain.

4. Whatever country you choose, you will need to learn the language and consistently keep an eye open for opportunity outside of the English teaching. Sometimes opportunity falls in your lap, but other times you need to really hunt for it.

5. Work hard, because hard work brings good luck.

6. Have fun! Work hard, and play hard--this is the Asian way.

Lastly, take my word for it, you are still YOUNG! Buying a house off-the-grid at your age will be tough. You will become restless fast. It can't be helped. 23 - 43 is a lifetime, trust me, I just turned 43, and I'm shocked at: a) How time flies; b) How much I have done in that span of time. For example, I have worked as a bartender, Scuba Diving Instructor, conversation English Teacher, currency broker, and hedge fund sales rep. I have also lived in 4 different countries.

You buy that house off-the-grid now and you'll be done with it by age 25... You can't fight the hunter and gatherer inside of you.


I suggest you decide what you really want in life and how best to acheive that.

I'm a chef, so if I was 22 and recieved 40K, I would do one of two things, look for a place I want to live and find a place where I can open a juice bar, live nearby and sustain.. or I would approch my favorite chef and ask to pay them to work for them so I could leave there and say I worked for that famous chef, which would get me much further than going to a culinary schiil.. nothing wrong with culinary school.. just saying.. in cheffing it's who you know at the high end paying level.

But you have your own dream.. and that's what I would invest the gift in.