I've always applied a think and plan strategy in life; whether it's for health, professional, recreational, relationships or financial planning reasons, I've thought-forward and put steps in place to have a better, more enjoyable or secure, future. There's been speed bumps, like when I was eighteen and ran up my first VISA card, but I learned from it and other aspects that didn't go to plan, then made adjustments. Now I'm a little older I have the ability to look at my current position and the years that led to it, and be grateful for my think and plan strategy.
I'm often asked about these things, strategic life-planning, and whilst I don't offer advice, I've shared some of my success and failures with others, and had some great conversations that have helped me in turn.
One such chat was with a chap I used to work with in my late twenties, a reasonably good friend, and someone I would like to see thrive.
We met when he was just nineteen and beginning a new career at a time that I was drawing one to a close but we worked together for two years until I moved on to different things. Over the years, we stayed in touch and I became a sounding board for many of his thoughts and ideas including investment and finances and a couple years ago he began to stack silver, the same as I do.
I won't go right into it all, but I told him my strategy with stacking was more about an alternative place to hold cash and make gains over time rather than fast money and I also like having that reserve of metals in the safe as it just feels good. He liked the sound of it and went away and started buying silver almost straight away.
Recently I caught up with him on the phone, he lives interstate, and we ended up doing a video chat as he wanted to show me his silver and I noticed he'd been purchasing specialty coins rather than straight up bullion or plain old every-day silver coins. An alarm bell went off and I carefully suggested he speak to a friend of mine who would help him understand what he had actually bought and the potential value it may have moving forward. He agreed.
This week that other friend of mine, an experienced stamp and coin collector, called me and gave me the bad news.
It seems my young buddy has been paying far too much for specialty silver coins in the mistaken belief they would increase dramatically; his stack is worth well less than he's actually invested because of it.
He has a few coins which are worth a little more than silver value, but most of what he thought would gain in value through it's collectable value is not going to do so. For some he's paid two and three times over spot for and that's a huge loss to wear. Naturally the man was devastated and disheartened that he simply paid too much.
The good thing is he's now connected with my other friend, the collector, and will do better from here. He's also determined to make up for the potential lack of growth by making wise purchasing decisions and trading a little rather than holding as he's been doing. It'll be a long road, but he's determined which is half the battle.
I am not trying to say that investing in rare coins is a bad thing as many do very well from it; but it's not for everyone, and a great deal of knowledge is required to ensure one is buying the right thing. I don't know much about it so stay well clear of it although I've got a few because on occasions I've seen something that holds emotional value to me. Generally I buy bullion and straight silver coins at spot price though as that's the best value for my money and it fits my strategy.
We all have different investment plans based on location, opportunity and general needs and I'm not here to call someone else's plan right or wrong. I guess though, that the think and plan strategy is something I believe in because not planning often has a very predictable, and often disappointing, result.
I believe we must seek knowledge and understanding from people who have been there and done that and probably learned valuable lessons along the way. I've let my mate down a little by putting him upon a path and not guiding him much further however I remember telling him to stay away from fancy rare coins and buy in bulk where possible. I wish he listened, but he's on the righteous path now I think, and he has time to get back in front.
What's been your experiences in respect of future financial planning? Has it been smooth sailing or has there been rough seas to navigate? With your investment strategies, are you on track for your goals or have you gone off on a tangent, made errors and taken some losses? Feel free to tell me below.
Design and create your ideal life, don't live it by default - Tomorrow isn't promised so be humble and kind
I photographed the image in this post personally.