So, you have decided that the way you invested in the past may not be the best way to invest in the future. You are ready to take some action. What do you do?
Here are some random thoughts and questions to ask yourself about your personal situation. This is groovygirl’s opinion only, you are responsible for your own investment/saving decisions.
First, don’t panic. Any action, no matter how small, is better than no action.
Make sure some of your investments are outside of the fiat money system. Move the money you are putting monthly into your 401K to a separate bank account. Accumulate some savings and start to purchase physical gold and silver, if you do not already have some. Store it in a safe place. You want to have an investment that will not lose purchasing power.
Start to pay down high-interest credit cards, do not rack them up again. Save for large purchases, do not put them on the cards. You want to get your monthly expenses down to as little as possible in case you do not have a regular income coming in.
Sell your house and rent, if you can get the equity out of the investment. Refinance for fixed lower monthly payments, if you can not sell. If you are facing foreclosure, don’t leave until the sheriff comes and get an attorney to face the bank for you. If you are staying put, make sure you will not have to move for the next 5 years for your job, spouse, or illness, or be prepared to take a haircut on the sell price. The housing market is not getting better, it will get worse.
Take some money outside of the banking system. Have some cash in savings or at home. Make sure that the cash is in at least 2-3 different banks. If the banking implosion starts to accelerate, you may have limited access to your funds. Move your 401k investments to investment choices that will hold up to a falling dollar.
If most of your net worth is in your house or in your 401k or both, ask yourself this question? When will I need that money? How will I survive if I can’t sell when I need to because: there is no buyer, the stock market is down, the mutual fund has a hold on fund withdrawal (happened in 2008), the investment banks/company went bankrupt? How long could I hold out if these things happened? How can I arrange my investments today to minimize that risk in the future?
What if oil was $200 per barrel, how would that effect my monthly expenses?
What if I lost my job tomorrow, how many months could I survive? An unemployment check is not a full paycheck, a part-time job is not a full-time job.
Again, don’t panic. Think about how you can start to be less dependant on the systems in place and more dependent on yourself, family, and neighbors. How can you work outside the systems that are currently under extreme stress?
An example, what if the food supply distribution was upset for 2 weeks. Most cities have a food supply of 3-5 days. In light of this reality, having a pantry with one month of meals for your family seems reasonable. In case of unemployment, sickness, natural disaster, or economic distribution in the supply chain. Having a backyard or container garden for fresh foods circumvents the food supply chain.
Another example, what if the dollar was going to drop in half, how would that effect my current investments? The stock market may go up in dollar amount, but not value. However, gold and silver (or oil) would quickly catch up and keep its purchasing power.
What if there was a disruption in the electric grid (this has happened before)? How long could I survive without electricity. Do I have a gas or wood fireplace for winter warmth and cooking? Do I have a solar panel for emergency power or hot water heater? Do I have a generator (and fuel) for lights or a freezer-frig? This preparation pays off if your electricity gets turned off, because you can’t pay the bill.
The time to prepare for these possible scenarios is now when you have a job and extra resources, not when you get the pink slip.
Do one thing today to prepare for your family’s needs.
Some realities that are coming your way in this K-wave winter cycle:
- Gold and silver will move higher…$10,000 and $500 before it’s all over.
- Housing market is still imploding.
- Banks are still imploding.
- Unemployment rate is really at 21%, it will reach 30% before it is all over.
- This economic collapse will continue running along until at least 2018. Were you planing on retiring before then?
- Oil will be at $200 before 2012.
- US Dollar will continue to lose value.
- We will have a hyperinflationary depression…think Weimar Republic, Germany.
- Crime will rise.
- Prices will rise, including health care.
- Supply chains will be disrupted because of high oil or lack of credit to the business community.
- 5000 banks will close before it is all over.
- Taxes will rise.
- Current wars will continue.
So, you are thinking…groovygirl, I don’t believe all this will happen.
OK, what if only half of it happens, one-third? Are you prepared for that much? What harm would it do if you prepared and nothing happened? What harm would it do, if I was right and you did nothing?
The next twenty years will be completely unlike the last twenty years.
