Lepard's Financial Advice

[Anti Federalist]

Bosso wrote:

There are 499 pages to this Bailout Bill. I haven't read and digested all of it yet, but terms like 'Acceleration of Effective Date' for 'Zero Reserve Requirement' and 'IRS' raise my flags.

You already picked out a couple of gems, like the zero reserve requirement.

I'm reading it section by section right now, and it's making my eyes cross.

http://www.govtrack.us/congress/billtext.xpd?bill=h110-1424

TITLE IV--EXTENSION OF TAX ADMINISTRATION PROVISIONS
SEC. 401. PERMANENT AUTHORITY FOR UNDERCOVER OPERATIONS.
(a) In General- Section 7608(c) (relating to rules relating to undercover operations) is amended by striking paragraph (6).
(b) Effective Date- The amendment made by this section shall apply to operations conducted after the date of the enactment of this Act.
SEC. 402. PERMANENT AUTHORITY FOR DISCLOSURE OF INFORMATION RELATING TO TERRORIST ACTIVITIES.
(a) Disclosure of Return Information To Apprise Appropriate Officials of Terrorist Activities- Subparagraph (C) of section 6103(i)(3) is amended by striking clause (iv).
(b) Disclosure Upon Request of Information Relating to Terrorist Activities- Paragraph (7) of section 6103(i) is amended by striking subparagraph (E).
(c) Effective Date- The amendments made by this section shall apply to disclosures after the date of the enactment of this Act.

 

[The Good Doctor]

Do most company 401k plans allow a self directed IRA? God I hope mine does!

The Good Doctor asked:



Neither one of those options look all that great, in my opinion.

I held a meeting for the crew of my ship as all this was unfolding. Within our company's 401k plan there is an option to sell off all the mutuals, individual and/or company shares and move the proceeds into an insured "cash preservation" account, basically a (relatively) high interest money market account.

It sounds like that option is not open to you.

I wish I could give you more information, unlike Larry, I am certainly no financial manager or advisor, and in no position to give financial advice based on being in the "business". I'm just an ol' Merchant Marine captain. But I had 14 men freaking out about this, and the level of knowledge was abysmal amongst them, so I figured I better get smart, quick and try to help out as best I could. I'm not even in the 401k plan at my work, since I saw this coming years ago, and for the piddly little 6% of matching, it wasn't worth the grief and went in other directions with my money.

So, to answer your question, look again for that insured cash option within the plan and move into that if you can. If not, consider rolling some or all of it into a self directed IRA, and then move into an insured position.

 

[Lord Xar]

so, if someone had 50k worth of 'things' -- you'd liquidate everything and do the following? Please correct my percentages, if necessary and add what you can.

after removing and consolidating: 50k cash.

--> 20% stays in Bank
--> 40% stays stowed at home (living expensies) or 6 months worth.
--> 40% is used to purchase gold/silver

Is that about right?

I have some cash and haven't pulled the trigger on anything.

 

[RJB]

You will become human refuse begging for food and forced to punk yourself.

Sorry.

OK. I do have a food and water supply and guns and all the other preps and a little income. I was just asking if at this time income should go to continuing to buy food for the pantry or to pay off the student loan debt.

 

[daviddee]

...

 

[RJB]

Get politically involved, you chump.

WTF do you think I'm doing!?

Seriously, there are a good portion of people in the job market with high student loan debts. I do plan on paying it off, but getting started in the real world now is rough. I am prepared for hard times as far as the pantry and defense goes, but I'm still in debt hole.

 

[RJB]

Make the minimum payments on your debt.

You do not want to destroy your financial future/credit based on an assumption the world is about to implode. There are a lot of bunkers in the USA built by people who took it to an extreme and thought the Soviets were going to nuke us.

You need to interpret Lepards post as what you need to do during a financial "transition". He is not referring to MadMax gas wars the world is going to end.

So make the minimum payments until there is clarity on this situation.

For those of us that have the means, and are prepared, this situation has the potential of eliminating our debt. Why? Let's say the dollar is destroyed and an ounce of gold can be be sold for a wheel barrow of dollars. We can then take that wheel barrow down to whoever holds our mortgages and say, "I would like to make a payment".

My concern is for the people who live in cities and places that get a real winter. Cities will breakdown quickly and it is not a wise place to be. Places that get real winter are going to have great problems because of the heating fuel issue.

Do not let fear own you and do not assume this is the end of the world. Some people read sage advice and assume it means this is the end of man... it is not... it is a bump in the road that does require some preparation.

-dd

Thanks.That's what I'm doing. The deferment goes to Dec of this year and I'm on my feet enough to start payments.

P.S. Buy some "hot pants"... all good street hustlers need some

Fuck off

 

[MsDoodahs]

RJB, check the reset of the rate.

If your rate on the student loan is fixed and another deferrment will NOT allow them to increase the rate, then by all means defer it as long as possible.

In this environment, cash in YOUR hand is better than cash in THEIR hands.

Only if a deferrment allows them to aggressively reset rates would it make sense NOT to keep deferring it.

If you can't defer it further, pay minimums.

Hope that helps...

MsD

 

[RJB]

If you can't defer it further, pay minimums.

Hope that helps...

MsD

Thanks. Your advice has been the most helpful yet.
RJ

 

[The Good Doctor]

Ok if the money market funds in my 401k or my 401k are not insured by the FDIC what should I do? I don't think either the mutual funds or money market funds are insured by the FDIC.

Take the risk of moving my mutual funds into the money market funds in hopes that the dollar won't collapse and I can preserve my cash?

Or if I ride it out I could lose a lot in mutual funds?

It's like I am stuck. Watch my money drop in the mutual funds or convert to a money market fund and pray that the doesn't collapse since it isn't guaranteed either.

What does the SIPC do? I saw that at the bottom of the web site that T. Rowe Price was a member of FINRA/SIPC? What does that mean?

In other words, I have no protection at all. None. How can that be? T. Rowe Price isn't likely to fail since it is actually in great shape overall.

If the shit really hits the fan, then a lot of people could lose their retirements anyway. What a joke!

 

[wgadget]

Well, one thing you could do: Either quit your job or get fired, and then you'll have the freedom to roll it over into an IRA.

Someone else also mentioned something thatI personally would look into: Peter Schiff's management company, EuroPacific Capital. I have his book "Crash Proof," and he suggests buying into foreign stocks in countries that are less likely to suffer from hyperinflation of the dollar. Of course he recommends shifting your money to his company...which I would do in a heartbeat. Gotta get hubby on board, though.

http://www.europac.net/

 

[constitutional]

I see you recommended to have cash on hand. What happens when hyperinflation kicks in? Your fiat dollar just devalued... right?

 

[wgadget]

With cash in hand, you can purchase a lot of things at bargain prices during the deflation period. And when and if we get to a period of hyperinflation, that will be your signal to get rid of the dollars as quickly as possible by buying up anything that you might still need for your survival kit.

 

[Ozwest]

I see you recommended to have cash on hand. What happens when hyperinflation kicks in? Your fiat dollar just devalued... right?

No easy answers.

I have eliminated all debt.

Have 20% in Gold.

The rest easy access.

I dumped my Superannuation and portfolio 14 months ago.

Thank you Dr. Paul for the sound financial advice!

 

[Ozwest]

With cash in hand, you can purchase a lot of things at bargain prices during the deflation period. And when and if we get to a period of hyperinflation, that will be your signal to get rid of the dollars as quickly as possible by buying up anything that you might still need for your survival kit.

Hold on to your money for a few months and invest in Real Estate.

 

[constitutional]

Hold on to your money for a few months and invest in Real Estate.

Explain why in real estate.

Thanks.

 

[Ozwest]

Explain why in real estate.

Thanks.

It is shameful to say, as others are suffering, but I reckon Real Estate is the best investment - long term, if you are liquid.

Buy property in 12-16 months.

The true signaller of economic recovery, will be a upturn in demand for housing.

 

[The Good Doctor]

Well, yeah but I love my job and I want to still work there. I mean they can't hold us completely over the barrel can they? I was going to try and cash out but can't.

Well, one thing you could do: Either quit your job or get fired, and then you'll have the freedom to roll it over into an IRA.

Someone else also mentioned something thatI personally would look into: Peter Schiff's management company, EuroPacific Capital. I have his book "Crash Proof," and he suggests buying into foreign stocks in countries that are less likely to suffer from hyperinflation of the dollar. Of course he recommends shifting your money to his company...which I would do in a heartbeat. Gotta get hubby on board, though.

http://www.europac.net/

 

[wgadget]

Yeah...Well, it was meant to be tongue-in-cheek. But I forgot to put the

 

[The Good Doctor]

So, anyone have any other ideas?

Ok if the money market funds in my 401k or my 401k are not insured by the FDIC what should I do? I don't think either the mutual funds or money market funds are insured by the FDIC.

Take the risk of moving my mutual funds into the money market funds in hopes that the dollar won't collapse and I can preserve my cash?

Or if I ride it out I could lose a lot in mutual funds?

It's like I am stuck. Watch my money drop in the mutual funds or convert to a money market fund and pray that the doesn't collapse since it isn't guaranteed either.

What does the SIPC do? I saw that at the bottom of the web site that T. Rowe Price was a member of FINRA/SIPC? What does that mean?

In other words, I have no protection at all. None. How can that be? T. Rowe Price isn't likely to fail since it is actually in great shape overall.

If the shit really hits the fan, then a lot of people could lose their retirements anyway. What a joke!