Need some answers - how to protect savings

[cbc58]

Guessing many here want to know where to put their savings for protection. Some adamantly believe in gold and silver while others not so much.

Many guru's are predicting a move to digital currency and a ban on cash. While some bartering will surely take place, we could wake up one morning with a total ban on cash and sizable devaluation of the dollar. In fact that seems pretty likely within the next few years.

They will raise taxes on real estate. They will cap gold/silver values and likely ban ownership also. They will raise income taxes and all other taxes to pay for govt. programs that are underfunded. They will re-institute a capital gains tax on the sale of your home. Etc, etc, etc.

With that as a backdrop - where can you put your money to protect it ?

 

[Dianne]

Guessing many here want to know where to put their savings for protection. Some adamantly believe in gold and silver while others not so much.

Many guru's are predicting a move to digital currency and a ban on cash. While some bartering will surely take place, we could wake up one morning with a total ban on cash and sizable devaluation of the dollar. In fact that seems pretty likely within the next few years.

They will raise taxes on real estate. They will cap gold/silver values and likely ban ownership also. They will raise income taxes and all other taxes to pay for govt. programs that are underfunded. They will re-institute a capital gains tax on the sale of your home. Etc, etc, etc.

With that as a backdrop - where can you put your money to protect it ?

That was depressing as hell. Makes me want to start looking at real estate again... in Chile. I have the same dilemma you have. No clue how to keep any assets safe. I've been buying bitcoin and silver, but didn't think about the prospects of Feds capping gold/silver values and/or making it illegal.

 

[Zippyjuan]

Guessing many here want to know where to put their savings for protection. Some adamantly believe in gold and silver while others not so much.

Many guru's are predicting a move to digital currency and a ban on cash. While some bartering will surely take place, we could wake up one morning with a total ban on cash and sizable devaluation of the dollar. In fact that seems pretty likely within the next few years.

They will raise taxes on real estate. They will cap gold/silver values and likely ban ownership also. They will raise income taxes and all other taxes to pay for govt. programs that are underfunded. They will re-institute a capital gains tax on the sale of your home. Etc, etc, etc.

With that as a backdrop - where can you put your money to protect it ?

Why would the government cap gold or silver or ban its ownership? We aren't on a gold standard anymore so a) they don't need to take gold or silver from people to back up currency and b) they don't have any reason to care what the prices of those metals are.

Ban on cash? Not likely. Certainly not in "the next few years". People are using cash less than they used to but cash isn't going away.

Real estate taxes are local- can't say what your local government might do. Where I live (California) there is a law which limits how much property taxes can go up unless the property is sold.

 

[cbc58]

Why would the government cap gold or silver or ban its ownership? We aren't on a gold standard anymore so a) they don't need to take gold or silver from people to back up currency and b) they don't have any reason to care what the prices of those metals are.

If gold and silver become part of the backing a new currency (SDR), then this might happen. Additionally any asset that can not be easily tracked for tax purposes is on their radar and they have already instituted reporting of the purchase of any PM's over $600. They have many reasons to care about gold and silver.

Ban on cash? Not likely. Certainly not in "the next few years". People are using cash less than they used to but cash isn't going away.

famous last words.

Real estate taxes are local- can't say what your local government might do. Where I live (California) there is a law which limits how much property taxes can go up unless the property is sold.

That law can be changed. In fact I can almost guarantee it will be - once there is a dire need for tax revenue. Local real estate taxes are impacted greatly by federal taxes passed through to local govt. (i.e. education mandates, obamacare, anything a govt has to consume or comply with to operate).

 

[Zippyjuan]

Hypothetical but not realistic. SDRs are not really money. They have no gold to back them with. And they aren't going to take your gold to do it either. What they are backed with is Dollars, Euros, and Yen. SDRs can't replace dollars and Euros because they ARE dollars and Euros. If dollars and Euros go away, then SDRs cannot exist either. There isn't going to be a gold backed SDR taking over the world money supply.

All of the SDRs in the world are currently worth $280 billion dollars.

Gold reporting is when you sell 25 or more one ounce gold coins or bullion. https://www.golddealer.com/investment-guides/reportable-bullion-cash-transactions/

Silver reporting limit is 1000 ounces.

 

[angelatc]

Guessing many here want to know where to put their savings for protection. Some adamantly believe in gold and silver while others not so much.

Many guru's are predicting a move to digital currency and a ban on cash. While some bartering will surely take place, we could wake up one morning with a total ban on cash and sizable devaluation of the dollar. In fact that seems pretty likely within the next few years.

They will raise taxes on real estate. They will cap gold/silver values and likely ban ownership also. They will raise income taxes and all other taxes to pay for govt. programs that are underfunded. They will re-institute a capital gains tax on the sale of your home. Etc, etc, etc.

With that as a backdrop - where can you put your money to protect it ?

Grandma always said not to put all your eggs in one basket.

 

[Warrior_of_Freedom]

i'm investing in matches and toilet paper

 

[cbc58]

Hypothetical but not realistic. SDRs are not really money. They have no gold to back them with. And they aren't going to take your gold to do it either. What they are backed with is Dollars, Euros, and Yen. SDRs can't replace dollars and Euros because they ARE dollars and Euros. If dollars and Euros go away, then SDRs cannot exist either. There isn't going to be a gold backed SDR taking over the world money supply.

All of the SDRs in the world are currently worth $280 billion dollars.

Gold reporting is when you sell 25 or more one ounce gold coins or bullion. https://www.golddealer.com/investment-guides/reportable-bullion-cash-transactions/

Silver reporting limit is 1000 ounces.

You don't know what is going to happen nor do I, and I am not talking about "now", I'm talking about the future. We are in uncharted territory whether you care to acknowledge it or not. Many believe, like I do, that a breaking point is coming soon and can only speculate what TPTB will do once it occurs.

Guess the $600 reporting requirement by dealers on PM's was repealed. Can easily be re-instituted and guessing it will be since it had backing once. If history repeats the top end tax rate could go over 80%.

I am looking for constructive solutions to protecting savings going forward and firmly believe we are going to hit a period of extreme volatility within the next couple of years where the traditional mindset of "don't worry - it always comes back" - isn't going to pan out.

 

[Zippyjuan]

I see- you are looking for someplace to park money now but are worried about what you don't know may or may not happen many, many years in the future. Nothing comes with a guaranteed return. Is this money you may need in the next few years? If not, you can afford to ride out any market instability. If you want lowest risk, I guess metals but you seem afraid of those. Metals can go down in price relative to the dollar- they have fallen 40% since their peak. They can go up too. If the economy is in the tank, gold will go up.

I suppose you rule out stocks if you are worried about collapse. Bonds do poorly if interest rates start going up. If things go bad and companies default bond values could collapse. Buying and holding bonds until they mature guarantees you their current rate of return. If you invest in a fund which trades bonds, that is when you need to keep an eye on rising interest rates.

That leaves bank accounts and cash. It is good to have enough money to pay all of your bills for nine months to a year in a liquid source like a bank savings account and put money above that into some other investment (that is in case you find yourself out of a job for whatever reason- you could still pay your bills until you get a new one). You have really limited your options.

Just me- I am in mostly stocks. One is in a dividend paying utility. People always need energy. And the dividend gives me a return no matter what the price of the stock does. While the DOW Jones lost almost 53% during the crash of the Great Recession, this stock was only down 30%. And again, I was still getting paid my dividend every quarter. That further reduced any losses.

 

[acptulsa]

If we really are to see a big correction soon, the usual winning method is to go into something like bonds now, then sell them and buy stocks on the dip. That's safe enough, even if the correction is a sign that the FRN is about to lose some serious value, as the bonds (which are dollar based) and the dollar itself won't lose that much value that quickly.

Once back in stocks, it all depends. Some publicly traded companies will survive, and even thrive. The fun part is picking them in advance. After the rebound--and there will be one, even if it's just a 'dead cat bounce'--there will be time to take the profits from the stock you bought at a major discount and put that wealth in something you can bury in the yard.

So, if you want it in something you can bury out back, the question is, how soon will that go up? During the dip? Up during the dip and back down afterwards? After the dip? After the dead cat bounce?

Of course, instead of going into bonds to preserve value, you can just buy gold now and trust it to go up. How good is your crystal ball? In any case, no, don't gamble all your eggs in one basket. Buy various bearish things now, and get rid of the stocks while the Dow is still sort of normal, get rid of the things susceptible to inflation like the bonds on the dip and get back into stocks with that portion of it, and take a hard look at the money supply before you decide to hang onto any U.S. bonds or any other thing tied too closely to the dollar.

 

[Isaac Bickerstaff]

Buy tools and educate yourself on how to use them. If you are valuable yourself, it doesn't matter what they use for money; you will always have a way to capture some of it.

 

[helmuth_hubener]

I recommend a radically agnostic approach and a radically diversified, balanced portfolio. That way your money is protected no matter what crises may befall us, no matter what disasters may happen... or even if they don't!

That's the best answer I've come up with. That's just me, though. And perhaps not the answer you're looking for.

 

[Dianne]

i'm investing in matches and toilet paper

Good choice, but I would throw some water and food in your mix.

 

[Dianne]

I recommend a radically agnostic approach and a radically diversified, balanced portfolio. That way your money is protected no matter what crises may befall us, no matter what disasters may happen... or even if they don't!

That's the best answer I've come up with. That's just me, though. And perhaps not the answer you're looking for.

Can you be more specific?

 

[Lucille]

For your convenience, here is the GOTS check list:

1. Your equities are held in certificate form or direct registration
2. You have no Federal sponsored retirement funds such as 401K etc.
3. You have no CDs and investments in bonds.
4. You have modest money deposited among selected BRICs countries or BRIC protectorates like Singapore
5. You store your own precious metals.
6. You have no mortgage obligations.
7. You keep cash on hand for 6 months expenses. That is cash, not plastic with credit open
8. You have no consumer debt at all. Pay it down or off.
9. You have a small hobby farm for protein and veggies outside of where you are living with no mortgage debt, set up green.
10. You have a gas, diesel or electric car with high fuel mileage for the farm.
11. You have a generator with large fuel capacity for the farm.
12. 33 1/3% of your liquid net worth is in gold and silver or according to your preference.

For the love of God whatever you do, don't listen to Zippyjuan.

 

[Mike4Freedom]

My portfolio is 30/30/30/10

30% (General index funds that follow the DOW,S&P, and some mixed bond funds) The stuff that CNBC tells you to invest in. I do it using my 401K)
30% Domestic dividend paying stocks(3% and higher) A few in each sector (brokerage account)
30% Foreign dividend paying stocks(4% and higher) A few in each sector (brokerage accounts)
10% Precious metals(Stored in various private company vaults, do not use a safety deposit box)
Also a little bit of physical cash. No more then $1000

The reason why I put 30% investing in the stuff the TV tells you to is that they have an interest in pumping that up. Even after a crash the FED just pumps money back into the general market. Short to medium term they will perform. Long term, forget about it

Every once a in a while I reevaluate the portfolio. When one part becomes 35 to 40% I lower the amount i put into that area and increase it an area that is not performing as well.

 

[Root]

Invest in lead

 

[HVACTech]

Buy tools and educate yourself on how to use them. If you are valuable yourself, it doesn't matter what they use for money; you will always have a way to capture some of it.

that is the way that I see it also.

physical silver is where I am putting my savings. it is illiquid, may explode in value and has never gone to zero.

ZIRP has forced folks to put their retirement savings in the casino known as the "stock market"
"punishing" savers in this manner is unprecedented in human history.

time will tell how this will play out.

 

[HVACTech]

For your convenience, here is the GOTS check list:



For the love of God whatever you do, don't listen to Zippyjuan.

well love,
I will go out on a limb and defend Zippy.

the "stawk" market is clearly "too big to fail" now. witness what is going on with China to see what I mean.

the "plunge protection" team is lubing up the gears on the magic "money" machine even now!

the magic money machine is not limited by economic reality.

if ZIRP proved anything, it proved that.

 

[osan]

Guessing many here want to know where to put their savings for protection. Some adamantly believe in gold and silver while others not so much.

Many guru's are predicting a move to digital currency and a ban on cash. While some bartering will surely take place, we could wake up one morning with a total ban on cash and sizable devaluation of the dollar. In fact that seems pretty likely within the next few years.

They will raise taxes on real estate. They will cap gold/silver values and likely ban ownership also. They will raise income taxes and all other taxes to pay for govt. programs that are underfunded. They will re-institute a capital gains tax on the sale of your home. Etc, etc, etc.

With that as a backdrop - where can you put your money to protect it ?

There is no protecting it. The legal mechanisms are arbitrary and capriciously altered, so you cannot look to law to protect you. The economy hangs on threads and there is no predicting how bad a turn may go. If not that bad, silver and gold are probably still good value sinks. Beyond a point, those will have no value. The ability to produce FOOD would then become of paramount value, as would the ability to defend that means.

Having skills - real skills and not bullshit like computer programming or rapping - could become invaluable. People with no real skills will have a terrible time and may perish. Learning to give a really top-drawer blowjob may help, but I would not count on it, especially if you are a guy. Real skills such as carpentry, construction, plumber, electrician, blacksmith, furniture maker, cobbler, doctor, dentist, baker, farmer, hunter, and so forth could prove the difference between life and having to give those blowjobs just to stay marginally alive. If this bitch really lets loose, all the fancy schmancy stuff may lose all its appeal in a very short amount of time.

So, for less than apocalyptic results, I still think PMs are good, and other things of value for barter such as tools, building materials, and so forth. For circumstances far close to the apocalyptic, pure skill and possession of means of production with the ability to defend against all comers. Apocalyptic: bend over and smooch your sphincter a fond adios, for all your worries will shortly be no more.