Originally posted by fullmoonfairy
Ok, this question is for my two "marketwatch idols", and the ones I believe to be the most trustworthy and comforting, Redhatty and Hx3.
This may be the wrong place to ask, but I have been following thiss nigt and day for months. My significant other recently settled his mother's
estate and the funds are sitting quietly in 3 banks. I was able to convince him to split it up among banks for safety and STAY OUT of the market. His
stock broker is desperately wanting him to invest it as you can imagine!!
(I feel like I'm swatting flies every time they call the house! lol!)
My question is, and he asked me last night out of fear, "what the hell do we do with this if banks are going to fail?? Bury It in the back yard?!".I
really feel bad for him and I am kind of new to the game, but I'm slowly convincing him of things that are happening. Last night he asked 'so, where
DO you get this information, anyway?"(I'll tell him eventually...not the right time to spring ATS on him).
So, what should we do? Now I'm starting to panic
AWESOME question fullmoonfairy! You are very fortunate to be in the situation you are in! (Well, condolences on the S.O.'s mother though.)
I am no expert, but IMHO, I agree with others... right now you want to look at putting that money into something that:
1. Is useful in the event of a full collapse/depression
2. Holds real, actual value
3. Will not disappear
Purchasing some land and the tools necessary to use that land would be a very wise start. Build a small building on the land with solar energy and a
well. Try your best to make it sustainable. Purchase a good cache of seeds, learn the agriculture of your area, and start farming.
: You have a small sustainable farm yielding some fresh fruits and veggies which could become a summer cottage when the economy
: You have a safe-haven/sanctuary if TSHTF.
Either way, you have something which holds REAL value. The cost of land is falling and reasonable, and the cost of building is currently low because
no development is going on and fuel to transport materials is cheap. And labor? lol.... you will be fighting skilled laborers back!
The typical 3G's mantra of survivalists (Guns, Gold and Groceries) is decent, but if I had the cash I would start with the farm. If you purchase
outright and go 'off the grid' with it, your only obligation is taxes.
DO NOT hold the money in USD too much longer. Not only is the FDIC concerned about being able to cover all of the projected 2009 bank failures, but
inflation will ruin the value of that money.
Also, DO NOT put $$$ into the market or commodities thinking you are gonna get rich right now. Unless you are a seasoned investor (and even they are
losing their shirts these days) you have no business being in the market. When the real 'bottom' comes in, you will know it. Everybody talks about
the 'bottom' as if they are going to miss the boat if they do not hop on the bottom that very day when in reality it will take months to crawl back
up. You will have opportunity to invest when the time is right. That time is a minimum 12 to 18 months out - at the safest measure.
Keep in mind, K-wave/Elliott Wave followers predict a false bottom very soon which will propel the markets into a small bubble. The dow could hit 9k
or even touch 10k. Don't be fooled because the downturn after that is the proverbial "nail in the coffin".
5S: Settlement (Land), Shelter, Supplies, Seeds and Sustainability. That is what I would do.
Your mileage may vary. Best of luck!