What to do with my Savings.

HI all.

I have a question, with all the talk about our dollar not being worth what we once knew, and new currency, etc., I need to know if any one has any idea what to do with the money we have in our savings account.?

I am not a money expert so that is why im asking you all. Do I finish paying off some of my bills, etc. or will it not matter in the long run?

Thanks in advance.

reply to post by notsosweet


I wished I had an answer then I'd know what to do with the cash that I have stashed away. For now, I'm holding on to it... well, what I don't buy guns and ammunition with.

PAY OFF DEBT! Interest will kill you and is a waste of money!
Cash is cash, don't know how much you have, but cash is always good!
Buying gold, silver etc is risky, CD's are good. Investments are almost non existent right now, returns are either very risky or give small returns.
My 2 cents!

Gold coins seems to be the best bet at the moment after that probably food and water stock and maybe if you have enough a deserted cabin in the middle of no where

I can only tell you what I recently did. Mind you, I didn't exhaust ALL of my savings (being unemployed since 02/2009). But you have to sit down and do the math.

I found that I was more than able to exit from the 'debt society' by paying off my mortgage ($67k principal with 8 years left). Everything else (cars, motorcycles, etc.) had already been paid-off, and all of my credit card bills are paid in-full each month (and YES, they HATE me for it).

If you have the ability to get COMPLETELY out of debt, DO IT.

Just my two cents...

reply to post by OldDragger


I'm not so sure CD's are a good bet. I've looked into them and have found that the interest/return rates are crap. And if you need to get your money out in a pinch, you'll take a hit on the penalty.

Honestly, I am asking myself the same question. What to do with savings?

I've heard of a bank that issues you a debit card, and as you deposit money into the account, you are actually purchasing "Gold Credits" (gold in quantities less than ounces) that have an exchange rate to the currency that you're purchasing items in.

Anyone know anymore about it.

If you can't make more than what you pay in interest pay off what you can and still leave yourself with 6 months living expenses in cd's, etc. If there is still money after all that, invest it in a diversified portfolio. Some bonds including TIPS(Inflation protected), some precious metals(if you are scared of the end) and the rest spread around different classes of stocks. Most diversified stock portfolio's are up about 20% YTD and about 50% from the bottom in March. They are due for a breather, though I wouldn't expect them to dip more than about 10% from here before resuming upwards.

reply to post by notsosweet


Use some of it to buy a cheap gun. Prices have fallen after a recent upsurge.

The rest just use to pay off bills as you see fit.

reply to post by son of total newbie


Did that as well.

Got myself both an AR and a M-9, with a good load of ammo for each.

Again it depends on how much you have. CD will return 3% or so, term varies.3% ain't bad right now. Bond funds such as Vanguard can also be OK, are Federal Tax exempt. Again, how much do you have to play with.
Gold is risky, to make a buck you obviously must sell for more than you paid, that can be a tough call for the price can vary wildly and quickly.
Cash in the bank never hurts!

Don't hoard it. Spend it all, but wisely. if the Dollar is going to collapse, and i think it will eventually in the near future. Start preparing. Do as suggested and buy gold if you want. personally if I had some extra cash laying around I would go to the local outfitters( cabella's) and finish purchasing items for my b.o.b. cause when the Dollar does crash all that savings will be worthless. At least buying survival gear is an investment in your survival.
Or you could throw a massive party and invite all your ATS friends for some drinks.

All the gold that has EVER been mined, is still almost all still around. And it is mostly used as cosmetic jewelry. Silver is used up in munitions, and is being found at a rate below it's being destroyed. Collectible gold coins are good, but silver is set to go way up if war increases any. You can get non collectible/nonnumismatic silver DIMES for use to buy what ever you need, should the shtf. In any event, it will retain its value, and probably increase greatly, if the use of silver does NOT go up. Ifn' the use increases, and inflation does go crazy, it will SKYROCKET. It will go up much more than inflation. I try to buy a small bag every month.

I appreciate all the feedback. we've been looking into guns and of course more stuff for our BOB's.

Paying off the rest of the bills is a good idea.

Why Gold, if I may ask? Would that be like trading gold for goods and services when and if the dollar goes away? Forgive my questions, still learning all of this interesting stuff.

reply to post by Gregarious


I have lots of different coins that i've had for about 30 years. I wonder if they would be worth anything now? What should I do with those? they are mostly like buffalo nickels and things like that, some silver ones.

Originally posted by OldDragger

PAY OFF DEBT!

The above poster is right. Pay down debt.

Obviously, keep cash on hand for needs and emergencies.

One doesn't really have a “savings" if the money is already owed. It’s really just excess cash flow for the time.



mg

Look, here's what you have to remember, even if there is a collapse as many think will happen, it will not result in us living in a 'Mad Max' like world. You'll still owe your debts, and there will still be a currency.

Given that what I do for world is manage people's wealth, I have very specific advice I could give. However, I do not know you situation and hence cannot provide anything other than general information. I would recommend paying off your debt first. The reason being that if you have debt and investments, your investments would need to make in profit the same percentage you pay in interest on your debt just for you to break even. Free yourself from your debt. Then start saving/investing money. I cannot advise you how it is best to save or invest without knowing your situation and risk tolerance.

I got a hot tip on something that they will no long make.
Land.............even a cheap piece of desert will hold min. value.
Prices are as cheap as they will get soon too.

reply to post by blackbirdish


hmmm...sounds interesting, I will have to check more into that to see what it is all about. Thanks for the info.

Originally posted by j2000
I got a hot tip on something that they will no long make.
Land.............even a cheap piece of desert will hold min. value.
Prices are as cheap as they will get soon too.

That is the worst advice possible. First of all, even desert land fluctuates in value. Second it is highly highly illiquid. In other words if you need your money it takes a very very very long time to get it out.

DO NOT PUT MONEY INTO THIS

Originally posted by blackbirdish
reply to post by OldDragger

 

I've heard of a bank that issues you a debit card, and as you deposit money into the account, you are actually purchasing "Gold Credits" (gold in quantities less than ounces) that have an exchange rate to the currency that you're purchasing items in.

Anyone know anymore about it.

This would need to be a foreign bank, as this sort of thing is akin to a bank creating its own currency, which is illegal.

If it is a foreign bank, and you move your money there, you have what is call a 'Repatriation Tax' when you bring it back to the US. That tax is 50% right now from most countries.