Oct. 13, 2009
INVESTING
44 years old married with children 10 and 12. $50K in gold, $400K in real estate equity, $500K in cash. What would you do with cash?
I would keep it in reserve, half in foreign currencies -- preferably the yen. I would keep the other half ready for buying single-family houses over the next two years. Buy them from desperate sellers or creditor who have finally decided to sell them for what they are worth.
Lenders are not repossessing homes and selling them at market prices. They do not want to write down these loans. Wait. I think they will in a year. There will be a flood of homes offered for sale in 2011. This may begin in your area in late 2010.
Shop. look for a desperate seller. Visit this site:
BANKING
What would it take in this country to dissolve the federal reserve and take us back to the days of the gold standard? If this were to happen, what implications would there be for our country?
It would take an economic breakdown so severe that most people would lose most of what they own. Then it would take someone younger than Ron Paul who understands the free market, and who can persuade people.
There is no such political figure visible today. There have only been two in Congress since the end of World War II: Howard Buffett and Ron Paul.
In short, the voting public likes the effects of theft. Until the system visibly fails to deliver, nothing will change.
INVESTING
Question: How does one go about investing in foreign currencies? How is accumulating wealth justified scripturally? Thanks.
Until you are sure about question two, ignore question one. The answer is here:
GOLD
How can a person take their gold holdings with them if they decide to move over seas and live? I'm talking about bullion and coins. Would the transportation or transfer of this sort of wealth send up any red flags and how could one deal with any possible problems that may arise? Or am I being paranoid?
The best way would be to swap bullion for bullion (no taxable event) with either GoldMoney or BullionVault. Contact them to see if they will let you do this.
LOCATION
I'll soon be 70, divorced, healthy, ambitious and energetic as hell; a semi-retired inventor and small business owner who started collecting SS in 2003. Earning $25 K annually in royalties and commissions. Net worth $300 K. Home equity $175 K. Goal: A comfortable, safe, secure retirement outside the line of fire and economic turmoil. In a place with sane gov't, no empire aspirations, nice climate, water, peaceful citizens and a bright future. Fear: Losing my money [precious metals, coins] to gov't or other thugs en route to my proposed final destination: Argentina or better Uruguay. I'm going back for a second look. Everything was marvelous [as a tourist] the first trip.
You should move to one of the two countries and rent. Spend at least a year there. Get a sense of what it is to be a gringo in the country. Learn the language well enough to dream in it. If you can understand a local joke, you are ready for full integration.
Read up on the basic laws. Make sure you can live with the legal structure.
Start building local contacts. These will be crucial to get integrated.
RETIREMENT
As Trustee of my small firm's pension plan, I find it difficult to invest my employee's assets well, given the limited options within a typical mutual fund family (e.g., primarily US bonds and stocks) .Given the precarious investment climate in the next few years, do you have any suggestions for investing in tax-sheltered pension plans?
Yes. Don't.
When I was asked this question by small business owners in the late 1970s, I recommended that they not set up such programs. To do so is to take responsibility for other people's lives -- people who are ready to transfer this responsibility.
The problem is lawsuits. People who transfer responsibility are ready to participate in class action lawsuits. There are now twice as many lawyers as in 1977. I saw this coming.
If you can find a third party that will do all of the paperwork and take all of the risk, use it. Maybe use two. But do not do the investing personally. You want to be able to say, "Sue them. They's responsible."
CAREER
Age:
Location:Orange Co. CA
Occupation: Design Supervisor
Retirement year: Not set
Annual income: $110k + wife $30K
Net worth (not home) $400K
Home equity $400K
Your #1 goal: be a vehicle to get people to move towards a relationship with their maker
Deadline: death
Your #1 fear: Living a life worthy of the #1 Goal
Your plan to deal with it: Be open to Him in a way that I keep learning and changing.Q. You have written about Careers, callings, purpose and so on. What are practical steps to finding, blending, making that all happen in one package? In other words, can your purpose for being here be both your calling and career?
First, your goal is way too vague. It indicates that you have not given serious consideration to your future. But your question is a beginning.
There is almost no way anyone will pay you $110,000 a year to pursue your calling. There is only one person who will pay you that much: you.
This means that you must start a business that is totally rewarding that will be so profitable that you can pay yourself that much. I recommend starting a Christian day care. It's profitable, and it helps young children.
ESCAPE
Age: 54, married 28 years
Location: SE Pennsylvania
Occupation: Manager in family-owned high-end custom millwork factory (hospital / univ work)
Retirement year: Why would I want to retire?
Annual Income: $80k
Net worth excluding home: $100K
Home equity: $115K (after $15K mortgage)
#1 goal: Finish well, i.e. lead a life pleasing to God and admired by my family
Deadline: The finish
#1 fear: Government
Question:Bureaucrats everywhere resist productive activity. Legislators undermine the family which is the basis of civilization. Where can we run to start over?
We can't. Maybe you can.
Are you ready to start a new career at age 55? Are you ready to learn what customers want in a new location? Do you have the capital to launch a new business in a new country? Do you understand its laws, including its unwritten laws? Do you have 100% support from your wife? Are you both willing to leave your children behind?
If so, move there for a year. That will entail walking away from your business. Can a manager handle this while you are away?
DEBT
Age: 45, married, living outside of Dallas, TX.I have been a general contractor my whole life. Last contract was $1.5 million, which enabled me to get out of debt (other than house).
Income has been over $175K, now nothing. Am planning on moving to central Mississippi to start organic fertilizer plant with $4 million in borrowed money.
Home -- Worth around $235K; owe $150K.
#1 Fear -- I will not bet the money to fund my project before the bottom drops out. Have six months invested in business plan/education. Perfect storm in my chosen industry.
What other sources of investment capital are available for a business that can sell all the product it can produce for at least the next 24 months?
You need a business plan. Begin with this.
"I am an unemployed contractor. I have done nothing else. My business has collapsed. I never saw this coming. I must now start over. I plan to start a business in which I have no experience. It will be in a new state, where I have no personal contacts. I got someone to put up $4 million in this project. But I need more money. I don't know how much. You tell me. I will not put any of my own money in this project, since the bottom may drop out. I think we can sell all of our output for 2 years, starting today. After that, who can say?"
When you find someone to do this, let me know. I have a bridge deal in Brooklyn he might be interested in.
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