What To Do?

One thing I've found that people agree on lately, and this crosses party lines, is that we are about to be blasted with inflation. Everyone understands the printing of money is making our supply worth less and shortly it's going to take more of our dollars to buy goods and services. The biggest question on everyone's mind is what do we do?

Some have suggested we invest in property. To quote my grandfather, "You can't burn dirt." While that is true, you can tax it though. As many investors have found it's hard to use real estate as a hedge on inflation when your profits are eaten up with taxes and insurance. You can take this to the bank, if inflation devalues the dollar, taxes will go up, especially property taxes. There are some incredible buys in the real estate market right now, but as a wise wealthy man once told me. Never finance anything that depreciates! Income generating property that isn't financed maybe a hedge as no matter what the economy, people need housing. The key here is no mortgage.

Others have suggested investing in gold. Gold does have it's merit. It has been one of the few investments gaining value. You can buy it in small increments. I'd stay away from gold exchanges where you purchase gold and they store it for you, keep your investment in your control. This creates a storage problem, but the physical control of your investment outweighs the inconvenience. It's less likely to have a gold exchange fold and you left holding the bag.

The best advice I've heard so far is never invest money you can't afford to lose. I'm keeping stock market investments out of my portfolio, that's just my personal feeling. Stocking up on non-perishable food is a great idea as those prices are bound to skyrocket. Plant a garden! You have to eat, and anything you can do now to save for price increases later is money in the bank. You'd be amazed how a little foresight now can save big dollars later. Pay off any debt! Get that off your plate ASAP!

Even the worse situation creates a need. Frame adversity as opportunity and find a niche. Some of the fanciest estates were built during the Great Depression. Me, I'll be building a residual income in a business that flourishes in hard times.

God Bless
Capt. Bill