Conservative Investor’s Plan of Action
1. REDUCE DEBTS AS RAPIDLY AS POSSIBLE AND INCREASE LIQUIDITY. Build your cash reserves, keep at least a month’s expenses (two or three is better) in cash on hand.
2. DESIGN A PLAN TO BECOME SELF-SUFFICIENT IN ADVANCE.
3. AVOID ALL BANK DEPOSITS OVER $250,000. That is the current FDIC insured limit unless you have a non interest bearing account – no limits on these. (Remember, they will combine multiple accounts.)
4. AVOID THE STOCK MARKET AND EQUITY MUTUAL FUNDS – Stocks were only this overvalued in three other instances 1929, 1968, and 2000 preceding major bear markets. A Japanese/Asian-style stock market collapse is in the offing.
5. LIQUIDATE EXCESS REAL ESTATE (EXCEPT YOUR HOME).
6. MONITOR THE FINANCIAL CONDITION OF YOUR BANK, S&L, AND INSURANCE COMPANY. Call ICA for a free bank rating: 1-800-525-9556
7. AVOID ALL CORPORATE BONDS, LONG-TERM U.S. GOVERNMENT BONDS AND MUNIS (if the munis are rated below AAA and are anything but general obligation bonds).
8. 30-50% OF YOUR PORTFOLIO SHOULD BE IN PRECIOUS METALS – in the form of non-reportable, non-confiscatable gold, silver, and platinum coins.
9. TRANSFER A PORTION, OR ALL, OF YOUR PENSION FUNDS (IRA, SEP, KEOGH, 401K PLAN) INTO GOLD, SILVER AND PLATINUM COINS. Our firm can assist you in this penalty-free transaction, but you must act now.
10. SET UP A BUDGET – AND SAVE AT LEAST 10% PER MONTH.
11. DEVELOP A SECOND SOURCE OF INCOME.
12. STREAMLINE AND SIMPLIFY YOUR PORTFOLIO – Very few investments make sense in the financial environment analyzed above. Remember Murphy’s Law – “If anything can go wrong, it will.” The more variables in your investment or investment portfolio, the more that can go wrong in an unstable environment.
13. SMALL BUSINESSES SHOULD REDUCE INVENTORIES, COSTS, AND EXPENSES, AND RAISE CASH – Look for inexpensive ways to promote or market your product or services.
14. ACQUIRE AT LEAST ONE YEAR’S SUPPLY OF STORAGE FOODS PER FAMILY MEMBER – U.S. food reserves are at a historical low and huge demands based on drought and storm/flood conditions are likely to dramatically increase food prices and create severe food shortages.
15. PRAY FOR WISDOM AND GUIDANCE (JAMES 1:5) ON HOW TO HANDLE YOUR FINANCES. “But if any of you lack wisdom, let him ask of God, who gives to all men generously and without reproach, and it will be given to him.” PROVERBS 27:12 says: “The prudent see danger and take refuge, but the simple keep going and suffer for it.”
Principles of Self-Efficiency
1. Change the way you look at everything. Rethink your entire lifestyle.
2. Develop discernment about people.
3. When you invest, invest first in the right people.
4. Look at your self honestly, and ascertain your strengths and your weaknesses.
5. Seek the counsel of others you trust.
6. Find like-minded people who can be part of a mutual support group with whom you can cooperate.
7. Find alternate methods for doing everything.
8. Develop an instinct for what doesn’t feel right. No matter how good something looks or sounds on the surface, go with your gut feeling, with your instinct, with your intuition.
9. Eliminate non-essentials from your life. Eliminate all time wasters and money wasters, and things you don’t need – i.e. clothes, furniture, junk, etc. Eliminate television from your life.
10. Simplify your lifestyle – learn to say ‘no’ to things or activities which do not make you self-sufficient. Learn to please God and yourself, and not other people.
11. Develop physical, mental and spiritual disciplines.
12. Learn to treat everything as if it were irreplaceable.
13. Buy things that will last, even if they cost more.
14. Acquire tools that do not depend upon electric power.
15. Learn to spend time alone with yourself in total silence – think, reflect, reminisce, and plan
16. Learn to spend time alone with yourself and your family, apart from superficial entertainment and distractions.
17. Learn something from every situation you are in – everything you hear, see, touch, or feel has a lesson in it. Learn a principle from every mistake you make, from everyday life situations.
18. Make sure your trust is in the Lord and not your own preparedness. Pattern your preparedness according to the guidance of the Lord. Listen to what the Lord puts in your heart – don’t use only your reasoning power.
19. Learn to enjoy simple pleasures from the smallest things – have a measure of joy and happiness that doesn’t come from creature comforts or entertainment.
20. Store up memories for times of isolation or separation from your loved ones.
21. Establish priorities for all of life [i.e. relationship, needs, present needs, future needs.] Set goals for areas you’ll be proficient or self-sufficient in. Set a schedule or timeline based on money and time you can invest in self-sufficiency.
22. Examine the concept of civil disobedience [from the Bible and history.] At what point should the people of Egypt have said ‘no’ to killing the male babies in Moses’ day? At what point should the people of colonial America have said ‘no’ to King George? At what point should the people of Germany have said ‘no’ to Hitler? At what point do we say ‘no’ to despots in our day – when they take over money, our property, our guns, our children, our freedom? Decide what is your action point – when do you move to civil disobedience? [For many throughout history – it was when evil leaders handed down edicts that were directly contrary to God’s Word or commands.] Don’t set your action point too early or too quickly – nor too late or never. Think through and calculate a strategy – then act on it.
23. Learn to ask the right questions in every situation.
24. Bring orderliness into your life. If you live in disorder, it will pull you down; it will break your focus. Think focus versus distraction. Eliminate the distractions from your life.
principles are learned on a day-to-day basis and must be practical.
26. Always have more than one way to escape, more than one way to do something. Have a plan B and a plan C.
27. Everyday life [and especially crisis] requires ‘up-front systems’ and ‘back-up systems’ if the first line of defense or ‘up-front systems fails.
28. Real education
takes place only when change occurs in our attitudes, actions, and way of life.
29. Wisdom is making practical applications of what you know. It is not enough to know everything you need to know. It will only serve you and others if practical application is made of that knowledge.
30. Fix in your own mind the truth about your capabilities. In a crisis situation, this principle will keep you from cockiness
and will provide you with confidence.
31. Decide ahead of time before a crisis arrives, how you will react in a given situation so that you are not swayed by the circumstances, the situation, or your emotions.
32. Beware of being spread too thin in your life. Decide on the few things in life that you must do and do them well. Think focus versus distraction. Make sure that unimportant, non-essential distractions don’t keep you from achieving your important objectives.
33. Learn to quit wasting things. Be a good steward of all that God provides.
34. Buy an extra one of everything you use regularly and set the extra one aside for the time when such items may be difficult or impossible to obtain.
35. In every situation, train yourself to look for what doesn’t fit, for what’s out of place, for what doesn’t look right.
36. Teach your children [and yourself] that they are not obligated to give information to a stranger. You don’t have to answer questions [not even to a government official] that are none of their business.
37. Sell or give away things you do not use or need. Consider giving away or selling 50% of your ‘stuff,’ [i.e. the non-essentials.] Simplify and streamline your life, lifestyle and possessions.
38. Find someone who lived through the Great Depression and learn from them how they were self-sufficient, how they made do with little, and how they found joy and contentment in the midst of hard times. An excellent book on this subject is We Had Everything But Money: Priceless Memories of the Great Depression From Strong People Who Tell In Their Own Words What It Was Like When Banks Closed and Hearts Opened.