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