Financial experts

[Phu Cat]

All this talk about the economy seems to have many worried. I'm getting ready to retire and I'm one of 'em.

What would happen it the interest on the money we've borrowed to is more than GDP?  Will the dollar become worthless?

PC

[Jim Bronson]

Not worthless, just worth less. Big difference!

[HIPPO]

I'm not a financial professional, but it's one of my hobbies.

Not advice, just my opinion.
As of right now I would be totally liquid, no paper investments of any kind, and stay under FDIC limits on any deposits. T's or TIPS are OK short term only if held in your own name or in a TD account.

You might lose in U$S assets, but most likely will lose more in other currencies for a while. If you want to hedge it use physical gold.
It can change quick if the Fed goes crazy.

Bottom line these days it isn't about return ON assets but about return OF assets.
Pay down any debt, unless it is very low rate and very long term, and you have a guaranteed income stream to service it. Like a government check. Not a job that can be lost.

[tacojunkie]

How is Gold held , and how do you buy it ? I hear commercials for purchasing Gold, What do they give you etc.?

[HIPPO]

How you doing Taco?

You are lucky, one of the best places is near you.
http://www.tulving.com/

The problem with places like Tulving or Apmex is that they require purchases big enough to put you into reportable transactions.

Buying and selling a few OZ at the time one just has to find a few good coin shops. Lots of them in the LA area.

Do NOT buy paper gold as advertised all over these days.

[NETacomaFatboy]

is the FDIC limit $250k now?

[HIPPO]

Yes

You can also use joint or other types of accounts to increase that. Details on their website.
http://www.fdic.gov/deposit/deposits/insuringdeposits/

But there is a lot more to it. They don't have enough funding to cover multiple big failures. Presumably they would be backed by the feds, but there could be significant delays.

Best not to have all the eggs in one basket.

[Deye76]

Keep some in the mattress (or other hiding place) like grandpa did.

[apes]

The problem with places like Tulving or Apmex is that they require purchases big enough to put you into reportable transactions.

What is the max one can buy before it becomes reportable?

[Scramjet]

$10,000 is reportable.

I would not sell stocks at their low point to buy TIPs bonds or gold.  You may be selling one asset at its lowest point to buy another at its peak.  You know, sell low and buy high is a bad plan!

Just like jumping on tech stocks in late 1999 or buying real estate in Phoenix in 2006.

B

[Memnar]

I think we can count on the inflation rate to go through the roof in the next few years. Plan on things getting very expensive and your dollar not going to far.

Thats what happens when your bailout plan is just printing more money.

[IndyHarley]

Not worthless, just worth less. Big difference!

that's it in a nutshhell. but it could get to a point that it is just as good as worthless and that is a relative thing to each persons financial situation. A guy who has billions or millions would still be able to survive somewhat but a person living from pay check to pay check could be up the 'proverbial sh&t creek'.

[L-]

Mel Tappan is dead.  But one should find his books and read them.

L-

[Ape_do]

Watch out for that 250K FDIC coverage.

"On January 1, 2010, the standard coverage limit will return to $100,000 for all deposit categories except IRAs and Certain Retirement Accounts, which will continue to be insured up to $250,000 per owner."

http://www.fdic.gov/news/news/financial/2008/fil08102a.html

Yeah, our gov't did a nice job of letting 'Joe Taxpayer' know about that little bait-and-switch, huh?

[HIPPO]

In case there is someone on the board that wants FDIC coverage for up to 50 million they can look into CDARS.

Maybe they want to adopt a Hippo. 

http://www.cdars.com/index.php