Financial Clarity - There isn't any
Okay, so let me be clear up front.
I'm no financial analyst. I rely on what other people - much smarter people - write. I rely a little on gut feelings, but not so much any more. I also rely on prayer.
Yes, you heard that rightly. I do pray about finances. Why not? Jesus solved Peter'a concern over government taxes by having a fish cough up some coin. Do it again, Lord, and I'll be fishin' every day!
Let's face it - the USA is going to get hit by some sort of financial crisis. Everyone knows it. Heck, the government is partly shut down right now, though I hear the congressmen are still getting paid.
Darling and I wrote a book in October of 2012 warning of the Fiscal Cliff - what it was and how it might impact us and some thoughts on how to prepare for it. (The post is here.)
We expected the government to get in gear and solve at least some of the problems. It didn't happen. We elect these folks to go to DC and work for us and I'm still not sure what they do there. All the problems we faced in 2012 are still with us, and the USA has more on top of it.
I have no idea what to do about any of it. Hunker down and buy a year's worth of MREs and prepare for riots and looting? That's probably extreme.
Where to put your money so it grows. That's the real question. Normal people like Darling and I cannot really invest millions in overseas investments that might give us some true diversification.
What I'm saying is - you can't rely on many of the newsletters out there that want your subscription. They will take your money and give you bland advice that you cannot really follow.
I've signed up for at least eight of these, and lost money on every one. Sure, I lost less on some and more on others, but the fact is - THEY DON'T KNOW EITHER.
They have millions to send to Hong Kong (a favorite spot for high-end investors) and can buy distressed businesses in Australia or even buy up parts of Puerto Rico, where tax laws currently make good sense for USA investors.
Us normal folks cannot.
What can we do?
I invest they bulk of my money in Synchrony Bank. (I don't work for them and have no affiliation with any bank.) I just looked and they pay 2.2% APR versus 0.11% at Chase (for example).
0.11%! That's nuts. I might as well keep my money in the mattress. Better yet, buy some gold coins and keep them in my mattress.
The stock market? Bah. I do well in it simply because I'm in it so seldom. I have a very few stocks I own and hold. All the rest I sold over a month ago when it felt like the market was going to tank. And it did.
"Oh, just hold on to it and it will come back." I lost over $50K in my IRA because of that advice and I'll never deal with them again. The people that made money on that deal were the ones selling me that deal.
Nobody cares about YOUR money like you do. Ever.
Can I explain why the market plummets and rises? Nope. I know most stocks are currently overpriced, and some (like Netflix and Facebook, two darlings of the market) are simply insane.
I'll write more later, but my advice is simple. Don't play the market unless it is with money you can lose and not cry about.
Will you miss that next big thing? Maybe, but probably not. Those newsletters that work that angle are playing on your fear of missing out.
They want YOUR money. Don't fall for it.
Finally, and just so we're all clear on this. I write on this blog about things and interest me, confuse me, irritate me or I write simple ponderings.
This is not a financial newsletter, but we all talk about money, don't we? Join in. I'm not the smartest cookie in the animal crackers, but I sure can listen.... Well, read, I guess.
I'm no financial analyst. I rely on what other people - much smarter people - write. I rely a little on gut feelings, but not so much any more. I also rely on prayer.
Yes, you heard that rightly. I do pray about finances. Why not? Jesus solved Peter'a concern over government taxes by having a fish cough up some coin. Do it again, Lord, and I'll be fishin' every day!
Let's face it - the USA is going to get hit by some sort of financial crisis. Everyone knows it. Heck, the government is partly shut down right now, though I hear the congressmen are still getting paid.
Darling and I wrote a book in October of 2012 warning of the Fiscal Cliff - what it was and how it might impact us and some thoughts on how to prepare for it. (The post is here.)
We expected the government to get in gear and solve at least some of the problems. It didn't happen. We elect these folks to go to DC and work for us and I'm still not sure what they do there. All the problems we faced in 2012 are still with us, and the USA has more on top of it.
I have no idea what to do about any of it. Hunker down and buy a year's worth of MREs and prepare for riots and looting? That's probably extreme.
Where to put your money so it grows. That's the real question. Normal people like Darling and I cannot really invest millions in overseas investments that might give us some true diversification.
What I'm saying is - you can't rely on many of the newsletters out there that want your subscription. They will take your money and give you bland advice that you cannot really follow.
I've signed up for at least eight of these, and lost money on every one. Sure, I lost less on some and more on others, but the fact is - THEY DON'T KNOW EITHER.
They have millions to send to Hong Kong (a favorite spot for high-end investors) and can buy distressed businesses in Australia or even buy up parts of Puerto Rico, where tax laws currently make good sense for USA investors.
Us normal folks cannot.
What can we do?
I invest they bulk of my money in Synchrony Bank. (I don't work for them and have no affiliation with any bank.) I just looked and they pay 2.2% APR versus 0.11% at Chase (for example).
0.11%! That's nuts. I might as well keep my money in the mattress. Better yet, buy some gold coins and keep them in my mattress.
The stock market? Bah. I do well in it simply because I'm in it so seldom. I have a very few stocks I own and hold. All the rest I sold over a month ago when it felt like the market was going to tank. And it did.
"Oh, just hold on to it and it will come back." I lost over $50K in my IRA because of that advice and I'll never deal with them again. The people that made money on that deal were the ones selling me that deal.
Nobody cares about YOUR money like you do. Ever.
Can I explain why the market plummets and rises? Nope. I know most stocks are currently overpriced, and some (like Netflix and Facebook, two darlings of the market) are simply insane.
I'll write more later, but my advice is simple. Don't play the market unless it is with money you can lose and not cry about.
Will you miss that next big thing? Maybe, but probably not. Those newsletters that work that angle are playing on your fear of missing out.
They want YOUR money. Don't fall for it.
Finally, and just so we're all clear on this. I write on this blog about things and interest me, confuse me, irritate me or I write simple ponderings.
This is not a financial newsletter, but we all talk about money, don't we? Join in. I'm not the smartest cookie in the animal crackers, but I sure can listen.... Well, read, I guess.
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