Finance and Economics > Investing and Saving

How do I secure my money?

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Trusty Mutsi:
I've heard this mentioned a few times on the podcast, so here's my question: how do I secure my money? My wife and I have no debt except for our house. We have a good chunk of money in CDs (about $30,000), and have a 401k at work. We have almost no cash in the house.

What's some good places to start for securing my family's finances?

Thanks for any help!

ModernSurvival:
I discussed this on today's show which was just published. Hope it is helpful to you just remember I am not a Financial Adviser and you have to in the end always make your own decisions.

Trusty Mutsi:

--- Quote from: ModernSurvival on September 24, 2008, 10:40:54 AM ---I discussed this on today's show which was just published. Hope it is helpful to you just remember I am not a Financial Adviser and you have to in the end always make your own decisions.



--- End quote ---

Totally understood. I think another thing I need to focus on is to educate myself on a lot of things (politics, economy, stocks, gardening...)

BigDanInTX:
Trusty, you have to understand that no one can legally answer that question.  You would need to consult a financial advisor regarding this.  Making specific suggestions could bite anyone who makes them in the ass because if you do drop your money somewhere and lose it all, they could then be liable in a lawsuit.

In a general sense, don't put it all in one place.  There's no way of knowing what the market will do.  The signs seem to be pointing downwards, but you need to decide what's best for you.

Don't put it all in gold/silver.  It is useful in some scenarios, but not all.  Don't put it all in domestic stocks/bonds/funds.  That way, you have something you can rely on if things do go south.  Don't keep it all in cash.  It's hard to store that much.

Check out this document, a compilation of posts from a guy who went through the Argentina economic meltdown.  He discusses money stuff and you may get some ideas from that...
http://sparc.areyouprepared.org/archive/Terrorism%20and%20Civil%20Disturbances/ArgentinaMeltdown.doc

Also, think about what marketable "primitive" skill you have or can learn.  This lets you have a career option to fall back on...something that will always be needed no matter what level of collapse occurs.  This will ensure that you will be able to have income of some kind.  For me, it's carpentry.  I've always been interested in it and it's something I could fairly easily do if there are no computers to program anymore.  =-]

Stein:
What I do is make a list of bad things that can happen and try to figure out what I would need to get through that in the short term.  This tells me how much cash I should have very quick access to.

Prior to the current nonsense, my worst-case scenario was an evacuation due to a natural disaster, or a bug-in without power or access to banks/debit/credit cards.

I figured if I had a few thousand in cash, we would be fine.  Now, I am adding major banking disruption to the list and want to have at least three months of expenses in cash money available.

Then, I move outward to medium term issues like medical problems, job layoff, etc.  Keep moving out and put together a plan to address them.

Essentially, we have 3 months in cash, another three months expenses in a savings account and then it gets illiquid pretty fast.

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