Posted on 08/12/2011 7:20:45 PM PDT by blam
My plan is to make different decisions with the next dollars that become available and direct them towards a variety of assets can be physically held and used. The money that becomes available above my expenses in retirement would less often go into the Charles Schwab account.
The first things I think of are food, consumables, supplies, consumer durables, and tools. As the summer ends all our shelves, cabinets and the tool shed are fully stocked with items we use, and we have programs to rotate the items. We purchased for long term storage a year supply of food for one person. We also have cases of very good red wine, which of course in a natural for people living in the Willamette Valley of Oregon. (Be sure to eliminate any deferred maintenance on a house or cars.)
A home is a real asset, provided there is no outstanding debt. In general the absence of debt is constitutes real asset. Buy for cash upgrades to the home, which retain or enhance its valve. Replace an old roof, gutters, and drains. Update the landscaping. Soon we are going to have our driveway resurfaced with a Concrete Technology product. In every case the improvement needs to make it one of the best houses in the neighborhood without adding features properly belonging in other more affluent neighborhoods.
When countries look to define their wealth in substantive terms they consider natural resources, and the gold and silver they have in their vaults. I decided that gold was too expensive when it hit $800 per ounce, but I determined to buy one gold coin every time I gave blood regardless of the price. I go three or four times a year, and the shop I do business with is just a few blocks away. If I had the money I would buy rural property, and grow trees or grape vines.
In a time when my wife and I, and our two son’s families enjoy material prosperity, it is difficult to remember that our Christian faith is our really real asset. All of us try to keep saying that whatever reasonable steps we may take can, in a significant way, be overcome by unforeseen events. In the new True Grit movie when Mattie Ross is about to join Rooster Cogburn to go after Ned Pepper she says, “I am in the hands of the Maker of all things and I have a fine horse”. I think that sound bite sums up a shelf full of theology writings.
Eliminating “lawful money” was a nice touch. That statement is now equivalent to that made by made by any sub-Sahara dictator.
The 90% was the amount of silver in dimes, quarters, halves, and the rare silver dollar that you could exchange the paper for at the bank. After ‘64, that dried up pretty fast when the clad coinage came out. Only the half dollar retained 40% silver until 1970, after that no new coins except special strikes were of silver.
“Sure, if the dollar collapses, we’ll see tremendous price dislocations”
I agree...and this is why I don’t see any asset as a sure thing under that circumstance. We are “betting” on how people will react when faced with this situation...and our culture has changed a lot over the years.
“Let’s hope/pray it never gets to the “Mad Max” level...”
That has been my prayer for a while...but the more I see the direction our culture is heading the less positive I get. God will be the only way we will get through a major economic depression...no matter how well we think we have prepared.
Keep praying...
Never a need to say sorry when you spend time with your kids...but thanks for the reply.
From reading your response it sounds like we are thinking along the same lines. We also are stocked with food, consumables, supplies, and tools...and this is for the nine of us...I have seven children. We don't have the wine but that is okay...
I was very blessed to be able to buy some farm land and build our own house on it several years back. As a result we now have fruit trees, grape vines, berry patches (blue berry, black berry, raspberry, and strawberry), as well as a large garden, chickens for eggs and meat, ducks for eggs and meat, sheep for wool and meat, and a cow/calf for milk and meat. We are able to can a lot and purchase in bulk most of what we do not raise.
“our Christian faith is our really real asset.”
I completely agree...
“In the new True Grit movie...’I am in the hands of the Maker of all things and I have a fine horse’.”
I agree with your assessment of this statement...it shows reliance on God and that He has given us the ability to plan...well said.
God bless
That is true. Who can say with 100% certainty what will be the best assets to own except for the basics. That's why I've tried to diversify. Sounds like you are in good shape and have ways to acquire what you need, if the need arises.
You are where most of the population was during the last depression. Many, including my parents and grand parents, never really noticed the depression. With your independence, God's protection and surrounded by loved ones, what more do you need?
Most people don't realize that when they buy a gallon of milk for let's say $5, it really costs about $10 when everything (taxes, training, commuting, downtime & etc.) is considered. Something to remember while you're dodging that cow's tail... :)
We live in urban Eugene Oregon and would love to buy a rural plot in the county just south of here and get away from the land of “Big Brother”. We also see such a place as a location for our children and their families to move to in hard times. God bless and keep you in His prosperity.
Wow...I had never thought that way...unfortunately I live in the city and don’t have enough room for a cow and steer...I do have chickens though :)
Your cow was a good investment. You will get good ROI...and when you ‘cash out’ you will get your approx. purchase price back in meat!
It is a young cow yet so I hope not to “cash out” for awhile. She will be bred again soon so I should have another calf next year. If I can add on some land to the farm I would like to keep some of her heifer calves to develop a small herd. I know of a farmer that started with one cow and has lived off of the calves from that one cow for decades...now has a herd of around 60 animals...all related to that original cow. I don't want to get to that size but would not mind three to five cows...we would then have enough milk to also make more cheese and ice cream. We make some now but would like to make more for the family.
We have chickens as well...they also have been a good investment...eggs for breakfast and chicken for dinner...
We also have a small flock of sheep...for both wool and meat...we stay warm in the winter and well fed.
I’ve been long on gold since 2004. 380 an ounce.
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