So, I have lived pretty well, up until now...for the most part. I am, I think, part of the last generation to successfully pursue the American Dream. I come from a working class family. I took advantage of a highly subsidized state university education, became a professional, and managed to start a dental practice with no money down, basically. I am a fine example of the debt based American economic model. My career has been a typical one of struggling to balance income against bills and taxes...and my greatest accomplishment thus far has been to provide college scholarships for four incredibly spoiled brats...my kids.
Savings? What the hell is that? Now I have ten years to go until I reach that magic age 65. As far as I can see, the best thing I have going for me is that I won't be forced to retire. Good! Because I don't want to retire, and working longer looks like the best defense against a currency that's losing it's buying power.
But I do have a plan. One that I've been working on, based on my best prognostications. It's not one you're likely to see touted in Money magazine.
First, I think IRA's are a bad idea. It's a cinch that future taxes are going to be MUCH higher...so why defer taxes? Better to save after tax dollars. And convert them to non-dollars. Gold and silver appear to be about the only reliable vehicle left to hedge against the falling dollar. Of course, nothing says that the government won't decide to tax the sale of gold at an exorbitant rate. Hell, they already tax gains on gold as regular income. What is that about? Until now, the government hasn't been too careful about tracking buying and selling of bullion coins, but it appears that loophole is about to close.
And just his week there's been a brand new rumor going around, started by one of the pay-per-view precious metals pundits, that the government has a plan to confiscate gold, paying $200 per ounce. I don't give this much credence, although I don't doubt it might be a rumor started by the bullion banks to drive the price back down for a while.
There are some foreign currencies that are apt to hold up better than the dollar. This is true. You could hold Canadian or Australian currency. Anything but dollars is my motto. With the current fiscal and monetary problems we have in this country, the dollar is headed straight into the toilet. I don't have to be a rocket scientist to see that..
I do own some real estate. Or, I should say, I currently have some real estate equity. Not all of it is paid for at present, although I have it financed at an excellent rate. Most of it is locked in below 4.5% and I should live to see it paid off. If I were smart, I'd sell it all now and save the proceeds. But the fact is that my wife LIKES her house..and I like my little rural farm property (which is part and parcel of THE PLAN) and I like our little lake cottage even though it's an extravagance. It's a calculated risk keeping any real estate at a time like this when deflation has values in free fall. I know I might lose most of my equity. Fortunately I do have a couple of nice residential rentals that are completely paid off. If worse comes to worse I can live in one of those.
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