Let's say I have $100k sitting in the Bank. In the worst possible case, the economy absolutely tanks. What/where would you suggest I put the money and it cannot be in your Bank account. A buddy suggested buying silver. Not! So, let's see what some of you come up with.

 

First off...no such thing as too much cash. :wink:

If the economy tanks....the US dollar will be worthless.
If that is what you are getting at...then you would be a fool to have your money in dollars.

You need a standard that has value....gold, silver, platinum.....or another strong currency.

 

Half in gold and split the rest up in pounds and euros.

 

Egyptian pounds!

 

Give it to me.

 

If you have a balance on your mortgage is the cash enough to pay it off?

 

they way the market is.. could be risky. if you dont plan to use the money for another 5-10 yrs then maybe some bonds or cds... or just money markets. although of course nothing is earning near as much interest as it was a year ago.

 

yes, but I heard I should retain cash and not do that..

 

the hypothesis is to stay away from the Bank. I am at the point where I think our economy will go from recession to depression...

 

Do you need the money?
Is it part of your retirement funds?
Do you have job stability?

I still don't get why people ask financial planning questions to anonymous people on a board that have no business giving advice.

Get with your financial planner and make sure your plan is mapped out.

 

...and if it goes into a depression...you think all the banks will fail?

 

Savings accounts are the safest thing out there. If you don't trust that then it's time to put a safe in your basement and put the cash there.

 

Go to a Brokerage Firm. They don't have to be in banks.



FTIW, I currently just have a savings account.

Market crashed today. Again.

 

Well, it all depends how risky you are, doesn't it? You could play it safe with some cds and like kind investments. You could also start buying real estate investments such as apartment buildings, land, commercial properties, etc. and hope to hit a jackpot within the next 5-10 years.

No one ever made a fortune by playing it safe, but with high returns expect high risks.

 

correct Moog.

I see alot of unemployment and it continues. Foreclosures are still abundant even though Banks are going to halt foreclosures. Next, is credit cards. So, how is the economy to turn with so many unemployed and so many losing their homes. Ain't no one out there buying.

Until people start getting employment and saving up some, they will not be able to spend on anything.

That is why I want to put it out here on what to do. Yes, I can go pay for a Financial Adviser, but who is to say he is better than advice I may get here. Alot of the guys here and not dummies.

 

Be careful with brokerage firms. I have some cash in a brokerage account, and a while ago they suggested putting it into their money market....except that its not FDIC insured so I've just lost 3% of the value....while they merrily continue to charge their service fees....wtf

 

Ahhhh. See our brokerage firm has an FDIC insured cash sweep, along with the option of a traditional money market. However, yes, some firms still have just SIPC insurance and were only 100% backed by the government if they had the cash in the account before 9/9/08 (something around that date). It also depends on what money market your invested in because if the holdings that make up the money market decline then the value of your dollar will. For instance I know a couple mmkts that had Lehman Bros as a holding in it and since they went bankrupt it made the value of $1 mmkt dollar actually equal about 99 cents. Hmmm.

 

if the economy submerges, so will the US dollar. i say invest in natural resources, you can take your pic: oil, natural gas, gold, platinum, etc.

 

Texas crude prices should be going up soon

 

If you think that all the banks will fail, and the FDIC will not deliver, then you need to listen to the advice of your friend: Silver and Gold are your friends.
Coins and bars....buy 'em up.

 

Yup! That is what 2 people I know are doing... I can't think of a Country that I could Bank my money in. I know UK and Australia are in recession. If the US tanks, Canada tanks with us. Can't trust China and HK is tied to China.

 

I'm all out right now.... My cash is in an online banking account where it's earning under 3%. Damn, I miss the days of 6% CDs...

Depending on how much interest you're writing off on your taxes each year, and how much you own in principle on the house, sometimes it's better to pay it off. I'm not there yet, but I'll have to start seriously thinking about it in another 5 years or so...

If your mortgage is 6% and you're getting 3% in a bank, then the only benefit of keeping a mortgage is the interest write off. If you're within 5 years of paying off the loan, you probably aren't paying that much interest anymore, it's mostly principle.

Keep the cash liquid. And be poised to jump back into the market when you think it's right. There's bargains out there if you're looking long...

If you're conservative, you can jump into some index funds, and some bond funds to protect yourself. Since you're in your 50's, you'll want more bonds and "safe" investments than someone who is younger...

I fired my planner last December... I've had better luck with my 401K that I manage, then he did with my roth and taxable accounts...

Finding a good one is tough...

 

^ agreed. If you can pay off the house, do it. If you can't then start kicking in extra principal payments and watch a 30yr mortgage go down by dramatically to a 17 yr or less. The cash can come in handy if this economy tanks more than it has.

Where else can you get a 6% guaranteed risk-free (and tax free) return? You would need to find a taxable investment paying 12% (e.g. Madoff) to even approach that performance but of coarse you'll take on risk.

Of coarse the risk now is hyper-inflation and being able to pay inflated dollars on a mortgage. But guess what? Banks can call loans, so you might not be as safe as you think holding a mortgage.

I paid our mortgage off 6 years ago and haven't ever regretted the move. People over-stress on taxes a little too much IMHO. You'll still have a property tax write-off if you live in an area that has these taxes.

I only know one other person who has done this in my age bracket and there is a tremendous peace you have knowing you own you home free and clear. Not even my parents have their house paid for.

 

withdraw all of it as cash, place in safety deposit box, or in high security fire proof containment somewhere in your home....in this economy thats the only way to ENSURE you dont lose anything...

 

Do not put it into pounds or Euros. If the US tanks, UK/Euro goes down with you! Keeping it an cash is useless as well since it'd be worthless.

Gold and Silver is your best bet.

 

Dude take your 100 grand cash money, man.. Just Floyd Mayweather it up and just be makin it rain all over your house, hundreds here, hundreds there, like bam! 100 g's boy, I would just stuff my pockets, my sock drawer, my center console in the car, and what else.. oh, stuff some more of that 100 thou in your pockets. Live it up. This country is headed down the gutter. Have fun with the money before it's absolutely worthless.

 

Give it to me, I'll take good care of it..

- Bernie Madoff (like a bandit)

 

Yeah, I agree. I took like 25 thou and put it in my sock drawer. It's not like you gotta worry about any make believe inflation crap because why? Everybody is broke as a joke. So inflation? C'mon.

 

Thats probably the worst and most stupid move you can do.

Convert it to gold

 

Sigh...

Our government is printing and borrowing money at unprecedented levels and you aren't worried about inflation?

And your sock drawer for $25k?

 

Maybe my socker drawer is a lil much, but the fact of inflation seems ridiculous to me when so many Americans are flat out broke and wicked pooorrrrrrrrr, like cant pay basic bills pooorrrrrrr...

 

I saw this commercial on my CNBC with a gentleman selling gold coins. He kept picking them up with his hands and saying things like, "this will be worth 160k when gold goes to 2,000 dollars." I think they wanted like just under 200 bucks to buy some gold coins.. what do ya think? He sold me pretty well...

 

Wow....the ignorance here is shocking.

 

yup! That is the consensus. Gold or silver.

Thanks all.

 

Watch the price of gold burst just like oil did

 

when it's reached infomercials, that's when you no there's a bubble that's about to burst....

 

Apples to Oranges

The increasing price of oil was not matched by an increase in demand.

Whereas the price of gold has gone up because of demand.