None of us is really looking forward to the next great depression, even while we’re all expecting it to come. The reality is that rough financial times are worrisome for everyone, including the most prepared preppers amongst us. While you and I might be better off than our neighbors are, there’s still the possibility of losing our jobs, followed by our cars and then our homes.
Since one of the marks of depression is high unemployment, there’s no guarantee that any of us will manage to keep our jobs or even find another job if we lose ours. While 75% of people managed to keep their jobs back in the Great Depression of the last century, it is the 25% of them who lost their jobs that we all focus on.
This shaky job market, coupled with a potential for high inflation make for a rough financial time for just about everyone. Oh, there are always those who have enough money that it doesn’t really matter; I’m not one of those people and I doubt that you are either.
While we don’t know just when that next depression is going to come or what will be the actual trigger, there are plenty of things going on in the current economy to give us concern.
More and more economists and financial planners of all stripes are warning people about the collapse that’s coming. Some even going so far as to say that it will be much worse than the Great Depression of the last century.
So, what are we going to do when it comes? Or, perhaps even more importantly, what should we avoid doing when it comes?
The first thing to realize is that the shape of the economy, including the shape of the stock market, is largely psychological. Stocks rise and fall in value due to people’s perceptions, more than anything tangible that can be pointed to.
Once those people realize the mistake they’ve made, things can turn around just as quickly. It’s easy to fall into fear during times of uncertainty.
But that fear will cause you to make poor decisions, just like those people trading on the stock market.
While there may be plenty to be fearful about, you don’t have to fall for it, even if everyone else does. Rather, think through your situation and make the best possible decisions to protect yourself and your family.
Remember, even though 25% of workers lost their jobs during the Great Depression, 75% of the people managed to keep theirs. Work on being part of that 75%.
Don’t Quit Your Job
Whatever you do, don’t quit your job, no matter how bad you think it is or how much you feel they don’t appreciate you. At least you have a job and you can pay the bills.
If you quit, without already having another job that you’re contracted for, you may not end up being able to get another job for months or even years.
If you don’t feel that the job is meeting your financial needs, then the answer isn’t quitting, it’s reevaluating your spending and looking for a way to lower your costs.
Chances are that you’re living above your means. That’s not your employer’s fault, so you can’t expect them to pay for it.
Related: How to Reduce Fixed Expenses
Don’t Take Your Job for Granted
With so many people losing their jobs, the one thing you want to do is make sure you keep your own. In many companies, that means becoming the indispensable person. The last one they would want to lay off.
That won’t work in jobs which are controlled by unions, as all that matters then is seniority, but if that’s not an issue for the job you have, then do whatever you have to, in order to make them think that they can’t live without you.
More than anything, this means going above and beyond on a regular basis.
I did this in my engineering career, earning myself a number of promotions. I then passed that work ethic on to my children. When my son’s company (he works for a petroleum company) was laying people off left and right, he got a 40% raise, because they couldn’t afford to lose him.
Don’t Buy Anything on Credit
The people who have the most trouble dealing with any financial downturn are those who are saddled with a lot of debt. That can be exacerbated even more by losing a job.
But even for those who manage to keep their jobs, unnecessary debt becomes a burden that’s hard to bear.
It’s not a hard and fast rule, but inflation generally goes hand-in-hand with times of economic downturn.
While that doesn’t mean that the cost of those debts will climb in any way, it does mean that the amount of disposable income available will shrink, leading to making some hard decisions, like paying for the new car or eating.
For those who lose their jobs, all those debts make it harder to survive, financially speaking.
Not only are they likely to lose whatever they bought on credit, but in trying to do everything they can to keep their heads above water, financially speaking, they might end up losing something even more important, like their home, because of that car payment.
Don’t Become a Cosigner on a Loan
Cosigning on a loan is a risky move at any time. By doing so, you’re promising to make the payment, if the borrower can’t. That puts your finances in captivity to their ability to pay their obligations.
If they don’t follow the kind of advice I’m writing in this article and end up losing their job, you’re going to end up being legally forced to pay for whatever you cosigned on.
During a time of financial depression, that could be enough to sink your own finances.
Don’t Switch to an Adjustable Rate Mortgage
The “Great Recession” of 2008-2009 was caused by adjustable rate and balloon mortgages. Written in the time of President Clinton’s presidency, these were intended to make it possible for people who couldn’t otherwise afford a home, the ability to buy one.
The idea was sold on the basis of some financial projections that didn’t come to pass.
When the interest rate or mortgage payment went up, the people who had taken out those loans found themselves unable to make their payments.
It was even worse for those whose mortgages included balloon payments, as they hadn’t prepared for that huge payment.
The result was that thousands of people lost their homes, pushing the nation and then the world into the recession.
There’s nothing wrong with refinancing, if it can be done in such a way as to save you money. But take care when doing so, that you understand exactly what the terms of the loan are.
Don’t accept something which will cause your payments to go up sometime in the future. As we’ve all seen, that’s dangerous.
Don’t Make Investments that Aren’t Secure
The last Great Depression came about largely due to people investing money they didn’t have, in stocks they didn’t understand. They were essentially buying stocks with borrowed money. That still happens today, with people “leveraging” their funds to buy more than they otherwise would be able to.
The problem with that investment, like any other investment, is that it can go down, just as easily as it can go up.
The “sure thing” your buddy talks you into may not be anywhere near as sure as he thinks it is. While some percentage of those really do pay off; most do not, leaving people with a sizeable loss.
Related: Investing For Preppers – 12 Things That Won’t Lose Value In A Crisis
My personal philosophy about investing is that I see it as a gamble. As such, I won’t invest any more than I feel I can afford to lose. While I’ve missed a lot of opportunities that way, including a recent one that could have paid me 30 to 1, I haven’t lost any money that way either.
Don’t Upgrade Your Lifestyle
Perhaps one of the more foolish things that someone can do during a depression, besides taking on new debt, is to upgrade their lifestyle.
Even if you get a promotion at work, with a nice fat raise, there’s no real security that you’ll hang onto that during a time of depression.
Rather than spending that money to buy a new car or a boat, use it to pay down your debt, so that later, when the economy is on steadier ground, you can afford to really enjoy it.
If anything, a depression is a time to bring down your lifestyle a bit; doing everything you can to lower your expenses. That will give you more flexibility with your finances, especially if things take a turn for the worst.
Related: 10 Expenses You Need to Cut Now for the Upcoming Economic Depression
Don’t Keep Your Wealth in Cash
I know this is going to sound like a contradiction to the last item; but don’t keep your money in cash either.
Rather, put it into some sort of investment that is secure; while at the same time not requiring any borrowing on your part.
Assuming that you are buying at the beginning of the inflationary cycle, probably the most secure investment would be in precious metals.
That isn’t the only secure investment though. Bonds, especially federal and municipal bonds are secure investments. So are utility stocks and some of the blue chip stocks. Look to invest in things that will have to exist through the depression because people need them. Those are the places to invest.
My favorite investment, for people who don’t have a lot to invest, is to invest in non-perishable food. On the average, food has been going up about 8% per year, even while the general inflation rate has been hovering under 1%.
So, if someone buys $1,000 worth of food and holds onto it for five years, it will be worth almost $1,500 at the end of that time. They don’t even have to sell it to cash in either; all they’ve got to do is eat it and use the money they would normally spend on that food for other things.
Don’t Defraud Your Creditors
Finally, do everything you can to avoid defrauding your creditors. There are things you can do to protect your relationship with them, even if you can’t make your payments.
The last thing that any creditor wants is to have one of their customers default, causing them to repossess property. They’re not in the business of selling that property; they’re in the business of selling loans.
While loan forgiveness is rather rare, you might be able to get a forbearance or deferment on that loan. Both are common for student loans and mortgage companies are amiable to working with you in that way as well. Make contact with your lender, telling them what your situation is and asking them what they can do for you.
Remember, you won’t be the only one going through hard financial times. They’re probably going to be even more aware of the problems going on than you are, as they are going to have a wider picture to look at. As such, they would rather work with you, than have to go through foreclosure.
You may also like:
How to Invest for Preparedness and Wealth Preservation
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Ammo is a solid currency
So are heirloom seeds, tobacco, and alcohol.
Any idea what a box of tampons or pads are worth? LOL
Good article, except the author forgot to mention what will cause the next depression, War, both foreign and domestic!
Stocks, federal bonds & securities, AND cash will become worthless overnight when the fed crashes to the ground after provoking its Citizens into armed revolution.
Precious metal will become the only currency on this planet for quite some time, along with food, water, fuel, ammo, tobacco & booze. That is where smart Americans are investing right now.
And prayer, above all+
That is what really matters.
TAL I think the next depression will come not from the next war/revolution but from economical collapse. Obama instigated the very thing that most of the bankrupt countries have done which put them in a worse situation(people can’t find work and have no money to repay debt, what little money they have has to go for food). The Federal reserve gives money to the banks to scotch up the stock market when it stars falling then when stock go up the Federal reserve gets repaid. Sounds good but in truth when it does this it cause inflation to increase because the Fed has to print that money with nothing to back it up. Once printed it is still out there. If the Fed prints out money to cover a congressional bill several things happen the vale of the dollar decreases while at the same time the inflation increases.
I heard this from a video from the man that has predicted the last 20 or so events correctly. He predicts a runaway inflations that will cause the next depression and there will be not three classes but two. It will not be poor, middle and rich any longer, it will be poor and rich which right now it is very close to being.
Add coffee to survival/trade items. For Prayer remember Joseph who was an all-time prepper. For timing read Numbers 19 and learn where that fits today in Jerusalem and WWIII.
100% in agreement.
I was born and live in Brazil, and here this long-awaited depression will bring even greater chaos.
Although the president is a good man, who wants to help the population, the congress and the state governors, they are like vultures, almost all from leftist parties.
I will strive to follow your great advice!
I’m assuming the President you refer to is Bolsonaro, as the US pResident in Thief, aka JoeBama is NOT a good man, nor can he or any of his minions be trusted.
There is a good Arab saying that should be heeded here, “Trust in Allah … AND Tie Up Your Camel!”
Yes, use the intelligence e that the Holy Spirit gives you!
BTW: That is an 83 year old actor, Arthur Roberts, portraying Biden…not the actual original..
How about a good American saying here, “trust in God” and tie up your cow????
How about a good American saying here, “trust in God, and tie up your cow”
re: president is a good a good man, who wants to help the population
FWIW: We live in an actor based reality, and no one, and I mean NO ONE, gets to head a Top 20 country without being part of the “family”. That includes the USA and Brazil. Plus, many of of them are literally gender inversion hollyweird trannys.
BRAZIL PRESIDENT IS COLUMBA BUSH!
Has your current president told you that your first “woman” president was a Bush (who are just made up characters anyway) ?
FWIW: If you think the web site is not correct, it is, I proved Epstein literally dd not kill himself, he is committing FAKE murders again as David Dovi in Broward County, FL.
I put my faith in Jesus, not these clowns running our prison that make our wars and depressions.
I also put my faith only in the one who shed his blood to save me, Jesus.
I feel that the current president wants to help, I see through the actions and laws he sends to Congress.
But he faces a lot of resistance from the left in Congress and from STF ministers, who reached the absurdity of being a foreigner, (American) who sponsored a hacker, who spied on the president himself, from being prevented from being investigated.
Yes prevented from being investigated.
Sorry for my English, it’s not always adequate
JB – Yes, do try to be at peace…
Christ Jesus does reign and this is the onset of the foretold Tribulation era: some will be martyred and others will live on earth until He returns to begin His Reign on earth of a thousand years.
What you report, many of us do know: including that Epstein is not yet dead, but Bill & Hillary are. One day at a time. All will be well+
It is wonderful that you have put your faith in Christ. If you have that, many other factors in life are easier to accomplish.
I am not quite sure if you are speaking of Biden when you say, “the president is a good man”. Unfortunately, accurate news is extremely difficult to find these days and if Brazil only gets CNN, you are being lied to. Just to clarify it for you, Biden is creating a myriad of policies and choices that are completely destructive to the USA and in turn to any other country around the world who counts on the US being a stable country. Because Biden is doing everything he can to remove any positive accomplishments from the U.S., Brazilian people need to look at how to become more independent and safe within their own home.
He is not Joe Biden….he is, currently, Arthur Roberts – the 3rd actor thus far in that role of employment.
Hi Sagebrush Lin
I refer to the president of Brazil, Jair Bolsonaro.
Apparently Joe Biden, he has connections with the left and his agenda, I wouldn’t vote for him.
Interesting… both have initial JB, I realized now when writing…
God bless them!
I’d u want both sides and truth watch CSPAN. What’s going on now is a joke and not funny. Also why is every business hiring; no one is taking these jobs. I thought unemployment insurance was over. Thousands of people coming into the US daily yet no workers? What is really going on?
Sometimes one has to quit their job for their own mental health and to make a stand for what is ethical. Some employers mistakenly think they have the right to openly abuse their employees, sometimes for our own good we HAVE to walk away.
I walked out on my job recently. Not for any reason other than if I didn’t I was afraid I’d seriously hurt the management. So, I took early retirement. I’m too old for anyone to hire and I’m ok with that. I’m trying to sell my house so I can move out of CA. It’s such a messed up state. But selling my home isn’t happening very easily. Just no offers. I may have to hunker down here for awhile and live on my meager retirement but at least I’ll have a home and a yard full of food.
I live in a state where endless Californians have moved to. Housing costs are finally beginning to level out because there have been endless rows of quickly put together houses built with little lots. If you do move to a place that has had a lot of quickly put together construction, get educated yourself of what to look for in home construction. The home inspectors sometimes seem to be working more for the home owner and not the buyer even if the buyer is signing the check. The two I hired, both were terrible and either didn’t see blatantly defective points on the house or told me that those defects didn’t really matter.
Also, before you move, look into what the state taxes will do to you. I know at least a couple of retirees who didn’t move here because of the state taxes.
You sound like me! I “wanted” to work 2 more years to 70, but my job was literally killing me due to stress. I already got T2D from stress, and it was only getting worse, so I felt I had no choice but to retire. I had just taken my entire 2K retirement to do major deferred maintenance on my 1945 house: new foundation (original was done poorly and was crumbling), replaced original windows, new hardy plank siding, (It had plastic siding when I bought it 20 years ago…nasty stuff, WHY would anyone do that???) and new metal roof. So now, I’m in debt again as I almost had my 5 acres paid off….plus now my house looks pretty good compared to what it looked like and it may seem a good place to ‘forage’ come SHTF time… Reading all of these posts, I’m getting a bit nervous AND scared. I don’t have any news, I don’t have TV, only dvd’s which I watch, and don’t really listen to radio, so I am a bit “head in the sand” EXCEPT that I believe that things are getting bad quickly, and am about as prepared as I can be. These, for the most part, are good posts with pretty good information (I get a LOT from MOST of the people who comment although there seem to be some feuds going on in a lot of them. SHAME on you!)
Yeah, CA is a bad place to be. Unfortunately, my oldest daughter is there and can’t leave to come back to Oregon where her family is because she is divorced and her ex would NEVER allow that (although with his new wife expecting a son soon, maybe that will change XXX) Sagebrush Lin, you sound like you are in Oregon, but I think not. The mobs moving up from CA to here are jacking the prices of property and homes to the max., have been for decades and our property taxes are astronomical. (no sales tax, though)
Sorry, this got way off topic.
I’m right there with you, BJ, and sympathize with you …I do plan to hunker down and as yet don’t have a garden but will put some things in the ground next summer…
Stay in prayer for our Country and keep holding on to God and His promises. It may not be alright, but we can survive!
You do that once you have a new job all lined up! Make sure that you have all the paperwork completed and an actual starting date for the new job. Most importantly, plan your exit, get whatever you need in place, and make it all work for you. Make sure you leave the old job on good terms. Yes, they don’t deserve it, but it will be in your best interests in the long run.
That’s something I always stressed to all 5 of my sons, “Never quit your existing job until you have another one to replace it.” When you are responsible for providing for a family, you can’t be irresponsible. Don’t react emotionally, act rationally.
I just watched a very good hour long interview of two nurses who felt compelled to quit by a major hospital complex. A lot of good health care workers have felt they have to quit because of the jab mandate or management has become more machine like. When these two nurses who had worked 25 and 30 years left the system, management did not even return the nurses’ phone calls.
SL – Since they already left, the hospital HR policy probably won’t allow management return any calls. Seriously speaking, folks it’s tough out there and leaving is the worst option if you need a paycheck. The situation probably won’t be any better at the next job if you can get hired after that.
Those who take the jab nessarily will be replaced by the corporations within 2-3 years – that is their plan. Best to start one’s own business: maybe as carpet cleaners or mobile vendors of homemade foods.
m p – Depends on your position within the corporation and what you bring to the table in terms of talent, expertise and skill set. They will keep you and reward you with the big bucks, if you happen to have the right credentials that support the direction the management team is taking the company.
self employed translates into a government independent, self reliant, pull yourself up by the boot straps problem solver. Exactly what a left wing government who demands all beholden despises and wants to destroy!
Any one who would invest in any government bonds or notes today is a person who wants to give away their hard earned money. With the upheaval that is surely about to take place the best investment, at least for the next two to seven years is precious metals Gold and silver have always been, as some people call them, God’s money. They are cheap at today’s prices and will be the only money in the near future. They are the only real money investment that is sure to skyrocket in value. All other investments should be in personal and family survival and barter items. Even though prices are seemingly high and getting higher now, you and I ain’t seen nothing yet. If you gotta just burn your money, burn it is something that will pay off in the future. Be able to take advantage of the situation in the future to not only help yourself but to be able to help others as you are led to think is reasonable.
Focus on food storage…in several places.
The EOs declare that everything – (including your physical bodies, if you took the jabs) belongs to the Govt/corporations that can & will confiscate gold — as well as food stored up. Be advised🙏🏼
Wayne: Watch soros. what he invests in is usually a money-maker because he has the power to destroy small nations, and has for make a buck. He started to move into metal a few years ago. niio
How did you know what Soros invests in? And small nations? America isn’t small
For those of you who think that cash will be useless in a depression then for those who still have jobs paid in currency will find no use for it, right? Or maybe they will still be able to buy precious metals with it, haha, at inflated prices. Best thing for everybody is to have little or no debt, plenty of commodities stored, and a network of family and friends who can share, kapish? I still think cash will be king since so few will have much of it. And maybe move to a small town where people are more trustworthy, I wrote the classic book on it, used copies at Amazon.
WS – You know exactly what you’re talking about. Folks should print this comment out and tape it to the wall! It will help prevent then from making foolish mistakes that will weaken their position and make survival that much more difficult. Appreciate reading your post. You may put a few so called financial planners out of business.
Ha ha? wow….🤦🏻♂️
Sorry City Chick!!! my prior comment was towards Mr. Seavey…
rm p: I gfet this picture in my head of CC tapping on your door. One hand is behind her back. You answer the door, she asks if you’re rm p, you say yes and then she’s chasing you around with a BIG steel reinforced hairbrush with automatic tongue lashing 🙂 My grandmother had a hairbrush like that. Note, no slimy in this last statement. niio
I can identify with you Barbara, I live in MA which is just as messed up as CA and did the same thing because the employer was openly abusive. Mostly because of my conservative views and I didn’t fall in with their liberal thinking.
I don’t plan on running tho, and have adopted TX’s Bitter Clingers attitude – THEY have to go, not me! We’ve all got to take a stand sometime, because there will come a time when there will be nowhere left to run.
They do this all on purpose you know, but if you’re like me and you need to make a living, sometimes it just pays to just check in, do the job, check out and call it a day. Bring nothing personal to the job or into the office and that means politics!
Donna – If by any chance you happen to find yourself in such a position again, keep a written diary of daily events. Dates, times, who said what where when and how. Who was also present. Then when it all gets to be just too much, take your diary to an employment attorney for a recommendation on what should be your next steps. Chances are, you will be very surprised to find that the situation is not as hopeless as it may seem.
Thank you City Chick, in hindsight there are many things I could have done, for example covertly recording those incidents so I have proof. Better yet, find a company who’s management more closely aligns with my values so I don’t have to resort to tactics like that.
As for “investment”, i have also read, in an article on this site if I’m not mistaken, that you cant eat gold and silver. I am trying hard to be self sufficient in the way of water and food and electric. Other stuff is just fringe in your life.
Also i talked to someone recently and he said he had lots of guns and ammo. If the SHTF he could just go take what he wants. I wanted to remind him that some of us folks will shoot back, but he was a customer so i didn’t want to offend. However, If that is your plan its not a good one.
Donna – it breaks my heart when good people get shafted like this! I don’t care what department it is, Know that the bullies are targets themselves and will soon be history. More than likely, they won’t even be able to land as softly as you did! What goes around comes around. The bigger they are, the harder they fall! Oh so true!
Dems do hate this country and this people.
If anyone is an expert in destroying an economy, it’s soros. He did it to France, to the UK, and other nations. Undercover of the shriek fest of Trump Derangement Syndrome, he very quietly divest himself and his family of the dollar, yuen, and other fiat currencies and bought gold and silver. Since then, he’s turned pretty much everything over to a friend, Wyss, to consecrate on destroying the US, the only nation that stands between his made-up caliph and world dominance in a one-world nazi nation.
I wonder how far away from Lynn Cheney’s house is Wyss’ ? Because they do live so close to each other, I wonder how often they have have dinner together.
Sagebrush: I would say their respective rocks are pretty close together. Obama’s neighborhood in Chicago was almost nazi Central for the state. niio
Red – please be disabuse of the idea that the GOP is more dedicates to the USA…we remember what happens when they are in control in Congress (patriot act, EOs & etc ad infinitum…)…as to the USA being a stalwart defender of authentic Liberty…if that was not ended with the assassination of Alexander Hamilton…then surely with the Wilson Presidency. (Ask JFK, Sr.)
rm p: Better the repubs, most of whom had real jobs and worked their way thru college, not like dems whose only ‘work’ was politics and prostitution.
Wilson was an alcoholic klansman. He got us in WWI and died during the war. His wife ran the nation, not him. when asked about giving the vote to women, she refused, using the old dnc claim women haven’t the intellect to make such a decision.
In politics, you’re always between a rock and a hard place. You decide which will hurt less if elected. Faithfulness to the nation by politicians rarely lasts longer than the second generation. niio
From what I gather, Red like most folks doesn’t believe that Rhinos should be included in the GOP. He already has voted them out!
One thing you should definitely do is invest in stocks if you have the money to do so. As the world’s greatest investor Warren Buffett said, “… be fearful when others are greedy and to be greedy only when others are fearful.” All the business stock prices will rocket to the bottom. The mismanaged ones with no real value or directly involved in the crash will not come back. But ones that make goods and services people genuinely want/need will. You can’t predict when the bottom is but if you buy stocks in chunks after the first big drop and continue buying you’ll do well. If picking stocks seems intimidating buy Index Funds that track the S&P 500 instead.
This is an opportunity to help the US economy by investing in business and line your pockets. Or line the pockets of people that need it if you’re so inclined. I know the tendency here is to think the world will totally end. And eventually maybe it will. But unless you see mushroom clouds on the horizon, we have a genuine communist revolution, or Jesus sucks you up to Heaven for Judgement, the markets will always bounce back.
Whooooa! In a depression? Better you hold your position and ride the storm rather than jump in and drown! There’s a reason why people did swan dives off skyscrapers here in Manhattan during the Great Depression and just about every down turn since. Such a shame.
Most of the investors who jumped off of skyscrapers would’ve regained all their money if they had just stayed invested in the markets.
The reason they chose swan dives instead of riding out the depression was because they had bought stocks on margin. When the margin calls came in they were so far in debt they couldn’t see a way out. Of course, that did nothing for their families who were left holding the bag, so to speak. In my book jumping off a building because you were foolish and invested what you didn’t have to begin with is a coward’s way out if you leave behind a family to handle the mess you made. A real man owns his mistakes and works to rectify the mess he has created with his greed.
Eric – you are right, providing the country does not totally melt down, like in never coming back. As long as the American economy holds, the stock market will always bounce back from a draw down, as it always has. Providing that holds, then as you say the index funds (ETF’s) are a good way to go. Since the beginning of the Nasdaq index in 1971, it has generally, always trended up, and beat the other indexes. That’s why I focus on the Nasdaq.
A step above that is the Nasdaq 100 which is the 100 largest stocks in the Nasdaq index, and generally beats the Nasdaq itself. A step above that in is the Nasdaq 100 index fund which one can invest in, with symbol QQQ. It also gives you diversification, because one purchase in QQQ is the same as owning 100 stocks.
If you feel comfortable with that, then you might be interested in the 3 x leveraged version of QQQ. Its symbol is TQQQ. Since its beginning on 2-11-2010, 11.6 years ago, this is how they all have performed.
Dow – 11.20% annualized return.
S&P 500 – 12.99% “ “
Nasdaq – 18.13% “ “
QQQ – 21.48% “ “
TQQQ – 55.18% “ “
I’m always looking for the top, safe, performers. In my opinion, one can not beat TQQQ for a simple buy and hold position, providing they can handle the 3 x volatility – a lot of ups and downs. One can never count on a given amount in the short term.
In my opinion, this is the best kept secret in the stock market. It has gotten a lot of bad press over the years which I have analyzed and debunked, in my opinion. I’ve even called the parent company Pro-Funds several times with questions about possible failures that could cause its collapse, and came away feeling good about it. To be fair, there are a lot of leveraged funds out there, and many or most of them are not safe for buying and holding. As often said, don’t believe me – do your own research!!!
I noticed in our am coffee group, a retired friend & neighbor looked a bit down, because he did not have enough money to invest as some of us were. So I suggested that if he could find just $1,000 and invest it in the TQQQ in December, and leave it in there for 1 year – then he could pull out $500 for Christmas. – – And, he could continue pulling out $500 every Christmas for the rest of his life!!! Another version of that is to leave your $1,000 in for 3 years. Then pull out $1,000 every Christmas for the rest of your life. Caution! Because of the high volatility, in an extreme year, you may not be able to pull out anything, or it could be 2 x the expected amount. This is about an average return on your investment.
Another caution – In my opinion – the markets have been going up at a faster than normal rate for the last dozen years. Bottom line of that, is that TQQQ may roll over to only growing at an annualized rate of 30%(?), sometime in the next months or years(?). No crystal ball here.
So to sum it up, during a depression invest money you do not need as wisely as you can.
Having a versatile source of income, be it actual cash, precious metals or bartering items is vital but another factor to consider. Everyone needs to research and implement what they need to for their personal health to stay independent of the medical industrial complex. There are some fabulous selfless people in health care but too many of them have them have been forced to quit. Others, who still work for the industry, might feel that they are forced to compromise patient care to accommodate management’s dictates.
For almost every single pharmaceutical product, there is a product closer to a natural and more easily obtained product. Some pharmaceuticals are just a step away from the natural product and were changed just enough so that a patent could be applied which kicks up the price. An example: close to 50 years ago, I was told to take coumadin (an anticoagulant) for the rest of my days. I took it for a few weeks but then replaced it with a vitamin E capsule daily. Of course, vitamin E has been much healthier for me, without the side-effects of coumadin.
My late husband took Coumadin for years because of AFIB and pacemakers. If it were unavailable his heart specialist said to take a daily adult aspirin. We don’t have willows here but Aspin in the mountains and cotton wood have similar properties.
My plan is getting rid of my last few debts as quickly as possible, get up to date on property taxes, and make no new debts.
I may not have any savings but a lack of debt is worth something. A home and a garden will have it’s value.
Clergy Lady – You my dear, have a very good head on your shoulders. Given the fact that you just lost your dear husband, Not many women could be so focused on next steps. You know what you need to do and are definitely moving in the right direction. God Bless.
Dear Clergy Lady,
It is good to hear that you are continuing on the path of doing your best with God’s help, in spite of all that you have gone through recently.
I also have taken a baby aspirin when the E doesn’t work as well as usual. If I remember correctly, the aspirin type material is just under the tree bark but I have no idea of how to measure potency. Our military did a test on aspirin and how long it stays effective. They came up with around 5 years, so it does keep.
Many blessings and peace in your home.
I’ve worked in HR/Payroll for 25+ years, let me share with you a dirty little secret about a lot of companies – they will intentionally make your life a living h and FORCE you to quit. Why? Because they don’t want their unemployment rate to go up (those with high turnover especially are guilty of this practice) or for some reason they don’t want the employee to be able to collect unemployment or they just want to ruin that particular person’s ability to continue in their career for some personal vendetta.
My best advice, which I would do if I could, is the following:
1. Buy land with water sources; rivers, ground water, lakes, etc. Water will be in supply and you can fish as well. Also with plenty of woodlands around for firewood and building.
2. Set up a farm for vegetables and fruits.
3. Get a canning, jarring, drying process for food storage, freeze dry, etc. Use pantry and cellar, don’t count on electricity to preserve foods, it may be there… or not.
4. Build a cabin style home with a wood burning stove and fireplace to keep warm.
5. Set up irrigation and pumps for water to reach the home from outside water sources and to reach the garden.
6. Buy all the items you need now, such as an axe, tools, cooking utensils, sturdy clothing, bedding, make a list of what you will need.
7. Stock up on matches, oil and kerosene lamps, soaps, paper and pens, sewing items and these things.
8. Get a bike, a wagon, a horse, some animals like a cow and chickens for dairy.
9. Try to think of what you will need to live self sufficiently, independently sustaining yourself such as the Amish and pioneers and be able to do so for years.
10. Consider rules in the area, some have odd rules like about collecting rain water. Also property taxes, think of all the ‘what if’s’.
If the whole system crashed and all came to a screeching halt, could you survive anyway? If not, why not? Can it be fixed by a solution like those above? Another asset is working in a community. One grows this, one raises that, one has a skill, you can trade. You can’t eat gold watches in a time like that, what will the value of it all be then? All those ‘securities’ won’t be secure for long then, all we will have is what the natives had. Natural medicine is another item.
Yes, I did get the book and am about ready to finally read it too!
Thanks and God bless you!
Rules4: Good advice. For survival gardens, always plant local, native or landrace. If they’re called edible ornamental, so much the better. Some cowpeas are very ornamental. Nasturtiums like cool weather and are good to eat.
Garlic and onions. this far south, garlic should be a Creole type. Onions, best bet is I’itoi bunching which do best in cool weather but go dormant in summer. sweet potatoes and yucca instead of potatoes. niio
Before I retired, at age 67, the points mentioned in the article, is how I lived my life. Keeping my debt, minimal, I’m a cash only buyer … so have always bought pre broken in vehicles, (not investing in new, where value is lost the minute you drive it off the lot. When I left a job, I always had another before leaving. Always lived on the cheap, always within my means. It wasn’t until I was retired, that I was financially well off enough to purchase precious metals, investing in retirement plans while I worked. So am still regularly adding to my precious metals, and keeping them close by in a secure safe.
West Coast Chuck – Like you said, there were people jumping out of high-rise windows in the 1929 market crash, but I think there was more to it. As I understand the history of that event, in 1921 the Dow index started to rise at a much steeper rate until the crash in October 1929. This was during the so called “roaring 20’s” when many were getting rich in the stock market. During those 8 years one could not lose. As you said, some started buying on margin, which works great as long as the markets are going up. Worse than that, some were embezzling funds to invest. In those days, with hand written ledgers and very little electronics, time was on the side of the embezzler. But, when the markets crashed (13% in the first day), there was no way for the embezzlers to pay it back. This meant not only horrible disgrace for the bank executive, but then prison time.
One of the lessons to be learned here is; stay out of debt, especially the embezzled kind.
Another interesting point here is that the crash in 1929 was mostly correcting for the abnormal rise in the 8 years leading up to it. The average value in 1921 was about 85 points, ultimately peaking at 386 in 1929. Carrying that average value rise through to 1932 when it bottomed at 41, the average number would have been about 95 points. However, if one had just held their position through it all, they would have been back to the average growth level of 95 points a year later, in 1933. Another however, the peak value of the Dow in 1929 (386) was not again reached until 1954.