This stock market collapse started in 1999 October 31, 2008
Posted by Jeff Nabers in : Money, Precious Metals, Self Directed IRA Solo 401k , add a commentThe following charts should look familiar to you:
These charts (above) show you the historical account of pricing for the Dow Jones Industrial Average and the Standard & Poor 500 stock indexes. The following chart (below) is also a historical account of pricing for the Dow Jones Industrial Average. It, on the other hand, shows (more…)
Home prices have returned to 1997 levels October 29, 2008
Posted by Jeff Nabers in : Money, Precious Metals, Self Directed IRA Solo 401k, real estate , add a comment
One of the reasons that everyone seems to act so surprised at the “economic meltdown” is because we measure everything in U.S. Dollars while paying little attention to the value of the dollar itself. The dollar is a floating currency. The amount of dollars in circulation can dramatically increase or decrease in any given period of time as seen fit by the central bank, the Fed. An increase in the money supply will push prices up, while a decrease in the money supply pushes prices downward. Therefore, an asset’s true value can remain constant while it’s dollar denominated value can fluctuate – and vice versa.
Looking at statistics or charts denominated in U.S. Dollars can be very deceiving, and if that’s what you’ve been doing, then you were blindsided by the recent collapse of various markets and institutions. If during the past decade you were looking at real prices (as measured in grams of gold) it would have been quite apparent that housing prices were experiencing erratic growth that was likely unsustainable. Gold has been the real currency used by humans since the dawn of time, and even after Nixon took us off the gold standard in 1971, all markets continue to follow logical boundaries of movement as priced in gold.
The good news is that (more…)
Monetary Base up 38% Year-to-Year October 27, 2008
Posted by Jeff Nabers in : Money, Precious Metals, Self Directed IRA Solo 401k , add a comment
According to John Williams’ Shadow Government Statistics October 26 Flash Update, year-to-year
Monetary Base is up 38%. Expansion of the money supply creates inflation and debases the wealth of people holding U.S. Dollars.
The lesson? Don’t hold U.S. Dollars. Seems kind of tough if you live in the U.S. though, doesn’t it?
Foreign bank accounts have been used for decades as a means to hide income and assets from taxation… sometimes legally, sometimes illegally. I believe the coming hyperinflation will foster a whole new flight of capital into foreign bank accounts for a different reason: (more…)
What do these icons mean? Social bookmarking & media explained October 26, 2008
Posted by Jeff Nabers in : Personal Productivity , add a commentHave you noticed the following icons on my recent blog posts and on many other web sites?
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Digg this :: 
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facebook
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These are social bookmarking and media tools. Allow me to explain…
Subscribe – This is an RSS subscription tool. Use this link to subscribe to my blog. Learn more.
del.icio.us is a bookmarking tool that you can access from any computer on the internet. Use this link to bookmark my posts. Learn more.
Digg this is democratic media engine. It shows stories in rank of how popular they are – according to how many people have “dugg” them. Use this link to “digg” my post. Learn more.
Stumble it is also a tool that allows users to give a page a “thumbs up” so that other users can “stumble upon” useful content. Use this link to recommend my post to the Stumble Upon network. Learn more.
facebook is a social networking tool. You can use this link to send the current page to your contacts on the facebook network. Learn more.
Reddit is a source for (more…)
3 Reasons why today is the best time in human history for immense personal wealth and freedom October 22, 2008
Posted by Jeff Nabers in : Health, Money, Personal Enjoyment, Personal Productivity, Self Directed IRA Solo 401k, real estate , add a comment
While there are many people finding themselves more fearful than ever, there are others who are more excited than ever. Here’s why…
- The rules of safety and courage have changed. Since the industrial revolution, employee-ism has surged. During this time, getting a job to work for somebody else was the safe thing to do. On the other side of the coin the risky, courageous act of working for oneself is what brings riches. As a result, each person has been faced with a choice to pursue either safety or riches. Part of what made employee-ism the safe bet for an individual is the stability of companies as well as what has become the largest store of non-real estate wealth in our country: holdings in the stock market. This year we have seen the rules of the game permanently changed. Our financial system is crashing, and trustworthiness has evaporated from corporate America and the financial services industry. Now working for yourself is no longer the courageous thing to do; it’s the safe thing to do.
- Technology has brought immense power to everybody. Personal computers and the internet are now available to just about everyone. This has made some very expensive things become cheap or free. This has made it possible to do things that were previously impossible. There is no longer a need for every transaction to take place in a physical location. Needs and desires are able to be fulfilled online. In many circumstances, the large corporation cannot compete with the one-man shop. Today a person can start and run several businesses for little or no money. Taking something and creating or increasing its value has never been more accessible.
- Arbitrage has never been (more…)
Bail yourself out with an Unlimited® 401k October 21, 2008
Posted by Jeff Nabers in : Money, Precious Metals, Self Directed IRA Solo 401k, real estate , add a comment
With trillions of dollars going to bailing out failing corporations, who’s going to save you?
Take a look around… you’ll probably have to save yourself. Rollover your IRA or 401k funds into an unrestricted account to open a world of possibilities without triggering any taxes. Here are some ideas…
Invest in gold silver, and other precious metals. The last 35 years is just a tiny blip in human history. The rest of the time humans have been walking this earth, gold has been used as money. We came off the gold standard in 1971 and seem to have forgotten that gold will always be valuable while paper will not. Consider buying gold, silver, platinum and other precious metals to store the value of your wealth.
Cash Flow Real Estate. With the real estate market in turmoil, find a bargain. Instead of hoping for appreciation, look for properties that provide a return-on-investment of at least 10% based on rental income, and own it forever.
Raw Land. Buy land in areas that will always have high demand. As energy prices rise, land near dowtown areas of major cities should have a bright future as urban sprawl reverses.
Foreign Currency. If you are petrified of investing, make the safest bet and keep your money in a foreign bank account in a stable currency. Try Canada or Switzerland.
Foreign Stock Markets. Many countries in Asia and South America have booming stock markets. Skip the U.S. middleman and invest directly with a broker in one of these foreign countries.
Private Companies. You can lend money to small businesses. If you find a business that is looking for investors, you may even be able to buy stock in their business. Sometimes evaluating a small, local business is much easier than a large publicly traded one.
Start your own business. You can use up to $50,000 of your retirement funds to start your own business.
Nabers Group helps individuals enter a world of never ending possibilities every day using Self Directed IRA and Solo 401k plans. Don’t let your personal economy be dragged down with the crashing banks and financial service companies. Be independent and take your finances into your own hands.
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Turn Doom & Gloom into Personal Boom October 20, 2008
Posted by Jeff Nabers in : Money, Personal Enjoyment, Precious Metals, Self Directed IRA Solo 401k, real estate , add a comment
There are 3 economies to pay attention to:
- Your Personal Economy. This is the one that really matters. The life you will share with your family and friends will be directly impacted by your finances.
- The People’s Economy. This is the wealth of communities of people. You could look at it in terms of the American public as a whole or separated into demographic or geographic categories.
- The Financial Institutions’ Economy. This is the wealth of the people who own banks and financial services companies.
Right now, the financial institutions’ economy is doing quite poorly as a result of foolish decisions. Financial services companies created and bought debt that was not repayable. They packaged investment products in a way so complex not even Warren Buffet could understand them. The Fed has decided to defer and worsen the consequences of their inflationary monetary policy… and now “the economy” is crumbling before our eyes… but which economy is it?
Although often not fulfilled, there is clear potential for your personal economy to be completely separate from the financial institutions’ economy. Your wealth can (more…)
World Wealth Report shows business ownership is the leading cause of wealth October 19, 2008
Posted by Jeff Nabers in : Money, Self Directed IRA Solo 401k , add a comment
Suggested reading: World Wealth Report
This annual report examines the behavior of high net worth individuals (HNWIs) – those with over $1 million in investable assets. I believe this report is skewed a bit because it is based on survey data of Merrill Lynch clients around the world. Even so, it offers interesting information.
Among the most substantial findings is that business ownership is estimated to be the leading source of wealth among HNWIs globally. This is contained in the 2006 WWR.
Click here to view WWR archives.
Weak economy strengthens the incentive for a Solo 401k October 18, 2008
Posted by Jeff Nabers in : Money, Self Directed IRA Solo 401k, real estate , add a comment
This is quite a simple concept so this post will be very brief.
- Our weak economy has brought very high inflation: currently 13% per year.
- Future dollars are worth much less than dollars today.
- With a Solo 401k you can make tax-deductible contributions to your retirement plan in today’s dollars and pay taxes later in less valuable dollars.
- Successful entrepreneurs and self employed individuals can contribute $46,000 per year or more to their Solo 401k.
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Asset-based thinking in the real economy October 16, 2008
Posted by Jeff Nabers in : Money, Personal Enjoyment, Precious Metals, Self Directed IRA Solo 401k, real estate , add a comment
I’m reposting some of my thoughts from a blog comment discussion from last week.
I agree with the perspective that our currency should go back to being pegged to gold. This would force individuals, corporations, and governments to play by the same rules of economics. The side effect is that we wouldn’t really have bubbles and manias, there wouldn’t be as much real estate development and expansion (or “economic expansion” in general) because we would have a supply-side cap of money rather than an unlimited amount of money based on lending. We would be an asset-based society that rewards actual success rather than a debt-based society that builds its wealth by taking it from the people.
An asset-based society isn’t really wanted by many people who are wealthy thanks to debt. For instance, if you run a corporation that sells a product that people don’t have a strong desire or necessity for, then in an asset-based society you wouldn’t really sell them. In a debt-based society, people will buy your product using debt – by selling their future time simply because they don’t understand the true ramifications of their decision.
In an asset-based society, it’s much harder to start and run a successful business… the only products and services that will sell well are those that people want so much that they will buy them with their actual money. In a debt-based society, people just have to say “yes” to buy something. The decision itself is the form of payment. Unfortunately, that decision is also the forfeiture of future time in their life that could be spent doing enjoyable activities. Instead, the debt-funded “yes” sayer will be working with their future time because they have to in order to fulfill their “yes” obligations. The same concept applies to debts of government, but it’s the people who will pay the obligations through taxes and inflation.
Keep in mind, being “Pro-Dollar” may be anti-American. American principles include (more…)
