This is a great answer from one of my favorite money guys... From his column in today's Dallas Morning News
My husband is convinced there is going to be a total devaluation of the dollar. His solution is to turn a large portion of his 401(k) into a gold-backed vehicle. What would be the best way to do this? He doesn’t want a mutual fund that invests in gold, but rather the gold itself stored in some manner. He has been reading Peter Schiff online for his info. I am very concerned that this is not safe. Your comments would be much appreciated.
S.C., San Antonio
If you really get into the financial collapse thing, your husband should buy lead, not gold. The lead should be in the form of bullets, preferably of a large caliber. I am told that when these lead bullets are inserted into a good handgun, the lead can be turned into gold very quickly. This does not require converting a 401(k), or any other form of investment, into gold.
If you’re going to bet on gold, the best way to hold it is in the form of gold coins that you store in a secure place in your house because if there is a collapse, our financial institutions won’t be doing business as usual.
In the meantime, our first duty is to take part in the world “as is, where is.” That means participating in the system of saving and investing that we have, trying to make it better, and hoping that our collective wisdom exceeds our collective stupidity. Yes, it’s looking like it will be a really close call.
My husband is convinced there is going to be a total devaluation of the dollar. His solution is to turn a large portion of his 401(k) into a gold-backed vehicle. What would be the best way to do this? He doesn’t want a mutual fund that invests in gold, but rather the gold itself stored in some manner. He has been reading Peter Schiff online for his info. I am very concerned that this is not safe. Your comments would be much appreciated.
S.C., San Antonio
If you really get into the financial collapse thing, your husband should buy lead, not gold. The lead should be in the form of bullets, preferably of a large caliber. I am told that when these lead bullets are inserted into a good handgun, the lead can be turned into gold very quickly. This does not require converting a 401(k), or any other form of investment, into gold.
If you’re going to bet on gold, the best way to hold it is in the form of gold coins that you store in a secure place in your house because if there is a collapse, our financial institutions won’t be doing business as usual.
In the meantime, our first duty is to take part in the world “as is, where is.” That means participating in the system of saving and investing that we have, trying to make it better, and hoping that our collective wisdom exceeds our collective stupidity. Yes, it’s looking like it will be a really close call.