Get Ready for Financial Disaster
We hear so much about doom and gloom for our near future that it sometimes falls on deaf ears. But, it’s clearer than ever that the United States may soon become another Greece or Spain.
The trillions of dollars of debt (and a growing debt ceiling), threats of war with North Korea or Iran and other factors create a looming picture of the future – and it isn’t pretty. We’re poised for financial disaster on a scale that’s never been seen before.
Some experts say that gold is the best thing to put your money in if the financial world as we know it collapses. Others say that only real assets will be worth anything. Such assets as land, food and weapons will be the top priority for those who have lost all their financial investments in stocks and bonds.
Adding war to the mix of an already fragile economy will cause the value of a dollar to fall dramatically and the only ones who will survive the disaster will be the people who have diversified their assets.
If war comes to our shores, mass chaos will occur. Access to food and other supplies, internet, cell phones and ways of gathering information will be limited at best. Preparation for the worst is the best way to ensure your survival.
Keep a survival kit that includes some cash, radio, batteries, flashlight, medical supplies and of course food supplies and water to last at least for two weeks. Another action that will help to ensure your future is to keep important documents such as social security cards, birth certificates and wills together and in a safe place.
Many experts have been predicting a stock market crash in the near future. To protect yourself from complete financial ruin you should always have a cash emergency fund readily available.
Work with your financial advisor to set up a diversified portfolio that will minimize the damage if it does happen. As much as you might want to sell everything after a crash, it’s the worst thing to do.
The market is resilient and it will likely return to a point in time that’s better than what it would be at the beginning of the crash. Don’t succumb to pressure – from yourself or others to sell everything at ridiculously low rates. Be patient and you’re likely to get at least some of your investments back to a reasonable price.
Being in the middle of a disaster is stressful and can cause you to make wrong decisions in the heat of the moment. Take the time before a possible disaster to gather records.
Some financial records that you’ll need are records of house payments, insurance policies, sources of income and tax statements. Then, if disaster strikes, you’ll have the necessary documentation to begin a new life.
Remember that you can’t control when a financial disaster might strike, but you can minimize the damage by being prepared.