OK, Your Survival Guy’s RAGE Gauge is in, and if you’re one of the successful Americans I communicate with, you know they’re coming after your savings. The movement to redistribute your wealth is in full swing. Prepare accordingly.
Because there will be plenty of opportunities to develop a plan and invest with the peace of mind you deserve. But let’s not forget how you got here. You probably did it through your own sweat and tears, building your business or career—not through government handouts.
What you understand is that success is an abundant resource. It is not fixed, as the redistributionists would have you believe. They resent your success. They fail to look in the mirror. They feel that what is yours is theirs.
You didn’t treat your customers or patients this way. You saw them as opportunities to satisfy, serve, and improve their lives—and, through that, your own.
In life, opportunity and laziness do not go hand in hand. Life is hard. When a dollar isn’t worth a dime, it means you need to figure out how to make more dimes. That’s the reality of it all.
Which brings me to inflation, a reality that isn’t going away anytime soon. It costs money to go to Paris or spend a weekend in the city. What I recommend is figuring out ways to do it—to spend some money. Because if you delay today, it may cost more when you do go—and if you wait, you will also be older. That’s no fun.
Look at the bond yields you can sink your teeth into today. Stop wringing your hands over inflation, which you can’t control, and try to beat inertia, which you can control.
One of my favorite reasons for owning bonds is not necessarily the yield but the margin of safety—your position in the capital structure with investment-grade bonds and the explicit backing of Treasuries.
Oh, the dollar is going to end? What, and be replaced by China’s renminbi? I don’t think so. You need to consider ways to maintain your own dollar’s purchasing power. Putting your lazy cash to work may be a conversation you need to have.
There are a handful of contacts I make a point of keeping in touch with and listening to. And there’s no shortage of junk mail trying to catch my eye, to which I pay little attention. What you want in your investment life is a guide: someone who knows a thing or two about real money and who can help shepherd you through the most difficult times.
Action Line: It can be terrifying when you have more money than you have ever had before and you’re no longer working. But there are plenty of opportunities ahead. I’m here to help. Email me at ejsmith@yoursurvivalguy.com.
