Your Survival Guy

Preparing your investments and family for when disaster strikes.

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Why Buying Bonds Matters in Times Like These

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In times like these, you need to be in touch with your money.

Literally, overnight, we’re on the cusp of losing the Senate and much, much more.

Making sure your financial plan is airtight is front and center like never before. I want you to get out a piece of paper (do it now) and draw a line down the middle. Write down what you own on the left side, and what you owe on the right. Your goal is to make sure that what you owe is not only less than what you own but that it gets down to ZERO.

You’re not being helped by the Fed holding rates at zero. When you lose money simply by saving it, something is wrong with the system. When you need to pay money to lend it, something is wrong with the system.

Bonds are dead? HARDLY. Make sure you understand how bonds work and how you can put them to your advantage. Remember, when it comes to the capital structure of any business, it’s the credit holders, not the equity holders, who get paid first.

I want you to understand this and how it relates to my back-of-the-envelope exercise. I want you to see that if you owe money, you’re a bond seller, not a buyer. Be a buyer.

Action Line: You need to find a way to be a bond buyer. I can help. Do it for you and for your children.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com