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Author: desertdaveataol Big funky green star, 20000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: A bit of Wisdom for the Ages & All Ages Date: 9/24/2008 4:11 PM
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Brevity is the soul of wit and wisdom.

Jeff (somethingwicked) wrote:
[quote]What, then?

Cash. But realize that all cash is not created equal. Currency – the stuff-it-in-the-mattress kind – is ok. CD’s and FDIC-insured bank accounts are fine. Money market funds may or may not be. Banks and investment houses invest money market funds in short-term paper and many of them, attempting to goose returns, have turned to commercial paper of dubious nature. Best bet is a money market fund which invests primarily or wholly in Treasuries. But sometimes you don’t have a choice – most 401K’s, for example, don’t provide multiple money market fund options. In those cases you just take what you’re given.

And then there’s gold. The oldest form of money there is. The last refuge. And the only one that will outlive all of us. The goldbugs around the world, those people who earnestly believe that gold is the one true answer to all our monetary questions, have much of it right. But not everything. I’m convinced that gold will experience its own bubble at some point down the road as panicked investors across the globe scramble for something, anything, to preserve what they’ve earned. So you need to understand that gold’s price will probably escalate quite a bit from where it is today, perhaps to stratospheric levels, only to collapse when the financial storm abates. For this storm, too, shall pass.

But in the meantime you should have some gold. You can buy it in an IRA. And you can buy it via an ETF, like shares of a stock. So it’s not that hard.

The most important thing to realize is that now is not the time to look for returns. Now is the time to simply keep what you’ve got. To be ready for a better day.
...
Which leads to my last little bit of advice… live below your means. Avoid debt. Save like crazy. You may feel a bit like a rube next to all your friends and neighbors who have all that nice stuff. But know, in doing so, that you are doing the one thing – the only thing – that has always worked, at all times and in all places.[/quote]

http://boards.fool.com/Message.asp?mid=27022398
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