Are you ready for the Fall?

Are you ready for the Fall?

When I was asked that recently, my thoughts immediately turned to the state of our economy, the crisis at our southern border, the vaccine mandates, and all the other issues we are facing. However, my friend was only talking about the upcoming change in seasonal weather.

What did you think of when you read the question? The weather? Or our nation’s pressing issues? These diverse paths may be typical among millions of Americans.

Perhaps, you are concerned about the seemingly massive divisions and upheavals our country is undergoing. The Great Reset, the Great Awakening and other widely reported issues must share the national stage with the financial news- rapidly rising inflation, staggering federal debt, a Congressional spending spree not seen in the history of our Republic. To that, we must add an economic engine that is being throttled and choked to death by the political fiats of lock downs, mask mandates, vaccine mandates, health passports, and other restrictions.

How can we forget the hundreds of thousands of un-vetted and illegal immigrants flooding across all our borders? Or the estimated one hundred thousand plus un-vetted Afganis being imported into America? Some are known terrorists! The sheer enormity of the un-budgeted financial costs, has to be astronomical.

As heavily as our economy is burdened by these pressures, Congress and its federal agencies keep the printing presses running to inject liquidity into the system. How long can we taxpayers continue to bankroll checks we don’t write?

China is making moves to become the world’s major reserve currency, replacing the dollar. Russia and the European Union are also joining in this push, warned Anne Korin, of the Institute for the Analysis of Global Security a couple of years ago. The dollar’s position has only gotten worse since. Little wonder, many experts are projecting the collapse of the dollar. Do an online search for ‘dollar collapse’ , and ‘market crash’ to see what the financial analysts are reporting and predicting. Many are suggesting this year. On September 8, 2021, the Department of Treasury warned Pelosi that we may run out of funds as early as October, 2021. The Treasury Secretary was sounding the alarm again on September 19, 2021.

And if this were not enough to say ‘Stop the presses! Stop the spending!’ The Atlanta Fed issued this warning that was almost ignored by the main stream media (MSM).

Why would they forecast such an alarming prediction?

Are you ready for the Fall of the US?

In 1984, I was accepted into what I considered, at the time, the premiere financial planning educational program in the United States. In 1988, I was awarded my certification as a financial planner. Accompanying my new professional status came a continuing education requirement that had to be met every two years to maintain my certification. This continuing education was beneficial to me in staying up to date with changing tax laws, markets, while gaining deeper knowledge in certain areas of planning- estate, retirement , investment, tax and insurance. During those 20 years I was active, there were tremendous changes in tax law, regulatory oversight, investment vehicles, market risk, product expansion and competition for the investor’s dollars. It was challenging and often frustrating. During this time, I noticed changes, not only in tax law, but a general aggregation of individual and corporate investors’ money into the control of powerful financial management giants. This consolidation did not stop with our money, as it slowly creeped into other areas of our economy like health care financing.

As a former financial planner with a certification, I want to share my thoughts, insights and offer some general considerations that I hope will be of some value to you as we all navigate these uncertain times.

A financial planner needs to have a very intimate knowledge of a client’s current financial condition, income streams, financial obligations, long term investment and retirement goals, etc., in order to develop a financial plan for that client. At some point, in the future, a financial plan will meet its conclusion. Death or some kind of catastrophic disaster can terminate a plan. A plan can succeed death if structured for that eventuality.

My Financial Collapse Story

Can total economic collapse destroy your assets and make your dollars worthtless? Will you go from ‘financially comfortable’ to bankrupt overnight? Of course, it can happen. In 1996, my six figure income disappeared with a five minute phone call. My savings were depleted in three to four months after that devastating call. I had mortgages on my office and home, a car note, monthly expenses, credit card debt, 14 salaried employees and more. What can you do to adjust and survive when your job or business disappears? My financial ruin was unexpected and sudden. However, I was healthy and had skills and talents. I was younger and had productive years ahead of me, so I had time to earn money and rebuild. The country’s economic engine was still running smoothly. It was just my small world that was shattered.

What can you do when the entire country is in a financial death spiral? That’s another story.

Planners advise their clients to protect against disability, death, a change in employment and/or temporary income loss and other contingencies. How do you make a plan that protects you and your family against the loss of everything when a country collapses?

The Fall has not arrived yet, but many are forecasting it to arrive as early as 2021. We only have three months! Thankfully, if you begin now, you can soften the adversities of a total or partial failure of our country and its monetary system.

This meme is meant to inject a little humor into a very serious and life-threatening scenario. I doubt a stockbroker would offer this advice, but as a retired planner, I would.

What you can do now to lessen the financial blows and its impact on you and yours.

1. Take Inventory.

What do you own outright? How must cash and cash equivalents do you have access to? What investments do you have and what is the present value of each? Do you want to lose them or convert them to cash now? What about cash value in life insurance? Do you have personal protection or security devices? Is your job secure for now? What about your family and/or parents? These are just a few questions you should address. Answers will spark other questions.

2. Prepare for the worse.

If your money will be worthless or nearly so in the future, why bother trying to protect it now?

Good question. Answer: you should accumulate your cash and cash equivalents as physically close to you as possible. Cash may retain some value for a time. Leaving money in a bank that will collapse or limit access to your money is not in your best interest.

Use money now to stock up on life’s necessities like, food, clothing, medicines, survival equipment, etc. If you live in an area that may become unsafe due to criminal activity, try to find a secure place you and your loved ones can ‘bug-out’ to when your neighborhood deteriorates. Talk to friends and relatives now to set up a framework of communication, cooperation, protection and mutual support. In other words, learn to be a ‘prepper’. It will save you and your loved ones from hunger, illness and quite possibly save lives. Some people I know have already made moves to new locations and are in various stages of the above suggestions. Go online now to download articles that explain how to survive in these kinds of events. Purchase books that educate you about survival living. These are the minimum steps a prudent person should take to prepare.

Are you thinking “What if this collapse does not come and I have made all these moves and changes? “ It should be obvious—you have money, a job, shelter, etc. If the worse does arrive, you have prepared as best you can.

Here are three “worse case” scenarios.

Scenario 1: elderly couple aged 65+, live alone, only income is social security, $10,000 cash in bank, own home valued at $100,000; Car, no lienholder; no other assets.

Result of a collapse: Loss of income, bank money lost, home loses value but it s not an income producing property and who can buy it, anyway? How do they survive? What about medical needs?

Scenario 2: young married couple, both work, have a home mortgage, one child, no savings, high credit card debt, 2 financed automobiles, health insurance through employers, small 401 K savings.

Result of a collapse: jobs and income lost, health insurance protection is lost, may lose shelter and cars if the mortgage company and lienholders survived. 401K is lost.

Scenario 3: middle aged couple, own home with no mortgage, own cars outright, have substantial savings in CDs and other savings accounts, have over a million dollars in retirement accounts, automobiles are paid for, children are on their on, one spouse owns a small business, the other spouse is a school teacher, health insurance via school district.

Result of a collapse: business and teaching job are lost—no income streams, no access to money in CDs, savings accounts or other institutions, retirement money is lost, health insurance is lost, have home and automobiles but provide no income.

In each of the three scenarios, the couples and child are plunged into uncertain futures-

After initial food supplies are used, where and how can you obtain food? What about fire, for cooking and keeping warm? No electricity. Running water may be interrupted. Cell phone batteries last for a few hours, then what? Perhaps, phone service is lost, too?

In a total collapse, you can envision the chaos that will ensue. Looters and other criminals will comb through communities taking anything of value. Even people will be targets of violence, and rape or worse. There will be no police protection. The military may not be available or compassionate. What you may have seen on television concerning riots and looting will pale in comparison to what will unfold in an event I am suggesting can happen soon.

As you can imagine, (and you should take the time to do so now,) a total collapse of the dollar and/or of our government will not be a pretty sight. It is scary, frightening and dangerous. Uncertainty spawns all kinds of fears. Even a deep devaluing of the dollar may very well trigger widespread civil unrest.

So, how can you prepare for THIS?

Get your brain focused on the probability, not possibility, that THIS can occur this year. The biggest problem is our apathy and Laissez Faire attitudes. As Americans, we have had mostly easy lives. We have become “fat and happy”, comfortable with our lives and lifestyle, secure in knowing our military is one of the most powerful on earth.

In a total collapse, everyone will be facing serious obstacles. The worst in human nature will manifest itself.

Top priorities: Food. Shelter. Heat/fire. Communication devices. Medicines and medical supplies. Personal Protection equipment. And the big one safety for you and your family.

If you saw a collapse coming, then you should have prepared as best you could. If you did not prepare, you won’t have a lot of time to do so.

If you haven’t prepped, the 24-72 hours just following the collapse is the safest time to obtain food, shelter, medicines, heat/fire and of course clothing and the all important personal protection equipment. Gas supply will eventually be almost impossible to get. One suggestion can be an electric scooter. It can be recharged if you have a solar powered generator system. This can be used to power other electronics and equipment. A good investment before the Fall.

Next, reach out to your friends, family and neighbors to establish communications and strategies and tactics to protect and help each other. Do this early. Do not try to be a loner. Each of you will need each other in the days, weeks and months after such a disaster.

If you have cash on hand, you may be able to exchange it for items and supplies you will need. Of course, do not expect a dollar to be worth a pre-disaster-dollar in value.

Bartering will become important.

Don’t give away all your secrets. Trust must be earned and verified.

As time passes, and your circle of contacts expands, you will learn more about what is happening elsewhere. Plans can be altered to incorporate changes. Stay active in your new community’s governing structure and operation. You may be creating a new country. Do not leave the governing to others like we did in the last country.

The article discusses a worst case scenario that no rational person desires. I pray God protects our country from such a lawless and dangerous period.

Pray. Pray some more. In the end God wins. And He has promised us we will win.