Investments

During these turbulent times (the last 3 years and the last decade since 9-11) have been relatively turbulent times. So, I decided that I wouldn't own stocks during this period that didn't have dividends that yield at least 3% per year in dividends or more. This is a hedge against the volatility of the times for a long term investor. So even though your stocks may rise or fall you still can count on dividends coming in quarterly to offset keeping your money in any one place for long lengths of time. Also, not moving your stocks around a lot keep your capital gains taxes down to a minimum. I recommend Blue chip stocks only and about 40% of ones portfolio to be in municipal bonds. Though many are worried about municipal bonds in both the short and long term, if we are able to use the Great Depression as any guide at all. Municipal Bonds were the steadiest form of consistent investments during that time.  So, unless there was a complete collapse of normal society with a bloody revolution it is unlikely that one's municipal bonds would be that problematic in general as long as one is dispersed among triple A rated municipal bonds in your state. Since Municipal Bonds are  tax free generally in both state and Federal taxes they also are a tax hedge during these uncertain times. This is true if the municipal bonds are from the state you presently are a resident in.

There are also a lot of people buying gold. But from my own experience, Gold isn't useful ever to sell except in a dire emergency to save your life. Otherwise, I have found one almost always loses money in the transaction of actually selling gold. So, unless you are buying gold to keep forever, and to sell only when your life or your family's life is at stake during a calamity or emergency and can live without the money you invest long term (as in 10,20,30 or 50 years) I wouldn't buy gold. That is my thought on the subject.

Also, a balanced portfolio in normal times (these aren't normal times) would be real property paid for (as in houses or business properties), then portfolios of stocks and bonds and other investments. I talked to someone recently who is an investor full time and he increased his gold holdings to around 30% to 40% of his holdings.But this was he said because he had sold all real property that he owned. However, I think personally that if you own property that is paid for outright already, then your gold ownership could be reduced to 10% of your entire holdings.

However, talk to your broker or family and friends about your particular situation as every person young or old might have different needs investment wise. For example, if you are young you might want more aggressive investments because you have the capacity to recover from potential losses. However, if you are above 50 years of age you want very stable investments because you are so very close to retirement and might not survive major losses financially anymore. Also, in addition to retiring you have to be able to withstand the generally increasing health problems of someone over 50. If you don't have health insurance it could wipe you out completely if you or your spouse or child or dependent has a catastrophic accident or health issue. So, over 50 not having health insurance is really playing with fire in regard to everyone surviving in your family long term.

However, it is possible to have nothing at all and live to be 115 years of age. However, the probabilities are not with people over 50 so start getting prepared by age 40.

For example, I almost died of a heart virus at age 50. If I hadn't had health insurance it is very likely I would have died right then. But because I did have both health insurance and my finances in order, I was able to retire at 50 and to be okay. I'm now 62 almost 63 years old. So, if you have the capacity prepare for anything in your lives after 40 or 50. This maximizes your chance of survival for the longest time possible. Just the feeling of ease that you have planned properly tends to make you live longer as well and not just get paranoid and freak out in the middle of the night which could cause heart attacks or strokes and the like.

So, if possible, just like a boy scout or girl scout, "Be Prepared!"