Holistic Survival
Welcome! If this is your first time visiting Jason Hartman's website, please read this page to learn more about what we do here. You may also be interested in receiving updates from our podcast via RSS or via email if you prefer. If you have any questions about financial survival feel free to contact us anytime! Thanks!

How To Protect Your Assets For Economic Survival

Bookmark and Share

economic survivalAssets. We said ASSETS. Although, now that we think about it, protecting your posterior from the coming economic crunch could take many forms. Today we’re going to talk about your personal economic survival. Probably the greatest foe you face is inflation. Our dunderheaded politicians cannot seem to stop themselves from printing more and more near worthless currency. We like to call it fiat currency because the only reason it’s worth anything is that the government says so and we continue to believe them. The moment we stop believing…that giant sucking sound Ross Perot liked to talk about in 1992 will be the sound of the American economy deflating.

You’ll hear a great wailing and gnashing of teeth and then the sound of silence as another great country bites the dust. Maybe it’ll never get to that point but, meanwhile, if you want to have any assets at all left worth a wooden nickel, you’re going to have to beat inflation to insure your personal economic survival.

“Impossible!” you cry. Not really. Investing in income properties with long-term, fixed-rate debt will do the trick. Nothing fancy about it. We’re talking about simple mortgages taken from your local bank and used to purchase houses you rent out. The farther you can postpone the due date on the loan the better. Go out 30 years if you can. 40 would be better. While all the intricacies of the strategy might not be readily apparent, remember this: the longer the period of the note, the better it fights inflation.

The value of money deteriorates over time (when it isn’t backed by gold), so the principal amount of money you owe the bank for your property declines also when expressed in terms of purchasing power. To insure your economic survival requires you to understand this critical concept. If it sounds like the bank is getting screwed, you’re right, but don’t feel too sorry for them. They’ll make it up in fees.

The Holistic Survival Team


Flickr / rzrxtion