Has anyone else lost faith in the "Paper Promise"?

[Irving]

Raw land isn't an investment unless you can sell it for more than you purchased it for. If the gov. wants your land, they'll just take it. They won't bother trying to tax people out of the game. They already do that with the death tax.

EDIT: And yes, just raise the rent to cover the taxes. If people can't afford it, they'll move out and people who can will move in.

[Wulf202]

There's an appeals process for real estate taxes, I did it last year. It's not a really big deal.

If you're talking about income taxes off the property if they're that bad everyone is screwed.

If it's a rental income tax, just LLC quick claim the property and take a draw.

That being said real estate isn't for everyone. If you're scared of the work or the risks move on to something you're comfortable with.

[FastMan]

Raw land isn't an investment unless you can sell it for more than you purchased it for. If the gov. wants your land, they'll just take it. They won't bother trying to tax people out of the game. They already do that with the death tax.

EDIT: And yes, just raise the rent to cover the taxes. If people can't afford it, they'll move out and people who can will move in.

Irving, I think you and I are just thinking about different circumstances.

I'm envisioning a catastrophic financial meltdown, where everyone is hurting, unemployment skyrockets, and the dollar tanks severely. If all the worthless cash people have must be used to buy bread, Real Estate values will tank also, because few will have the money to buy it at pre crisis values. The potential market for your Real Estate product will fade away, and with that so will the price you can command for it.

[Irving]

That would be the PERFECT time to buy real estate. Don't get me all hot and bothered.

[FastMan]

That would be the PERFECT time to buy real estate.

For sure it would, my friend, couldn't agree more.

[xring]

I am not a financial advisor. This is only a description of my choices. Most of my life savings are in a IRA rollover from 401ks and i worry too. That money is all i have to live on. I cant see that SS will survive this mess. I wish i had never put a penny in my 401s.

I worry that the goverment debt will become so large they will tax, or confiscate ira 401s or convert the ira/401s to treasuries (debt)

A warning with the pms. I think the times are strongly inflationary. I also think there will be liquidity crisis still ahead where pms will get liquidated along with everthing else. Pretty everone is warning about inflation. Usually a deflationary scare comes out of the MSM and the algo bots sell equities when that happens to grab the pms out of the weak hands. If it comes that will be a good time to buy. FRNs aint going away tommorow. I keep some on hand. My rule is dont buy any pms with cash you will need in the next three years. Dont listen to me make up your own mind. But if you do buy pms dont be weak hand. www.comparesilverprices.com and www.comparegoldprices.com are good resources as is http://kingworldnews.com/kingworldne...Broadcast.html

I know several who have cashed out took the hit and and converted to pms. The hit was substantial. They have recovered the hit with pm appreciation(dollar depreciation). I think the chance of gold confiscation is high. Many knowladgable people say that because of the risk of confiscation pms should not exceed 25% of your portfolio. Silver has never been confiscated not that it wont be in the future. I hold pslv and phys in my IRA. Watch the premiums on these if you choose them, get in low. The premium is the cost of the fund over and above the value of the pms. http://jessescrossroadscafe.blogspot.com/ publishes the premiums often and always when there is a historic low in the premiums. The premiums often reflect other events happening in the PM world like a short holder exiting a position. Unfortunatly the premiums are often high when there is a dip and low when there is a rip. So if the premium is average and there is a dip it might be a good time to get in. On the other just averaging into the pms seems to work well as anything. I think PSLV and PHYS are by far the most honest of the funds and i trust Eric Sprott. They hold physical pms in independent vaults not bank vaults in Canada. Not that that will matter if confiscation occurs. GLD and SLV are not trustworthy IMHO.I could be wrong. Nobody knows at this point. I will be able to withdraw without penalty soon and plan on withdrawing my living expenses each year from the IRA. I know I may be stupid but i just cant get myself to cash out and take the hit. Interesting times eh

[FastMan]

xring, my fear is that the runaway national spending and debt will demand ever greater printing of money to finance it, driving the dollar down in value to tragically low levels, rendering cash investment/savings holdings of everyone, including that of all us average Joe citizens nill. All the hard work and saving down over people's lifetimes will be deemed virtually worthless in the blink of an eye. It's criminal.

That's why this coming election is so crucial. Might be our last chance to change course. Obama is going to steam roll us to the above end.

[xring]

xring, my fear is that the runaway national spending and debt will demand ever greater printing of money to finance it, driving the dollar down in value to tragically low levels, rendering cash investment/savings holdings of everyone, including that of all us average Joe citizens nill. All the hard work and saving down over people's lifetimes will be deemed virtually worthless in the blink of an eye. It's criminal.

That's why this coming election is so crucial. Might be our last chance to change course. Obama is going to steam roll us to the above end.

It does seem to be accellerating rapidly doesnt it? Particularily telling to me was the ecbs announcment to buy bonds and the bernanks qe4eva coming within a week of each other. It seems somewhat surreal to me. And yet others are blissfully ignorant- qe what?

[tmckay2]

i am far from a financial advisor and really just got to the point of life where i make considerable money. heres my take though, its might not be a bad idea to own things as soon as you can, such as a house, car, etc. pay them off quick. i know some people say keep the debt because rates are low and if the market goes a certain way the debt could be even easier to pay off, but to be honest i think we are headed to some uncharted waters and personally id want to own my home and other things so that worst comes to worst i can sell what i need to without some beaurocratic bs.

as others have said i think you need a considerable amount in tangible assets, the easiest being precious metals. land is doable as well, but takes a bit more saavy and is a tiny bit higher risk if you consider the ways the government can bone you on that. metals are fairly easy to conceal and not leave a trace.

ill tell you one way people are making money back in illinois. with the death tax, a lot of poor famring families (who happen to have a crap ton of land just no cash) can't keep their parents land when they die due to the tax. so often times they sell it fairly cheap and its usually hunting or farming land. i know some people that have made considerable money purchasing land like that. its a bit risky but its very useable land.

with the company i work for they match up to 5% of your salary in your 401k. so if i put in around 6500, theyll match it. now the question i haven't asked yet is what all i can do with that money because if i can invest it in previous metals or other tangible assets, it could prove very useful. but sadly the days of simply having a big old nest egg for retirement are over. it would be a shame to put in so much cash and be left with virtually nothing.

[Sawin]

I echo this sentiment as well. About 18 months ago, I bought my first silver bullion... Wish I would have started sooner, but I can't help but wonder if you'd be entering the metals game now, if you're a bit too late to reap enough benefit to go "all in".

Take a look at www.coin-rare.com and others, to order bullion. It ships fast and doesn't have an outrageous % over spot, and definitely stick with bullion. IMHO, there's no reason to pay a premium just because that 1 oz coin is a "collectable".