**Updated September, 2011**
Strategy: Very Defensive
This answer depends on you current personal situation, including total net worth, job security, and investment goals. Always speak with a financial planner before making any investment decisions.
That being said, if you have between $300,000 to $1 million+, use the following as an outline:
1. 40%: Cash at Safe Banks and Short Term T-Bill Funds
(See scenario 1)
2. 10%: Foreign Stock Portfolio
(See scenario 2, example 2)
3. 20%: Precious Metals
(See scenario 2, example 1)
4. 10% Short Stock Market
(See scenario 1, example 4)
5. 15 - 18 %: Speculative Investments - Heavily weighted toward Gold Stocks
(See scenario 2, examples 3 and 4)
6. 2-5%: Precious Metals and Cash Kept at Home and Safety Deposit Box
Reminder:
0%: American Real Estate (That includes your home, sell it and rent)
0%: American Stocks
0%: Long Term Treasuries
0%: Municipal Bonds
0%: Corporate Bonds
Investors with less than $300,000 or young in age can invest a greater percentage in precious metals and speculative investments.
I have the bulk of my money in my 401k, which prohibits me from investing in most of these choices, what do I do then?
This is the most difficult and common question.
The answer is: I don't know. The 401k is a death trap, and one of the most horrible tools created by our Federal government. While people cheered it during the 90's stock bubble, many today have been left devastated.
The choice to pull your money out of the 401k and take the tax penalties early is a very personal decision and should be made only after serious consideration.
If you do decide to keep your money within your 401k and invest in stocks, I would ONLY invest in foreign stock and cash equivalent funds. Keep them as diversified as possible.
At today's valuations I would favor cash over the American stock market, but that is VERY short term as cash is also in great danger as we move forward.
The answer is: I don't know. The 401k is a death trap, and one of the most horrible tools created by our Federal government. While people cheered it during the 90's stock bubble, many today have been left devastated.
The choice to pull your money out of the 401k and take the tax penalties early is a very personal decision and should be made only after serious consideration.
If you do decide to keep your money within your 401k and invest in stocks, I would ONLY invest in foreign stock and cash equivalent funds. Keep them as diversified as possible.
At today's valuations I would favor cash over the American stock market, but that is VERY short term as cash is also in great danger as we move forward.
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