ECONOMICALLY AND FINANCIALLY,THE WORLD IS A DIFFERENT PLACE, AND RULES HAVE CHANGED. AMERICANS SEEM TO BE HEADED FOR A HARD TIME, TOO, AND HOW TO PROCEED IS WROUGHT WITH UNCERTAINTY

We have our mortgage paid off. But then if you could see the shack I was raised in, it wouldn't be hard to put one of those up in a hurry. Would have to put in a bathroom I suppose since I'm sure an out house wouldn't pass codes these days.

Gloria,

The problems in greece have no relation to what is happening here in the US. Greece's biggest problem is that most of the economy is actually in the black market, and isn't taxed at all, so Greece has a huge problem with being able to fund government operations. The taxes are increasing greece because so little of the economy as it is, isn't taxed. So either people have to start paying tax on what previously wasn't taxed, or the taxes for those that are already paying the taxes have to increase. Again, that ISN'T the same scenario as for here.

As far as inflation, the FED puts so much effort into reducing the inflation rate, that it is VERY unlikely that runaway inflation for the economy as a whole will be an issue. If it gets to that point, there are going to be much more severe structural issues, and inflation itself really won't be an issue.

For those that mention QE1 & QE2, neither one really has had that much of an impact, nor will it. The amounts just aren't large enough to make much of a difference one way or the other. The purpose of the programs was to increase liquidity, and it generally did so in a relatively neutral manner. Though what is very important to understand is that they are short term measures, they were never intended to fix the structural problems of the economy, but more that they were to tide things over until the economy picked up again.

What you really should do is sit down with a financial planner and work this out, because, as you admit, you are really in over your head when it comes to the economics issues (interesting that I just posted a comment on the china/gold news story relating to this lol), and a lot of this isn't just the economics, it is your own personal situation.

As someone that spent more than a decade in the financial industry, I really do have a difficult time making specific suggestions to you, because I don't know your specific situation, financially and stability wise. There are potentially many options for you, and someone that is far more familiar with the laws and options in your state, as well as someone that you can explain as much as you can about your current situation would be much more effective for you, especially if they can explain those options to you clearly. To make any specific suggestions to you, would be for me, a direct ethical violation. (yeah I know, hard to believe someone from the financial industry talking about behaving ethically lol).

As for the global economics, people like to latch on to buzzwords and unrelated happenings and think the world is going to end. What is more than likely going to happen in the US is a very gradual (applied to the country, not to specific groups within the country) reduction in the standard of living. Some will notice it, some will benefit, so the effects won't be uniform. While the US is probably the ONLY country in the world that can dig itself out of the hole that it is in, I don't see the political will from either party on coming up with the solutions that are needed to commit to that, hence I see that gradual longer term reduction in economic power. The issue with Greece is that it just doesn't have the economic base to be able to dig itself out of the hole that it is in. This makes ANY parallel with the US not relevant.

Jonathan is spot on, and everything he has said is accurate.

Arkansas Gloria, here's my take. This is what I do, and it's just advice. With $2.00 it'll get you a cup of coffee.

1. Consider your mortgage, and how long it will take to pay off, and what your plans are AFTER it's paid off. If you're going to sell it in the short run (0-5 years), it makes no sense to pay it off early. If cash is tight, there's no sense in paying it off early.
IF, on the other hand, you can afford it... throw 10-20% extra on the principle every month. You'll slash years off of the interest payments. Likewise, see if it makes sense to refinance your mortgage. As a rule of thumb, if you can reduce it by 1% and your term is over 7 years remaining it's worth it.
Right now you should be able to find at least 3.5% with no points at any local bank. I only take out big loans at local banks, as a) I prefer to give my interest (though I hate paying it) to a local firm and b) they are local so you can go talk to them.

2. Fire up Excel and put ALL of your household expenses down... cell phones, water bill, electric, even food shopping. Sum it by month, then by year. Divide the year by half. Do you always have that much in liquid funds (ie: cash, short-term CDs, savings/checking, gold/silver coins?) If not, increase your buffer before you do anything else. The number of people ruined by having to take high-interest short term loans is staggering.

3. Always keep about a quarter to a half of a week's pay in cash hidden somewhere in the house. If you find yourself in a situation like the Connecticut blackouts or something (where you're without access to power for a week), cash & carry is the only resort you have. Make sure you have both small and large bills... it makes it a lot easier to make change.

4. Long-term food supplies are okay for emergencies but it's probably not worth stocking up just for the (unlikely) possibility of financial armageddon. However, keeping a couple of weeks worth of MREs or canned goods in the event of a natural disaster is a good idea. Also of course a medical kit, batteries, etc. I also keep a couple of oil lamps and had my house wired for a generator for $600.

5. Keep a diversified portfolio. If you're older, be more conservative. I'm in my late 30s and keep under 5% in gold a 2:1 mix in stocks to bonds. Mileage may vary, but most people forget... buy low and sell high. If you never take profit, you won't have any, and if you chase returns, you're chasing your tail.
Until they stopped printing them, I used to also buy EE & I bonds as a way to put away money I never wanted to touch except in dire emergency. It's still doable, but it's an online account with the treasury.

6. Drive your car until it won't go anymore. I bought a 2000 Chrysler (new) in 2001. I'm going to drive it until it dies -- that is, when repairs for a year are higher than a new car payment.

7. Pay down all debt, highest interest rate first. In general, if you carry a balance on your credit card, you're paying for stuff twice after 4 years.
(In case that's not clear: suppose you open a card today and charge $1500 on it. If you never bring the balance down to zero, you'll have paid $3000 for the goods you bought THIS month by Feb 2016. Think that's bad? This happens every month! This is why credit card companies love it when you carry a balance and hate "deadbeats" -- people that pay their cards off every month.)

8. Never invest in anything with a "guaranteed rate of return" that someone suggests to you. It doesn't exist.

9. If you have a choice between fees and no fees, always choose the latter. Especially if you're investing in Mutual funds.

10. Take Jonathan's advice on the financial planner, but question motives.

11. Figure out what you want to leave to people, and do it while you're alive. Otherwise, they get hammered with taxes and (if you end up getting sick as most of us do), your assets are liquidated before you get state assistance (if your state has it).

Mark,

1) I didn't get into specifics for a reason, :P

2) A financial planner is different from an investment advisor.

As for mutual funds, you are always paying a fee, you are either doing it visibly or not visibly. So a FE loaded fund will have that being paid visibly, but a DSC or a NL fund will have that charge either deferred or invisible (A DSC will charge you based on how long you held the fund when you redeem it, a NL will have the fee's built into the MER of the fund), either way, you are still paying a fee.

And guaranteed rates do exist, CD's have a guaranteed rate of return, but the lower risk you take in general, the lower return that you get.

1) As I read! (Did I give you any grief? I didn't think I did...)

2) Often, but not always. I saw a lot of... "blending" in the tri-state between the dot-com boom and the real estate bust.

3) Fair enough, but don't you in general find that no loads come a lot closer to zero?

The key words are "that someone suggests to you". I probably could have written that better -- of course I don't mean gov't bonds, munis, CDs...

nope, the NL funds will generally have a corresponding DSC fund and if you look at everything put together, they work out the same in terms of fees. (you have to look at the DSC fund over the full period that they require you to hold it, usually 5 years). The underlying fund will be the same though, same manager, same holdings etc... The fees are just hidden in the NL, but they are still there, and they end up being the same in the end.

I only mentioned that about specifics because it is generally unethical to provide financial advice unless you are a licensed advisor. She already has enough of a problem with confusion because she was getting all kinds of different advice. I just didn't want that to be added to, that is all.

Where I look at the difference between a financial planner and an investment advisor is that you pay a financial planner for the consult, and unless you need investment advice, there is none. An investment advisor gets paid from the investments, not you directly. She really shouldn't be talking about any investments until she gets her long term financial planning assessment done, and it is agreed upon that she needs investments.

Fair enough, but I don't think I gave any advice one couldn't pick up from any of the talking heads like Clark Howard & Jim Cramer. I certainly didn't advise anything specific that would benefit me in any way.

Yes, my point was to question anyone why they're suggesting to "put money into x", not to question your suggestion to see a planner.
Re: getting everything else in order before investing. Absolutely!

If anyone could predict the economy, they already don't need to... But at the end of the day, it's simply too complex an animal. No one (not even Warren Buffett) gets everything right.

As my grandparents used to say, "prepare for the worst and hope for the best".

gloria,

Well I wouldn't even do the two months thing, but you indicated a weather related reason for doing it so I won't begrudge that.

The prediction of the economy, you can't, nobody can. Though if you were to ask my friends, they will (well hopefully) begrudgingly admit that I predicted what we are experiencing today economically. (Well I said something like, 'because of what we are doing today, we are going to get hit with something extremely nasty, and when it happens, it is going to be not only really nasty, it is going to take a VERY LONG TIME to dig ourselves out of it'). I was saying that back in 2003.

The average person isn't going to be able to predict the economy because there are too many variables that the average person doesn't see, and even those that can see it really can't make anything resembling long term predictions.

I realize that this gives a feeling of helplessness, but quite frankly this isn't anything new. People only thought they had control over the country's economic destiny. Now it is just visible that there is a lot more happening that people don't see.

Well I wrote something about a month ago (might be about 6 weeks ago now) about what I feel is wrong with the nation and the economy. I didn't get into specifics there either, though I state why in it. So if you want a quick read on my thoughts, just go to my profile and click on the 'the economy is growing ... but are we out of the woods yet'.

If the payback on the cost to refi is less than 2 years (closing costs, etc with no balance change) minus (savings on monthly payments times 24) and you plan to stay put for that time, do the refi. Pay off everything else, starting with the highest interest rate item and moving down until it is all gone except the house. Then funnel everything into paying off the mortgage. If you are expecting inflation, which is very likely, don't stash cash. Buy something tangible, like additional land or silver.

As for hoarding food, if you do, make sure it is good for at least 3 years.

Let us say that all the costs of refinancing (appraisal, credit app, discount points, fees, etc.) equals $3600. Let us also say that the new payment is $175 per month cheaper than the old payment. The payback period is less than 24 months ($175 x 24 = $4200). The payback period is 21 months ($3600/$175 = 20.5 months).

If you are going from a 30 to a 15 year mortgage and can still effect a payback in 24 months or less, that is great. But if it is close to breakeven and the closing costs can be rolled into the loan, you should still be OK. I would shop hard for the lowest fees you can find.

Lee's got it almost exactly Gloria with only one small addition. It'll cost you another $250 or so but take the actual loan agreement you're going to sign to a good lawyer and have him check it over. He'll find any cute little tricks that might be placed there by the mortgage company. Could save you big bucks down the line. You'd be surprised at what they'll pull, if you let them get away with it.

#7. Who is going to pay for those social welfare programs when the money isn't there? It could be bread lines and nothing more. And young people losing their eletronic devises would be the least of their problems if they like to eat.

#7.3. The shock on our young people will be enormous.

In another Newsvine article under discussion, one person is recommending everyone carry guns like in the Wild West and legalizing all drugs as a way to give back freedom to the people and put us on track for political and economic recovery. All I can envision is a Country in a depression with everyone carrying guns, high on drugs and pissed as hell. I don't think that combination will end well. I would favor mandatory public service of at least two years by all 18 year olds and possibly some public works projects for some of the unemployed to take a little pressure off. Although I won't go so far as to recommend sterilization, it would sure help if people would quit having so many babies. If you think we have problems now, with current population growth we are going to be in deep trouble in fifty more years.

Anybody other than I wish that vine people, who have nothing relative to the article to speak about, would just go away and seed their stuff on their own??? Can I get an AMEN!

Yep. The government has stockpiles of many goods... from apples & wheat to helium and (most famously) the strategic oil reserve. They cycle them on a regular basis so they can't spoil.

The Helium is largely gone now.

What? They figured out we're probably not going to need zeppelins in our next armed conflict? How'd that happen?!

In the 80's, that decision was made, so the government just started to sell it off at FAR below market rates. The bigger problem is that there are a lot of industrial processes that need it (being a noble gas and all) and most of it is just going up into the air for balloons. There is no non nuclear way to manufacture more helium either, so when we run out, a strategic resource is gone. Just because zeppelins won't exist in future wars (well that may not be true either), doesn't mean that Helium isn't a strategic resource.

I always thought it was a by-product from collecting natural gas? Last time I heard we had over 12 billion cubic feet (that was around 2003).

it is a byproduct of radioactive decay, that decay happens in the decay of C14 (an alpha particle is just a helium nucleus so if you have an alpha particle, it just needs to collect two electrons and you have a helium particle).

Now because natural gas is a hydroCARBON, there will be a certain amount of helium present, though not much in natural gas because it is a VERY YOUNG hydrocarbon.