investment

Ep 177_Investors Ripping Gold

Ep 177_Investors Ripping Gold

Money Gurus “rip” gold. Don’t listen if you’re in it long-term

When others say sell…remember–the underlying commodity is ON SALE!!!!

Today’s show discusses precious metals and why they may still be a good investment.

http://finance.fortune.cnn.com/2013/04/16/gold-price-outlook/

http://www.cnn.com/2013/04/16/business/opinion-gold-price-investment/

http://buzz.money.cnn.com/2013/04/10/wall-street-sours-on-gold/

http://edition.cnn.com/2013/04/15/business/gold-sharpest-tumble-thirty-years/

http://money.cnn.com/2013/02/15/investing/soros-gold/index.html

http://money.cnn.com/2011/01/10/pf/investing/investing_in_gold.moneymag/index.htm

http://buzz.money.cnn.com/2013/04/12/gold-plunges/

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Ep 176_Finance and Week In Review

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Bad timing? Investors yanked $1.1 billion from stocks

link

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Ep 160_The Thousand Challenge for 2013

The Thousand Challenge for 2013

In 2013, I challenge you to 1000.  In many of your decisions, I want you to consider and factor in the number one thousand.  Why? Because it’s a magical number that can help you unlock your potential as a prepper, D-I-Yer, and a homesteader.  The following is a list of thousand challenges I want you to apply this number to.  Watch your success in these areas and overall exceed your wildest expectations.

Buying a new car:  Put it off unless the car is unsafe for another 1,000 days…or almost three years.  Squeeze every dollar out of your old ride.  You’ll save thousands more and although you’ll have repair bills, the repair bills will be LESS than a year’s car payment.  Example: $350 is a pretty typical car payment these days.  That’s $4200 a year in payments.  Will your car repairs total $4200?  Oh, and add $2,000 in depreciation for driving the car off of the lot–that’s $6,200 in money spent on a new car.  That thousand dollars in repairs seems pretty cheap now, doesn’t it?

Spend $1,000 dollars this year on preps.  That’s $2.74 a day, $18.17 a week, and $76.72 a month.  And remember, that can be spent on any preps, food, guns, gear, water filters, whatever…even a camping/testing trip to the great outdoors.  Imagine putting a thousand dollars into your preps.  Your readiness and self-reliance quotient will explode!

Add $1,000 this year to your income.  Work some overtime, do some odd jobs, cut back on luxuries and do the work yourself–whatever.  You add this amount and your preps for the year are free.

Add $1,000 to your savings/investments.  Start with a thousand dollars in cash for emergencies.  If you have that, use the thousand dollars to buy some gold, silver, or another investment that suits you.

Add 1,000 HOURS to your part-time business, career, or commercial endeavor.  That’s only 20 hours a week.  How much money do you think you could earn if you worked 20 hours a week on your dream/part-time business?  The answer will astound you.

Add a thousand minutes a year to your fitness program…or start one.  That’s three minutes a day or 20 minutes a week.  Can you squeeze in a 20 minute workout a week to save your life?

You and/or your family shoot 1,000 rounds at the range this year.  Imagine the improvement you will see if you put a thousand rounds through your weapons.  My daisy bb gun aside, I can honestly say I haven’t fired a thousand rounds in my life…but I’ll change that this year.

Get rid of a thousand cubic feet of junk.  Whether it’s trash in or around the yard, trees and shrubs that don’t produce food, or old odds and ends taking up room in the attic or garage (or both) imagine what life would be like with some extra room and a lot less clutter.   Do it!  It’s even better if it can be sold at a garage sale or donated for a tax deduction.

Read 1,000 pages on a Prepping, D-I-Y, Homesteading subject to become an expert.  That’s one large manual or 3-4 books on the subject.  In the end, you will have an encyclopedic knowledge of the matter at hand.

Give $1,000 to the charity of your choice.  What could a charity do with a thousand dollars?  A heck of a lot more good than the government could.

Put $1,000 dollars into home improvement.  A coat of paint on the outside or the inside, new flooring, or some simple updating in the bath or kitchen.  Your simple investment will pay dividends!!!

Put $1,000 into tools for D-I-Y projects.  With this kind of an investment, you could really begin to tackle a lot of home improvement projects yourself.  There are no greater prepper tools than hand tools!!! But don’t forget the power tools.  Start with a cordless combo pack of 4-5 tools for around $150.  Add some hammers, wrenches, levels, rakes, hoses, nails, screws, drill bits and drivers. a table saw, router, corded circular saw and you have the makings of quite a little tool shop.

Grow 1,000 pounds of food this year.  Any combination of garden, orchard, or livestock.  What you will save, in terms of money, is unimaginable.  And the only thing stopping you from doing it is YOU.

 Hunt, catch or gather 1,000 pounds of meat or seafood.  And all it will cost you is the hunting/fishing licenses.  Lobsters, crabs, oysters, mussels, deer, elk, boar, trout, bass, salmon, catfish, duck, goose, quail, pheasant, turkey.   Lowball the price per pound at a $5 average.  That’s $5,000.00 in food for a couple hundred dollars (at most) in licenses plus a little more in gear.

Ep 160_The Thousand Challenge for 20

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Question About Where to Get the Pure Silver Miraculous Medal

A listener to my dad’s “Engineer Ray” podcast wanted information about where to get the pure silver rounds that are also miraculous medals.

Lane, it turns out my dad purchased them through Caritas, but that Caritas purchases them from a supplier.

I went to Caritas’ website, but couldn’t find the store page.  Maybe you’ll have better luck.

You may contact caritas via link or at the address below:

Caritas of Birmingham

100 Our Lady Queen of Peace Drive

Sterrett, AL 35147

A place to get the  silver from directly is:

http://globalsilverinvestors.com/common-questions-about-buying-silver.html

Have a wonderful day.

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Ep 135: From the Desk of Engineer Ray (My Dad)

It’s been about a hundred days since I last talked to you…

• Since then, the government spent an additional 300 billion dollars (conservatively) with no end in sight.
• They broke all the laws in passing the Obamacare plan into law, and the Supreme Court let them get away with it.
• Unemployment is much worse than the 8.2 % they say it is in Washington (It’s more like 12 percent and even that is probably low)
• Every month, the government is taking more freedoms away from me.
• Sixty years ago, the government worked for us; today, we work for the government (IRS)
• I hope you realize that 16 TRILLION dollars is impossible to pay back.
• Worse, with spending full steam ahead, the government has NO intention of paying it back.
• By the way, there are more than 100 cities in the US that are deeply in debt and in danger of default/bankruptcy.

• What are you going to do about it?
• I’ll tell you what I’m going to do about it: I’m getting prepared for the collapse.
• Since the last time I talked with you, I’ve bought silver, stocked up (more) on my food supply, kept my big garden up, put in a giant propane gas tank for heating (I don’t need electricity to run it), and added more fruit trees and berry bushes.  We had a warm spell in March that brought out the blossoms too early.  A subsequent frost hurt this year’s crop.  I will still be able to get apples and pears in the fall.  Even with planting, you MUST DIVERSIFY.
• I tell my children all the time: “Who can you trust?”
• The answer : no one.
• I live about 23 miles south of Pittsburgh.  They (the city) cut 272 teachers and are shutting down schools.  Why?  People with money and brains are moving out of the cities.  That’s NOT a new trend.  Are you moving in the right direction?
• So, my advice to you is to prepare for the fall.
• Get out of the cities.  Move out.  WAY OUT.
• Stockpile food–at least a six-month supply of food.  Go to Costco, Sam’s Club, Aldi’s or any place that sells food on the cheap.  They sell in bulk, and you should buy products there that will last for years.
• Have cash on-hand–Emergencies happen.  Save coins.  They will be worth more than paper and some are still mixed with silver or are are copper.  If you owed me ten dollars, do you think I’d want it in paper or coins?  You’d better believe I’d want coins.
• Coins are also a good medium of exchange for bartering.  Silver purifies water.  Copper has many uses, as does nickel.  Did you know it costs the government more money to make a penny than it’s worth? The same is true for a nickel.  Guess what?  I save pennies and nickels.
• I get a lot of mail from people who sell silver, gold, and bulk food.  One representative told me they’re SIX WEEKS BEHIND in production.  They simply can’t keep up.
• That tells me that people are seeing the light…that we aren’t crazy…and there’s a silent majority of us  out there that see the handwriting on the wall, no matter how much the news media wants to ignore the truth.
• Last but not least, the ultimate survival tool is God.  You know him?

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Ep 134: The Prepper’s Guide to Building Wealth.

Saturday, August 25, 2012 (I’m publishing Saturday’s episode a few days early)

I recently reviewed an article by Money Magazine which discussed many ways to build wealth.  I mentioned to my audience that I should do a follow-up on that article discussing wealth building from a prepper’s perspective, so that’s what we’re doing today.

I came up with nineteen things for preppers to do.  PLEASE add your own in the comments section.  My list isn’t comprehensive, but it IS SOLID!!!

1. Get out of debt–Debt is a cancer.  Kill it before it kills you.  NOTHING good can come from debt, although some types are better than others.  Holding a mortgage or a car payment is better than carrying a monthly credit card debt.  If you are carrying more than $20k  in debt–you are in bad shape.  Get it together and act responsibly.
2. Buy a House/Own Your Home–Owning a house and building equity is essential.  You don’t build wealth by paying someone else’s rent.
3. Store Food–Have food for a rainy day when food or money is scarce
4. Reduce Entertainment Expenses–Stop buying expensive movie and theater tickets.  Stop eating out so much.  Rent your movies from the library.
5. Plant a Garden/Orchard–Permafood comes back every year.  Fruit trees and perennial garden veggies rule.  Plan an annual garden as well
6. Don’t Be Showy–Putting on airs is the WORST thing you can do.  Ostentatious shows of money are classless and are advertisement to criminals that you’re swimming in money.  Knock off the attitude and stay humble.  Wasting money to impress others is a waste of money in addition to showing how shallow a person can be.
7. Have a Self-Defense System–mace, guns, security system.  Can’t get wealthy if others take it.
8. Don’t Base Your Financial Plan on the Wall Street Model–Wall St assumes an annual % of 7%.  You gettin’ 7%?
9. Create additional revenue Streams–Start A Business.  Make Money From a Hobby/Pastime.
10. Spend Less Than You Take Home–Sounds obvious, but many don’t.
11. Put Off Car Purchase Until Absolutely Necessary–You probably don’t need a new car.  Instead, you WANT one.  A waste of money and resources.  Ever feel like you got the better of negotiations on a vehicle?  Cars are a HORRIBLE investment and LOSE money.  Buy them as infrequently as possible.  Consider making repairs and buying used.  Buying cars often is a sure sign of wasting money.  My suburban has 135 k miles and going strong.  I’d like to get 250 k miles if I can.  The car’s health and repair needs will determine when I buy again, not a “feeling” I need a new car.
12. Have Investment/Savings Taken out of Paycheck BEFORE Taxes–
13. Consider a Bugout/Vacation Property–It could be fancy, it could be a hunting cabin, but in any case, having another property is a wonderful way to create wealth.  How?  If one property is affected by by a disaster or “situation” another home may be a great place to ride out a problem. Additionally, you can sell one of the properties for added cash when it’s time to retire or cash-in a nest egg.
14. Re-Purpose Vacations–Stop spending tons of money on a frivolous vacation.  Do something productive and interesting.  Stop trying to impress others.
15. Life Insurance–A minimum of 250 K in my opinion.  How do you replace a spouse/loved one?  You don’t.
16. Health Insurance–Illness without insurance will destroy you financially.
17. Homeowner’s Insurance–Everything you own could go up in smoke
18. Auto Insurance–An accident can ruin you financially.  Don’t be foolish.
19. Take Care of Your Health–Nothing will burn through money like a serious illness.  Lost wages, medical bills, treatments, co-pays, medicines.  They will destroy whatever wealth you have.  Staying healthy isn’t just good for you, it’s good for your wallet.  Exercise. Stay Slim.  Break a Sweat.  Get off the Couch. Stop watching sports and life and participate in them instead.

ep134_Preppers Guide To Building Wea

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Ep 132: Review of Money Magazine’s 101 Ways to Build Wealth

I am not one for touting the purchase of magazines, but I think that the July 2012 issue of Money Magazine is really good.

I will be focused primarily on their article on 101 “Ways to Build Wealth,” but there’s much more here.

The article is broken down into sections.

• The first section “Basic Rules For Getting Rich” is really the philosophy section.  It’s about getting your head on straight and taking things seriously.
• “Next comes “Give Your Portfolio a Major Overhaul”
• “The best way to boost your portfolio returns? Minimize investing expenses.”
• “Turn saving into a habit.  One of the surest ways to build wealth is to save more. Make it a habit and watch your net worth grow.”
• “Make your career really pay.  Earnings are a predictor of wealth, so you’ll want to raise your ceiling.”
• “Avoid common investing mistakes.  Don’t let these common investing mistakes cut into your chances of reaching your goals.”
• “Trick yourself into getting richer.  Turn behavioral foibles into assets rather than liabilities.”
• “Make money like a rich person.  Knowing how the 1% got that way can help point you in their direction.”

• “Plug the cash drains and stop wasting money.  Does cash seem to slip through your fingers? A little tough love and self-discipline will keep you from spending more than you should.”
• “Invest like the opposite sex.  Men have a lot to learn about building wealth from women — and vice versa.”

• And finally: “Cut your tax bill.  To hang on to more of your money, give up less to the government.”

Ep 132_ Review of Money Magazine’s 1

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Ep 131: Financial Perspective: Advisers Can Give Bad Advice

Ep 131_ Financial Perspective_ Advis

In my last podcast, I alluded to the fact that I would be talking about money in an upcoming podcast.  I mentioned that investment advisers (liar for hire) always tell their clients that you need to have and keep your money in the market (stock) over your entire life, because you’ll average about 7% a year, and that’s how wealth is built.

There’s a little problem with that line of reasoning, though…for the past ten years, the S&P 500 SPDR (etf) is averaging a LOSS of over 1 % annually.  That’s a far cry from what your investment “promises” you.  Now they don’t really promise, they just “assume” and let you “assume” that 7% is written in stone and don’t worry about it.

Worse, experts are coming forward predicting virtually no growth in the American market for the foreseeable future.  Is this the American dream?

Now, full disclosure here: I still have 15% of my paycheck set aside and put in the market tax deferred.  BUT, I see that as giant savings account with a penalty for early withdrawal.  I took out a “big” chunk to help buy our vacation/bugout house.  I’m not apologizing for doing so.  When factoring in how the market tanked after I withdrew the money, I was really ahead (although I was actually making money in the down market because I was buying gold/commodity funds in my 403b)

So what do I do?

• First, keep your head.  Assume the end of the world isn’t coming tomorrow and have a plan on what to do with your money.
• Second, go with your plan.  Would you feel better by listening to other’s advice or your own?
• Third, diversify.  I don’t see holding some gold, silver, stocks, bonds, land, houses, IRAs, brokerage accounts, collectibles, etc as a bad idea unless you are only banking on ONE of them.  Have a little bit of everything.
• Fourth, think with grandpa’s and grandma’s brain.  How were things done in the old day?  Well, I’ll tell you: You paid cash, lived within your means, and didn’t take stupidly expensive vacations.  You didn’t spend your life in front of the tv or x-box and you worked all of the time.  Follow their lead and you’ll be fine
• Next, stop trying to impress your neighbors/strangers.  Live modestly and have plenty in reserve.
• Oh, and one last thing…PREP!!!  Store food, grow a garden, plant fruit trees, collect water, own your home and put sweat equity into it.  Do all of this and more and you’ll have little time for worrying because from all of the work you’ll be hurrying.

FYI–I have a lot more to say about finance and investing. Stay tuned for more on this subject soon.

Article:

You Just Wasted the Past Ten Years of Your Life (Motley Fool)

You Wasted the Past 10 Years of Your Life
By Nate Weisshaar | More Articles
June 16, 2010 | Comments (2)

If you think the stock market is the road to a comfortable early retirement, you’re wrong. You may have thought about cashing in on the long-term average annual returns of 7% (postinflation) you heard you could get from investing in stocks, but I’m here to tell you to think again.

In the past decade, the SPDR S&P 500 ETF (NYSE: SPY ) , an exchange-traded fund (ETF) designed to track the broad U.S. stock market, returned an amazing -1.4% per year. That’s right, negative, as in less than zero. Including dividends. That’s a long way from 7%.

It’s a small, small world
Going global didn’t help much, as the iShares MSCI EAFE Index Fund (NYSE: EFA ) , a proxy for the world’s developed markets, has provided a total annual return of 3.5% since it was started nearly nine years ago.

In fact, investors had to rely on emerging markets, which provided annual returns of 8.1% from 2000 to 2010, in order to get returns in line with the generally accepted long-term average return from stock markets.

It could be worse
However, according to Jeremy Grantham, co-founder of the asset management firm GMO, even this limited outperformance is coming to an end. He and his team of analysts are expecting emerging-market stocks to return just 4.7% per year after factoring in inflation over the next seven years. U.S. large-cap stocks are expected to return a measly 0.3% after inflation, and U.S. small-cap stocks are expected to lose almost 2% per year over that period.

Now this is only one man’s (and his associates’) view, but when Grantham speaks, people in the financial world listen, because over the years he has proven incredibly prescient when it comes to long-term investment returns, accurately calling the annual rates of return on 11 asset classes between 2000 and 2010.

Change is in the wind
If Grantham is right, we could be in for what many commentators are calling the new normal, meaning that the broad-based market joy we experienced 1983 to 2000 will be reserved for history books. Instead, we could be in for several years of volatile markets that generally move sideways.

In this type of market, index funds and ETFs won’t do your portfolios any favors. Buy and hold just won’t do it. Investors will need to be much more discerning and proactive if they expect to see the types of returns that will lead to an early retirement.

Developing taste
Investors who know how to pick the stars from the wannabes will be able to take advantage of the volatility that is characteristic of this new type of market.

That means finding high-quality companies with secure dividends, companies like Johnson & Johnson (NYSE: JNJ ) and PepsiCo (NYSE: PEP ) , both of which have strong brands and stable cash flows to support their 3%-plus dividend yields.

Megacap blue chips like these are well-followed by both Wall Street and Main Street, so we wouldn’t normally expect them to blow the doors off the market, but things aren’t normal. Times of market volatility provide opportunities to snatch up these stalwarts at discount prices, and the safe dividend provides a source of income while you weather uncertain times.

Looking in the dumps
And while we may not see markets move up much over the next several years, there will be movement within markets by stocks that are currently being shunned for whatever reason.

The tragic oil spill in the Gulf of Mexico has rightfully pounded BP’s stock, but it has also taken down less deserving players like oil field services leader Schlumberger Limited (NYSE: SLB ) and seismic mapping giant CGG Veritas (NYSE: CGV ) , two companies which dominate their respective positions in the energy exploration and production industry.

Both of these companies have the strong reputation and global operating footprint to sidestep the Gulf spill. The collateral damage from BP’s mistake is providing patient investors with the ability to look beyond the headlines and the opportunity to pick ‘em when they’re down.

Don’t go it alone
That’s what Jeff Fisher and the Motley Fool Pro team do — troll the depths of market sentiment to find investments that perform even in a volatile market. They even take it one step further, using tools like options to pick up investments at bargain prices or produce income even as stock price stagnates.

If you’re interested in preventing your investment portfolio from languishing for another decade, enter your email address in the box below to learn more about how Motley Fool Pro can help. You’ll even get a free report with five strategies for growing your portfolio in a volatile, range-bound market

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 The-Latest-Broker-Tricks-Exposed

(The-Latest-Broker-Tricks-Exposed)
Daria and I both started our careers as stock brokers. But times have changed since I took the New York Stock Exchange exam in 1971. There are many more products for brokers/financial planners (we call them both “brokers” in this article) to sell and much more pressure to sell them — lots of them.

With a combined 40 years in the financial services business, Daria and I have seen just about all the tricks of the trade (excuse the pun!) and we’re about to reveal them. In addition to our own experience, we talked to a number of brokers with the promise of anonymity. Believe me, you won’t find this information anywhere else! Here are investment pitches that should trigger your suspicion:From The Dolans

 “In-house” products

We are not fans of most “in-house” products for three reasons: 1.) a broker may get a higher percentage of the commission for selling you one of these products; 2.) many of these funds underperform similar “non-brokerage” funds; and 3.) if you decide to transfer your account to another brokerage firm Â… too bad Â… the new firm generally won’t accept a competitor’s “in-house” funds. You’ll be forced to either leave the mutual fund(s) at a firm you no longer want to do business with, or sell the funds right then and there. Two bad alternatives!

Straight Talk Tip: Your investment objectives may best be served by being in more than one family of funds. But, we just want you to realize that you can save 1%, 2% or more by staying in one family of funds, if appropriate for your portfolio. Something called “rights of accumulation” allows a commission break when you invest large amounts in one fund family. Has your broker ever mentioned this to you? (Let us guess!)

 No-commission “deals”

Your broker breathlessly calls with an exciting stock tip that you can buy “without a commission.” A golden opportunity? Unlikely.

You’re probably being pitched a security owned by the brokerage firm. Does that mean it’s a bad stock? Not automatically… but it does mean the broker is, likely, receiving a “commission credit” to sell it to you. Plus, the firm may mark up the price to make up for the higher commission they pay the broker. Some deal! If you’re interested in the “no commission” investment, call another firm or two and compare the total costs of the transaction.

 End-of-the-sales-month push

We’ve warned you about end-of-the-month pitches by car salesmen Â… beware the same from brokers. Some unscrupulous brokers will “churn and burn” their accounts toward the end of the month (especially “discretionary” accounts where a client has authorized the broker to buy and sell at his discretion Â… one reason we don’t ever want you to grant discretionary power to your broker!)

Every month many major firms total a broker’s commission for the previous 12 months to determine a broker’s “payout” (his share of the commissions) for the following month. A low level of commissions – generally, a low “payout” (level of transaction commissions paid) If you see a pattern of “end of the month” recommendations from your broker, it may be time to switch brokers.

Margin trading

Your broker suggests that you buy stocks on margin, i.e., by borrowing up to 50% of the purchase price. You can buy twice as many securities as you have money available because your kindly brokerage firm lends you the money and charges you interest. This is a major profit center for most brokerage firms and a very risky way to invest … DON’T DO IT!

 “Bonus” investments

As in “bonus” annuities that promise an above-average interest rate. Sounds good? Not so fast. As usual, there’s usually a hitch. Check the fine print and you’ll probably find that the initial rate is much lower with an additional “bonus” rate for the first year only.

Your broker is changing firms
Why? Is it because the resources of the new firm will help him/her better service your account or is it because he’s receiving a large, up-front cash bonus for bringing his “book” of business (including you) to the new firm. Be especially wary of the hard sell during those initial months after his move. Firms often offer brokers a “recruiting” package that includes a higher payout on trades made in the first three to six months with the new firm. (Do you feel a twinge of distrust here?)
Sales contests
Ask your broker flat out, “Are you trying to qualify for a sales contest prize?” If the answer is yes, make him prove to you in writing that the investment matches your objectives. (If he lies, you can hold it against him later, if necessary.)

Well, I guess by now we’ve guaranteed ourselves a lashing next time we’re on the floor of the New York Stock ExchangeÂ…just kidding. Those brokers/financial planners who are truly committed to helping you – and there are many of them out there – won’t mind that we shared this information with you. Honest brokers/financial planners want you to be an informed customer.

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Ep 130: What I Did On My Summer Vacation

Ep 130_What I Did On My Summer Vacat

No, this isn’t an assignment I want you to write about.  It’s a theme I will write and talk about.

Yes, I got a TON done on the vacation/bugout home

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From the July 23rd post:

Hey guys,

Just wanted to give you an update on the Vacation/Bugout House. Wow…what a summer. Full of ups…and downs. I can’t believe all I’ve gotten done on the vacation house, but it hasn’t been without its setbacks.

Since last I left you, I was filling dumpsters with trash and finishing-up the master bath. Well, The master bath looks great but there’s one enormous problem left: The old drain is stuck in and the special tool I bought called a “drain key” broke and is now stuck in the drain. I am in the process of drilling it out, but it’s a time-consuming and frustrating proposition.

On the brighter side, I installed the downstairs bathroom can light housings, vanity, single-surface sink to (very modern) and am in the process of installing the trap/drain. I’ll connect the faucet and the trap tomorrow and the downstairs bath will temporarily done. We’ll temporarily install a shower curtain in the shower. A glass door and panel will be installed eventually, but we like to be here when work is done, so we’ll schedule that work for another trip/visit.

I added two coats of paint to several rooms’ walls and ceilings and am putting in the trim pieces in the can lighting (also called “high hats” or “recessed” lighting. I was painting ’til midnight last night after assembling a table and four chairs for the breakfast nook and replacing the halogens in the security lighting system.

Did I mention I spent every morning last week teaching 4th, 5th and 6th graders at Vacation Bible School? I t was great and my wife got to see me teach. My wife no longer thinks our daughter is weird after a week with today’s kids and being introduced to the “new normal.” I am exhausted because we’d come home every day and work until 11 or midnight. We’ve been doing this for weeks, but it’s coming to an end now.

With just a short time before our return, we HAVE to devote a little of our vaction to a vacation. Our daughter’s birthday is this Sat so we’re planning her party. We’ll add a few mandatory trips to the old favorites and it’s back to our regular work.

I know it doesn’t seem like a vacation to many, but the equity we’re building is worth the effort, especially when I see those just standing still and getting farther behind. Work usually yields success/progress. We’re still grinding away at the house and sweating equity into the building. I won’t be in my 40s or 50s forever, and i’d rather work hard now than in my 70s because I’m broke. The sense of accomplishment we feel is a great feeling and we’re still sneaking in some time with family and friends.

In a little while we’ll pull the plug and then I’ll get to do what I’ve been dreaming about all year:

Rent a canoe and hunt walleye and trout
go to Kennywood or Idlewild amusement parks
Catch crayfish in a nearby stream with my daughter
Take my daughter on a hike to the waterfall behind my childhood home
Take a few hikes in the woods
Explore a cave
Walk around the university district and visit the museums, libraries, and universities of my past.
Watch squirrels gather nuts
Plant some trees (I know, work)
Make lists (one of my favorite things to do)
Visit Steeler training camp
…and that’s about it. There will be other things thrown-in, but if I do half of the things on my list, I’ll call it a good summer.

Already scheduling work on the Vegas home and will be there in no time.

I’ll also probably need to schedule a hernia surgery and train for a half marathon this fall. The neighbor called to tell me the fruit trees back home are gorgeous and the lemon blossoms are heavenly. He said the tomatoes are delicious from my vines, too.

I’ve stopped thinking about vacations as “ultimate getaways” pumped into our heads by the Travel channel, and truly begun enjoying the “repurposed” vacation. Vacations are an opportunity to build sweat equity, work on preps and build for the future. I don’t want to leave my family homeless and penniless. My work for my wife and daughter is joyous labor. God has given me a strong back (after 2 surgeries) and a healthy body. I use it to HIS glory and for my family’s benefit.

Have you stopped spending all of your money on empty vacations that are great for bragging, but bad for your finances and future?

Another truth I’ve come to and realized for a while now is that there will be people who will always make bad decisions and are destined to be without success. I know someone who keeps making bad decisions despite money being thrown his way. If he made a million, he’d spend two. And nobody can help him…and he comes from a family of people who also make the same bad decisions despite people helping them immeasurably. Sad, just sad. Where do you draw the line between helping and enabling? Something to consider…

Well, that’s my report for the day…I have so many wonderful things planned for blogs and podcasts this fall. but the lack of internet access is killing me. This dispatch cost me a 2 dollar coffee at Starbucks–ouch! Should have internet/cable next summer, but not having a tv all summer has been great. TV isn’t and shouldn’t be my life–although with football season coming up, I see a few hours each weekend vanishing into a tv and couch.

Best wishes to all. Thinking of you. Have to admit that with fewer podcasts I’ve gotten fewer emails. Now’s a great time to have a problem or request answered. Tell me what shows you want. Tell me how I can help.

Dan

______________________________________________

August 13, 2012

No, I didn’t podcast very much this summer.  I apologize for neglecting you, but I tweeted my little tail off for you instead.  I just didn’t have the time to do much podcasting.  I literally had about five days off in two months, and that means i did HARD labor every other day…and put in days until 2 AM on occasion.  Well. no pity party for me–just telling you I WAS busy.

I shot some videos and I realized that they are a great way of documenting the improvements you make to your house for the insurance man.  I feel better knowing that there’s a record (and a public one in my case) of what I’ve been doing on the house.  You need to record your house and its contents for private records as well.

I’m totally bummed that I didn’t spend much time on gardening and permafood.  When I got back to Vegas, though, man was I happy to see that my fruit trees were relatively happy and all of the plants were alive.  Last summer’s return from vacation was depressing due to a water leak and the shutoff of all water to my plants and trees.  It was bad.  Fixing up the old cape cod took up the whole summer.  What do you want?  I’m a prepper.  You have to figure I’d spend the summer on some combination of food, clothing and shelter.  It so happened I’ve spent TWO summers exclusively on shelter.  Oy vay!!

So what great truths have I come away with?  What pearls of wisdom shall I cast to my followers…

Get real…I’m a regular guy and that’s why you listen.  I worked on making my family’s situation better.  Period.  That’s it.  Sure, I learned some things along the way.  I’ll sprinkle them in as I go, but the essence of the matter hasn’t changed one iota:

Keep grinding/keep hustling/keep working/keep prepping/keep on keeping on.

Oh, I will throw out one zen-like pearl of wisdom while I’m thinking about it:

Don’t wait forever to do what you want to do.

I’m 43 and cashed in my old job’s retirement to make our vacation house happen.  I didn’t wait.  I’m living MY dream.

BUT I had on my to do list another walk behind my dad’s house to the waterfall deep in the woods that I played at with my friend Scotty a million times as a kid.  We hid underneath it, caught crayfish, and chased water bugs.  I planned on taking a hike back to see it this summer with my daughter.  The farmer who owned the property and several neighbors sold all of the mineral rights to the properties.  The lad is being strip-mined and after the coal is extracted, gas wells will be dug using the fracking method (fracture drilling).  The land is destroyed and the waterfall is lost.  I was/am devastated.

Don’t put off your dreams too long.  See things and people before they’re gone.(okay, I guess that’s kind of deep)

I don’t know about you, but I’m tired of being lied to by the investment services industry.  Expect another show on it in the near future.  Most advisers assume a 7% annual return on your money when you invest it/put it in the market.  You averaging 7% ANNUAL returns over the last five or ten years?  Didn’t think so.  It’s NOT a given, but it’s used to show how inferior other investments are.  Guarantee me 7% annually and I’ll start believing what you’re saying

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July 23rd 2012: Update on the Bugout House

Hey guys,

Just wanted to give you an update on the Vacation/Bugout House.  Wow…what a summer.  Full of ups…and downs.  I can’t believe all I’ve gotten done on the vacation house, but it hasn’t been without its setbacks.

Since last I left you, I was filling dumpsters with trash and finishing-up the master bath.  Well, The master bath looks great but there’s one enormous problem left:  The old drain is stuck in and the special tool I bought called a “drain key” broke and is now stuck in the drain.  I am in the process of drilling it out, but it’s a time-consuming and frustrating proposition.

On the brighter side, I installed the downstairs bathroom can light housings, vanity, single-surface sink to (very modern) and am in the process of installing the trap/drain.  I’ll connect the faucet and the trap tomorrow and the downstairs bath will temporarily done.  We’ll temporarily install a shower curtain in the shower.  A glass door and panel will be installed eventually, but we like to be here when work is done, so we’ll schedule that work for another trip/visit.

I added two coats of paint to several rooms’ walls and ceilings and am putting in the trim pieces in the can lighting (also called “high hats” or “recessed” lighting.  I was painting ’til midnight last night after assembling a table and four chairs for the breakfast nook and replacing the halogens in the security lighting system.

Did I mention I spent every morning last week teaching 4th, 5th and 6th graders at Vacation Bible School?  I t was great and my wife got to see me teach.  My wife no longer thinks our daughter after a week with today’s kids and being introduced to the “new normal.”  I am exhausted because we’d come home every day and work until 11 or midnight.  We’ve been doing this for weeks, but it’s coming to an end now.

With just a short time before our return, we HAVE to devote a little of our vaction to a vacation.  Our daughter’s birthday is this Sat so we’re planning her party.  We’ll add a few mandatory trips to the old favorites and it’s back to our regular work.

I know it doesn’t seem like a vacation to many, but the equity we’re building is worth the effort, especially when I see those just standing still and getting farther behind.  Work usually yields success/progress.  We’re still grinding away at the house and sweating equity into the building.  I won’t be in my 40s or 50s forever, and i’d rather work hard now than in my 70s because I’m broke.  The sense of accomplishment we feel is a great feeling and we’re still sneaking in some time with family and friends.  In a little while we’ll pull the plug and then I’ll get to do what I’ve been dreaming about all year:

• Rent a canoe and hunt walleye and trout
• go to Kennywood or Idlewild amusement parks
• Catch crayfish in a nearby stream with my daughter
• Take my daughter on a hike to the waterfall behind my childhood home
• Take a few hikes in the woods
• Explore a cave
• Walk around the university district and visit the museums, libraries, and universities of my past.
• Watch squirrels gather nuts
• Plant some trees (I know, work)
• Make lists (one of my favorite things to do)
• Visit Steeler training camp

…and that’s about it. There will be other things thrown-in, but if I do half of the things on my list, I’ll call it a good summer.

Already scheduling work on the Vegas home and will be there in no time.

I’ll also probably need to schedule a hernia surgery and train for a half marathon this fall.  The neighbor called to tell me the fruit trees back home are gorgeous and the lemon blossoms are heavenly.  He said the tomatoes are delicious from my vines, too.

I’ve stopped thinking about vacations as “ultimate getaways” pumped into our heads by the Travel channel, and truly begun enjoying the “repurposed” vacation.  Vacations are an opportunity to build sweat equity, work on preps and build for the future.  I don’t want to leave my family homeless and penniless.  My work for my wife and daughter is joyous labor.  God has given me a strong back (after 2 surgeries) and a healthy body.  I use it to HIS glory and for my family’s benefit.

Have you stopped spending all of your money on empty vacations that are great for bragging, but bad for your finances and future?

Another truth I’ve come to and realized for a while now is that there will be people who will always make bad decisions and are destined to be without success.  I know someone who keeps making bad decisions despite money being thrown his way.  If he made a million, he’d spend two.  And nobody can help him…and he comes from a family of people who also make the same bad decisions despite people helping them immeasurably.  Sad, just sad.  Where do you draw the line between helping and enabling?  Something to consider…

Well, that’s my report for the day…I have so many wonderful things planned for blogs and podcasts this fall. but the lack of internet access is killing me.  This dispatch cost me a 2 dollar coffee at Starbucks–ouch!  Should have internet/cable next summer, but not having a tv all summer has been great.  TV isn’t and shouldn’t be my life–although with football season coming up, I see a few hours each weekend vanishing into a tv and couch.

Best wishes to all.  Thinking of you.  Have to admit that with fewer podcasts I’ve gotten fewer emails.  Now’s a great time to have a problem or request answered.  Tell me what shows you want.  Tell me how I can help.

Dan

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Ep 129_The Real Cost of Owning Vs Renting a Home

Ep 129_The Real Cost of Owning Vs Re

Today I discuss why buying a home is infinitely more advantageous than renting, all things being equal.

Positives of home ownership:

equity

capital appreciation

tax advantages

control

Positives to renting:

no upkeep

you’re free but poor

rent builds nothing

Example: $ 100,000 house

@ 4% on a 30 yr mortgage…

you pay around 500 a month

renting that same house, you’ve just blown $120,000 over ten years

after 10 years, you have 22 k in equity if you buy

Add to 22 k the extra 500 a month you’re saving on a mortgage vs renting (500 mortgage vs 1,000 in rent a month)

That’s 60 k over 10 years in extra cash.

So…

60 k (500 x12x10)

+ 22k in equity

equals 82 k in real money in equity/cash

now add the 120, 000 the renter wastes in rent…

120000

+

82,000

=202,000

The renter has wasted $202,000 in opportunity costs over ten years.

See why renting sucks and building equity Works?  Listen to the podcast and see for yourself.

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July 14th Dispatch. Keep the Faith

I am so VERY sorry my podcasts, updates, and site maintenance have been so infrequent lately.

The reason, however, is solid.  I don’t have internet access at my home while construction/renovation continues.  What little I do have is on my iphone–hence, the typos and real lack of being able to do much.

But I’m living my dream…

Our vacation house has consumed ALL of our time and most of our money…and we love it.  I believe in “Re-purposing Vacations”, a term I use to take your vacations and turn them into work time on your house/life/business/etc to increase value to your life.

Our vacation home is a better investment for us than an expensive resort we visit but keep nothing from.  It’s like a time share for us, but we actually own it.  We have sacrificed, scraped, and scrimped for our bugout/vacation house.  We don’t drive expensive cars, we don’t take vacations (except for here where we work and build equity) and live modestly.  We are positioning ourselves for our future.  We see some of our friends enviously talk about our vacation home, but they spend all of their money on expensive toys, cars, homes, and vacations…and never work except at their 9 to 5.  I tell them and I tell you: You can do it if you want to…but you’ve got to want to…”  and most of them don’t want to.

Our bugout home takes all of our spare cash, which keeps us away from alcohol/bars, casinos, toys/hobbies, etc.  It’s amazing that we’ve found the money to do the work, but it only comes with sacrifice.  But the sacrifice, for us, is worth it.

I guess that is a long way of justifying the lack of time I’ve put into podcasts and the site this summer.  That will continue for a few more weeks and then I’ll be back to the old routine.  So hang in there with me and the podcast/site…I haven’t quit.  In fact, I’ve never worked harder.

This week, we filled a 10 yard dumpster to overflowing with building materials, etc.  I cleaned out the garage, nuked all the rest of the fence and hedges, painted like a fool, and visited a scrap metal dealer for some recycled gold.  Now the cheaper, heaver materials we gave to Tom, a friend who has been helping with the yard.  The money he earns from a trip to the recycling center is well-earned on his part.  We pay him for the help, but the extra cash he’s earned from scrap metal is like a little tip/thank you to make him really feel appreciated.

We cleaned out our basement, aka “the Bomb Shelter” and actually have some space down there to work.  I removed the 50s cabinets down there and replaced them with the 4 free ones we got from out new kitchen cabinet install.  The company made some mistakes and we got to keep the.  Even without doors, 4 sparkling white cabinets mounted on the walls in the washing area really put a smile on my wife’s face…I did it between midnight and 2 am one morning.  Wow was she happy when she saw the results.  Then…more painting, sanding, spackling, etc.

We’ve taken about 2 days off so far. One was to return a solid foam mattress to Costco on the other side of the city.  It hurt my spine between my shoulder blades.  They took it back no questions asked.  Awesome customer service. That’s why we buy Everything we can there.  They do care about their customers…we bought the mattress there last summer and thought it’d get better.  It didn’t.  No problems w/ Costco.  Can I tell you how much I LOVE these guys?

Some people look at us funny for working so hard and preparing for our future.  ”Is it worth it?” a family member asked.  What a silly question.  We’re building something.  Together.  And we’re not stopping until we have a real hold on our future financially, prepping-wise, everything.  Maybe that sounds good to you.  I’m 43, so I’m no spring chicken, but i want to work my TAIL off for the next 10-12 years so I have something and so does my family.  If you want that, too, you know what to do…work harder, invest in your future and keep grinding.  Never give up and never give in.

I wish you peace and happiness.

God bless,

Dan

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Ep 118: What is Bilderberg?

And more importantly, why should I care?  When the leaders of the free world (in many different disciplines)come together to discuss and attempt to solve the world’s problems outside the view of an independent press, we should all be concerned.  Transparency is important. If nothing dangerous is being discussed, why the privacy, army of secret service and security agents, and the total media blackout?  After all, hasn’t it been suggested that honest citizens who have nothing to hide should readily agree to searches at airports, in their homes, and on-line?

So if we are expected to be under surveillance 24/7, why not the ruling elite/overlords?

From the Bildeberg Website:

Ep 118_What Is Bilderberg

Bildeberg Info:

http://www.bilderbergmeetings.org/index.php

http://www.bilderbergmeetings.org/meeting_2012.html

Bilderberg_Group

Alex

Alex’s Film on Bilderberg

Alex Jones & Bilderberg Videos

http://www.washingtontimes.com/news/2012/may/31/demonstrators-heckle-bilderberg-attendees/

http://www.guardian.co.uk/world/2012/may/30/bilderberg-2012-technocrats-are-rising?INTCMP=SRCH

http://www.wnd.com/2012/05/tinted-glass-chauffeurs-and-lockdown-bilberbergers-meet/

The Logan Act

http://en.wikipedia.org/wiki/Logan_Act

Jump to: navigation, search

I REALLY want to hear what you have to say on the topic.  I find this topic and people’s perspectives on it fascinating.

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Ep 107: Interview With Bob Mayne

On today’s podcast, I interview Bob Mayne:  creator of Today’s Survival Show and Handgun World Podcasts.  Bob discusses many aspects of modern survival, including food, finances, community relations, self-defense, guns rights and freedom.

Bob Mayne is many things, but at heart, he is a patriotic American with a passion for gun rights, individual freedoms and survival.  Join us today as I interview BOB.

This is my FIRST interview (where I did the interviewing) and I couldn’t think of a better person to start off with.  You see, Bob was the first person to interview me as the host of Homestead Dividends.  Further, Bob has been a mentor to me in many ways in this business/hobby, always providing help and support without ANY strings attached.  He is a down-to-earth man who doesn’t try to impress you by taking himself too seriously.  Instead, Bob lets his wealth of knowledge and experience do all the impressing.

Today we discuss the importance of many aspects of prepping.  They include:

• Why do you prepare
• Finances philosophy
• Food Storage
• Bartering
• Community Relationships
• Guns and gun selection, carry, and philosophy
• Common-sense applications of self-defense strategies

Ep 107_Interview w Bob Mayne

http://www.todayssurvival.com/

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Ep 103: Private Vault Heist

Ep 103_Private Vault Heist

A private vault company was robbed here in Las Vegas this week. Here’s where it gets interesting. The company has no records of who you are. They don’t know and don’t want to know who you are. Your account is anonymous and you use your retina (eye) to enter the place. It’s open 24/7.

I was really interested in this place and at one time considered renting a vault. But the idea of no records, while great to keep the feds at bay, would be a nightmare for those passing it on to loved ones…or at least that was my concern.

Now that this very famous, ultra-private company has been robbed and anonymous people’s valuables have been taken, there are many questions left unanswered.

But my point to you is, this anonymous/hide valuables from the government scenario was too good to be true. Be careful with how you hide valuables and documents. I have a LOT to say about this and will turn this into a podcast with further analysis later. This will be a really enjoyable podcast. Stay tuned.

Company hides identities of vault owners, has few records.

Courtesy of the Las Vegas Sun:

Video

24-7 Private Vaults website

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Ep 101: Costco Auto Buying Program Review

Ep 101_Costco Auto Buying Program Re

Why Costco?  If you hate haggling, this programs cuts to the chase and give you a number below what most people haggle for.  Our vehicle was listed offered for 500 below dealer invoice.  We also got another 500 in incentives and zero percent financing.  We wound up about five thousand below sticker on the car.  That’s good for us.  But our total savings were even more:

• saved 400 in taxes by purchasing under the sticker,

• 2500 in interest (nothing to do with costco) 3.9 @ 5 years

But what Costco saved us is around 2,000.00 dollars.  Costco had nothing to do with incentives or financing…but the did save us a significant chunk of change.  See whether this program is right for you.

How the Program Works  (from their website)

Build & Research

To begin, visit our ‘Build & Research Vehicles’ section to conveniently and easily search new makes and models, read vehicle reviews, compare cars, view photos or virtual tours, research safety information, view manufacturer rebates and more.
locate a dealer
Locate & Contact

Choose a new vehicle and locate a participating dealer near you. Within 24 hours, an Authorized Dealer Contact from the participating dealership will contact you to schedule an appointment. You will also be given the Authorized Contact’s information if it is more convenient for you to contact them.
visit a dealer
Visit & Save

Meet with the Authorized Dealer Contact at the participating dealership and show your Costco membership card. Have the Authorized Dealer Contact help you select a new vehicle.

View the special Costco Member-Only Price Sheet, which shows your exclusive prearranged Costco member savings on the vehicle you selected.

Costco Auto Program

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Ep 099: Six Bad Additions.

Ep 099_Six Bad Additions

By Dana Dratch | Bankrate.com – Fri, Apr 13, 2012 3:08 AM

Six bad additions were offered by this article.  I take serious issue with one on this list.  Today I discuss the six on this list and offer my insights.

Home office remodel

Nationally, homeowners spent an average of $28,888 and can expect to recoup about 45.8 percent at resale, according to the report.

DON’T BLOW 30 K  ON A HOME OFFICE.  GET REAL.  KEEP THE ROOM A BEDROOM AND DON’T WASTE MONEY.

Backup power generator

“You see a backup generator and imagine all of the comforts no matter what the weather.

But potential buyers hailing from outside your local area may not share that vision. (And a handful of those who do might have watched too many zombie movies.)

On average, when homeowners have a heavy-duty backup power generator installed, they spend about $14,718, according to the report. Going with a slightly less expensive model or having a less complicated installation could cut the costs significantly, Alfano says.

Average amount of the price recovered at resale time: 48.5 percent.”

BULL.  PREPPERS KNOW BETTER.  YOU CAN’T PUT A PRICE ON SAFETY AND SURVIVAL.  GET BACK-UP POWER.  YOU CAN ALWAYS TAKE THE GENERATOR WITH YOU WHEN YOU MOVE.

Sunroom addition

Real estate agents will tell you … a brand-new room that has the word “sun” in it, it has to be great for resale value, right?

Not necessarily.

SUN ROOMS ARE HOT, HUMID AND HARD TO MODERATE THE HEAT IN.  THEY’RE GREAT FOR OLD PEOPLE WHO ARE ALWAYS COLD…OTHERWISE, DON’T WASTE THE MONEY.

Upscale master suite addition

For a super-deluxe master suite addition — which adds square footage and uses only top-dollar materials — the average cost is about $232,062, according to the report.

In years past, this project was “sort of a trend in vacation homes” that migrated to primary dwellings, Alfano says. Sellers can expect to recover about 52.7 percent at resale.

Your buyer can purchase a newer house with the same features as part of the original floor plan that “probably lays out better anyway,” says Loren Keim, author of “How to Sell Your Home in Any Market.”

So while the next buyer may appreciate your luxury accommodations (which could even tip their decision in your home’s favor), chances are they won’t want to pay the full tab for your remodel.

IF YOU DO THIS IN YOUR HOUSE AT THIS PRICE…YOU’RE NOT A PREPPER, YOU’RE AN IDIOT.

Bathroom addition

Unless you’re a hermit who never entertains, you’ve probably wished for an extra bathroom now and then.

But bathroom additions require serious coin. For a moderately outfitted addition with synthetic stone or plastic laminate surfaces, figure parting with about $21,695, according to the Remodeling report. Go upscale, with finishes like premium marble or fine tile, and you can easily spend in the neighborhood of $40,710.

Either way, you get about the same return: 53 cents on the dollar. “In the buyer’s mind, the additional bathroom isn’t worth that additional $20,000 to $40,000,” Keim says.

RE-WORK THE SPACE YOU HAVE TO ADD A POWDER ROOM OR A BATHROOM.  BE REALISTIC AND SMART.

Upscale garage addition

Instead of cleaning out the garage, how much would you pay to have a new one built from scratch?

This time, it would have all the organizational built-ins, and a durable, easy-to-clean floor to ensure it would never be messy again. And windows for natural light.

Oh yeah, and you could store a couple of cars in there, too.

The price tag for a top-of-the-line detached two-car with all the trimmings is about $90,053, according to the report. You can expect to recover about 53.6 percent of that when you sell.

DUMB, WASTEFUL, AND HEDONISTIC.  THIS REEKS OF MATERIALISM AND ANTI-PREPPER COMMON SENSE.  DON’T NEED TO TELL THIS TO YOU GUYS…YOU KNOW THIS IS A DUMB IDEA.

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Ep 094: Setting Up Projects for Effective Time Management

Ep 094_Project Management

Project Management is incredibly important when you don’t have a lot of time to work on your house. Set up trades to be there when you are and get them to work at the same time without being on top of each other. That allows for good project management. To improve efficiency, add a small job to do while you’re watching your trade guys doing their thing.

HINT: When working on old houses, DON’T SAND LEAD-BASED PAINT!!! That gets the lead airborne and can poison your kids/yourselves.

We worked hard this week and we played hard, too. I’m exhausted and ready to get back to the regular grind.

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House Prices Continue to Fall

It’s not getting any better, folks.

ARTICLE

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