For almost twenty five years, Kent and I have been listening to all the mainstream financial gurus. We've been good little children and dutifully funded our retirement accounts by investing in mutual funds through 401-Ks and IRAs. We’ve continued through all the stock market highs and lows, beginning when we were married in our early twenties.
So where does it all go?
The last several years have been very frustrating. Every month our balance comes in the mail and it always seems to be smaller than the month before. A friend of Kent’s recently retired. He figured out that his pension is now worth less than the actual amount of money he paid into it over his career.
Now is the time to keep buying!
Yes, I know we're young enough that we don't need to panic about the latest stock market downturns. Even Dave Ramsey, who I generally agree with, says to chill out, that it will come back, and if we keep buying now when it's low then that money will compound as it comes back up and next thing you know, you’re Donald Trump! Blah blah blah. That's what ‘they' have been saying for twenty five years.
Look what's been happening around the world recently, things are really bad.
Who really knows how this will all shake out? Things are a mess like never before, and the politicians that got us here are no different than the ones before them. Do we really know what the future holds? Just because the stock market has come back in the past doesn’t mean it will come back again. There's a first for everything and there are no guarantees.
It's nice we're helping others get rich, though.
Like my brother says, “The CEOs at the companies we're investing in and all the mutual fund managers continue to get rich. While we watch our balance shrink, they get nice hefty bonuses and are living large!”
So I called Kent today and asked him to remind me how much of of his check each week goes into that little retirement pit. He told me and I said, “Let's at least cut it in half, this is ridiculous! What if all those financial books we've read have been wrong?” He said, “Kel, a lot of people are saying the same thing, to stick with it, and keep buying while it's low.”
And then it hit me like a ton of bricks…
What if the Financial Gurus Have Led Us Wrong Just Like the Conventional Diet Gurus Have?
Yes, there are a lot of top financial advisors saying to stick with the stock mutual funds, most of them actually. But they could also be dead wrong, just like the conventional diet gurus have been dead wrong for years as they've told us to avoid saturated fat like the plague!
What if we had listened to them?
We'd probably be feeling about twenty years older by now and taking a handful of medications, too.
So I don't know what we'll decide to do. My brother is seriously thinking of pulling out, too, and maybe rolling the dice with individual stocks. I think about all those people who have spent everything they've earned all these years, taken tons of vacations, and bought all the toys while we were saving. If the market keeps going backward and we get to retirement 
with little to show for all our years of saving, why did we bother? Why didn’t we just live it up like the others?
This month is very tight with college tuition due, our first flying-somewhere family vacation in 7 years, property taxes due, and on and on. You all know how that is. But as I'm paying bills this month, I'm wondering, “Why?” We could be using that money we're throwing away into the stock market to live a little better now and even more importantly, to give more to those in need.
Don't get me wrong, as Christians, Kent and I put our ultimate trust in God, and our goal in life isn't to be rich and never has been.
But that doesn't change the fact that He has given us resources to use wisely or not, and what if we've been listening to the wrong people all of these years? What if we're killing ourselves financially by listening to the mainstream financial gurus just as surely as we'd be killing ourselves physically if we were still listening to the mainstream diet gurus?
I know that many of you have problems much bigger than the ones I'm sharing…
For those reading who may be out of work, deep in debt, or struggling to put food on the table, what I'm talking about must seem totally unimportant. For all of you, I'm sorry to whine about this, and I hope that everyone who is able will make it a priority to financially help those around you who are in need.
But for anyone with a similar dilemma, I'd love to know what you think.
- How 5 of Dave Ramsey's money principles compare to these 5 Kitchen Kop Real Food principles
- Read more about healthy fats and the big saturated fat MYTH
- The Biggest Myth in Medical History!
Steve says
To most of the commenters–If you had only kept on with dollar cost averaging into low cost index mutual funds for the 7 years since this article you would have been in great financial shape in February 2017.
Tim Robinson says
Definitely wonder and question…
Jack Leishman says
Well, of course they have. Thanks to misinterpretations, false interpretations, and lack of interpretations………Adam Smith has been hugely misinterpreted, for the gain of a few, almost from the very beginning……..
kris says
Listen to that ‘feeling’. We are doing some things differently. I pulled my money from a large bank system to a local credit union. I just like to know my money is right there, and less tied to the international banking system. We are also investing the proceeds from (finally) selling our house and putting it into a solar system. I am investing in myself and my family. Apple trees, cider press, not gold- but things I can actually use! The solar system will pay for itself with in 7 yrs and then be putting cash in my pocket for its remaining 18 yrs of its expected lifespan. An internal rate of return of more than 8%!
Dalana says
It scares me too. We are big Dave Ramsey fans. Been out if debt for five years, but as far as investing goes, I’m scared. I’m scared of where our country is headed, I’m scared of the mind set of people in office, scared of what it will do to the stock market, scared of my savings in the bank even being safe from government hands. My only peace of mind comes from knowing God is ultimately in control, and if He thinks our country needs to be brought to its knee’s, then what will be will be.
Pam says
Kelly, actual licensed professionals in the financial world are not allowed to comment on something like this, or publish blogs or write articles for publication etc. IF we want to do that we have to go through a LONG process of compliance reviews and if we are very lucky what we wanted to say gets to see the light of day. Therefore, what I hope you do with this post is read between the lines and follow your gut.
Aly says
Just found this post and couldn’t agree more. I have been thinking of turning in IRA’s and eating the tax just to get the money out of the Wall St. Thugs hands! We REALLY need the money NOW. And who knows, but I think the future is going to be totally different. I believe the economy will collapse and something entirely new will take it’s place…and then what will we do with those IRA’s??
Tonya Scarborough says
Ever read, “Rich Dad, Poor Dad”? That’s a good one.
Commenter via Facebook says
I plan on living off the government since that is what they say I want. medicare, SS I’m good. **sarcasm**
Commenter via Facebook says
Our money is worth less with every passing year! We need to invest in things that hold and grow in value, like gold & guns.
Commenter via Facebook says
Start by getting this Economics pack!
Lavonne Hickl says
I’m sure it’s not a “what if” at this point. It seems to me that it began years ago. We took Jim Rogers’ advice and bought a farm…we’ve taken just about everything out of the “system” and have invested in real commodities…silver, gold, land and cattle. I know not everyone can “buy a farm”, but it’s nice to know we can “eat” our money if/when things fall apart!
Commenter via Facebook says
Check into Equity Trust – truly a self directed IRA acct – you can buy gold or real estate in your IRA.
Commenter via Facebook says
I dont think our generation will recover from this down turn in time to retire. our investments continue to shrink, and many of us are underwater in our homes.
Barbara Geatches says
Kelly,
I totally agree and think your analogy is an accurate one. The other thing I really struggle with, maybe even more than the amount of our investments we’ve lost, is what are those investments supporting. If the money is in a mutual fund or annuity, I’m confident that they contain investments to things I’m diametrically opposed to….things like big pharma, big agribusiness, processed food companies. My husband and I quit investing in “retirement” funds many years ago but the money that we had put in them previously is stuck there and I hate that by default it is helping companies that I would prefer go under.
Commenter via Facebook says
Yes yes yes. So wrong. We have been following DR for Alittle over a year. IMHO I always wonder how many people who follow an ancestral health lifestyle are in debt. It really makes me wonder. I don’t think debt matches up with this lifestyle either.
Commenter via Facebook says
We have been investing in real estate…cheap real estate since the market is so low right now. If you buy rentals you put a certain amount down up front (for example the last on we bought we needed $6000 for closing) but that’s all we’ll pay…our renters will pay the mortgage plus a little extra on that house. You do need to take care to get good renters and to always have a little set aside for replacing fridges, etc…
We also have the 401k and mutual funds, but like you said the balance keeps going down. At least the houses are tangible.
Commenter via Facebook says
Buy GOLD Kelly! The real, cold, hard, metal. It’s what the non-mainstream financial gurus have been recommending for years now.
Commenter via Facebook says
I think investing in real estate and buying gold is the best bet, or investing in a business that caters to the lower class/ poor. It seems that category is going to continue to do well thanks to all the entitlement programs in our future. Therefore real estate in those categories (buy and hold/rent) this is our strategy…
Commenter via Facebook says
Would love to know your thoughts afterward. We aren’t to the investing stage, but I can see the peculiarity of trusting someone else’s judgement blindly. It’s such a confusing topic too 🙁
Commenter via Facebook says
We’re in that “we have two college degrees and a masters, plus a house to pay off” category.” at the rate we’re going, we’ll be lucky to collect social security. Wishing you the best of luck!
Commenter via Facebook says
There are a whole lot of richies willing to do just about anything to maintain the status quo – i don’t think the economic system will end anytime soon. Maybe diversifying would ease your anxiety – how about buying some land with good soil, rental properties? population keeps growing and people will always need shelter.
Commenter via Facebook says
We have an account Executive at Fidelity Personal Investments that has been great at helping us thru these ups and downs. I really love that compay.
Commenter via Facebook says
I wish you much luck, as I don’t trust hardly anyone when it comes to finances. I have no idea if what they would recommend would be more to fatten their wallet than mine.
Commenter via Facebook says
No insight. Good luck, friend. I hope it goes well.
nancy says
#1 best thing to do is get your eternity squared away. Jesus said “I am the way the truth and the life, NO ONE comes to the Father but by me” – John 14:16 Jesus died to pay the penalty for my sins, for your sins and all peoples sins. We each have a choice to make and accept what He did as payment for our sins, humble ourselves and admit we need him in our life. Acts 4:12 says “Salvation is found in no one else, for there is no other name under heaven given to mankind by which we must be saved.” Read what Jesus said to Nicodemus in John chapter 3 (the famous “nick at night” passage :-))) There is heaven and hell and heaven will be for those who have put their faith and trust in Jesus Christ alone. Read Luke chapter 16:19-31
#2 – I just spoke with a good elderly male friend of mine who has spent years as a financial invester and planner….
He said Money Markets are more risky at this point than 401Ks. Yes 401Ks could be at risk due to government and not knowing what will happen. He did say November and December this year may be ok but come January, the bottom could fall out. I reduced my contribution to my 401K to the max of what my employer will contribute (went from 10% to 6%).
I will be looking to buying some silver, a hand gun and get hand gun training. Mike Adams spoke of some storeable organic superfoods I want to purchase. Also a water filter to filter any water.
Commenter via Facebook says
I cleared out the initail investment amount from my mutual funds & left what little is left of what it earned. I think of that as free money so if it tanks no real loss, but I want to hold on to what I have workd so hard for, not hand it over for the CEOs over inflated salary.
Commenter via Facebook says
Demographics control economies. As consumers retire, consumption decreases and the economy contracts. As the economy goes, so goes our portfolios. Its pretty ugly. There is not a single Western nation with a sustainable economy. Just don’t be the last guy holding treasury notes.
Commenter via Facebook says
I’ve had huge questions on our investments too… only investing what the company is matching right now, but I feel like our 401K is going to be nil far too soon…
Commenter via Facebook says
I’ve had huge questions on our investments too… only investing what the company is matching right now, but I feel like our 401K is going to be nil far too soon…
Commenter via Facebook says
Yes, they have. I cleared out my 401k’s, etc. years ago, took the tax hit, and invested it overseas. Got tired of seeing it LOSE money. There’s no way a 401k can keep up with the rate of inflation, even tax free, at the end of it, you will most likely lose money.
Crystal says
you might be interested in this:
https://www.slowmoney.org/
Maria says
Kelly,
A must-read book is – “It Ain’t Gonna Happen” by A Friend of Medjugorje (a Catholic author). He explains why the economy is not going to rebound, how we can prepare for the future, and how we can get back in alignment with God’s will for our lives. He also has excellent information on silver and why it is a great investment. This book will change your life!
Sheila says
As for me, I’m investing in children. No, seriously. I think, with the expiration of social security (which they’re saying will happen soon), we’re going to be returning to the old way of children caring for their parents. Once my parents can no longer work, our home will be open to them; hopefully at least one of our kids will feel the same about us. 😉
Colleen says
Ever wonder what would happen to the brokerage firms and the stock market if a whole bunch of us just decided one day to take our money and run???
JMR says
I’ve had the same thoughts you’ve had. And I don’t know what to do for the future. Mostly, I just reflect on 20 years of living within my means and saving for the future and think that I have been an idiot. The smart thing to do was to spend every dime I earned and max out the credit cards. But I still keep saving in my money market, 401(k) and Roth IRA even though it hasn’t earned me a dime of interest. I’m trying to put money in tangible things…food storage, real estate, etc…since I have no faith in the worth or future of the dollar.
Amy Floyd says
My husband and I have had the same discussions. We finally came to the conclusion that there are other ways to “prepare for our future” besides the one way that we’re TOLD to do so by the financial institutions. So we pulled out our money from our IRA account, which has not even rebounded to the level it was at 15 years ago when we stopped contributing when my husband became self-employed. We paid the penalty, and we have committed to using that money only on projects that will help us become self-sufficient. First up is a fence so that we can have goats and/or cows. Solar panels may be in our future as well.
L. says
Kelly, I haven’t read the other comments, so I don’t know if this has been mentioned already, but you might want to read Peter Schiff’s Little Book of Bull Moves in Bear Markets (or something like that). He suggests pulling out of the US market completely and investing overseas in non-dollar denominated stocks (that pay dividends) to protect ourselves from the inflation of the dollar.
I love Dave Ramsey, but I think he’s wrong about this.
Check out Euro-Pacific (Peter Schiff is EuroPac’s president) and goldmoney.com.
Mary P. says
Hi Kelly,
Thanks so much for this post. This is a topic that I care about very deeply because I see so many of my own peers feeling very uncertain about our financial futures, and I worry about the financial fate of the young people coming up. My husband and I have long been disgruntled with how our financial and political matters are being handled – or mishandled as the case seems to be. Anyway, what people don’t like to believe is that any money that you hand over to be invested is a gamble, literally. And the other thing that we tend to forget is that just as in the casino’s, when you play the markets the house ALWAYS wins. The only way to not lose anything is to stop playing the game, stop investing, in other words – don’t frequent the casinos. If you still want to play a little (investments, financial plans, lottery tickets, purchasing land or gold, whatever – they’re all the same), do so with only a portion of your assets, an amount that won’t be devastating if you lose it and then call it a day. We’ve read, and agree with, a lot of what John Bogle has written about finance and we use Vanguard services online.
Besides this we are politically active – encouraging our leaders to make the super wealthy and corporations pay their fair share, we are doing our best to try to encourage our leaders to change the rules on special interest lobbying and change the way political campaigns are being financed, we are working to ensure that the funds we put into SS and Medicare are preserved, we are doing what we can to support the middle class and working poor, we are trying to find ways of living locally and sustainably, we volunteer to help those in our community who need it, and we also have our fingers crossed – like everyone else – that we can hold out for the next couple of years till retirement…… but right now, nothing is certain, nothing is certain….. we are all in this boat together.
Heather@Food Ponderings says
What drives me the craziest about this whole mess is that it’s completely human created. Financial systems never needed to be this complicated. Ever. We did this to ourselves.
I’m for throwing the whole thing out, and building a system of yurts out on a big piece of land, having all of my friends come live with me, and raise our children in a commune.
Holly says
Hi Kelly!
I definitely think you’re on to something! Isn’t it wonderful that God is in control and promises to care for us always? Here is some encouragement for you:
“For this reason I say to you, do not be worried about your life, as to what you will eat or what you will drink; nor for your body, as to what you will put on. Is not life more than food, and the body more than clothing? Look at the birds of the air, that they do not sow, nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not worth much more than they? And who of you by being worried can add a single hour to his life? And why are you worried about clothing? Observe how the lilies of the field grow; they do not toil nor do they spin, yet I say to you that not even Solomon in all his glory clothed himself like one of these. But if God so clothes the grass of the field, which is alive today and tomorrow is thrown into the furnace, will He not much more clothe you? You of little faith! Do not worry then, saying, ‘What will we eat?’ or ‘What will we drink?’ or ‘What will we wear for clothing?’ For the Gentiles eagerly seek all these things; for your heavenly Father knows that you need all these things. But seek first His kingdom and His righteousness, and all these things will be added to you. ‘So do not worry about tomorrow; for tomorrow will care for itself. Each day has enough trouble of its own.’ ” Matthew 6:25-34
KitchenKop says
Hey all, we’re driving thru the mountains in CO right now on our vacation & I’m reading all these interesting comments. 🙂
One quick comment on buying gold. Not that this necessarily means anything, but Dave Ramsey said last week he’s SURE that in 10 years gold won’t be worth anything…
Kelly
Carrie says
I should mention that we’re going on the assumption that if the stock market never recovers, then the dollar will become practically worthless. Sort of an Armageddon scenario. So in other words, if it does recover, then you would indeed do well to invest money in stocks or mutual funds now. If it doesn’t recover, then the idea of “killing yourself” financially becomes meaningless, and you need to be prepared with something other than dollars.
This assumption could be wrong, of course. I wouldn’t mind seeing some other ideas on this. 🙂
Carrie says
You’re right, Kelly; in the past, the stock markets have always come back up, but there are no guarantees. Or I should say, for those of us who believe in Revelation, we are guaranteed that at some unknown point in the future, things will get very bad in an unprecedented way. Therefore, I think it’s a good idea to prepare for the worst-case scenario in as wise a way as possible.
What my husband and I have done is to discuss our priorities and how best to accomplish our goals. Our priority is to make sure that we and our children have a way to survive, even if our country faces a major disaster and all our hard-earned savings becomes worthless. We have been building up an emergency supply of food and water. We are also saving up to buy land, and then we plan to start building a small family farm to grow and raise most of our own food. (Other people have other ideas on how to ensure you can survive, such as stashing silver coins for trade.) Meanwhile, we are staying employed in the city and continuing to put money in retirement accounts in case the market does recover.
Ultimately, I recommend praying for guidance about this. Determine your priorities, research your options, and come up with a plan for how to use your resources. You and your husband will have to find the right balance of how to use your money. Best wishes!
AmandaonMaui says
My partner deals with all of the money stuff, and he says he’s had suspicions about it all. He actually doesn’t even have a retirement account set up. He’s been thinking about doing one (he’s 40 now) but isn’t sure about it. He keeps his money in things like mutual funds and savings accounts. We’ve also been saving up to buy a home. With the ups and downs of the market, we are hoping we don’t lose the ability to do that.
Trina Holden says
Great post, Kelly. I think you’re on the right track to be questioning mainstream and seeking the Lord for perhaps a new perspective on managing your resources in this season.
My husband and I are actively seeking to improve and learn and grow – especially in the area of finances – making and managing money well. We are in one of the leanest times financially as a couple since we got married – causing us to have to be very creative. One of the things we realized is that, rich or poor, we had an unhealthy mindset toward money. We’ve gleaned a lot from the wisdom in these books
Rich Dad, Poor Dad
Secrets of the Millionaire Mind
The Richest Man in Babylon
(sorry I don’t have time to hyperlink those for you!)
They are changing the whole way we think about money and giving us motivation and practical advice as we seek financial freedom for our family so we can meet our goal to serve the Lord without distraction or financial limitations.
We are also using what little time and resources we do have in this season to invest in educating ourselves on ways to make money. Yes, even the stock market. It’s not as risky if you know what you’re doing. We’re also learning about the world of investing in commercial real estate. There is so much opportunity and potential out there!
Judy Tsafrir MD @ Holistic Psychiatry says
I agree with Rebekah. I think we will look back upon this time with shock and disbelief at our current consumerism and wastefulness of resources. It will appear stunning. I also think that it is likely that people will form communities that share resources. Not everyone needs to have their own personal lawn mower or their own personal washer and dryer. It would make so much more sense if we shared and contributed to sustaining one another.
Rebekah says
This definitely is something I’ve been thinking about lately, although we don’t have any money invested. I just don’t trust ANYONE on TV anymore. A great book that I think anyone who thinks for themselves should read is Depletion And Abundance (it’s upstairs, so I can’t include the author’s name.) That book opened my eyes to how our economy is based on rampant consumerism, which is completely unsustainable. Once my husband graduates and gets a job (hopefully), I plan to invest in things that don’t lose value- land, a means of producing my own food, and durable goods. Once that is taken care of, if the economy hasn’t collapsed yet, I think I would possibly invest in gold, silver, or some other commodity that could be used to barter. In the meantime, I’m trying to learn how to garden (but we’re in the midst of an epic drought), and hoping to learn to can. Other old-fashioned skills will likely be needed.
Heather@Food Ponderings says
I’m not a Christian, but to me, investing in the stock market seems like gambling. I don’t buy lottery tickets and I don’t play the stock market. It’s too much of a risk. Connie is right about the conventional wisdom of moving money from stocks to bonds, and in this case, I think the CW is actually correct. For once.
Making money off money just seems wrong on so many levels.
Merry Lynn says
I know very little about the stock market (the whole idea behind the stock market has always made me uncomfortable), but just like everyone else, I am reading and researching what to do about the current financial crisis in our country and how to protect ourselves and our loved ones. Instead of trying to make sure you have SAVED enough and worrying about inflation and devaluation of the dollar, my husband and I are trying to EARN more by gettting a home-based business up to “wildly profitable” so that we won’t NEED Social Security or retirement funds. While many people chose to pour their resources into the stock market and then watch in dismay as it disappears on them, we have chosen instead to pour our resourses into several different home based business enterprises. It is true that we may not have any more to show for our efforts than the others but then again, maybe we will. As Kelly said, the experts have been wrong before. Another thing that I am starting to read about is the idea that instead of investing in stocks or bonds, or gold or silver, the suggestion is to invest in farmland! Not only would you have food for yourself but if food prices do indeed skyrocket…. It is definitely a direction I will be looking at and researching. I think being more self sufficient and less dependent on the system is going to be increasingly important as these days continue. In the Bible in Proverbs, it says, “The prudent man sees trouble coming and hides himself; the simple pass on and suffer for it.”
Flo says
I’m not against buying gold as a hedge, but we can’t afford it, for one thing. The other issue I have with it is who is in charge (I don’t trust any of them). In 1933, during the Great Depression, gold was confiscated by the government and replaced with Federal Reserve Notes. Owning gold, except for small exceptions, was made illegal. This was under the authority of the Gold Confiscation Act. That possibility plays out in my mind, too. Then you’d be back where you started with a few more dollars for awhile. I just didn’t mention it in my earlier post. I didn’t want to come across as too radical or like I was more paranoid than I already sounded.
Obviously you’ve hit a raw nerve here, Kelly!
Connie says
the conventional wisdom is do not leave your money in the stock market as you near retirement. The further away from retirement you are, the more you should be investing in stocks, but the closer you get the more you should be moving your money out of the stock market – which is very volatile – and moving it into more stable forms, like bonds… less risk so less gain but no loss.
Anyone who has a signifigant amount of their money in the stock market as they are nearing retirment age was not listening to conventional wisdom. They were playing the risks – gambling if you will – in hopes of getting more money.
You should find a finanical planner who understands real retirement planning.
(and they are right, if you can, now is the time to put more money in to your retirement fund. because when people start buying again – and they will – the price of the shares you own will go up and you will make money.)
Scott P. says
I think this is a great topic. I think you are wise in your assumption to not trust the mass media/financial advisors. Our banks/money system is as corrupt as it gets. The banking system and wall street own our congress and white house. They are the largest contributors to their campaign funds. Then, in return for their contributions, get to make favorable recommendations for the laws that are passed. There’s a reason the banks keep getting richer and are “too big too fail.” A great website with alot of information is http://www.zerohedge.com. It is a financial website written by a former wall street employee that is intent on exposing the corruption of wall street. It can get pretty technical, but it is easy to see the corruption and how we are each lied to on a daily basis.
Cathy F says
I’ve been noticing over the past ten years or so how OFTEN the “experts” are wrong. I’m about to crack the cover of a book titled “Wrong: Why Experts Keep Failing Us–And How to Know When Not to Trust Them” by David Freedman. It seems like whether it’s food, or “global warming,” or politics, or finances, we’re being misled on a regular basis and on a global scale.
The country’s financial mess seems to be on everybody’s mind lately. This week, my local Tea Party chapter hosted a gold and silver dealer from our area who talked about the devaluation of the dollar and the stock market dillema. The bottom line is that everyone should hold some percentage of their assets in gold. Gold is NOT an investment – it’s protection. Gold prices are soaring today, but next week or next year they could drop. The key is that gold reflects the value of money. When it’s high, you know the dollar’s worthless. Our money is not pegged to gold, but gold is pegged to the value of money– in other words, when you cash it in, you will get the full current value of that gold in cash. It’s a hedge against inflation.
People who are paying attention will put gold in their portfolio. One thing that is keeping the value of the dollar from crashing is the fact that it is currently the world’s reserve currency. If the World Bank decides to change that – and they’re talking about it – we will see an inflation like never before as countries dump the dollar right and left and the volume of available dollars skyrockets (the more dollars available, the less each dollar is worth.) When that happens, even the rich people will suffer (a little poetic justice), but so will you.
We can’t see the future. I, too, believe that God is in control, and I am in his care. But he gave us eyes, ears, and a brain for a reason; and who’s to say that the concern we feel isn’t his still small voice saying to us: “Pay attention…there are things you can do…”
Perhaps the wise thing to do is to put some of your money in gold and silver while it’s still feasable, keep an eye on the news, pay attention to global financial problems; and if/when the worst happens, you’ll be able to better weather the storm.
It’s important, however, to know your gold dealer – don’t buy from a broker or a big-name company who will charge you big fees. Get references, do research – there are frauds out there who will try to take advantage of you.
The worst thing we can do, however, is sit around on our behind and watch the walls tumble down.
Kelsey says
Take a look at gold’s track record for the past 2 centuries. 1.54% average return. So people that are REALLY paying attention won’t invest in something with such a lousy track record. Just because something is doing well right now, doesn’t mean it’s a good investment. It just means that everyone is scared right now and investing in things out of fear, not out of wisdom.
Sheila says
Except that it’s NOT an investment. You’re not trying to increase the value of what you have — you’re trying to keep it from being prey to inflation like paper money is. You’re not going to *make* money off of it, but you will be able to keep your money from disappearing.
The Table of Promise says
I think this is an excellent post.
I have never considered the parallel, but I think you might be onto something. While now is NOT the time to be buying Gold, you should at least look into it.
Janet says
Kelly, I too have been having that niggling feeling about the economy. Thanks for posting this. Gold seems to be an answer but not through the TV ads. Worldview Week-end with Brannon Howse is a great website.
He has as guy there who talks about gold. I really don’t understand how it all works. Maybe someone reading this can point us all to some resources.
Of course the utlimate resource is the Bible. God is in control.
Thanks again Kelly! I really like your site. I have been following you since the beginning and you have grown so much!
Linda says
Kelly, I also meant to add that you might want to look into buying gold and silver if you can. I have read that is always a good investment. Our dollar is worth less and less. I think one day it might be worthless, but gold and silver will always be worth it.
Heather@Food Ponderings says
Except that the prices of gold and silver fluctuate as much as the stock market does.
Kelsey says
DON’T ever buy gold or silver. They are one of the worst investments you can make. Gold and silver are never used as bartering tools in rough economic times – so if the dollar ever becomes “worthless”, like everyone is so paranoid about, we’ll be trading food and services, not using gold and silver. Gold has a horrible track record over the past two centuries, even though it’s doing well right now (which is only because people are so terrified of the economy – why would you want to invest in something out of fear? And if you ever WERE to invest in gold, why do it when it’s at it’s peak?? It doesn’t make any sense at all, if you think about it logically.) It really makes me nervous when I hear so many people talking about investing in gold. It’s just another bandwagon people are jumping on that they’ll regret later. I’m still going to save for retirement – what’s the alternative? Never retire? The thing you need to look for is a financial counselor that has the heart of a teacher, not a salesman. If you find one of those, they will take good care of you and will invest your money wisely – LOTS of people still have success in the stock market, but you won’t have success if you’re listening to the news all the time and living in fear. The stock market will continue to go up and down just as it always has – the world isn’t ending quite yet. I think everyone needs to take a deep breath and stop panicking, but that’s just my two cents…
Sheila says
I disagree with you. It’s not actually gold that’s been fluctuating — it’s the dollar. So I don’t think gold is “at its peak” — I think it will continue to increase in price as the dollar decreases in value. An ounce of gold still buys what it bought in Roman times, but it’s now worth an obscene number of *dollars* because the dollar is plummeting in value. This is mainly due to the government printing money to pay its debts.
My husband is into buying gold, but we haven’t been able to afford any. Instead, I’m focusing on my garden and other self-sufficiency measures, so that if we ever face runaway inflation and our money becomes worthless, we will be able to provide for ourselves without worrying about actual cash.
Heather@Food Ponderings says
Sheila, I highly disagree with you. Here’s the big problem. If it were just the value of gold, that would be one thing. But you need to take into account the price of PLATINUM, also. The price of gold and platinum are too close; gold even overtook platinum recently, which is BIZARRE and should not happen. Platinum should be valued much more than gold is, and the fact that it isn’t seems to really show just how volatile the worth of gold really is. The more people buy it, the higher the price is going to go. Gold operates the same as any supply and demand system.
Worse, the people who are going to suffer the most from this? The metalsmiths and jewelers will. They already are because unless they have tons of reserve cash, they can’t afford to buy the metal to make their work.
My husband is an artisan, metalsmith being one of his crafts. He is thankful he bought silver when he did because even that is going through the roof. I have friends who are jewelers who are suffering from this major uptick in gold prices.
Linda says
I wouldn’t call this whining, Kelly. As you can see it’s on a lot of peoples’ minds. The rich know how to stay rich while the rest of us try to make ends meet and wonder if we will be able to retire. I’m really not very trusting either of what the “talking heads” say. We also invest in stocks and my hubby says stay with it, but I’m not sure we’ll have anything to retire on. I think this feeling we all have is why the economy isn’t recovering. Hubby says without confidence in our govt. it won’t. Right now nobody believes anything they say. I also worry for my son’s future. He has one year of college left and I wonder what jobs are out there?
Colleen says
Hi Kelly! You are absolutely correct! We all need to be looking at things with a much more critical eye, especially now, and not just accept the status-quo of what the “powers that be” have been telling us for years. That advice just results in the rich getting richer and the poor getting poorer.
The recent news that the U.S. had been downgraded in status by Standard & Poor makes you question who is really in charge??? This is the same organization who said that all was well 5 years ago when the banks were close to bankrupt, were lending money to people who couldn’t pay and giving everyone a credit card! And those wonderful people who have the fate of the world in their hands at Standard & Poor cannot even be held accountable because they refuse to be named! It’s all very secretive. That alone makes me question who these people really are and what their agenda might really be.
I think it might be time to take a page out of my grandmother’s playbook and start hiding my money in the matress!
Genet says
I am thinking of buying Gold . . . . . ? Haven’t really decided. . . .
Teresa says
By the time we are able to draw out our own Social Security, there isn’t going to be any for us so I think the same applys for investing.. Trust God is the only way to get thru..
Peggy says
Something is afoot, that’s for certain. Rebel that I am, when it came time to teach high school Economics in our homeschool, I didn’t go the “normal” route and teach only Keynesian economics as is being taught everywhere (and is our current system, which seeks to allow booms and correct for busts), but I taught it instead side-by-side with Austrian (which seeks to avoid booms so external corrections are less necessary.) Suddenly I could understand economic theory, something the talking heads coming from the electronic box always made too difficult.
We are watching treasury bills for forecasting right now, and the commercial real estate market (the next “boom” scheduled to bust.) “How an Economy Grows and Why It Crashes” by Peter and Andrew Schiff is an enjoyable, easy, and VERY educational read.
Personally, after years of being un- and underemployed, we have very little retirement savings. Fortunately, neither hubby nor I are in physically demanding jobs, so I don’t anticipate either of us will “retire” for many, many years (although we are only about 10 away from “retirement” age.)
Amanda says
My husband and I have been thinking the same thoughts, but we can’t do anything about the money we already have in his 401k – so it’s either invest or don’t invest (we are in our late 20’s). I know you live in GR – you might like Dan Celia of Financial Issues on AFR (91.7). I think he’s on at 10:00 and he has been right on target as far as the economy. He also is a Christian and gives suggestions for investing. Just a thought!
KP says
I think you hit the nail on the head. Mainstream financial gurus are just like mainstream nutrition gurus. OR at the very best, they don’t know and are just guessing. I think we should live a little more in the present with our finances. I look at my parents who were terrible with saving money. They owe more on their house than when they first bought it because of taking out equity loans. They have saved nothing. If they have money, they have an intense urge to spend it and they do. I always wonder how in the world they would survive financially, but somehow they do. Year after year, they still live in their house, still have food to eat and clothes to wear. And they can still afford social time and some fun time. Now, I would not want to live day to day financially like that, but perhaps we do not need to worry about saving so much.
Marta says
Yes, this is such a difficult subject. I don’t know much about the stock market and so for. I think it’s also very hard to obtain some objective hard data from anyone. For example, I would like to see statistics on the average return people actually get in this country on the money they invested. I’ve seen many numbers and charts, but they are usually assumptions. Not sure where I could get something showing what is actually happening. Wouldn’t it be nice to have an organization like WAPF for financial things? 🙂
So I don’t totally trust the mainstream advice, but don’t know what are the alternatives. How can we actually save for retirement??? Average saving account interest is way lower than inflation. CDs and bonds will only take you so far… I guess I’m not much help either.
Heather M says
Your intuition, your gut wrenching feeling, is telling you something. The Lord gave us that for a reason. As others have said, “Take it to the Lord”. He is our source of everything. Experts are human, they will, have and do make mistakes, as you know. Just because the herd goes one way does not mean it is the right way. Take heed of your gut feeling and bring it to the Lord in pray!!!
Judy Tsafrir MD @ Holistic Psychiatry says
Dear Kelly,
I think that today more than ever before, that the “conventional wisdom” about so many things are controlled by powerful special interests groups, and that political office is bought by through donations in exchange for a promise to support a particular policy that lines the pocket the donor. The average American watches 5 hours of television a day and gets most of their news through that medium. Television time is extremely expensive, and thus in order to win an election, a candidate needs massive funding. He/she gets that funding by making promises to special interest groups to promote their agenda. The media is also complicit by making sensationalism a top priority and by taking no position in the face of blatant distortions of reality, such as giving equal air time to the position that human beings are not responsible for the climate change, that is creating a global catastrophe. This is simply unconscionable.
Just as big agra business has determined the 2010 Guidelines for the USDA Food Pyramid, and tobacco companies paid huge sums of money to try and convince the public that the link scientists were making between smoking and cancer was non existent, the big lobbies for coal and oil are paying huge sums of money to cast doubt about the reality of climate change. I feel certain that similar forces are at work regarding Wall Street, though I have a much less clear understanding about the mechanisms and forces at play. This is all to say that conventional wisdom is created by those who stand to gain by the “truth” being portrayed in a particular way. I would not rely on anything that is based upon “business as usual”. We are living in times where that is simply not the case.
That being said, climate change is a huge reality that is not going to go away. The natural disasters that will ensue are going to result in massive food shortages, with the result that commodity prices are going to rise according to the law of supply and demand. If you were going to invest in a particular sector, that is what I believe makes sense. Any kind of logic that relies upon the inevitability of the consequences of climate change, and investments that reflect that sensibility, are sure to profit.
I am glad that you wrote about this topic. It resonates with what is on my mind in a big way, about the corruption in our current society and how one is foolish to rely on any “conventional wisdom” about anything given the way that truth is manipulated and purchased by those in power.
Katy~TheCountryBlossom says
We don’t keep any money in stocks etc. The up and down of the market doesn’t really bother me much. I hope the best for you though! I am so glad that your ultimate trust is in God…because He is the only secure and never-wavering thing we can hold onto!!! 🙂
Flo says
I don’t have any words of wisdom on this, Kelly, but I DO have that same sick gut feeling you have. I know Dave Ramsey is still confident in the market, longterm, but somehow that still doesn’t give me confidence. I listen to a lot of talk radio and they keep advertising gold. I’m not certain that is the answer, either. I’m not even sure the FDIC backing of our bank funds is legit, anymore. I used to laugh at the MSM (Main Stream Media) when it seemed to be trying to talk down the economy when it really wasn’t doing badly. Now they’re doing just the opposite and I don’t believe them now, either. (I sound pretty paranoid, don’t I?)
Thank goodness GOD IS in control! One good thing about all this uncertainty is that we start to look for ultimate truth and its source — God. Unfortunately, when things are going well, many of us aren’t as interested in Him. I think He has our attention now like He hasn’t in a long time.
I thank you, too, for broaching this subject! I think it’s important to talk about.
Liz Ferguson says
Kelly… I with you in this dillema. Lately, I keep going back to Jesus telling us to consider the fig tree… He says “From the fig tree learn its lesson: as soon as its branch becomes tender and puts out its leaves, you know that summer is near.” He tells us to look at the signs of the times to know what will happen next. I need to do more study on this (much more) but I think it’s appropriate to look around us and consider what is happening to better understand what will happen next. Thanks for raising this issue. 🙂
Michael says
The mainstream guys have been wrong for a long time:
Dave Ramsey versus Peter Schiff: https://su.pr/2qKWxZ
Jim Cramer on John Stewart: https://su.pr/2RSzL7
You follow the mainstream at your own peril.
KitchenKop says
Those clips were very interesting! Depressing, scary and confusing, but interesting.
BTW, I couldn’t get the links to work as they were, I had to take the StumbleUpon part of the link out and then could watch the movies.
Thanks Michael,
Kel
KitchenKop says
Michael, thanks for tweeting me with this link: http://www.garynorth.com/public/8447.cfm
I still don’t know enough to know WHO is right, but that’s the show I heard on Dave Ramsey recently (must have been a rerun) and it’s good to have ALL this information before people decide what to do with their money.
Kelly
Leanne says
Listening to Dave Ramsey predict what the market will do is like asking a pediatrician for breastfeeding advice. Dave built his empire on making small and middle income people financially independent: pay off your debts, insure yourself with term, invest with regular installments into mutual funds. That works.
If you look at the market trend line from the very start of the market, it always goes up. It may dip down for a few years, even a decade, but it always recovers and grows. The market is like the body when treated well: it’s likes homogeneity. When it is failing, it pivots until it recovers.
If you want advice as an average joe on what to do with your money, Dave Ramsey’s principles will always give you results. If you want to predict the health of the market as a whole at any given point in the near-ish future, Schiff is your guy (he’s the pediatrician, Dave would be a Lactation Consultant in my original analogy).
Mutual funds are a long term game. Mutual funds are a 20-40 year game. If you keep your funds in for another 20 years, they WILL go up, unless the US in its entirety collapses. And if that’s the case, only the guy with the money stashed in the mattress wins. But, if the market chugs along, that guy will never have made a gain. And, in fact, the worth of his physical cash will be far less than it was the day he stashed it.
And forget banks. I wouldn’t trust anything by my month to month, season to season kind of money in there.
The real question isn’t whether the reduce debt/insure/invest strategy is flawed, it’s when the frak are you Americans going to start standing up for yourselves and pull those banking asshats and gov’t stooges out of their offices and create a system that really is a government for by and of the people. Right now, your gov’t is treating middle and low income families like oil or trees or cattle: a resource to exploit for profit.
Lori says
We do live in very troubles times so we just have to keep asking God for wisdom….He tells us to ask, and He will give it to us. Then we just need to kep trusting Him…He has it all under control…We sure don’t!
Jill says
I hear you, Kelly! I’ve sort of wondered the same thing–it feels so gamble-y doesn’t it? I don’t know a lot about finance or the stock market, but we invested a lot of money after we sold our house and moved over seas (for a year) in mutual funds and stocks, based on the recommendations of a financial advisor. We lost a HUGE amount of it! Makes me cringe and shudder!
Since then my husband has been self-educating himself about how to wisely choose and invest in stocks. Two of the books he purchased are A Random Walk Down Wall Street by Burton G. Malkiel (sort of an investment classic) and The Intelligent Investor by Benjamin Graham. We have not had much to work with, but we have invested a small amount in a few stocks based on what he learned (analyzing the financial health of the companies) and we have done VERY well with them! If we would have had more to work with, we’d have more to show for it now! I think it pays to learn how to do it yourself, rather than trust the word of a financial advisor who may or may not know what they are doing or care that much.
Other than that, I am wanting to become a little more self-sufficient and get back into gardening, canning, etc…. The economy is a little too scary for me!