I am very uneducated about the world of finance. I want to think you invest and leave it and compound it for years and that's that. I know this conservative thinking goes bye bye with y2k. I am wondering if anyone has any opinions about putting some money in annuities. I heard they are very safe havens during a depression. Any educated opinions on annuities and y2k? Thank you

-- a mom (showme@money.com), July 08, 1999

Answers

a,

stick with what you are comfortable with. i have found that there are a lot of people who talk a good game when it comes to finance but talk is all it is. the secret to accumulating wealth is to start young and add to your investment on a regular basis. if you are comfortable with pass book savings stick with it. i'd be willing to bet that you have socked away more money than a lot of other "experts" on this forum. the only thing i might suggest is that until y2k has passed you might consider renting a safety deposit box and putting your money there. once y2k has passed return to your old pass book savings. don't let fear of the unknown cause you to do something you are not comfortable

-- corrine l (corrine@iwaynet.net), July 08, 1999.

I agree with corrine

The lowest common denominator for personal finance is having enough food on the table to eat. Food storage ! After that your risk comfort level will determine your investment strategy. With the tidal wave of Y2k at our shores I am keeping my money as close as possible. Think "deep impact"

Once things dry out I'll see whats left standing and start over a new. Y2K will not end the world only rearrange the landscape.

-- Guns, Grub & Gold (The End@the World.com), July 08, 1999.

corrine is half right -- get your money the hell out before Y2K comes down. Or everyone else suddenly gets the "cash out" fever and beats you to what little cash there is!

As far as a safe deposit box in a bank -- FORGET IT! Remember, always remember:

... "What goverments cannot find, they cannot steal." ...

-- King of Spain (madrid@aol.com), July 08, 1999.

First rule of conservative financial planning is PAY OFF HIGH INTEREST RATE DEBT (credit cards, store cards, etc).

Second rule of conservative financial planning is CASH IN HAND; enough to see you through your bank being put into receivership (think S&L crisis where people were locked out of accessing their accounts for 6 to 9 months at a time).

Third rule of conservative financial planning is MINIMIZE RISK BY BUILDING A PORTFOLIO PYRAMID; see Andrew Tobias.

Forth rule of conservative financial planning is UNDERSTAND WHEN TO BUY AND WHEN TO SELL; simply staying in an investment for the long term is a mindless and expensive lesson in the fact that markets change. You have to 'know when to hold 'em' and 'know when to fold 'em'. To do this you must start educating yourself about economics. It is a lifetime adventure.

In my opinion with the high risk and the high stakes which we are exposed to it makes NO SENSE WHATEVER to be exposed to this present financial or economic environment.

Cash, preciou metal bullion, no debt, food. You can always get back in when things shake out. Otherwise you are risking everything.

-- ..- (dit@dot.dash), July 08, 1999.

Thanks for all your answers. I am wondering about the portfolio pyramid and all other past wisdom. Does one go with the past intelligent ways of investing or are we really on some totally different scheme. Does y2k investing follow any of the old tried and true rules?

-- a mom (showme@money.com), July 08, 1999.

Send it to me and I will take care of it for you. Going to Reno next week. They got a double or nothing table. I'll split the difference with you...if we win.

-- freeman (freeman@cali.com), July 08, 1999.

We are trying to preserve capital if it is at all possible. I wuld say split between Treasuries--or US savings bonds, which are easier to buy (you can buy up to $15,000 or $30,000 face value)--and CDs in a large bank and/or money market accounts. Keep some money at home and buy a lot of consumer items, if possible. Is there any security in any of this? No. It's a shot, but it's where I think the "smart money" will flow if they finally Get It.

-- Mara Wayne (MaraWayne@aol.com), July 09, 1999.