Asset Safety Checklist

While acknowledging that NO ONE knows the future, following are a number of important events whose occurrence over the next few years have been widely predicted. To each of these possible developments, we have attached our opinion of the likelihood that it will occur – while listing some defensive actions you can take.

This is a dynamic list that changes as new developments occur and new information becomes available. Detailed data and reference material for each item below has been, or is being, developed and maintained for Family Business Office clients. The data itself is also available on a subscription basis.

1. Increasing vandalism/theft by desperate people attempting to survive – near certainty

• Take steps to prevent identity theft.
• Increase home security and/or insurance coverage.
• Hide valuable items.
• Exercise caution in your auto and out in public. Get self-defense training.
• Know how to operate the firearms that you own. Stock up on ammunition.
• Stay away from major metropolitan areas, to the extent practical.

2. Collapse in purchasing power of the dollar – highly likely

• Allocate a substantial portion of investment assets into gold and silver.
• Move at least 50% of your fixed income investments into selected foreign currencies.

3. Widespread bank and brokerage failures –likely

• Keep bank balances correctly-titled and within FDIC coverage limits.
• Run the ‘Texas ratio’ for your bank; consider moving assets to a stable community bank.
• Put brokerage firm holdings – stocks and bonds – in ‘book’ (your) name.
• Be prepared for the possible need to remove your money entirely.

4. Collapse of the current global financial system as we know it – likely

• Physically hold at least 33% of your investible assets in gold and/or silver bullion.
• Keep at least one bag of 90% (pre-1965) US silver coins in your physical possession.
• Research and follow ideas for safely storing bullion.
• Stockpile barterable items.

5. Nationwide ‘bank holiday’ shutdown – possible

• Keep enough cash on hand to buy gasoline and food for one to three months.

6. Loss of the power grid, due to electro-magnetic pulse or societal decay – possible

• Stockpile food, water, medical and emergency supplies to last 3 months.
• Prepare to live for months, or even years, without electrical power or conveniences.
• Identify ‘safer’ areas where you would be welcome, and prepare to go there on short notice.

7. Government attempts to seize or heavily tax gold possession – possible

• Conduct transactions so as to minimize reporting and record keeping.
• Consider offshore storage programs.

8. Government confiscation of retirement plans – possible

• Accelerate IRA distributions; invest the proceeds in real assets.
• Take the maximum loan from your 401(k).
• Move IRA assets to a self-directed plan that holds a special LLC.

9. Unemployment exceeding 40% by unofficial count (currently 23%) – possible

• Hold onto your job as long as you can. Build a 12 month financial reserve as a buffer.
• Be prepared to cash out of your business.
• Develop/enhance barterable skills.

10. Physical pole shift or global nuclear war –highly unlikely

revised October 2011 – Wayne A. Peterson, Transformation Planner