Economic Advisory Committee

So, I've been meeting with my economic advisors here and we have had quite interesting discussions regarding the current situation in the worlds of finance, politics, science and technology. When the discussion moves to the problems, it seems always end up on finance side of things. The problems are onerous and the solutions are are all over the map. What to do? Ultimately, each one has to take care of himself and those closest to him is what it boils down to. There is an element of hopelessness in that the individual appears to have little say in these matters at the national and worldwide level, so one is left to ponder ways to survive and maybe even prosper in these times of uncertainty.
My friends here have varied opinions on how to manage their wealth and personal finances. Some believe the financial world's weather is souring and an imminent economic storm lies just off the coast. Those so disposed are fearful and suggest keeping their money under the mattress. One particular person has all his assests in cash somewhere. No investments or securities other than his home which is paid for. This person happens to be retired and collecting social security. Another says to divide one's liquid wealth into 4 equal piles; treasuries, TIPS to be exact, gold either ETFs or the real thing (he also keeps some silver dollars), overseas emerging markets (to the exclusion of China), and an equal amount of cash. This person day trades a million plus dollars to earn his living. Another relies on a certified financial advisor to manage his wealth. His investments are mainly bonds, about 60% and the rest a mix of growth and dividend stocks. He gets a check monthly and seems to be doing allright after retiring early and selling his California bay area home and moving out of state. Another manages his own retirement account, relying on advise from a friend who happens to be a finance guy of sorts. He admits it is a lot of work and he is tiring of the daily grind of watching the markets continually. He never worried that much about it while he was working. managing your own money is harder than you think it seems. There might be a lot to be said for going to work for someone else and doing some mindless task for a paycheck. For some of us however, that is not challenging enough. Another has enough real estate holding that he plans to earn enough from those properties and another amount from dividend stocks that he will purchase that should earn him about $50,000 a year or so. And as for me, well I figured I'd work 'til I'm 70. I think I'd be bored if I stayed home all the time. I may change jobs to keep it interesting, but more likely I will figure out a way to retire earlier than later. Which brings me to my current readings.
I never was very interested in economics or money or investing for that matter. I learned early that finding work was our lot in life and we would labor for a long time. No one ever taught me about money or how to manage or even increase it. My dad was a great provider, but money managed to support his hobbies and vacations and pay the bills, and I never recall any conversations around the dinner table regarding finances. So I followed suit. I was fortunate to find decent work with a large company and gained the benefits of medical insurance and 401k without realizing what a blessing I was given. Seeing the difficulty of the current generation of twenty and thirty somethings struggling to find good paying jobs makes me grateful to be in the position I am in. Now I realize that maybe it would have been advantageous to do a little research into how money makes the world go 'round and so I have embarked on a little journey to learn something about how the economy works and how maybe I can increase my wealth along the way. The way I figure, if you work in a certain trade, you likely get a deep discount on the products or services your job creates. If it is involved in selling some product, then you have an insiders track on that thing and so usually can save a ton of money when you find yourself in need of that same item. I was a car mechanic, so I pick up cars cheap, drive 'em a long time and spend very little on their aqiusition and maintenance as a result. I also learned how to build houses along the way and so adding onto my house was no big deal and it saved me a lot of money. So now I figure I should study money. So I have been picking up books that have been informative and thought I would share them with you. Along with those, there are some very good commentators on the local radio station KDOW 1220 AM. Hopefully my next posting will be beneficial for those finding this blog. I'll post the book titles and maybe a short review and hopefully we all can become more educated together and perhaps begin to help fix this mess we are in. All together now.