Lyle's Blog

Life is a risky business. Even the best conditions can be affected by a black swan event. The coronavirus pandemic is an example. Out of the blue, our future becomes clouded; we are no longer so sure of what lies ahead. One thing is for certain, it points to the total inadequacy of the preparedness of most people.

The scramble for toilet paper, beans, rice, etc. demonstrates how assured we have been concerning the government’s ability to take care of us. Maybe now we’ll be more inclined to realize that in the end, it is ourselves we must rely on. It’s up to us to stock our shelves, keep the tank filled over half, and engage our neighbors so we know that we have each other’s backs.

Endurables are investments that simply endure time. They are physical. They’re not made of paper or promises. They include silver, gold, true art, collectible cars, and anything you have that has a useful purpose. At the moment the only paper asset that has huge value is the American dollar and it should always be the last standing paper asset you keep. Many bargains are to be had when others need dollars or when you want to help others buy food and sundries.

Keeping ten to twenty percent of your wealth in silver and gold is probably wise. In tough times our stocks go down and gold goes up. The further advantage of gold is portability. A gold necklace or coin is worth a lot and takes up little room on your person. A Rolex watch is easily carried across state lines having the advantage of a copious supply of imitators therefore wearing one draws little attention especially if you’re a blue-collar type.

In the end, your most valuable possession is your soul. The apostles were excited to tell Jesus that they could cast out demons and heal the sick. Jesus replied that what was really important is this: is your name written in the Lamb’s book of life?

A large retirement account, freedom to travel, health, and so much else we have are blessings. We should be thankful. But let’s not build bigger barns, bigger houses, or have so much that may get rusty or stolen.

We should put our treasure in heaven because wherever our treasure is, our heart is there too. Love God with all your heart, all your treasure. Love of God and His love for us is the only thing that’s everlasting or endurable.

Diversify, that’s what we’re all encouraged to do. In the broker’s mind, that means a certain mix of equities, mutual funds, etc. with a two percent allocation for cash just in case you need to throw a pizza party.

Of course, some diversification of your portfolio is wise, but in my mind, it is best if you pick companies that are well managed, use debt well, and are an essential part of the economy. But stocks and such should only be a part of your saving goal

Real estate has always been a way to build wealth. If you’re cut out to be a landlord, go for it; just be sure you are. If that’s the route you take I would consider buying upper scale property. It’s hard for most to come up with the rent and therefore people with better incomes are more able to be dependable in doing so.

Purchasing land, especially in areas where businesses build is a better approach. It shouldn’t be zoned commercial as that drives up the taxes. Land goes up in value more than the building that sits on it. It also has the advantage of not needing painting, plumbing, and the rest of the repairs that come with building ownership. I live in Phoenix. When the boom hit, houses went up fifty percent; land went up five times that. Accessible dirt is where it is at.

Next time we’ll think of what to have when the bottom falls out of the bucket.