Multi Currency Diversification

by | May 21, 2008 | Archives

Multi Currency Diversification grows in importance as noted in a
recent message entitled Multi Currency Investment Forces.

See enjoyable ways to fight inflation in places like this below.


That multi currency message looked at why Merri and I are considering taking our Social Security now rather than at age 70 as we had originally planned…due to inflation.

Our son, a Gen Xer sent me this note which added to the sense of taking Social Security early.

He wrote:

“Dad, another reason to take your Social Security now and invest in real estate… get it while you can!… USA as always has done a good job in following this story.
Apparently we’re now up to $61+ trillion debt!”

The story Jake referred to by Dennis Cauchon was in the May 19,  USA TODAY.

The title is “Taxpayers’ bill leaps by trillions”.

The article begins:

“The federal government’s long-term financial obligations grew by $2.5 trillion last year, a reflection of the mushrooming cost of Medicare and Social Security benefits as more baby boomers reach retirement. That’s double the red ink of a year earlier.

“When obligations of state and local governments are added (to Federal), the total rises to $61.7 trillion, or $531,472 per household.”

The article explained that this debt is more than four times what Americans owe in personal debt such as mortgages.  The breakdown for this added one year debt is:

Medicare:  $1.2 trillion.
Social Security:  $900 billion.
Civil servant retirement:  $106 billion.
Veteran benefits:  $34 billion.

So what is the solution?  Let our kids take care of us?

Another USA TODAY article one day later (May 20, 2008) by Lynn O’Shaughnessy entitled  “Retirement: Gen X faces much tougher future than boomers” sugests that our children have enough problems with their own finances without having to pay off boomer created debt.

The article says:

“For years, experts have warned that too many of the USA’s 79 million baby boomers aren’t financially ready for their coming retirements. Yet, if the boomers have had it hard, it’s nothing compared with those next in line: Generation X — people such as the Shorts. The Gen Xers, generally defined as those born from 1965 through 1980 — now 27 to 43 years old — have even less assurance than the boomers of receiving company pensions and projected Social Security benefits.”

The article tells of one couple, an attorney and his wife pursuing an MBA at Johns Hopkins University, well educated, clearly upper middle class, can only afford one car and rent only a 500-square-foot studio apartment.  The article tells how over 33% of the attorney’s take-home pay is taken by college and law-school debt. Children are unaffordable. Retirement savings have barely begun.

These problems and this huge growing debt will continue to put downward pressure in the dollar and upwards pressure on the cost of gas, food and overall inflation.

So what is the solution? Buy inflation fighting assets…commodities, equities and real estate?

This is why it makes even more sense to take Social Security and use it to borrow for buying real estate.

Now I have to add a caveat.  Do not use other assets as collateral for the  borrowing  beyond Social Security.  This is just in case.Social Security may not  always be paid.

This is also why you should know more about multi currency investing. See our Multi Currency Portfolios Course.

This is not a bad picture though.  Many will suffer from this debt yes.  However those who prepare now and fight inflation can prosper.

These are wonderful times with with amenities and facilities that n other generation has ever enjoyed.  Change is coming but always has and always will.  And every change has created something better for those who are wiling to change and enjoy.

I look forward to examining, sharing and enjoying this change with you.


This is also why I am over weighting (22%) of my portfolio in Ecuador real estate.

You may also want to attend an Ecuador real estate course.

See dates for our other Ecuador courses and tours:

Coastal Real Estate Tour

Here is our last coastal tour group looking at an Ecuador coastal property in the $100,000 range.


With this view.


This living room.


This back yard


Plus the coastaltour includes a FREE Quito real estate tour. Here is one of the Quito properties for sale we will see.


This house is offered at $250,000 and has 10 apartments, three patios and
three shops, The building is 80 years old with a trapiche next door (still) and is 8,000 square feet of construction.  Here is an interior shot.


Super Thinking + Spanish Course

Imbabura Real Estate Tour

We will see many Imbabura properties but take time for shopping as well.  Here is the last tour visiting El Condo one of our favorite places to get hand made clothing and carpets.


Ecuador Shaman Tour

Ecuador Import Export Course

See discounts for attending more than one course.