Irony of ironies, after 3 years of looking I finally find an actual full-time job. It's been nothing but rollover part-times for what seems like forever. I just hope this all holds together til October, by then I would be debt free, have some cash saved up, and be living on a rent free property. If I get stuck back on part-time I could muddle through.

Worst case scenario I bug out to family land away from the city, live off the land with redneck family and ex-cop uncle with his tons of guns and ammo. I'm now fairly well studied on local wild edibles and know where and when to go looking for them. We've also got a pond stocked with fish and loads of squirrels.

But seriously, this **** better not all fall apart right when I get my dream job.

A missing category from Ten Things 2011

The MF-Global fraud signaled that the brokers are not to be trusted. They can speculate for their own account with investor's money.

MF-Global got to use their customers funds through rehypothecation, a part of the standard margin agreement.

Its "heads I win, tails taxpayers lose", given that TBTF is the underlying principle.

To combat this, while using the "stock market system", I've spread my assets across several brokerage firms. Each is under the SIPC limits.

Any margin accounts have been shutdown. Re-hypothecation could be fatal for my assets.

A single broker's failure would sting, but it would not be fatal.

I don't have transparency into the broker's risk model. I can only spread my assets across several in the hopes that a majority stay solvent.

This should be an imperative in any Ten Things 2011 posting.

Hope this helps.

Quote:

Worst case scenario I bug out to family land away from the city, live off the land with redneck family and ex-cop uncle with his tons of guns and ammo.

It's gonna get pretty crowded at his place I bet. This redneck uncle like that?

KD's analysis of our irrational reliance on deficit spending is clear. But a discussion of alternatives that would not lead to a massive increase in FBT stamps and rioting is the next step. Yes, a few elite rich can escape to their armed hideaways, but the real consequences to millions of unprotected young, poor and elderly can't be underestimated.

Jota,

If all of the family showed up on the land that is split ownership between all of us it would be about 15 people on 40 acres. That would include an exarmy/cop, a nurse, a mechanic, an outdoorsman, a farmer, an electrician, a veterinarian, a forager, a physicist, a chef and then some general laborers (because their current profession is useless in survival mode). There would be enough guns and ammo to arm everyone. For a family that is on good terms with each other, I'd say that's as good as it can get if TSHTF. Certainly better than being anywhere near the big city.

That's about the best you can hope for. It's tough to think about, but lots of rats will be trying to climb onto a couple of floating logs.

dont know why you guys worry about the mortgage when the **** hits the fan...just stop paying...the banks wont be around to repo it and you will have cash in your hand to buy stuff you need to live

Quote:

The reason the boomers can't grasp what we here understand is because "credit" fueling rising asset prices (cars, homes, stocks) is all they know. It was there entire life.

Ignorance of our economic reality is not a generational thing.

I'm a boomer and I remember 'before'. No one under age 40 or so remembers that.

I'm a boomer.

I never joined the debt party.

I have some preps, some guns, and think the world is going to hell in a handbasket, have no debt and am generally well positioned for what is likely to come.

It's not all of any generation, it's those who don't want to see reality because it doesn't agree with what they want.

Ducarius wrote..

If all of the family showed up on the land that is split ownership between all of us it would be about 15 people on 40 acres. ...

Dad? Dad??

Sadly it is impossible to have any reserves when one's income is 87% less than it was a few years ago. It has been a hand-to-mouth existence for a number of years now. It's too late to have a plan. It's going to be a reactive rather than a proactive situation when the SHTF.

yippee ki yay! recovery summer 2012 is right around the corner!

Quote:

...it's those who don't want to see reality because it doesn't agree with what they want.

Swing,

That's it exactly.

Reality is a four-letter word these days.

Hi Gen and everyone. I've been a longtime reader of the Ticker and want to say thanks for the articles and discussion over the last couple years; it has been greatly beneficial to me. I worked in office administration in the financial services industry after college but just could not in good conscience continue in it as I continued reading the Ticker. I shared my new knowledge with my boss and we had many long discussions about the reality of the state of events. He was a financial advisor and has since left the industry.

I have a question for Gen and all of you about what I could do to better my situation for the collapse. I'll just be blunt with my finances. I am a 24 year-old swf. I was naïve and got suckered into the college ponzi. I graduated a couple of years ago and currently have $22k in student loans (I am ashamed to say how much it was originally).

I am living a few hours away from my family. I am a high school teacher and don't have any debt except my student loans (no car note, credit cards, etc). I have $12k in a savings acct at a local CU. My question is, should I use some of my savings to try to pay off my debt as much as I can? I am very aware that my student loan interest is higher than the interest I am getting at the CU, but I am hesitant to make this move because I want to have enough money for living expenses saved up like Gen recommended should I lose my job. I'm also hesitant because if the collapse comes in a few months, the debt still won't be paid off even if I did make that move.

I appreciate the advice. It helps to bounce ideas off like minds. Most people I try to talk to think I am off my rocker.

Kat:
I might be in the minority right now but my old man use to say: "Pay yourself first and***** on the rest"

I say keep the 12k and keep saving, pay for your retirement funds, then pay the immediate bills (electric, phone, credit card etc), then mortgage, then Student Loan. If you have money left over, then go after any debt. But Remember to pay yourself first!

I would switch the order, save until you can last at least year without a job (not necessarily a year's income, or even a year of current expenses, think about what you'd need if you cut way back).

If you are being matched for retirement funds by your employer, only then would I prioritize that over paying off the student loans. That's free money you don't want to leave on the table.

There is some potential tax benefit to retirement funds without matching, but that's such a long-term vision, it assumes you'll never need that money until you retire and no changes in the tax code, both of which are probably bad assumptions given your age and lack of savings/liquid assets.

Just my 2 cents.

Katniss: Welcome aboard.

katniss wrote..

I graduated a couple of years ago and currently have $22k in student loans

I would recommend that you pursue some kind of teaching position that defers or forgives these loans.

There are some nice areas in SE TN that would qualify for this. They are also in regions of the South that I've considered useful as a retreat. Look for areas west of Chattanooga; they might be in demand.

Embrace your teaching position, but be aware that there are forgiveness clauses in your student debt that would cause much of it to be written off in the right circumstances. Seek out those circumstances in a way that boosts your future possibilities.

I'm from a small town in NE Alabama, geographically close to your location. I'm seeking to enhance community relations there as a means of coping with what lies ahead.

You have a head start on me, so use it!

Marvin: Where at NE alabama? I lived on sand mountain for quite a few years.

Asimov wrote..

Where at NE alabama?

You should know it: Guntersville.

Much of my family still lives in the vicinity.

I went to school in Nashville, which is why I'm kinda partial to TN.

Yup, know it pretty decently.

You may or may not recognize the little hole in the road where I grew up. We had a 4 way stop and a convenience store! Macedonia. Very quiet place we had, our property butted up against a several thousand acre hunting club that butted up against bucks pocket state park.

Went to school in section. (This is just up on the mountain from scottsboro, if that helps. :)

I was born in NE tennessee, mom got transfered to bellefonte nuclear plant when I was in... 4th grade. Moved back after graduation. I like it better here - not as hot.

I recognize Buck's Pocket, as well as the surrounding territory. Dont recognize Macedonia.

I used to jump off Short Creek Falls as a kid; all kids are immortal. Later I saw the big rocks one dry summer. I'm very glad I missed them. Could have been tragic.

Macedonia doesn't (or didn't) even have a postal code, we used Section's zip, so it's not a surprise that you don't recognize it. :)

It's the closest named... Well, don't want to call it town, but named area at the top of buck's pocket. Langston is (I believe) the closest at the bottom.

Kat, what is the interest rate and term on your student loan? Also, after you take care of all your monthly expenses, how much left over do you have to do with what you want, i.e. save/invest/pay down debt?

So far with the assumptions I've already made about your situation, I'm of the opinion that you should save 2/3 of what is available. I would take the other 1/3 and either pay down this loan and/or invest in life-saving, durable, tangible goods.

Thanks for the help and warm welcome everyone. It's cool how we know the same areas. I've heard many things about Sand mountain and have explored NE AL a bit (Ft Payne, Mentone areas).

I am teaching in a low-income district and do qualify for $5k loan forgiveness after 5 years of teaching (only 4 more to go!). I am counting on doing that, so in my mind I am focusing on having $17k left. It is a 10-year loan at 5.5% interest set to be paid off in 2020.

Expenses are much higher than they were because I am living by myself at the moment (previous roommate got married). After paying the bills (including the loan) I have about $200/mo to do whatever I want with. I have been applying to schools near my family so I can move back home and live rent-free (my family lives on a farm in a small town). There is a chance a friend might move here and begin work soon, and we would then share an apartment, but she doesn't know if she got the job yet or not.

With the $200/mo, currently I am using it mostly to buy a lot of food and supplies. Stocked up a nice little bit so far. Some good friends also began teaching me how to use firearms and I have a couple now for self-defense and for hunting.